Nov. 14 /PRNewswire/ -- Deltagen, Inc. (Nasdaq: DGEN - news) announced today that it has filed federal antitrust counterclaims under the Sherman Antitrust Act against Lexicon Genetics and GenPharm International in connection with the pending Delaware litigation over U.S. Patent No. 5,789,215. GenPharm is the owner of the '215 patent which relates to methods of modifying the genome of a target cell using targeting DNA sequences that are isogenic with the target DNA sequence. Lexicon is a licensee of the '215 patent. Deltagen's antitrust counterclaim alleges that Lexicon asserted a fraudulently procured patent (the '215 patent) against Deltagen in an attempt to illegally monopolize the market for production and sale of knockout mice, a violation of Section 2 of the Sherman Act. Deltagen asserts that Lexicon knew that the '215 patent was obtained by fraud and that the patent was invalid when it brought suit against Deltagen. Deltagen asserts that a material prior art reference was intentionally withheld from the U.S. Patent and Trademark Office during prosecution of the '215 patent. This prior art reference, U.S. Patent No. 5,464,764, describes the use of targeting DNA sequences which are 100% homologous to the target DNA sequence, a disclosure which Deltagen believes anticipates the '215 patent and renders it invalid. The counterclaim asserts that individuals responsible for prosecuting the '215 patent were aware of the prior art '764 patent and intentionally withheld it from the Patent Office. The antitrust counterclaim also charges Lexicon and GenPharm with conspiracy to monopolize the market for knockout mice, in violation of Section 2 of the Sherman Act, as well as with concerted conduct in restraint of trade, in violation of Section 1 of the Sherman Act. Deltagen is seeking damages including lost profits and legal fees, as well as a trebling of damages pursuant to Section 4 of the Clayton Act. In addition to Deltagen's antitrust counterclaims, Deltagen is seeking a declaratory judgment ruling from the court that Deltagen does not infringe the claims of the '215 patent and that the patent is invalid. Deltagen is also asserting that the patent was obtained by knowing and willful fraud on the U.S. Patent and Trademark Office rendering the patent unenforceable. Deltagen is a genomics and biotechnology company headquartered in Menlo Park, California, providing data to pharmaceutical and biotechnology companies on the function, role and disease relevance of mammalian genes. This information may facilitate the discovery and validation of drug targets to advance the development of new genomics-based medicines. Deltagen's principal target validation product, DeltaBase(TM), provides a library of in vivo derived mammalian gene function information. In addition to DeltaBase, subscribers can participate in the DeltaSelect(TM) target validation program and the Delta-GT(TM) program to discover secreted protein biotechnology drug candidates. Deltagen's current customers include Glaxo Wellcome plc, Merck Inc., Pfizer Inc., Roche Bioscience Inc. and Schering-Plough Research Institute. Deltagen's current DeltaBase subscriber is Glaxo Wellcome plc.... |