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Biotech / Medical : Biotech News

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From: tom pope3/20/2012 11:55:21 AM
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WSJ


Justices Invalidate Two Patents on Medical Test

By BRENT KENDALL The Supreme Court on Tuesday unanimously ruled two patents on a medical test were invalid, dealing a defeat to a biotechnology company in a case with broader implications for the industry.

The court rejected two patents held by Nestlé SA NSRGY -0.31% unit Prometheus Laboratories Inc. for a test that helps doctors set drug dosages for patients with Crohn's disease.

The case was considered a key test of how far companies can go in patenting medical diagnostic tests, which can be used to screen patients for diseases and test whether a person can benefit from a particular treatment.

The high court, in a 9-0 ruling by Justice Stephen Breyer, said the patents were invalid because they made claims on laws of nature, which aren't patentable.

Justice Breyer wrote that Prometheus's patent claims "threaten to inhibit the development of more refined treatment recommendations."

The ruling was a win for the Mayo Clinic, which wants to offer a competing medical test. Mayo argued the Prometheus patents improperly sought to claim a patent monopoly on the right to observe a natural phenomenon: how the human body reacts to ingesting certain drugs.

Leading medical groups supported Mayo in the case, arguing that no one should enjoy exclusive patent rights to tests that observe the human body's natural response to illness or treatments.

The ruling was a setback for biotechnology and drug companies such as Roche Holding AG RHHBY -0.02% and Abbott Laboratories, ABT +0.37% which argued that such patents are key to protecting investments in medical advances.

Among the best known medical testing patents are those held by Myriad Genetics Inc., MYGN -5.58% allowing the company to be the exclusive provider of screening tests that identify patients at risk for breast and ovarian cancers. Those patents are also being challenged in federal court.

The case is Mayo Collaborative Services v. Prometheus Laboratories Inc., 10-1150.
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