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Biotech / Medical : VD's Model Portfolio & Discussion Thread

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To: rkrw who wrote (6195)12/28/1998 5:16:00 PM
From: scaram(o)uche  Read Replies (1) of 9719
 
>> I've been told
by TKT that HMR licensed the CEGE patents to cover all angles, however the
technology is not being used for it <<

I believe you, of course, but I'm not certain that I believe the person that you were talking to.

From my first-blush look (about 1 1/2 years ago), I got the distinct idea that the breadth of the CEGE claim did cover methods that were used to construct the TKTX cell line, and that TKTX had used YAC libraries. Haven't seen anything since that convinces me otherwise, and Hoechst wouldn't give away even a low, single-digit royalty without plenty of study.

The question of whether or not TKTX is infringing AMGN is another issue, however, and will boil down to definitions of "heterologous", "exogenous", etc. and to the bucks thrown at attorneys. My very preliminary view is that TKTX does not infringe, and that anything that is produced in a heterologous host and where composition of matter is not available is free for the picking.

BJ.... sorry, but I misunderstood one of your earlier questions..... the first claim of the patent clearly covers in vitro production from mammalian cell lines.

Since you mentioned FSH (imagine you've seen this, from the CEGE 10-K)........

In February 1997, Cell Genesys executed a license agreement with Hoechst
Marion Roussel for erythropoietin and a second, undisclosed protein. The
agreement provides for up to $26 million in milestone payments and fees, in
addition to any royalties on future sales of these two potential gene-activated
protein products. Cell Genesys has earned $5.1 million through December 31, 1997
under this license.

In February 1994, Cell Genesys signed a licensing agreement with Theriak
A.G., a subsidiary of Akzo Nobel N.V. ("Akzo Nobel"), to develop and market Cell
Genesys' therapeutic protein product, gene-activated follicle stimulating
hormone ("FSH") for the treatment of infertility. Akzo Nobel was granted
worldwide rights to develop and market gene-activated FSH in exchange for
licensing fees, royalties and other payments to Cell Genesys. During 1995, Akzo
Nobel settled a patent dispute with another party related to recombinant FSH and
is now marketing this form of FSH subject to regulatory approval. Cell Genesys
has received $8.1 million in payments under the agreement and a 1996 amendment.
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