Genentech Faces Antitrust Suit by Bio-Technology on Growth Drug
New York, Feb. 26 (Bloomberg) -- Genentech Inc. is accused in an
antitrust suit of using fraudulently obtained patents for its human
growth drug to block Bio-Technology General Corp. from selling its
own products.
Iselin, New Jersey-based Bio-Technology filed the suit today in U.S. District Court in Manhattan. Bio-Technology also claims Genentech paid off officials at the University of California to drop their competing claims to the growth hormones, giving Genentech exclusive rights to sell the products in the U.S.
The suit is the latest chapter in a heated legal battle involving
Genentech, Bio-Technology and Novo Nordisk AS. Genentech, based in South San Francisco, California, won a court order blocking Bio-Technology from selling Bio-Tropin in the U.S. in 1995. Genentech is also fighting to block Novo Nordisk's Norditropin as it tries to protect its dominance of the U.S. market for human growth hormones. Genentech sells Protropin, Nutropin and Nutropin AQ growth hormones in the U.S. ''Genentech made fraudulent misrepresentations and fraudulent omissions,'' to the U.S. Patent and Trademark Office to get three patents for its growth hormones, the suit said. It used those invalid patents to win court rulings against Bio- Technology, the suit said.
Genentech also was accused of hiring researchers at the University of California who took material from the university that was important to the development of growth hormones. Growth hormones are used to treat children who grow at a below-average rate because of the inadequate hormonal secretion. Genentech had 1998 sales of growth hormones of $214 million, down from $223.6 million in 1997 primarily due to increased competition.
Paul Laland, spokesman for Genentech, said the company hadn't reviewed the lawsuit yet and couldn't comment on it.
Richard DeLucia, attorney for Bio-Technology, said the company hasn't yet determined how much money it wants from Genentech. The suit seeks triple damages and a court order preventing Genentech from trying to block Bio-Technology's Bio- Tropin sales in the U.S.
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