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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?


To: Doc Bones who wrote (7965)3/6/2003 4:01:24 AM
From: sim1  Respond to of 52153
 
University's Drug Patent Is Invalidated by a Judge

By ANDREW POLLACK [NYT]

March 6, 2003

A federal judge yesterday invalidated a broad patent held by the University of Rochester on a popular class of painkillers and dismissed the school's lawsuit seeking royalties from Pharmacia and Pfizer on sales of their big-selling drug Celebrex.

The decision is a big blow to the university, which had envisioned billions of dollars in royalties that would have helped turn its medical school into a research powerhouse. When the patent was granted and the patent infringement lawsuit was filed in April 2000, school officials predicted the patent might become the most lucrative ever held by a university.

That is because Celebrex is one of the world's best-selling drugs, with worldwide sales of $3 billion last year, of which $2.4 billion came from the United States. If the university had won, it would also have been in a position to seek royalties on sales of other painkillers of the same type, known as Cox-2 inhibitors, like Merck's Vioxx.

But Judge David G. Larimer of United States District Court in Rochester ruled the patent invalid because it did not contain a detailed enough written description of the invention nor enough information to enable others to duplicate the work.

The university's patent covered a method for treating pain and inflammation by inhibiting the Cox-2 enzyme and a test to screen potential drug candidates. But the university did not develop a drug nor specify sufficiently how such a drug could be developed, Judge Larimer said. Therefore, although university scientists made an important discovery, he said, it "did not blossom into a full-fledged complete invention."

"While the court does not mean to suggest that the inventors' significant work in this field is on a par with alchemy, the fact remains that without the compound called for in the patent, the inventors could no more be said to have possessed the complete invention claimed by the '850 patent than the alchemists possessed a method of turning base metals into gold," he wrote in his 33-page decision, referring to the last digits of the university's patent number.

The university said it would appeal, and added that the ruling could hurt universities, which often make fundamental discoveries but do not go on to develop commercial products. "While courts are comfortable with narrow patents, there is widespread interest among research universities in ensuring that our broader, more basic research work is likewise protected by the nation's patent laws," Thomas H. Jackson, the university's president, said in a statement.

Richard T. Collier, the general counsel of Pharmacia, said in a statement that the decision "confirms what we have said all along that the University of Rochester's patent was invalid on its face" and that the university "had no role in the discovery or development of Celebrex."

Pfizer, which helps market Celebrex, has agreed to buy Pharmacia, which would give it all the revenue of Celebrex and of a newer Cox-2 inhibitor, Bextra. Shares of Pfizer rose 55 cents, to $29.19, while Pharmacia rose $1, to $40.55.

Rochester scientists led by Dr. Donald Young discovered in the 1980's and early 1990's that the Cox-2 enzyme was involved in inflammation and pain. Before then it was thought a different enzyme, now known as Cox-1, was involved. But it turned out that Cox-1 protects the lining of the stomach from acids.

Many painkillers, including aspirin, inhibit both Cox enzymes, reducing inflammation but also causing ulcers. Drugs that inhibit only Cox-2, like Celebrex, should cause fewer ulcers, although the Celebrex label includes an ulcer warning.

Patents like the university's, which covered an entire method of treatment, are somewhat controversial. Most drug patents cover a specific compound, allowing other drug companies to develop competing drugs that work the same way.

Pfizer itself received a patent last October covering a way of treating male impotence by inhibiting the same enzyme that is blocked by its drug Viagra. It promptly sued the developers of two competing drugs that are close to reaching the market and that work the same way as Viagra but are made with different compounds.

Gerald P. Dodson, the lawyer representing the university, said Pfizer's victory yesterday might hurt it in the Viagra case. "If our claims are flawed, then so are theirs," said Mr. Dodson, of Morrison & Foerster in Palo Alto, Calif.

Gerald Sobel of the law firm Kaye Scholer in Manhattan, who is representing Pfizer in both the Rochester and Viagra lawsuits, disputed that. In the case of the university's patent, he said, "there was no way to implement the method of treatment." In the case of the impotence treatment patent, he said, "there is a concrete way; there is a drug."



To: Doc Bones who wrote (7965)3/6/2003 2:51:13 PM
From: Biomaven  Read Replies (1) | Respond to of 52153
 
Here's yet another write up of the Celebrex patent decision, this time from the Boston Globe. I included it because it references the analogous cases filed by Pfizer and Ariad:

RULING HITS WIDE BIOTECH PATENT RIGHTS
Author(s):    Naomi Aoki, Globe Staff Date: March 6, 2003 Page: E1 Section: Business
A federal judge yesterday ruled that a patent laying claim to drugs blocking an enzyme known as Cox-2 involved in pain and inflammation is invalid, dismissing the University of Rochester's lawsuit against Pharmacia Corp. and Pfizer Inc. over their arthritis drug Celebrex.
The decision questions the validity of a growing number of similarly broad patents that cover methods of treating disease by regulating a gene, protein or biological pathway. At stake is billions of dollars for makers of blockbusters like Celebrex and universities and rivals asserting rights to a portion of those profits. In an opinion issued yesterday, US District Judge David G. Larimer wrote that the University of Rochester patent outlines "a wish or plan or a first step" for discovering a drug that selectively inhibits Cox-2 with the aim of treating inflammation. But, he wrote, it does not give enough information to enable another researcher to achieve that aim, a requirement of patent law.
"The decision strikes at the core of basic research," said Gerald P. Dodson, the attorney representing the University of Rochester. "It's the universities who do basic research that identify methods of treatment. From our viewpoint, this patent provides a blueprint."
Dodson said the university will appeal the decision.
In June, Cambridge's Ariad Pharmaceuticals Inc. filed a similar suit against Eli Lilly & Co., alleging that two of the pharmaceutical giant's drugs infringe its patent covering a way of treating disease by regulating a family of molecules known as NF-kB. Analysts predict the drugs, Lilly's osteoporosis medication Evista and its sepsis therapy Xigris, will reach $1 billion in annual sales. A judge is considering a motion to dismiss the case.
In October, New York-based Pfizer won a patent covering impotence treatments that block the action of an enzyme known as PDE5, the biological mechanism by which its top-selling Viagra works. On the day it received the patent, Pfizer filed suits against Bayer AG and its partner Glaxo SmithKline and Icos Corp. and its partner Eli Lilly to block the rivals from bringing to market impotence treatments that work much like Viagra.
Such sweeping claims are becoming increasingly common in the pharmaceutical field, but attorneys say they raise some nettlesome issues. Patents are meant to spur scientific advance by making public key discoveries. But if a party can lay claim to a significant piece of the biological landscape and any drug that treads upon it without actually discovering a drug, some question whether society loses more than it gains.
The law allows anyone who invents or discovers "a new and useful process, machine, manufacture, or composition of matter" to get a patent. The discovery can not be obvious to those who are trained in the field, and it must be sufficiently detailed as to allow others schooled in that field to reconstruct the invention.
Describing the importance of blocking a biological cascade of events in treating disease and methods of doing so in lab experiments is a major scientific contribution. But defendants in these cases claim it is a far cry from discovering and developing a drug that acts on the biological pathway to effectively treat disease. Legal scholars are split on whether the discovery is sufficient to merit a patent that lays claim to any treatment acting on the pathway.
Dodson argues that the patents protect the basic research done primarily by universities. Once a scientist shows that blocking a certain protein is useful in treating a disease, drug makers need only screen their libraries of compounds to identify a potentially lucrative drug. Without these patents, universities would reap none of the rewards while industry would stand to gain millions, potentially even billions of dollars.
Medically, the implications could be vast. A single pathway may be involved in a number of diseases, and a patent on it could be used to block research that could result in a variety of treatments. Even if the patent holder didn't aim to block competition, some fear the very existence of such patents would discourage others from working on the pathway out of fear of litigation. And since the way many drugs work remains a mystery, there is no guarantee that drugs on the market aren't already doing what is covered by a newly issued patent.
"If it becomes clear that the method covered by the patent was already in practice, then the patent becomes invalid," said Kathleen Madden Williams, cochairwoman of the patent practice at Palmer & Dodge LLP. "So these patents have the potential to be tremendously valuable, but they live under a cloud."
Naomi Aoki can be reached at naoki@globe.com.