NEW YORK (Thomson Financial) - Shares of Maxygen Inc. tumbled in morning
trading Friday after the company filed a notice informing investors that it
might face a patent challenge from Amgen Inc. as it tries to develop and
commercialize its MAXY-G34 product candidate.
The stock sank 26.9% to a new 52-week low of $3.54, trading on nearly ten
times the 30-day average volume of 123,763 shares.
MAXY-G34 is being developed for the treatment of neutropenia, a
hematological disorder, using granulocyte colony-stimulating factor (G-CSF)
molecules. On June 3, Amgen was granted a patent with certain claims to G-CSF
hybrid melecules, and Maxygen warned that Amgen may contend MAXY-G34 falls under
that patent.
MAXY-G34 is still in Phase II clinical trials.
The Amgen patent, which expires in 2015, is overly broad, Maxygen said, and
the the claims of the patent are invalid. MAXY-G34 is currently exempt from
patent infringement liability because it is still in early stages of testing. If
Amgen elects to sue Maxygen once the product is ready for commercialization, the
company said it is ready to defend any such suits with valid and viable
arguments.
However, "If we are unable to show that Amgen's patent is invalid and we are
unable to obtain a license from Amgen for the use of their intellectual
property, this may materially impact our ability to manufacture and sell
MAXY-G34," the company said.
Cowen & Co., which rates Maxygen at outperform, said if Maxygen is unable to
overturn the patent, this might cause a two-year delay in the commercialization
of MAXY-G34, a worst-case scenario.
Christie Rizk
cr/vj
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