UPDATE: Biogen Sues MS Drug Makers Citing Avonex Patent
June 02 2010 - 11:57AM
Dow Jones News
Biogen Idec Inc. (BIIB) has filed a lawsuit against multiple
drug makers, claiming their multiple sclerosis treatments infringe
patents held by the Cambridge, Mass., biotechnology company.
The suit's claims are based on a patent issued in September
covering the use of beta interferon, including its popular Avonex
drug, for the treatment of MS.
The complaint covers other beta interferon products sold to
treat MS: Rebif, sold by Pfizer Inc. (PFE) and EMD Serono, a unit
of Germany's Merck KGaA (MKGAY, MRK.XE); Bayer AG's (BAYRY, BAY.XE)
Betaseron; and Extavia sold by Bayer and Novartis AG (NVS,
NOVN.VX). It was filed on Friday in the U.S. District Court in New
Jersey.
Biogen is seeking a judgment that the defendants are violating
its patent, as well as triple monetary damages including a royalty
on the sales of the drugs and lost profits from previous sales. It
is not seeking to have the competing drug taken off of the
market.
"We did offer to license the patent to other manufacturers...but
no agreement was reached," Biogen spokeswoman Christina Chan said.
The companies did "have conversations," according to Chan, but she
declined to comment further citing the continuing litigation.
Merck spokesman Gangolf Schrimpf said that the two companies
have "clearly different views" on the patent infringement
claims.
"We will discuss with Biogen about the merit of the case.
Obviously we will also defend our position in court," he said.
A Bayer spokeswoman said the company will "vigorously defend
itself" against the suit. A Novartis spokesman declined to comment,
citing policy, and officials from Pfizer weren't immediately
available.
Avonex, approved in 1996, brought in 2009 revenue of $2.3
billion for Biogen. The patent issued in September expires in
2026.
Betaseron was approved in 1993 in the U.S. and had global sales
of about $1.4 billion last year. Rebif was approved in 2002 and had
$1.9 billion in 2009 sales. Extavia came to the U.S. market just
last year and had just $49 million in sales.
Multiple sclerosis is a chronic, inflammatory condition that can
be disabling in advanced stages. It affects an estimated 400,000
people in the U.S.
The forms of beta interferon make up the most common treatments,
but can cost more than $25,000 a year. There is no cure for the
disease, but the drugs help to reduce relapses by toning down the
body's immune system from attacking the nervous system.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169;
thomas.gryta@dowjones.com
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