NVS Novartis AG

By Carlo Martuscelli

Novartis AG (NOVN.EB) said that, together with a partner, it has decided to revoke a patent that helped protect the intellectual property of its cell therapy Kymriah after a challenge by two non-governmental organizations.

In a letter dated to the end of November, lawyers representing the owners of the patent asked the European Patent Office to retract the protection.

The revocation decision follows a challenge by two non-governmental organizations--Public Eye and Medecins du Monde--filed at the EPO. They opposed the patent on grounds that the technology behind Kymriah--a type of cancer treatment known as CAR-T therapy--wasn't novel. In September, lawyers withdrew a pending application for another Kymriah patent without providing any reason.

Patrick Durisch, health policy expert at Public Eye, told Dow Jones Newswires on Monday that the high costs associated with Kymriah--which has a list price of $475,000 in the U.S.--motivated the challenge.

He hoped that, following the setback, the Swiss drug maker's negotiating position would be weakened, allowing national governments to strike better deals for the treatment.

In the revocation letter, layers representing the patent owners said that their opponents' arguments are "without merit."

In a separate statement, a Novartis spokesman said that the patent wasn't critical for Kymriah's continued development or marketing. The intellectual property is owned by the University of Pennsylvania and exclusively licensed to the pharmaceutical company.

"The important thing is to send a signal," Mr. Durisch said. "It's not about abolishing the patent system, it's about correcting abuses."

The policy expert added that there was still a lot of potential for patents in the field of cell therapy, but that they should only be granted when there was some merit behind the claims.

Write to Carlo Martuscelli at carlo.martuscelli@wsj.com; @carlomartu

(END) Dow Jones Newswires

December 16, 2019 11:06 ET (16:06 GMT)

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