Elan wins $55.2m in damages after rival infringes medical patents

PHARMACEUTICAL FIRM Elan has won $55.2 million (€35.99 million) in damages following a case it brought against its rival, Abraxis BioScience, a US biotechnology company.

Following an eight-day trial, a federal court in Wilmington, Delaware, ruled yesterday that Abraxis BioScience had infringed a US patent for medicine used to fight breast cancer.

The court, which was supervised by chief US district judge Gregory M Sleet, also decided that the patent is valid and enforceable.

The patent covers tiny coated nanoparticles used intravenously to deliver paclitaxel for the treatment of metastatic breast cancer. The jury also decided another patent held by Elan, on a similar technology to deliver the particles, is valid and enforceable.

Elan first brought the case against Abraxis BioScience in 2006 claiming that the Abraxis drug, Abraxane, a nanoparticle formulation of paclitaxel, trespassed on two patents issued in the 1990s that cover methods of formulating anticancer drugs.

"Elan believes in the protection of its intellectual property," Gregory Bokar, the company's vice-president for intellectual property and litigation, said after the verdict. The court's $55.2 million award, which covers infringement since January 7th, 2005, represents 17 per cent of Abraxis's 2007 sales.

The company's drug, Abraxane, which accounted for 86 per cent of its revenue last year, was introduced three years ago and is sold in the US in agreement with AstraZeneca. Last year Abraxis recorded $288 million in sales of the drug. Breast cancer affects one in eight women and an estimated 155,000 women in the US are living with metastatic breast cancer. The medicine has been given to more than 30,000 patients, according to court papers.

Abraxane has been the subject of some studies at the American Society of Clinical Oncology. In one clinical trial, an Abraxane combination led to median progression-free survival of almost 16 months.

Industry commentators say the case may spark a big wave of new patent infringement cases dealing with nanotechnology, as more patents in nanotechnology accumulate and more products reach the market.

The award did not boost Elan's share performance. The stock closed down 1.7 per cent at €16.82 in Dublin. - (Additional reporting, Bloomberg)