Biogen has agreed to enter into a settlement and license agreement with Forward Pharma, subject to the approval of Forward Pharma’s shareholders and other customary conditions. The license agreement will provide Biogen an irrevocable license to all intellectual property owned by Forward Pharma.
Upon the effectiveness of the settlement and license agreement, Biogen will provide Forward Pharma a cash payment of $1.25 billion. Under certain circumstances outlined in the agreement, Biogen will pay Forward Pharma royalties on net sales of Biogen products for the treatment of multiple sclerosis that are covered by a Forward Pharma patent and have dimethyl fumarate (DMF) as an active pharmaceutical ingredient.
“We are very pleased to have reached this settlement with Forward Pharma. We believe this agreement will clarify and strengthen our intellectual property for Tecfidera, the leading oral therapy for multiple sclerosis,” said Michel Vounatsos, chief executive officer of Biogen.
The settlement and license agreement does not resolve the issues pending in the ongoing interference proceeding in the U.S. or the opposition proceeding in the EU. Biogen and Forward Pharma intend to permit the Patent Trial and Appeal Board (PTAB), the US Court of Appeals for the federal circuit, the European patent office, and the technical board of appeal and the enlarged board of appeal, make a final determination in the proceedings before them.
Biogen discovers, develops and delivers worldwide innovative therapies for people living with serious neurological, autoimmune and rare diseases.