Genentech, Inc. and Protein Design Labs, Inc. (PDL) announced that the companies have reached an agreement in principle to resolve their dispute relating to PDL’s antibody humanization patents and certain of Genentech’s humanized antibodies.
The parties are working toward an agreement, which would include Genentech’s exercise of licenses under the patent licensing master agreement between the parties for Xolair and for Raptiva. In addition, following Avastin approval by the FDA, Genentech would agree to exercise a license for Avastin promptly after approval. In exchange, and as part of a broader settlement between the parties, PDL would agree to certain royalty reductions for significant levels of annual aggregate sales and the parties would agree to resolve and settle their disputes regarding infringement of these Genentech products and the validity and enforceability of PDL’s patents. Additional terms were not disclosed. The parties are working to conclude a definitive settlement arrangement by the end of December 2003.
As disclosed previously, Genentech had advised PDL that it had determined that Xolair was not covered under the claims of PDL’s relevant antibody humanization patents. The companies subsequently have conducted confidential discussions regarding whether or not Xolair would be covered. The scope of discussions was expanded to include Raptiva and Avastin.
Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for significant unmet medical needs. Sixteen of the currently approved biotechnology products originated from or are based on Genentech science. Genentech manufactures and commercializes 12 biotechnology products in the United States. The company has headquarters in South San Francisco, California.
Protein Design Labs is a recognized leader in the discovery and development of humanized monoclonal antibodies for the treatment of disease. PDL currently has antibodies under development for autoimmune and inflammatory diseases, and cancer. PDL holds fundamental patents for its proprietary antibody humanization technology.