San Francisco, Aug 28: Biotechnology rivals Genentech Inc. and Amgen Inc. have settled a long-running patent dispute over the technology used to produce one of Amgen's top-selling products. Genentech sued seven years ago in US district court alleging that Amgen had infringed on three of its patents while developing Neupogen, a drug used to fight infections in cancer patients undergoing chemotherapy.
Last year, Neupogen sales brought Amgen $1.3 billion.
Under terms of the settlement announced yesterday, Amgen agreed to make a one-time payment to Genentech, but the company said it would not license any of Genentech's patents. Financial terms were not disclosed.
As part of the deal, the companies agreed to drop the claims they brought against each other over the disputed technology, which involved the genetic engineering of bacteria to produce human proteins.
Amgen said the settlement would affect its third-quarter earnings by less than 5 cents per share. The settlement is expected to boost Genentech's results by 20 cents per share.
Amgen, based in thousand oaks, California, is the world's largest biotechnology company, followed by south San Francisco-based Genentech.
Amgen's shares rose 20 cents to close at $65.73 on the Nasdaq stock market yesterday. Genentech shares gained 65 cents to close at $79.15 on the New York stock exchange.
Bureau Report