Eli Lilly in disbelief over patent suit loss

Judges in Massachusetts have ordered Eli Lilly to pay $65.2 million (35.2 million pounds) in compensation to a group of companies and bodies claiming that Lilly infringed patents in two of its products, osteoporosis drug Evista and its septic shock drug, Xigris.

In a joint action, Ariad, the Massachusetts Institute of Technology, The Whitehead Institute for Biomedical Research and the governing board of Harvard College of Harvard University, filed for damages against Lilly. A unanimous jury found Lilly to be guilty of infringing patents involving the regulation of NF-(kappa)B cell-signalling transmitters.

Harvey J. Berger, chief executive officer and chairman of Ariad, said: “We are extremely pleased with the jury’s verdict supporting our assertions regarding Lilly’s infringement of our patent and its validity.”

“While Lilly has the right to challenge the verdict in the trial court and on appeal, and certain limited issues relating to validity and enforceability of our patent remain pending before the judge, we are confident that we will prevail in the trial court and the verdict will be upheld by the appeals court, if Lilly files an appeal,” he concluded.

Lilly’s senior vice-president and general counsel, Robert A. Armitage, responded to the decision with disbelief. He said: “The Ariad position is equivalent to discovering that gravity is the force that makes water run downhill and then demanding the owners of all the existing hydroelectric plants begin to pay patent royalties on their use of gravity.”

He added: ” In my more than thirty years of experience in patent law, which includes involvement in dozens of patent lawsuits, I’ve never seen a jury verdict with which I so strongly disagree; the finding of infringement stands at odds with the most basic premise of the patent system.”

Last month Lilly announced that one of the drugs involved in the patent battle, Evista, brought in $241.6 million worth of sales according to the firm’s first quarterly results. It also said sales in Xigris grew as well.

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