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Daiichi Sankyo Secures Victory in Patent Arbitration Dispute with Seagen
Daiichi Sankyo Secures Victory in Patent Arbitration Dispute with Seagen
Background of the Dispute:
Daiichi Sankyo has emerged victorious in its long-standing patent arbitration battle with Seagen, a dispute rooted in the technologies used in the Japanese pharmaceutical giant’s AstraZeneca-partnered antibody-drug conjugate (ADC), Enhertu (fam-trastuzumab deruxtecan-nxki). The conflict began in 2008 when the companies partnered to develop ADC therapies targeting solid tumors. This collaboration, which ended in 2015, laid the groundwork for the patent dispute that has since unfolded.
Arbitration and Legal Proceedings:
In August 2022, an arbitrator ruled in favor of Daiichi Sankyo, declaring Seagen’s patent claims invalid. This decision resulted in an award of approximately $45.5 million in attorneys’ fees and costs to Daiichi Sankyo. Seagen challenged this ruling, seeking to have it vacated. However, their appeal was denied by a federal court in April 2024, which also added interest to the award, bringing the total amount Seagen must pay to $47 million.
Seagen's Legal Battles and Pfizer's Role:
Seagen, which Pfizer acquired for $43 billion in March 2023, failed to appeal the federal court's decision within the set deadline, thereby solidifying Daiichi Sankyo's win. Despite this recent setback, Seagen has seen legal victories in related matters. A civil action suit filed by Seagen in 2020 over the same patent infringement issue resulted in a jury awarding the company $41.82 million in April 2022. Additionally, in October 2023, the District Court for the Eastern District of Texas ruled in favor of Seagen, mandating Daiichi Sankyo to pay an 8% royalty on all Enhertu sales from April 1, 2022, through November 4, 2024.
Ongoing Patent Disputes:
The broader patent conflict between Pfizer and Daiichi Sankyo remains unresolved. In January 2024, the U.S. Patent and Trademark Office invalidated Seagen’s patent 10,808,039, which covers the use of auristatin peptides in ADCs through a specific linker technology. Despite this ruling, the ongoing litigation reflects the complexity and high stakes involved in patent disputes within the pharmaceutical industry.
Financial and Strategic Implications:
Seagen’s legal troubles trace back to 2019, when the company alleged that Daiichi Sankyo owed it a share of the Japanese firm's $6.9 billion contract with AstraZeneca. Enhertu, the centerpiece of this deal, utilized technology developed during their partnership. Daiichi Sankyo responded by filing a Declaratory Judgement in November 2019, asserting that Seagen’s claims lacked merit.
Conclusion:
Daiichi Sankyo’s recent arbitration win and the subsequent court rulings underscore the contentious nature of patent disputes in the pharmaceutical sector. While this particular battle over attorney’s fees and costs has concluded in Daiichi Sankyo’s favor, the ongoing legal skirmishes between Pfizer and Daiichi Sankyo signal that the overarching patent war is far from over. The outcomes of these disputes will significantly impact both companies' financial strategies and their positions in the competitive ADC market.
- In August 2022, an arbitrator ruled in favor of Daiichi Sankyo, declaring Seagen’s patent claims invalid.
- A civil action suit filed by Seagen in 2020 over the same patent infringement issue resulted in a jury awarding the company $41.82 million.
- Despite this ruling, the ongoing litigation reflects the complexity and high stakes involved in patent disputes within the pharmaceutical industry.
