In a decisive victory, biotech giant Amgen Inc. won a jury verdict Tuesday involving a patent case that could have allowed a competitor to muscle in on its lucrative anemia drug franchise.
The Thousand Oaks-based biotech's shares rose $1.58, or 2.8%, to $57.70 on the news.
Swiss drug maker Roche Holding Ltd. had planned to introduce an anemia drug under the brand name Mircera as early as this year. In an uncommon legal strategy, Roche sought to show that Amgen patents were invalid.
During the trial, Amgen adamantly defended its patents, which are not expected to begin expiring until at least 2011, saying they are based on innovations made by one of its scientists.
After a six-week trial in U.S. District Court in Boston, the jury found Roche's drug would infringe three of Amgen's patent claims.
"This is very good news for Amgen obviously," said Dale Hunt, an intellectual property law specialist and partner at Sonnenschein Nath & Rosenthal. "Even if Amgen's patents are only valid for a few more years, with a multibillion-dollar drug, every day of lost business means millions of dollars."
In a statement, Amgen said it was pleased with the jury's verdict Tuesday validating its patents.
Roche said in a statement that it was disappointed and was evaluating its legal options.
"Amgen has had an extended monopoly for the last 20 years in the U.S. blocking new therapeutic options to treat anemia from being introduced," said William Burns, chief executive of Roche's pharmaceutical division.
Recent studies have raised concerns that the anemia drugs might be harmful in some patients and at higher dosages. As a result, federal regulators and some private insurers have scaled back on reimbursement for the drugs.
Amgen said lower government and insurance reimbursements factored into the company's announcement this summer of layoffs of as many as 2,600 employees, or 14% of its staff.
Amgen's anemia drugs, Aranesp and Epogen, accounted for $7 billion in sales last year, nearly half its revenue. The drugs treat anemia by boosting red blood cell production and raising hemoglobin levels. A similar product, Procrit, is manufactured by Amgen but sold by Johnson & Johnson.
Having another competitor on the market in the midst of so much turmoil for Amgen could have turned an already difficult year into a dire one, analysts said. Some predicted that Mircera could have shaved hundreds of millions of dollars a year from the company's sales.
