Pharmaprojects R&D Pipeline News Feed
Patent infringement leads to growth stunt for Insmed
15th Mar 2007
Following the decision of a US jury in late 2006 that Insmed had infringed Genentech's patent rights relating to its growth retardation therapies, the two companies have reportedly struck a settlement agreement. The dispute centred on competing treatments for growth failure - Tercica's Increlex (somatomedin-1) that is licensed from Genentech, and Insmed's Iplex (mecasermin rinfabate). Both products were launched in the US.
Under the terms of the settlement, Insmed will withdraw Iplex from the US market as a treatment for primary IGF-1 deficiency, and withdraw its EU marketing authorisation application, leaving Tercica with market exclusivity in this indication. However, as part of the agreement, Insmed will be given licensing and development rights for the use of Iplex in certain non-short stature indications.
As expected, the settlement has seen Tercica's share price increase (it is up by 20%), while Insmed is to reduce its workforce by 34% as part of restructuring. In response to the terms, Dr Geoffrey Allan, CEO of Insmed said: "We do give up short-term revenues, but remain on track to develop the product in patients with HIV-associated adipose redistribution syndrome and myotonic muscular dystrophy".
