An ugly spat between local biotech firm ZymoGenetics and the vastly larger California-based drug company Amgen was settled on December 23. The dispute erupted when ZymoGenetics sued, claiming Amgen’s expected blockbuster anti-arthritis drug Enbrel utilized processes infringing on six ZymoGenetics patents.
ZymoGenetics had filed suit last March against local firm Immunex–which was later purchased by Amgen in July for $16 billion–charging that Enbrel, expected to generate about $1.3 billion in sales next year and $5 billion by 2005, was manufactured using proprietary Ig Fusion recombinant DNA technology [“Drug War,” Josh Feit, Dec 5]. First Immunex and then Amgen had denied the assertion, and the dispute had been slated to go to trial in February 2003.
In the unexpected out-of-court settlement, Amgen (and partner Wyeth) agreed to a one-time payout in exchange for a non-exclusive, worldwide license for the ZymoGenetics technology.
ZymoGenetics spokesperson Susan Specht described the settlement as “a victory” since Amgen was acknowledging use of the Zymo process, and added the company was “very pleased” with the outcome of the lawsuit. She said, however, that the settlement terms enjoined her from revealing the size of the Amgen payout. An Amgen spokesman said settlement negotiations began soon after the Immunex sale, and the company was happy to see the matter finally resolved.
Amgen is the second drug company to license the Ig Fusion process, which enables proteins to be bound together, Specht said.
On the same day as the announcement, Amgen revealed that the Food and Drug Administration had approved the company’s Enbrel manufacturing facility in Rhode Island, and stated that significant supplies of the drug are now available to patients. The company believes that some one million arthritis sufferers are likely to benefit from Enbrel therapy.
ZymoGenetics, the third largest biotech firm in Washington, employs about 350 people and had 2001 sales of only $17.8 million. Amgen, which bills itself as “the world’s largest independent biotechnology company,” expects total revenues of about $7.5 billion in 2003.
