Little Financial Effect Seen : Amgen, Cetus Settle Suit on Cancer-Fighting Drug
Amgen Inc. and Cetus Corp., two of the nation’s leading biotechnology companies, announced Monday that they settled a patent dispute over the anti-cancer drug interleukin-2.
The drug, better known as IL-2, is a naturally occurring protein and immune system booster that has been found in clinical tests to turn a patient’s white blood cells into tumor-killing cells. Amgen and Cetus scientists developed different forms of the drug.
Under the settlement, Cetus gains domestic and foreign patent rights to Amgen’s version of the drug.
At the same time, Thousand Oaks-based Amgen can go ahead with the development, manufacture and sale of its version of the substance along with its licensee, the Ortho Pharmaceutical subsidiary of Johnson & Johnson. Cetus, of Emeryville, Calif., will receive undisclosed royalty payments on domestic sales of the Amgen-Ortho drug.
Amgen sued Cetus in U.S. District Court in San Francisco in August, 1986, seeking to overturn patents held by Cetus. Cetus countersued for patent infringement.
Although the settlement is one of the first among biotechnology companies involved in patent disputes, securities analysts said it is unlikely to have much financial impact on either company. For one thing, they said, the potential market for IL-2 is not known because its potential impact in cancer treatment is uncertain.
In over-the-counter trading Monday, Amgen’s stock was off $1.25, to close at $31 a share. Cetus was unchanged at $14.
S. Robert Kupor, a biotechnology analyst with Cable Howse & Ragen in Seattle, said Cetus is considerably ahead of Amgen and Ortho in getting the product to market domestically and abroad. Robert A. Fildes, Cetus’ chief executive, said the company plans to submit an application soon to the Food and Drug Administration for permission to sell the drug, which could possibly make it available by next year.
George B. Rathmann, Amgen’s chairman, said Amgen’s financial stake and potential profit from IL-2 were reduced considerably when it licensed the product to Ortho to raise money three years ago.
