Protein Design Shares Fall on News of Suit
From Associated Press
Shares of biotechnology firm Protein Design Labs Inc. lost a quarter of their value after the company announced it was fighting with Genentech Inc. over rights to a recently approved asthma drug.
Fremont-based Protein Design asserts biotech giant Genentech used the smaller firm’s technology to develop the drug Xolair. Protein Design argues that it is entitled to a cut of future sales, which analysts predict could reach $850 million annually by 2007.
Protein Design said it was owed money under the firms’ 1998 deal to share antibody technology. Xolair was approved in June to treat asthma caused by allergies.
Protein Design shares fell $3.65, or 25%, to $10.85 on Nasdaq. Genentech shares gained 97 cents to $77.25 on the New York Stock Exchange.
