Jury rejects bid for royalties on Genentech drug

Genentech Inc. doesn’t have to pay a Pennsylvania doctor for research used in the development of Lucentis, a treatment for degenerative eye disease, a Philadelphia jury decided Wednesday.

The nine-member jury rejected the claims of Kourosh Dastgheib, an ophthalmologist from Lebanon, Pa., who accused the South San Francisco-based company in 2004 of reneging on a promise to pay him royalties from the drug in exchange for his research slides of human eye specimens. Dastgheib’s lawyers said he was entitled to at least $1.2 billion.

“We’re very pleased that the jury agreed with us that Dr. Dastgheib is not entitled to any proceeds from Lucentis,” Genentech spokeswoman Robin Snyder said after the verdict. “Our scientists and collaborators spent more than a decade in research and development to bring this breakthrough treatment to patients.” Dastgheib and his attorneys had no comment.

Lucentis, introduced June 30, generated $153 million in third-quarter sales for Genentech, the world’s second-biggest biotechnology company. Dastgheib alleged that the company couldn’t have developed the drug without his underlying research and claimed that it denied him royalties and recognition for his contribution.

Genentech denied making an agreement on royalties and said it had no written contract with Dastgheib. Its lawyers said Dastgheib’s research had little effect on the drug’s development.