PDL Patent Claim Invalidated, Shares Slump
From Associated Press (January 10, 2011)
INCLINE VILLAGE, Nev. -- Shares of PDL BioPharma slumped by 11 percent Monday after the drug developer said a federal court ruled against it in a patent infringement claim.
The antibody Synagis is made by AstraZeneca’s Plc’s Medimmune unit. In the decision, the U.S. District Court for the Northern District of California said PDL’s patent infringement claim was invalid and that Medimmune did not violate a license agreement on royalties.
A jury will decide other claims by PDL, the company said, and a trial is scheduled to start in January. PDL said it is evaluating its options for the recent decisions, which includes a potential appeal.
PDL said Medimmune could request repayment on royalties if it prevails on a licensee claim. Medimmune has paid $280 million in royalty payments to Medimmune from 1998 to 2009.
Shares of PDL BioPharma Inc. fell 66 cents to cents to $5.51 in morning trading. The stock has traded between $4.97 and $7.30 over the last 52 weeks.
Posted: January 2011