Merck to pay PDL $19.5m in settlement agreement

Merck and PDL Biopharma have settled a dispute over Merck’s cancer drug Keytruda (pembrolizumab), which allegedly infringed a patent belonging to PDL.

Keytruda is a humanised antibody product used for the treatment of cancer. PDL owns numerous patents relating to humanised a ntibodies and methods of making them.

Under the terms of the agreement, announced on Monday, April 24, Merck will pay PDL $19.5 million, while PDL will give Merck a royalty-free and non-exclusive licence to certain patent rights for use in connection with Keytruda.

The companies have agreed to dismiss all claims in the relevant legal proceedings.

John McLaughlin, president and CEO of PDL, said: “We are pleased to resolve this patent infringement lawsuit with Merck with a favourable monetary settlement to PDL as well as eliminating potential future litigation costs related to this matter for both parties.”

He added: “As a result of this settlement, we expect to recognise $19.5 million in licence revenue for the second quarter ending June 30, 2017.”

PDL sued Merck back in January 2016 at the US District Court for the District of New Jersey, alleging infringement of US patent number 5,693,761.