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6 April 2023Big PharmaMuireann Bolger

AstraZeneca prevails in GSK royalties row at UK High Court

Feud involved a blockbuster cancer drug belonging to a family of PARP inhibitors | GSK unit failed to persuade the court of the merits of its ‘certain uses’ argument.

AstraZeneca has secured a victory after the High Court of England and Wales ruled that it was owed royalties relating to the ovarian cancer drug  Zejula (Niraparib).

In a  decision handed down on Wednesday April 5, the court held that  GlaxoSmithKline’s (GSK) subsidiary,  Tesaro, was liable for the payments resulting from the sales of the blockbuster treatment.

GSK acquired Tesaro 11 years ago, including the rights to the drug that is part of a family of  PARP inhibitors, which interfere with certain enzymes that can help develop cancer cells.

Exclusive rights

The dispute emerged when AstraZeneca sued GSK in 2021, demanding a larger chunk of  the sales from Zejula.

In 2012, Tesaro signed a licensing contract agreement with AstraZeneca, which gave it exclusive rights to certain methods of treating patients with Zejula.

During the proceedings,Tesaro countered that it should only pay royalties concerning the uses specifically referred to by the licensed patents.

But  Justice David Richards rejected this point of view, holding that Tesaro owed royalties on all net sales of Zejula in each country in which it holds licensed patents.

In his conclusion, he pointed out that there was no suggestion that Tesaro has been selling Zejula for a purpose that includes anything other than as a treatment for cancer.

“In those circumstances, putting together all inferences, including those drawn from the wording of the licence agreement…I have reached the conclusion that AZ’s answer…is to be preferred. Tesaro is obliged to pay AZ royalties on all net sales of Zejula in each country in which there are licensed patents from the first commercial sale in that country.”

According to a report in  Reuters, Zejula sales in 2022 reached £463 million ($578 million).


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