Biogen to pay $1.25bn to Forward Pharma in licensing deal
Biogen and Forward Pharma, a Denmark-based company, have entered into a settlement and licensing agreement under which Biogen will pay Forward Pharma $1.25 billion.
The licensing agreement will give Biogen an irrevocable licence to all intellectual property owned by Forward Pharma.
Under the settlement, Biogen will also pay Forward Pharma royalties on net sales of Biogen products for the treatment of multiple sclerosis (MS) that are covered by a Forward Pharma patent.
Michel Vounatsos, CEO of Biogen, said: “We are very pleased to have reached this settlement with Forward Pharma. We believe this agreement will clarify and strengthen our intellectual property for Tecfidera (dimethyl fumarate), the leading oral therapy for multiple sclerosis.”
The settlement and agreement do not resolve an ongoing interference proceeding and litigation in the US and EU. The interference proceeding will decide which company was first to invent a treatment for MS with 480mg daily dose of DMF, the active ingredient in Tecfidera.
Biogen and Forward Pharma intend to permit the Patent Trial and Appeal Board, the US Court Appeals for the Federal Circuit, the European Patent Office, and the EPO’s Technical Board of Appeal and Enlarged Board of Appeal to make a final decision in the proceedings.
Florian Schonharting, chairman of Forward Pharma’s board of directors, said: “We are excited to enter into this agreement with Biogen and believe it is in the best interests of Forward shareholders.”
He added that the agreement limits Forward Pharma’s “downside risk” should it not be successful in either the US or European proceedings.