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16 August 2022AmericasStaff Writer

Japanese pharma company wins arbitration over cancer drug

Dispute over the Enhertu (Trastuzumab deruxtecan) began in 2019 | Antibody drug conjugate tech at issue | American Arbitration Association issued final decision.

An arbitrator has ruled in favour of Daiichi Sankyo over an agreement between the Japanese pharmaceutical company and biotech Seagen.

The pair have been embroiled in a dispute over the sale of Daiichi Sankyo’s cancer drug Enhertu (Trastuzumab deruxtecan) for a number of years, with Seagen alleging that the technology used in Enhertu are improvements to its antibody drug conjugate (ADC) tech.

Prompted by communications from Seagen claiming certain IP rights related to Daiichi Sankyo’s ADC technology, in November 2019, Daiichi Sankyo filed a declaratory judgment action in the US District Court for the District of Delaware.

The parties had engaged in a collaboration agreement between the two companies from 2008 to 2015 for the use of Seagen’s antibody-drug conjugate (ADC) technology.

In response to Daiichi Sankyo’s action, Seagen filed an arbitration demand in connection with the dispute with the American Arbitration Association.

Late last week, both parties announced the outcome of the arbitration, which ruled in favour of Daiichi Sankyo.

According to Seagen, in ruling in favour of Daiichi Sankyo, the arbitrator cited the statute of limitations and disagreement with Seagen on the interpretation of the contract.

Roger Dansey, interim CEO and chief medical officer at Seagen, said: “While we are disappointed with the arbitration decision, it was important for us to pursue this legal action.

“This does not impact our existing business. Looking forward, we are well-positioned to drive continued innovation and growth with four commercial products and a deep and diverse pipeline of promising programmes. Seagen remains focused on developing innovative medicines that make a meaningful difference in the lives of cancer patients.”

Daiichi Sankyo said that it would retain all patent rights to its ADC technology and will continue to develop and commercialise these medicines as planned.

Sunao Manabe, president and CEO of Daiichi Sankyo, said: “We are extremely pleased that, based on the facts of this matter, the arbitrator recognised that Daiichi Sankyo retains ownership of all patents at issue in the arbitration and that our platform ADC technology was developed by Daiichi Sankyo.

“Daiichi Sankyo is proud of our legacy and strength in innovative science and technology and remains committed to bringing our ADCs to patients who need new standards of care in cancer treatment.”

Earlier this year, Seagen secured $41 million in damages from Daiichi, after a Texas court concluded that the Japanese company had wilfully infringed a patent through the sale of Enhertu.

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More on this story

Big Pharma
11 April 2022   The US Patent Trial and Appeal Board has agreed to review claims of a Seagen patent that Daiichi Sankyo was found to have infringed with its Enhertu breast cancer treatment.
Americas
21 July 2022   Japan-based pharma company must pay for infringment | Drug was recently approved for breast cancer treatment by EU.

More on this story

Big Pharma
11 April 2022   The US Patent Trial and Appeal Board has agreed to review claims of a Seagen patent that Daiichi Sankyo was found to have infringed with its Enhertu breast cancer treatment.
Americas
21 July 2022   Japan-based pharma company must pay for infringment | Drug was recently approved for breast cancer treatment by EU.