INCLINE VILLAGE, Nev.,
July 11, 2011 /PRNewswire/ -- PDL
BioPharma, Inc. (PDL) (NASDAQ: PDLI) announced a favorable ruling
today, specifically, that on July 7,
2011, the Second Judicial District Court of Nevada ruled in
favor of PDL on two motions to dismiss filed by Genentech and
F. Hoffmann LaRoche, Ltd. (Roche) in
PDL's lawsuit related to the 2003 settlement agreement with
Genentech. The court denied Genentech and Roche's motion to
dismiss four of PDL's five claims for relief and, further, denied
Roche's separate motion to dismiss for lack of personal
jurisdiction. The court dismissed one of PDL's claims that
Genentech committed a bad-faith breach of the covenant of good
faith and fair dealing stating that, based on the current state of
the pleadings, no "special relationship" had been established
between Genentech and PDL as required under Nevada law.
Background on Litigation with Genentech
In August 2010, PDL received a
letter from Genentech, on behalf of Roche and Novartis, asserting
that Avastin®, Herceptin®, Lucentis® and Xolair® (the Genentech
Products) do not infringe the supplementary protection certificates
(SPCs) granted to PDL by various countries in Europe for each of the Genentech Products and
seeking a response from PDL to these assertions. PDL believes that
the SPCs are enforceable against the Genentech Products, that
Genentech's letter violates the terms of the 2003 settlement
agreement and that Genentech owes PDL royalties on sales of the
Genentech Products on a worldwide basis. In August 2010, in connection with the letter
described above, PDL filed a complaint in state court in
Nevada seeking to enforce PDL's
rights under its 2003 settlement agreement with Genentech and
seeking an order from the court declaring that Genentech is
obligated to pay royalties to PDL on ex-U.S.-based Manufacturing
and Sales of the Genentech Products. The complaint alleges that the
communication received from Genentech, which states that it was
sent at the behest of Roche and Novartis, damaged PDL and
constitutes a breach of Genentech's obligations under its 2003
settlement agreement with PDL. In November 2010, Genentech and Roche filed a motion
to dismiss PDL's complaint against them in which PDL seeks to
enforce its rights under the 2003 settlement agreement with
Genentech. Genentech and Roche's motions to dismiss under
Nevada Rule of Civil Procedure
12(b)(5) alleged that all of PDL's claims for relief relating to
the 2003 settlement agreement should be dismissed because the 2003
settlement agreement applies only to PDL's U.S. patents. In
addition, Roche filed a separate motion to dismiss PDL's complaint
under Nevada Rule of Civil Procedure
12(b)(2) on the ground that the Nevada court lacks personal
jurisdiction over Roche.
Effect of the Court's Ruling
The effect of the Court's ruling is that PDL is permitted to
continue to pursue its claims that:
- Genentech is obligated to pay royalties to PDL on international
sales of the Genentech Products;
- Genentech, by challenging, at the behest of Roche and Novartis,
whether PDL's SPCs cover the Genentech Products breached its
contractual obligations to PDL under the 2003 settlement
agreement;
- Genentech breached the implied covenant of good faith and fair
dealing with respect to the 2003 settlement agreement; and
- Roche intentionally and knowingly interfered with PDL's
contractual relationship with Genentech in conscious disregard of
PDL's rights.
PDL seeks compensatory damages, including liquidated damages and
other monetary remedies set forth in the 2003 settlement agreement,
punitive damages and attorney's fees as a result of Genentech and
Roche's conduct.
About PDL BioPharma
PDL pioneered the humanization of monoclonal antibodies and, by
doing so, enabled the discovery of a new generation of targeted
treatments for cancer and immunologic diseases. PDL is focused on
maximizing the value of its antibody humanization patents and
related assets. The Company receives royalties on sales of a number
of humanized antibody products marketed by leading pharmaceutical
and biotechnology companies today based on patents which expire in
late 2014. For more information, please visit www.pdl.com.
NOTE: PDL BioPharma and the PDL BioPharma logo are considered
trademarks of PDL BioPharma, Inc.
SOURCE PDL BioPharma, Inc.