NOVARTIS SUES GLAXO SMITH KLINE OVER VACCINE PATENT

Sunday, 16th August

Novartis, the Swiss drugs giant, has launched a legal action against Glaxo Smith Kline claiming that its larger rival is infringing one of its patents.

The move, which will be fiercely resisted by the British company, is the latest twist in a bitter dispute that centres on the techniques used to produce a set of vaccines aimed at preventing childhood illnesses, including bacterial meningitis.

It is unusual for the large drugs companies to sue each other, but the case underscores the importance to all drug developers of protecting their intellectual property — their key asset. Vaccines in particular are becoming a growth area for the big pharma companies.

Sources close to Glaxo, headed by chief executive Andrew Witty, say that the company first registered a patent covering the process used in the production of its version of these “conjugate” vaccines in 1981.

Two decades later, Novartis lodged a patent covering a technique used in the production of a number of its own vaccines tackling this type of disease.

Last year, lawyers for Glaxo kicked off proceedings in London and Belgium to try to get the Novartis patent revoked. A source familiar with the case claimed that the Novartis patent was “weak” and “should never have been granted”. A hearing is scheduled for next January.

Daniel Vasella, the Novartis chief executive, is attempting to resist the move by Glaxo by launching an action in the High Court. The firm has lodged a claim against two Glaxo subsidiaries, GSK Biologicals and Smithkline Beecham.

Full story: http://business.timesonline.co.uk/tol/business/industry_sectors/health/article6797752.ece