Abbott prevails as US Court of Appeals overturns $1.8 billion patent verdict for J&J unit

There was bad news for Centocor Ortho Biotech, a Johnson & Johnson (NYSE: JNJ) company, yesterday, after it received a decision from the US Court of Appeals for the Federal Circuit in Washington DC overturning a 2009 federal court jury verdict that awarded the company $1.67 billion after finding Abbott Laboratories (NYSE: ABT) liable for patent infringement involving Abbott’s biggest selling product, Humira (adalimumab), which generated sales of $6.55 billion last year, including $2.87 billion in the USA.

Abbott welcomed the decision, which is clearly a significant victory for the company. However, investors were less impressed as its shares fell about 1% to $46.47. J&J shares closed down less than 1% at $60.39.

A panel of the court ruled that the patent relating to Centocor anti-tumor necrosis factor (TNF) -alpha rheumatoid arthritis treatments - was invalid. The Appeals Court ruled that J&J did not provide sufficient written evidence of its claim to the first biotech drug to treat arthritis and other immune disorders