Arbitrator rules in favor of Daiichi in dispute with Seagen

An arbitrator issued a decision on Friday in a dispute between Japan’s Daiichi Sankyo (TYO: 4568) and the USA’s Seagen (Nasdaq: SGEN), denying all claims made by Seagen. Specifically, Daiichi Sankyo retains all patent rights to its antibody drug conjugate (ADC) technology and will continue to develop and commercialize these medicines as planned

The question was had Daiichi Sankyo used some of Seagen’s know-how that would give Seagen sales rights for three drugs - Enhertu (trastuzumab deruxtecan), which is being developed with the UK’s AstraZeneca (LSE: AZN), DS-1062 and U3-1402, a HER3-directed ADC. Shares of Seagen were down 2.4% at $169.89 in afternoon trading.

“While we are disappointed with the arbitration decision, it was important for us to pursue this legal action,” said Dr Roger Dansey, interim chief executive and chief medical officer of Seagen. “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 programs. Seagen remains focused on developing innovative medicines that make a meaningful difference in the lives of cancer patients,” he added.