Biogen to pay out $1.25 billion to settle Tecfidera patent dispute

17 January 2017
2019_biotech_test_vial_discovery_big

Danish biopharma a company Forward Pharma (Nasdaq: FWP) has entered into a binding agreement with two wholly-owned subsidiaries of Biogen (Nasdaq: BIIB) on a settlement and license agreement, with the news sending Forward’s sharing surged 61% to $29.59 in premarket trading on Tuesday.

US biotech major Biogen will pay Forward a non-refundable cash fee of $1.25 billion in connection with the execution and delivery of the license agreement. Under certain circumstances, Biogen will also be obligated to pay Forward royalties of up to 10%-20% of net sales of Biogen products, including Tecfidera (dimethyl fumarate), approved for the treatment of multiple sclerosis that are covered by a Forward patent and have dimethyl fumarate (DMF) as an active pharmaceutical ingredient.

Tecfidera generated sales of $1.03 billion in the third quarter of 2016, accounting for about a third of Biogen's sales in the period.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK

Companies featured in this story

More ones to watch >


Today's issue

Company Spotlight





More Features in Biotechnology