Elan and Celgene settle over Abraxane; Watson re-challenges Shire Adderall XR patent

Ireland-based Elan (NYSE: ELN) says a subsidiary has entered into a settlement and license agreement with Celgene (Nasdaq: CELG) resolving the patent infringement litigation involving the breast cancer drug Abraxane (protein-bound paclitaxel). Elan initiated legal action in 2006 against Abraxis BioScience, which was acquired by Celgene last year for $2.9 billion (The Pharma Letter July 1, 2010).

In consideration of the terms of the settlement and license agreement, Celgene will pay Elan a one-time fee of $78 million. Elan will not receive any additional payments for sales of Abraxane, or any other nab-Paclitaxel product in the USA or globally. Celgene will acquire a fully-paid up, exclusive, world-wide license to select Elan US and foreign patents for the drug, which contributed $71 million in sales in the October 15 to December 31, 2010, period to Celgene’s turnover. The US company plans to invest in a sales force to sell the drug for breast cancer in Europe starting in the second half of this year.

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