Plexxikon gets $182 million in settlement with Novartis

Japanese drugmaker Daiichi Sankyo (TYO: 4568) announced that its subsidiary Plexxikon and Swiss pharma giant Novartis (NOVN: VX) have settled the patent infringement lawsuit against Novartis regarding the sale of the latter’s BRAF inhibitor Tafinlar (dabrafenib) in the USA.

The US District Court for the Northern District of California previously issued an order sustaining a jury verdict in favor of Plexxikon, finding that Novartis’s BRAF inhibitor Tafinlar infringes Plexxikon's US Patents 9,469,640 and 9,844,539. The court subsequently issued a judgment requiring Novartis to pay $177.8 million in damages, pre- and post-judgment interest, and a 9% royalty on US sales of Tafinlar until the expiration of the patents. Novartis commenced an appeal to the U.S. Court of Appeals for the Federal Circuit on October 27, 2022 seeking review of that judgment.

Under the settlement, Plexxikon will receive a lump sum payment from Novartis of approximately $182 million. The settlement will result in the dismissal of Novartis’s appeal and full satisfaction of the judgment entered against Novartis.