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March 17, 2022

Alexion reaches $775M settlement in patent dispute

By Michelle Tuccitto Sullo

Alexion, AstraZeneca’s Rare Disease group, will pay $775 million to settle patent litigation filed against it related to the drug Ultomiris.

Per the terms of the agreement, Alexion and the Tokyo-headquartered Chugai Pharmaceutical Co. Ltd. will withdraw all patent infringement proceedings related to the companies’ dispute. The litigation has been pending in U.S. District Court in Delaware and Tokyo District Court. 

Alexion will make a single payment of $775 million in the second quarter of 2022, according to a press release.

Alexion CEO Marc Dunoyer said in a statement, “With this settlement, we will continue to advance our Ultomiris development programs in new indications and focus on our mission to transform the lives of people affected by rare diseases.”

Ultomiris, or ravulizumab, is prescribed to treat rare blood disorders such as PNH (paroxysmal nocturnal hemoglobinuria) and aHUS (atypical hemolytic uremic syndrome) in the U.S., European Union and Japan.

Alexion had been studying Ultomiris as a potential treatment for amyotrophic lateral sclerosis, or ALS, but stopped a clinical trial last year after determining it wasn’t effective at treating the disease.

Chugai originally filed litigation in 2018 against Alexion in U.S. District Court in Delaware alleging patent infringement. Chugai also pursued litigation against Alexion in Tokyo District Court relative to Japanese patents. The litigation sought damages and injunctive relief. 

Alexion, meanwhile, had challenged the validity of Chugai’s patents. Courts in Japan had found the patents to be invalid, which Chugai has been appealing. European patent officials had maintained one patent and revoked others, with European decisions also being appealed.

Alexion is headquartered in Boston, though it has offices worldwide and its products serve patients in about 50 countries. The company has a local presence, with roughly 500 employees working at its research facility at 100 College St. in New Haven.

U.K.-based AstraZeneca acquired the company in a $39 billion buyout last year.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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