Hospital, Celgene Fight Over Royalties for Cancer Drugs - (The Wall Street Journal via NewsPoints Desk)

  • Boston Children's Hospital is seeking damages from Celgene, the amount of which it wants determined at trial, over royalty payments on the company's multiple myeloma drugs Revlimid and Pomalyst, The Wall Street Journal reported.
  • Under the suit, filed in US District Court in Boston in July 2013, Boston Children's Hospital alleges that it is owed royalties, including $3 million for the first quarter, for work the hospital contributed in uncovering thalidomide's cancer-fighting properties.
  • Both Revlimid and Pomalyst, which are expected to generate annual sales of more than $4 billion and $295.6 million this year, respectively, are derivatives of thalidomide.
  • Boston Children's Hospital alleges that Celgene breached a 2002 contract last March when it stopped making payments to the hospital for the drugs, although the drugmaker has said it will vigorously defend itself against the lawsuit, and that it doesn't believe the dispute's outcome will have a material negative impact on its finances.
  • In the lawsuit, Boston Children's Hospital says the contract requires Celgene to make payments through February 2013, but allows for an extra three years if Revlimid's patents are extended past their original expiration date.
  • In 2007, Boston Children's Hospital sold "most" of its rights to Revlimid royalties to a third party for $130.5 million, hospital spokesman Rob Graham said, meaning it isn't clear whether the hospital will be the sole beneficiary of royalties if it prevails in the suit.

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