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California-Based Genentech Sues Genzyme over Drug-Patent Royalties.

The Boston Globe (Boston, MA)

| March 26, 2001 | COPYRIGHT 2001 The Boston Globe. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Ronald Rosenberg

Mar. 16--Genentech Inc. filed a lawsuit yesterday challenging Genzyme Corp.'s interpretation of a 9-year-old agreement under which Genzyme contends it would be owed royalties from Genentech's clot-busting agent TNKase.

"We are very surprised that they have sued us," said Thomas J. DesRosier, Genzyme's senior vice president and chief patent counsel. "TNKase is a second-generation drug that, under a 1992 settlement beween us, calls for them to pay us royalties. But I did not think they would sue us."

On Feb. 14, DesRosier sent a letter to Genentech, later followed up by a telephone call, claiming a Genzyme patent involved in the joint agreement obligates Genentech to pay $250,000 plus 2 percent royalties on sales of TNKase.

Genentech, in its lawsuit filed in US District Court in Delaware, disagrees. It is seeking a jury trial to prove that the technology in TNKase is different from technology covered by Genzyme's patent and does not violate the agreement.

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