J&J Unit Wins $1.67 Billion Patent Infringement Verdict Against Abbott

Centocor Ortho Biotech, a business unit of Johnson & Johnson, today won a $1.67 billion award for Abbott Labs’ infringement of its patent on Remicade. Centocor’s Remicade and Abbott’s Humira are competitors in the treatment of rheumatoid arthritis. Humira is Abbott’s best-selling pharmaceutical. Abbott’s success has relied on Humira.  Humira has gained FDA approvals for several uses, among them psoriasis and Crohn’s disease. Abbott reported $4.5 billion in Humira sales in 2008, and  sales of $1.02 billion for the fourth quarter of 2009.

After the Merck and Co. and Schering-Plough Corp. merger in April, Johnson & Johnson announced its intention to terminate its distribution agreement with Schering-Plough for Remicade. Remicade’s worldwide revenues in 2008 were about $5.9 billion. Schering-Plough booked $2.1 billion in sales outside the U.S.

Abbott is unhappy with the verdict.  The company asserts that it created the first fully human antibody product, while Centocor’s approach is based on mouse DNA.  Abbott further argues that Centocor did not release a fully human antibody drug (Golumimab) until this year. Golimumab receives FDA approval in April 2009.

Expect Abbott to appeal.

Douglas Y. Park
Twitter: @DougYPark

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