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A long-running dispute over licensing of prostate cancer drugs has ended in the University of California’s favor.
California’s Supreme Court last week upheld lower court rulings in favor of the University of California Board of Regents. The decision effectively awards the university $32 million in additional licensing income while also resolving contract claims against the regents and confirming a jury verdict clearing a drug inventor of fraud.
Litigation was first filed in the dispute more than five years ago, in May 2011. At issue was the licensing of two prostate cancer drugs -- one called Xtandi and another referred to as A52. The regents licensed Xtandi to biopharmaceutical company Medivation Inc. But Medivation claimed breach of contract against the regents after they licensed the other drug, A52, to a different company, Aragon Pharmaceuticals. Medivation claimed it should have received the A52 license.
Information came to light during the litigation process that led the regents to file a cross complaint claiming they were underpaid on drugs licensed to Medivation. The regents won a bench trial in that matter, and lawyers won a jury trial on whether University of California, Los Angeles, Professor Michael Jung -- a drug inventor -- defrauded Medivation out of rights to A52. The regents also won a summary adjudication that eliminated the company’s contract claims against them and established that it had no rights to A52, according to a press release from the law firm representing the regents, Crowell and Moring.
Medivation appealed the decision, but the First Appellate District for the California Court of Appeal affirmed the rulings in September. The state’s Supreme Court upheld that Court of Appeal’s findings Dec. 14.
Inside Higher Ed is also one of Crowell and Moring’s clients.
