The litigation includes the patent infringement suits brought by Tercica and Genentech against Insmed and an unfair business practices suit.
The companies agreed that the drug Iplex should be removed from the market. Iplex is used to treat an extremely rare condition, a deficiency of a hormone called insulin like growth factor-1.
However, through licensing and development rights granted by Tercica and Genentech, Insmed will have freedom to manufacture, develop and commercialize Iplex for certain non-short stature indications including severe insulin resistance, myotonic muscular dystrophy and HIV associated adipose redistribution syndrome.
The court had found that Genentech and Tercica's patents were infringed by the drug. Tercica and Genentech have waived the damages award by the jury.
“We are very pleased with our new licensing and development relationship. It allows Tercica to focus its efforts in the short stature market and allows Insmed, in cooperation with Tercica and Genentech, to focus its Iplex development efforts in valuable non-short stature indications,” said Dr John Scarlett, Tercica's president and CEO, and Dr Geoffrey Allan, Insmed's president and CEO, in a joint statement.
The parties will form a joint committee to guide the development and commercialization of Iplex in non-short stature indications.