Nektar settles patent dispute with University

The University of Alabama in Huntsville (UAH) brought litigation against Nektar and Dr Milton Harris, a former employee of the university, claiming that the company’s portfolio of products based on pegylation technology infringed on patents held by the university.

According to the company, pegylation has the potential to improve the safety and efficacy of therapeutic agents by increasing drug circulation time in the bloodstream, decreasing immunogenicity and dosing frequency, increasing bioavailability and improving drug solubility and stability.

Under the terms of the agreement, Nektar and Dr Harris have jointly made an upfront payment totaling $15 million to UAH. In addition, Nektar will pay UAH the sum of $1 million per year for 10 years.

The university said that it plans to apply the funds towards its endowment and to fund scholarships for the entire campus, including chemistry and biology programs. In exchange, the university has agreed to dismiss all claims related to the Nektar pegylation patent portfolio and Nektar has agreed to dismiss all counterclaims.

“This settlement is in the best interests of Nektar and helps maintain our focus on improving and expanding our pegylation business. We also believe that the support of the University of Alabama in Huntsville’s science and educational missions is consistent with Nektar’s vision and values,” said Robert Chess, Nektar chairman and CEO.