MedImmune is currently paying royalties under protest to Genentech for the use of an antibody technology for its drug Synagis, used in respiratory problems of children. MedImmune wishes to challenge the validity of the patent, but does not want to break its license contract with Genentech as it stands to lose out on sales of its largest-selling drug.
Lower courts had dismissed the case, ruling that MedImmune could not challenge the patent as long as it continued to pay royalties to Genentech. With the reversal of this decision by the Supreme Court, the case is now back with a lower court.
MedImmune said: “The court’s decision means MedImmune is free to pursue its complaint regarding non-infringement, invalidity, and unenforceability of the Cabilly II patent. We intend to do so vigorously and are confident that our position will prevail.”
The ruling may now pave the way for further challenges from drug companies who are keen to challenge patents but are unwilling to take the risk of a patent infringement lawsuit.