United Therapeutics reworks deal ahead of a key patent's expiration - (Washington Business Journal via NewsPoints Desk)

  • Washington Business Journal reported that United Therapeutics has extended an exclusive license with Eli Lilly to cover its pulmonary hypertension drug Adcirca, which will lose part of its patent protection later this year.

  • United acquired the commercial rights to Adcirca from Eli Lilly in 2008 for the treatment of pulmonary hypertension, but one of three patents held by the latter is set to expire in November.

  • The new license agreement is for Eli Lilly's other two patents related to Adcirca, both of which expire in 2020.

  • According to the news source, the agreement call for the royalty payment rate United must pay to Eli Lilly to increase from 5 percent to 10 percent of Adcirca sales.

  • In addition, United must also pay Eli Lilly $325 000 for every $1 million worth of Adcirca product revenue, starting in December when the new deal takes effect.

  • However, the US Patent and Trademark Office previously found the two patents to be invalid when they were challenged by Actelion. Eli Lilly is appealing the decision and, if it wins, United would return to paying Eli Lilly the former 5 percent royalty rate for the rights to sell Adcirca.

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