Calif. Court Sets Aside Genentech Verdict

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Calif. Court Sets Aside Genentech Verdict

 

http://www.washingtonpost.com/wp-dyn/articles/A58609-2005Feb2.html

The Associated Press

Wednesday, February 2, 2005; 8:07 PM

 

SAN FRANCISCO - The California Supreme Court on Wednesday set aside a $500

million jury verdict against biotechnology company Genentech Inc. for failing to

pay royalties on some drugs manufactured under a 1976 agreement with the City of

Hope Medical Center.

 

Without comment, the justices said they would review an appeal by the South San

Francisco-based biotechnology giant that jurors misinterpreted the contract

between the company and medical center, and that the award was excessive. The

court did not set a time when it would hear the case, but Wednesday's action

puts the award in legal limbo until the justices resolve the dispute.

 

A state appeals court in October upheld the judgment, saying there was

" substantial evidence of fraud and malice " by Genentech, which failed to pay a 2

percent royalty on drugs based on patents developed by two City of Hope

physicians.

 

City of Hope of Duarte sued Genentech in 1999, claiming Genentech concealed

licensed sales of protein products, such as hepatitis vaccines, over a 15-year

period. City of Hope, which made the protein manufacturing discovery, contended

it was owed $457 million in royalties and interest.

 

 

 

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