Lilly And Genentech Settle Out Of Court

An out-of-court settlement has been reached between the US drug companies Eli Lilly and Genentech regarding the patent infringement dispute filed by Genentech in relation to a recombinant growth hormone.

The long-standing dispute has been ended with Eli Lilly, which markets Humatrope, agreeing to pay Genentech around $145 million plus further payments based on the sale of certain products. The payments will be made in installments starting in March with an initial payment to Genentech of $25 million, followed by 16 quarterly payments of around $7.5 million. Lilly has indicated that the payments will not affect its financial statements as it has already made provisions for them.

Both companies have agreed to halt pending action against each other and have exchanged immunities from suit, licenses, or options to certain patented technology useful in the production of a number of recombinant products. They have also agreed on amendments to their 1978 insulin agreement relating to the manufacture and sale of recombinant human insulin.