AstraZeneca Is Ordered to Pay $107.5 Million to Pfizer Over Patent Infringement

In a significant legal decision, a federal jury in Delaware has ordered AstraZeneca to pay $107.5 million to Pfizer for infringing on two of its patents through the marketing of the popular cancer drug Tagrisso. The verdict marks the culmination of a legal battle in 2021 when Puma Biotechnology and Wyeth, a Pfizer affiliate, initiated the lawsuit against AstraZeneca.

The dispute's origins trace back to 2011 when Puma Biotechnology licensed a molecule from Pfizer, which later became Nerlynx, a metastatic HER2-positive breast cancer treatment. This molecule was part of Pfizer's portfolio following its $68 billion acquisition of Wyeth in 2009. Puma assumed full responsibility for the development and global marketing of Nerlynx.

The 2021 lawsuit claimed that AstraZeneca had violated two patents held by Wyeth, each detailing a "method for treating gefitinib-resistant cancer." According to the plaintiffs, AstraZeneca's non-small cell lung cancer (NSCLC) drug, Tagrisso, approved by the FDA in 2015, infringed on these patents. The plaintiffs argued that the name "Tagrisso" encouraged direct infringement of their patented methods and asserted that AstraZeneca was aware of the patent rights in question.

Earlier this year, the court dismissed Puma Biotechnology as a plaintiff. However, Puma stated in a May 17 SEC filing that it "maintains contractual rights to recover monetary damages in the AstraZeneca litigation." Following the jury's decision, Puma's stock rose approximately 17%, reaching $4.80 on Monday morning.

In response to the verdict, an AstraZeneca spokesperson commented, "We will vigorously defend our rights and are confident in our IP position concerning Tagrisso. AstraZeneca is dedicated to ensuring this product will remain accessible to patients who would benefit from therapy with Tagrisso in its approved indications."

The ruling represents a substantial victory for Pfizer and underscores the ongoing complexities and high stakes in pharmaceutical patent disputes.