Gilead Must Pay $752m in CAR-T Patent Violation Case—Will they Divest Kite Pharma?

Gilead Must Pay $752m in CAR-T Patent Violation Case—Will they Divest Kite Pharma?

Kite Pharma (Gilead) and their CAR-T therapy Yescarta violated a patent from Memorial Sloan Kettering Cancer Center (MSKCC), which was licensed to BMS’ Juno Therapeutics and to MSKCC. A federal jury finds Kite must pay $752 million. Gilead paid $11.9 billion for the drug in 2017. Something is terribly wrong in this picture.

What is the Court?

The U.S. District Court for the Central District of California in Los Angeles

What is the Jury Order?

Kite Pharma must pay Juno Therapeutics (BMS) $752 million and New York’s Memorial Sloan Kettering Cancer Center because Kite’s Yescarta  (axicabtagene ciloleucel) violated an MSKCC patient that Juno licensed.

What is the Award Breakdown?

$585 million in damages and 27.6% of running royalty on sales of Yescarta—which was $264 million in 2018. Gilead acquired Kite for $11.9 billion in 2017.

What is the Patent in Question?

U.S. Patent No. 7,446,190, concerning the processes used to encode T cells with chimeric antigen receptors or CARs, costimulatory domains and various components enabling them to target CD19—a protein widely expressed on the surface of various blood cancer cells.

When did Yescarta win Approv...

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