Bristol-Myers Squibb reaches $625M settlement with Merck in Keytruda-Opdivo patent dispute

Kenilworth, N.J.-based Merck will enter into a settlement and licensing agreement with London-based Bristol-Myers Squibb and Japan-based Ono Pharmaceutical Co., following a patent dispute with its blockbuster cancer drug Keytruda, reports Reuters.

Here are three things to know.

1. Bristol-Myers Squibb and Ono co-developed the cancer drug Opdivo. In September 2014, the two drugmakers filed a lawsuit against Merck, claiming sales of Keytruda, a similar type of cancer drug, infringed on their patents in the U.S. and parts of Europe.

2. Through the settlement, Merck will pay $625 million to Bristol-Myers Squibb and Ono, along with a 6.5 percent royalty rate on Keytruda sales from January 2017 to December 2023, according to the report. After 2023, Merck will pay a 2.5 percent in royalties for the following three years.

3. Bristol-Myers Squibb will receive 75 percent of the royalties, with Ono receiving the other 25 percent.

More articles on supply chain:

Trump initiates meeting with Rep. Elijah Cummings on high drug costs
Private equity firm's new acquisition and merger creates one of largest 3PLs in US
Competing EpiPen device offered at no cost for patients, but $4,500 for payers

 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars