Genentech Sues Celltech Over Gene Patent

Genentech Inc., one of the largest biotechnology companies, sued British rival Celltech over a patented method for manufacturing combined human and nonhuman genes. Genentech filed suit in U.S. District Court in San Francisco, seeking to overturn a decision by the U.S. Patent Office awarding the patent to Celltech. The suit escalates a 5-year-old dispute over whose scientists made the discovery first. “It’s a technology in the manufacture of monoclonal antibodies,” said Genentech spokeswoman Laura Leber. “It is an important patent.” Shares of South San Francisco-based Genentech fell $2.25 to close at $71.75 on the New York Stock Exchange. Two of Genentech’s seven drugs are based on monoclonal antibodies, including lymphoma treatment Rituxan, which had revenue of $39.4 million in the third quarter. Leber said that since the two companies already have a licensing agreement over the technology, the suit will settle the issue of who should be paying whom. Celltech has been collecting royalties on the technique, she said.