Sorting out the Cabillys

Genentech Inc.'s vice-like grip on antibody production technology may be loosening after an initial ruling from the PTO that a key patent may not be sufficiently novel. If upheld, the decision could ease the royalty burden on antibody companies, while denting DNA's EPS. In the meantime, license holders and potential licensees will need to develop strategies to account for the alternative outcomes.

The U.S. Patent and Trademark Office's preliminary re-examination of U.S. Patent No. 6,331,415, also known as the Cabilly II patent, suggests that the patent covering methods of producing monoclonal antibodies may not be valid. ...