Arbitrator sides with Biogen in Rituxan dispute

An arbitrator has ruled that Genentech must halt several trials until Biogen Idec says they can move forward. Genentech and Biogen Idec are partners on the blockbuster cancer and rheumatoid arthritis drug Rituxan. In 2006, the two companies filed for arbitration to settle whether Genentech could develop follow-on drugs to Rituxan without Biogen's approval. The arbitrator ruled that three trials must be stopped, though Phase III trials for the arthritis biologic ocrelizumab will continue. In order for trials to proceed in the future, a Joint Development Committee comprised of three members from each company must unanimously approve a development plan for each specific indication.

The Wall Street Journal observes that the ruling will give Biogen power to re-negotiate the terms of it Rituxan partnership with Genentech later this year.

"We are pleased the arbitration panel upheld our reading of the contract and affirmed our joint decision-making rights," said James Mullen, Biogen Idec's President and CEO. "Our partnership with Genentech has been extraordinarily successful, and we look forward to continuing to work with them to help patients in a wide range of diseases."

- here's the WSJ article
- see Biogen's release

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