Acambis wins smallpox vaccine case at ITC; appeal looms
Acambis plc (ACM.L) said today that a judge at the International Trade Commission ruled in its favour in its dispute with Bavarian Nordic A/S regarding the latter’s patents related to Modified (smallpox) Vaccinia Ankara ("MVA").
In his order, the judge invalidated all the patent claims asserted by BN against Acambis.
Acambis share price had gained 1.75% by midday to reach 145.50p, valuing the Cambridge-based biotech company at around £154m. By contrast the Denmark-based Bavarian Nordic’s shares had shed around 7%. Acambis gained 10% in July when transcripts suggested the ITC was leaning its way.
Bavarian Nordic filed a complaint with the ITC in August 2005, alleging infringement by Acambis of two of its US MVA patents. It has also filed complaints with the District Court of Delaware and the Commercial Court in Vienna, Austria. An evidentiary hearing was held in May 2006 and the ITC judge has now invalidated each of the patent claims asserted against Acambis and denied BN's request for an exclusionary order. Those invalidated claims are no longer enforceable.
Following the initial determination by the judge, either party (as well as the Commission on its own initiative) can petition for review by a panel of ITC Commissioners who would then make a final determination by early December 2006.
Appeal
Bavarian Nordic said it planned to appeal the judgment.
Acambis Chief Executive Officer Gordon Cameron (pictured) said: "We are delighted with the judge's ruling. It vindicates our long-held view-and the view of several experts in the field-that BN's patents have no merit. Throughout this process, we have strongly asserted our belief in our freedom to operate in the MVA field and it is highly satisfying to have defended this position so successfully.
"We will, of course, be providing this information to the District Court of Delaware, and to both the Commercial Court in Vienna and the European Patent Organisation, where we are opposing BN's European patents."
Regarding the complaint before the District Court of Delaware, the judge has ordered the termination of BN's trade secrets claim, Acambis said in a statement to the London Stock Exchange. As with the ITC decision on the same issue, the termination was based on a question of jurisdiction.
The confidential disclosure agreement that was signed between Acambis and BN in February 2002 contains a mandatory arbitration clause requiring any such disputes between the two companies to be settled in arbitration in Frankfurt, Germany under the rules of the International Chamber of Commerce, the company said.
Acambis and Bavarian are competing for a lucrative contract to supply the vaccine to the US Government. The MVA product is suitable for vulnerable members of the population such as the elderly.
7th September 2006
