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Published on 4/26/2006 in the Prospect News Biotech Daily.

Federal court orders Eli Lilly to assign intellectual property to Emisphere

By Elaine Rigoli

Tampa, Fla., April 26 - The U.S. Federal District Court in Indianapolis has granted Emisphere Technologies, Inc.'s application and ordered Eli Lilly and Co. to assign to Emisphere the patent application filed by Lilly in February 2002 for a patent on the use of Emisphere's proprietary technology with GLP molecules.

"Patents are the life blood of our business; Lilly's broad-based misuse of Emisphere's technology and their violation of our agreements should have serious consequences for Lilly. We will continue to pursue all available remedies in order to compensate Emisphere for the damage caused by Lilly's actions. Emisphere believes that oral GLP1 can be an important product for patients suffering from diabetes and obesity," Emisphere chairman and chief executive officer Michael M. Goldberg said in a news release.

The court reaffirmed its January 2006 ruling, stating that the GLP patent application belonged to Emisphere under the agreements in effect between Lilly and Emisphere at the time the application was filed.

The court held that "[i]t would be highly unfair to leave Lilly in control of the oral GLP patent application and to relegate Emisphere to a mere damages remedy as it watches from the sidelines while Lilly controls and exploits inventions the parties agreed would be 'Emisphere Technology'."

The court order will take effect on May 5, unless Lilly files a notice of appeal by May 3.

Eli Lilly is an international pharmaceutical company with headquarters in Indianapolis.

Based in Tarrytown, N.Y., Emisphere is a biopharmaceutical company developing products for the oral delivery of otherwise injectable drugs.


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