Shares of ImClone fell nearly 6% on Tuesday after a court invalidated the biotechnology company's ownership of a key cancer drug patent.
A decision by the New York District Court that assigned inventorship of the patent to three scientists represented by Yeda Research and Development Company could hurt sales and benefit a rival product from Amgen, which is expected to shortly come to the market, analysts said.
The decision comes at a bad time for ImClone, which recently ended a fruitless six-month search for a buyer and is seeking a new, permanent chief executive officer to steer it forward as the company prepares for the expected introduction of Amgen's rival to its cancer drug Erbitux.
"Last night's development is the worst possible scenario for ImClone," said Yaron Werber, an analyst at Citigroup, in a report. "Ultimately, we expect that ImClone will pay Yeda additional 2-3 percent royalties to sustain its exclusive rights to this patent."
Bristol-Myers Squibb owns roughly 20 percent of ImClone and receives the bulk of Erbitux sales.
Reuters
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