PDL BioPharma, Inc. said it entered into a settlement agreement with certain subsidiaries of Merck & Co., Inc. to resolve the patent infringement lawsuit between the parties pending in the US District Court for the District of New Jersey related to Merck’s Keytruda humanized antibody product.
PDL said that under the terms of the agreement, Merck will pay PDL a one time, lump-sum payment of $19.5 million, and PDL will grant Merck “a fully paid-up, royalty free, non-exclusive license to certain of the company’s Queen et al. patent rights for use in connection with Keytruda as well as a covenant not to sue Merck for any royalties regarding Keytruda.”
In addition, the parties agreed to dismiss all claims in the relevant legal proceedings.
“We are pleased to resolve this patent infringement lawsuit with Merck with a favorable monetary settlement to PDL as well as eliminating potential future litigation costs related to this matter for both parties,” said John P. McLaughlin, CEO of PDL.
“As a result of this settlement, we expect to recognize $19.5 million in license revenue for the second quarter ending June 30, 2017.”