Jazz Denied Preferred Drug Royalty Rate, But Still Gets Boost

Delaware Federal Judge Increases Royalty Rate for Specialty Drugmaker

A Delaware federal judge has agreed to increase the royalty rate a specialty drugmaker has to pay drug manufacturer Jazz Pharmaceuticals Inc. for using a patented process behind a newer narcolepsy drug. However, the increase granted was less than what Jazz had requested.

The decision by the judge provides some relief to Jazz Pharmaceuticals Inc., even though they did not receive the preferred royalty rate they were seeking.

The dispute centered around the patented process behind a narcolepsy drug, with Jazz Pharmaceuticals Inc. claiming that the specialty drugmaker should pay a higher royalty rate for using their patented technology.

The ruling was made by a Delaware federal judge, who considered the arguments presented by both parties before deciding on the increase in the royalty rate.

It is essential for pharmaceutical companies to protect their patented processes and technologies, as they are valuable assets in the industry. Disputes over patent infringement and royalty rates are common in the pharmaceutical sector.

Both Jazz Pharmaceuticals Inc. and the specialty drugmaker involved in the case were represented by prominent law firms, including Latham & Watkins, McCarter & English, Morris Nichols, and Quinn Emanuel.

The case also involved government agencies such as the Food and Drug Administration and was heard in the U.S. District Court for the District of Delaware.

The patent at the center of the dispute was identified as 11,147,782, related to a GHB formulation and the method for its manufacture.

Legal experts and industry analysts are closely following the developments in this case, as it could set a precedent for similar disputes in the pharmaceutical sector.

For more information and detailed insights on this case, refer to the attached opinion document.

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