Subject: Genetics Institute Gets Patent on Drug That Fights Anemia
Date: Published: 7/2/87 77 lines
Source:  WALL STREET JOURNAL. Copyright Dow Jones & Co. Inc. 

   Genetics Institute Gets Patent on Drug
   That Fights Anemia in Kidney Patients
    ---
   By David Wessel
   Staff Reporter of The Wall Street Journal

   CAMBRIDGE, Mass. -- Genetics Institute Inc. said it was
issued a U. S. patent on erythropoietin, a promising drug that
controls the production of red blood cells.
   The biotechnology company said its patent covers "all
erythropoietin products currently undergoing clinical trials"
 -- including those being tested by a competitor, Amgen Inc.,
of Thousand Oaks, Calif.
    In heavy national over-the-counter trading, Amgen shares
fell sharply, closing at $31.75, down $6.50.  Genetics
Institute shares jumped $4.75, to $36.25.
Though the patent decision is a big boost to Genetics
Institute, it doesn't necessarily end the contest between the
companies.  Both companies have patent applications pending
covering a process for making genetically engineered
erythropoietin.  The companies employ different processes.
   Amgen didn't return phone calls for comment on the patent.
   Erythropoietin, or EPO, is used to fight anemia in persons
with kidney disease by boosting their natural production of
red blood cells, reducing their need for blood transfusions.
Genetics Institute said it believes the drug may also be
effective in countering anemia produced by certain drugs used
to fight cancer or acquired immune deficiency syndrome, or
AIDS. 
   Kathy Behrens, an analyst with Robertson, Colman &
Stephens in San Francisco, estimates the world-wide market
for EPO in people with kidney disease at $250 million a year.
"Amgen clearly has a significant lead on the clinical trials
of this product.  It's perhaps a year, some say two, ahead,"
she said.  "Investors had discounted the role that Genetics
Institute might play."
   Now the awarding of the patent changes that.  "At worst
case for Genetics Institute, they've leveraged themselves
into a good position in erythropoietin," Ms. Behrens said.
"At best, they have a totally protectable product patent that
would exclude everybody.  There's a lot of territory in
between," she added.
   But analysts said that if Amgen wins a patent on its
process for making genetically engineered EPO and Genetics
doesn't, then Genetics' position may not be as strong as it
currently appears.
   Linda Miller, an analyst at PaineWebber Inc., said:  
"Having a patent on a pure form of the molecule (as Genetics
Institute does) doesn't mean that you have a commercial
product.  If Amgen does get a patent on the commercial process
for producing this thing, you've got a standoff."  In similar
cases, some other biotechnology companies have cross-licensed
each other's patents.  In other cases, the patent disputes
have ended up in court, she said.
   Summarizing Genetics Institute's view, Bruce M. Eisen,
vice president and chief patent counsel, said:  "Amgen needs
us.  We may or may not need Amgen."
   Genetics has licensed U. S. and Japanese rights to EPO to
Chugai Pharmaceutical Co. of Japan and European rights to
Boehringer Mannheim G. m.b.H. of West Germany.  Both are
conducting clinical tests overseas.  Genetics said it has
developed a pure form of EPO that is safer and more potent
than other versions developed by others.
   Amgen has granted certain rights to its product to Johnson
& Johnson.  In New Brunswick, N. J., a spokesman for the drug
company said it didn't have any comment on the Genetics
Institute patent.

[This article is made available here by Dow Jones Co. for the 
personal and non-commercial use of callers to this bbs, in the 
hope that it will be of some help to those who are suffering 
from the disease and others who are seeking to help them.]