GSK ordered by UK court to pay more royalties to AstraZeneca on Zejula sales - report
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GSK (NYSE:GSK) was ordered by a U.K. court to pay royalties to AstraZeneca (NASDAQ:AZN) on total sales sales of ovarian cancer therapy Zejula, Reuters reported.
GSK's unit Tesaro had signed a license agreement in October 2012 with AstraZeneca. The case involves, technology Tesaro licensed from AstraZeneca under the agreement to develop Zejula.
Tesaro argued that the royalty was payable only on sales for uses which were covered by licensed patents, AstraZeneca, however, noted that royalty should be based on total sales of Zejula, according to a Fierce Pharma report.
On Wednesday, the High Court of Justice Business and Property Court of England and Wales ruled in favor of AstraZeneca in the case, which was filed in 2021. The court noted that Tesaro would have to pay royalties "on all net sales of Zejula in each country in which there are licensed patents from the first commercial sale in that country," the report added.
Zejula generated Â£463M in sales in 2022. In November 2022, GSK said it will restrict the use of Zejula in the U.S. to certain patients with particular genetic mutations when given as a second line treatment at the request of the U.S. Food and Drug Administration (FDA).
The decision followed the FDAs' review of final overall survival data from a phase 3 trial called NOVA (ENGOT-OV16), which served as the basis for the approval of the second-line maintenance indication.