The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Top 5 Reasons the Myriad Genetics ALCU Patent Ruling Is Not a Big Deal

Right in the middle of Passover, Judge Robert W. “Let my Patents Go” Sweet released his 152-page ruling (pdf), granting summary judgement to the ACLU and invalidating several of Myriad Genetics’ patents on the sequence and use of the BRCA1 and BRCA2 genes.  It was greeted by some as the 11th plague, and by others as a national liberation; but the truth is it was neither.

Here are the top 5 reasons the ruling is not a big deal:

  1. The business model is changing.  Genomics Law Report (as part of a great series on the Myriad decision) quotes the New York Times and references the Secretary’s Advisory Committee on Genetics, Health and Society (SACGHS) report (pdf) all pointing out the fact that multi-gene tests and whole genome sequencing are becoming much more common diagnostic tools than those along the lines of Myriad’s BRACAnalysis(R) test.
  2. The market says so.  As the New York Times reports, “two major [biotech] indexes … [fell] by less than 1 percent each.”  Part of the reason for this is averaging — many companies benefit if the gene patent anticommons takes a permanent hit — but even Myriad shareholders weren’t too phased.  The shares dropped less than 5% on the news and are back up 1.5% today. 
  3. Diagnostics like Myriad’s may not need patent protection to promote innovation.  Although there are many areas of biotechnology in which patent protection is a crucial incentive, the New York Times quotes James P. Evans, a professor of genetics at the University of North Carolina, who says: “one does not need gene patents in order to see robust development of these tests.”  BIO disagrees.
  4. “The Federal Circuit is likely to reverse this decision.” Dennis Crouch at Patently-O puts it succinctly.  The case may one day lead to “an important Supreme Court showdown,” but that day is not today.
  5. The patents in suit, and many similar patents, may well expire before the case is finally adjudicated.

Keep following the case, though.  It has many people thinking hard about DNA, genomics and innovation, including commentators and judges; and that’s never a bad thing.

One response to “Top 5 Reasons the Myriad Genetics ALCU Patent Ruling Is Not a Big Deal

  1. Pingback: Myriad Genetics v ACLU in the Federal Circuit « The Cross-Border Biotech Blog

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

Join 128 other followers