Media Coverage
Source: The Wall Street Journal, The New York Times
Media Coverage
11.19.14
A team of Pillsbury lawyers represented the Cystic Fibrosis Foundation (CFF) in its blockbuster drug rights sale to a New York pharmaceutical firm, announced this week. Led by Intellectual Property partner John Wetherell and counsel Michell Mehok, the team handled the IP due diligence for CFF, helping the organization raise billions based on their analysis of whether the patents covering the drugs created a barrier to competitors and whether the sale of the drugs might give rise to patent infringement issues.
In the deal, the largest ever of its kind, Royalty Pharma will pay the foundation $3.3 billion for its share of revenue from the sale of cystic fibrosis drugs developed by Vertex Pharmaceuticals. Using an innovative funding approach known as “venture philanthropy,” CFF entered into a partnership with Vertex several years ago, committing $150 million to fund the development of drugs to treat the genetic condition. According to The Wall Street Journal, CFF has already paid Vertex more than $100 million through the partnership, and the foundation is set to receive up to 12 percent of annual sales of drugs developed with that funding.
The deal with Royalty Pharma is important news for nonprofits. With the payment it receives, CFF can reinvest these funds to help more cystic fibrosis sufferers receive treatment.
The New York Times reports that the transaction will likely drive other charitable organizations to make similar deals with pharmaceutical companies, as supporters say it can help speed the development of important drugs and provide huge amounts of funding for additional research, driving a regenerative cycle of therapeutic innovation.