In the last trading session, the stock price of Merus NV (NASDAQ:MRUS) declined more than 15% to close the day at $16.39. The decline came at a share volume of 113,952 compared to average share volume of 29,935. More recently, the company reported that the United States Court of Appeals for the Regeneron Pharmaceutical Inc.’s appeal for a rehearing en banc to review its decision sustaining that Regeneron involved in inequitable conduct before the USPTO while prosecuting U.S. Patent entitled focused on processes of modifying Eukaryotic Cells.
Ton Logtenberg, Ph.D., the CEO of Merus, expressed that the verdict by the full Federal Circuit, refusing further assessment of Regeneron Pharmaceutical’s inequitable conduct, confirms the thorough views issued by the Federal Circuit panel and trial court. With the strength and this order of Merus’ Biclonics® technology, the company considers it is well-positioned as a trendsetter in advancing bispecific antibody therapeutics to resolve significant unmet medical needs.
In 2014, Regeneron Pharmaceutical submitted a complaint against Merus stating that it breached one or more rights in the ‘018 patent. However, Merus filed counterclaims requesting, among other factors, a declaratory judgment that the company did not breach the ‘018 patent, that this patent was void and a declaratory decision of unenforceability of the ‘018 patent on the ground that the patent was bought by inequitable conduct.
Merus succeeded at the trial court on these counterclaims. Regeneron Pharmaceutical stipulated to invalidity and non-infringement of the patent after the district court’s verdict on claim construction. Post a trial in 2015, it was stated that Regeneron Pharmaceutical’s agents who sought for the patent made misguiding statements to the USPTO when getting the ‘018 patent, and that Regeneron Pharmaceutical committed inequitable conduct.
In July, the Federal Circuit ruled, concluding that Regeneron Pharmaceutical made false assertions, depended on a “misleading presentation,” and hold back material information from the USPTO, and moreover, that Regeneron Pharmaceutical’s “litigation misconduct” muddled its prosecution misconduct. Last month, the full Federal Circuit rejected Regeneron Pharmaceutical’s request to rehear the matter.