Integra/The Burnham Awarded $15 Million in Patent Dispute with Merck KGaA

A federal jury announced a unanimous verdict for the plaintiffs in the case of Integra LifeSciences I Ltd. and The Burnham Institute vs. Merck KgaA, finding that Merck KGaA had willfully infringed and induced the infringement of Integra's patents. Integra was awarded $15,000,000 in damages. The case was tried in the United States District Court for the Southern District of California (Civil Action No. 961307—JMF).

The lawsuit, which dates back to 1996, alleged that Merck KGaA and a non-profit research institution under contract from Merck KGaA had infringed various United States patents held by The Burnham Institute of San Diego that have been licensed to Integra. Those patents (No. 4,792,525, No. 4,879,237, No. 5,659,997, and No. 4,789,734) relate in various ways to technology involving peptides containing an arginine-glycine-aspartic acid (RGD) sequence or related cell surface receptors.

Compounds containing the RGD sequence promote or inhibit cell adhesion by binding receptors called integrins found on the surface of almost every cell in the body. Erkki Ruoslahti, president and CEO of The Burnham Institute (formerly the La Jolla Cancer Research Foundation), and Michael D. Pierschbacher, senior VP and director of Integra's Corporate Research Center in San Diego, co-invented at The Burnham Institute the matters described in the patents in the case.

Among other findings, the eight person jury found that Merck KGaA had induced infringement of all four patents, that none of the patent claims submitted to the jury were invalid, and that the plaintiffs had proven that Merck's inducement of the infringement was willful. The jury awarded Integra and The Burnham Institute actual damages of $15 million, which amount may be adjusted by the court.

Post-trial motions will likely be filed, and Merck KGaA could appeal various decisions of the court and request a new trial, a reduction in damages, or a judgment as a matter of law notwithstanding the verdict.

"Integra always prefers to license technology and to collaborate with strategic partners, rather than to litigate over patents," said John B. Henneman, III, Integra's chief administrative officer and general counsel. "Nevertheless, we are very pleased with the jury's findings."

The plaintiffs were represented in the case by Campbell & Flores LLP of San Diego.

Integra LifeSciences Holdings Corpo. develops, manufactures, and markets medical devices, implants, and biomaterials primarily used in the treatment of spinal and cranial disorders, soft-tissue repair, and orthopedics. Its corporate headquarters are located in Plainsboro, NJ with facilities in San Diego, CA; Exton, PA; and Anasco, Puerto Rico. The company has approximately 450 employees.

For more information: Integra LifeSciences Holding Corp., 105 Morgan Ln., Plainsboro, NJ 08536. Tel: 609-275-0500. Fax: 609-799-3297.

Edited by Laura DeFrancesco