Drug companies agree to put gene research in public domain to avoid patent disputes

[James Love <love@cptech.org>]

This is an interesting story that appeared on page
one of today's Wall Street Journal.  

In order to avoid problems associated with overbroad
biotechnology patents, several large pharmacuetical
companies are considering a project to pool gene
research and put results into the public domain.  It is
powerful evidence that high levels of IP protection are
sometimes a barrier to investors.  

    Jamie 

The story is very long, this is only a few sections:


http://interactive.wsj.com/articles/SB920442826609616500.htm
(needs password)

March 4, 1999

Drug Firms Discuss Linking Up
To Pursue Disease-Causing Genes

By ROBERT LANGRETH, MICHAEL WALDHOLZ and STEPHEN D.
MOORE
Staff Reporters of THE WALL STREET JOURNAL

  [snip]

Glaxo and others building their own maps realized that a common map was
crucial for the success of personalized medicine. Among other things,
the Food and Drug Administration would need to know that the map was
accurate, reliable and agreed to by the scientific community. So
beginning last April, scientists from a dozen or more companies gathered
under the leadership of Dr. Williamson, the retired Merck executive, to
explore the possibility of a joint venture. Some of the companies had at
first considered creating a proprietary snip-mapping company, but they
soon agreed that a nonprofit entity that dumped all the snip data into a
public database would avoid many problems, such as antitrust.

Wary as they were of sharing their valuable data with rivals, they
worried even more about biotech companies' projects. For instance,
Genset in Paris is racing to complete its own proprietary snip map. Its
lead scientist, Daniel Cohen, says Genset has already discovered two
genes that predispose men to prostate cancer. He hasn't revealed their
identity nor those of several other disease-related genes Genset claims
to have found.

In recent conversations, Dr. Cohen has said Genset's plan was to patent
the genes and sell them to the highest bidder, perhaps for $50 million
to $100 million each. Dr. Cohen says he believes Genset's snip map will
enable it to uncover 10 or so disease-related genes for each of about 20
major disorders. "If all goes well," he says, "we could uncover about
200 genes within the next few years."


   [snip]

Those familiar with the consortium plan say a goal would be to level the
playing field for gene-hunting biotech firms, large drug companies and
academic scientists whose work is backed with federal funds from the
genome project. The consortium would release its map into a public
database. All the drug companies, biotech firms and academics would have
free and equal access. The consortium would file intellectual-property
claims on the public snips so the biotech firms couldn't patent them and
sell them back to the corporations.

However, any gene identified by a drug maker, biotech firm or academic
by using the snip as a gene-hunting tool could still be patented by the
discoverer. "The idea here isn't to restrict the ability of biotech
firms or anyone else to patent genes," says one executive. "The idea is
to make sure the underlying map we all need to find genes is available
to anyone who wants to use it."

Executives familiar with the venture say lawyers have told them that by
making the map public, the companies should be able to avoid antitrust
problems.

Though the membership of the proposed consortium remains uncertain,
insiders say Britain's Wellcome Trust, a foundation that funds roughly
$500 million a year of medical research and has backed many gene-hunting
projects, is a major driver of the plan. Other companies that have
expressed interest include Novartis AG and Roche Holding Ltd. of
Switzerland and Zeneca Group PLC of Britain. None would comment.

People familiar with the talks say that between 12 and 15 drug makers
may become charter members -- while emphasizing that a contract hasn't 
yet been signed. In another effort to avoid antitrust problems, all
pharmaceutical and biotech companies would have an open invitation to 
join even after the snip project was unveiled. The project's director is 
expected to be Arthur Holden, an American who previously was chief 
executive of biotech firm Celsis International PLC of Britain. He 
declines to discuss the venture.

   [snip]


-- 
James Love, Director, Consumer Project on Technology
I can be reached at love@cptech.org, by telephone 202.387.8030,
by fax at 202.234.5176. CPT web page is http://www.cptech.org