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Lexicon, Deltagen Settle Patent Infringement Lawsuit

NEW YORK, Sept. 20 – A year and a half after entering a patent infringement dispute, functional genomics companies Lexicon Genetics and Deltagen said Thursday they had reached a settlement.

Under the terms of the settlement, Deltagen will receive a commercial license for Lexicon’s gene targeting technologies, and Lexicon will gain access to Deltagen’s DeltaBase database of mammalian and genes. Lexicon will have a non-exclusive, perpetual license to DeltaBase’s 250 drug targets currently in the system and to the 1,000 additional targets the company expects to add over the next four years.

Last October, Lexicon of The Woodlands, Texas, filed a lawsuit against Menlo Park, Calif.-based Deltagen, alleging that the technology Deltagen uses to produce gene knockout animals infringed on four patents Lexicon holds patented methods for producing "knockout" cells and animals. This claim followed an earlier patent infringement lawsuit covering a different aspect of this technology.

Deltagen had said Lexicon's claims lacked merit.

All claims and counterclaims have now been dismissed.

The companies did not disclose any financial details of the settlement, but they did say that Lexicon could be entitled to receive payments for Deltagen's fee-for-service generation of knockout mice.

"This settlement furthers our strategy of focusing Lexicon's efforts on drug discovery using in vivo validated targets," Arthur Sands, CEO of Lexicon, said in a statement. "We share with Deltagen the view that knockout-validated drug targets are critical for developing the next generation therapeutics of the post-genome era."

William Matthew, CEO of Deltagen, said: "Since the strengths of Lexicon and Deltagen greatly complement each other, our decision to resolve the current legal issues will enable both companies to leverage gene knockout technology for pharmaceutical advancement."

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