Cytodyn Inc (CYDY)

[Blane]

Posted by Diligent Cause on Reddit:

Facts Asserted in the Complaint support CytoDyn as owner of all rights to Leronlimab to treat Covid.
I'm not sure if anyone has posted the entire Complaint filed by CytoDyn against the 13D group (if so, I apologize for the redundancy), but here is a portion of the Complaint that is extremely relevant and specific to the issue of patent rights to the use of Leronlimab to treat Covid. I'm only including the most-relevant 3 paragraphs:

On October 10, 2018, Patterson and CytoDyn entered a consulting agreement (the“Consulting Agreement”) pursuant to which Patterson would aid CytoDyn on certain projects as an independent contractor. Among other things, Patterson agreed in the Consulting Agreement that he did not have “any right, title, interest in or ownership of Proprietary Information” and that any work product “conceived, made, reduced to practice, or discovered” by Patterson “in the course of any work performed for [CytoDyn]” would “be the sole and exclusive property of [CytoDyn].” The Consulting Agreement was later amended three times, each to raise Patterson’s compensation – ultimately, to $20,000 per month.

On July 17, 2019, CytoDyn and IncellDx entered a license and supply agreement pertaining to non-commercial grade quantities of the Company’s drug and related materials.

From October 2018 through May 2020, Patterson assisted CytoDyn with certain assay tests relating to HIV and COVID-19. In this period, Patterson also appeared in a number of interviews with CytoDyn executives to discuss CytoDyn’s ongoing research. For example, on December 10, 2019, Patterson appeared in an interview with CytoDyn CEO Nader Pourhassan regarding an ongoing breast cancer clinical trial. On April 2, 2020, in another joint interview,Patterson spoke about the results from a study involving patients that were experiencing severeCOVID-19 symptoms, and the impact of the Company’s drug, leronlimab, with reference to treatment of “cytokine storm.” And on April 30, in another joint interview, Patterson again described patient reactions to ongoing research using leronlimab. These interviews evidence Patterson’s ongoing role in CytoDyn’s clinical trials through mid-2020, and his role in helping to communicate with the Company’s investors regarding those projects.

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For those who may question the veracity of the statements in the Complaint, I would assert from my perspective as an attorney that the attorneys at Potter Anderson & Corroon LLP and the Of Counsel attorneys at Sidley Austin LLP would not file a Complaint quoting a document as saying something unless they had actually seen the document and pulled the quote directly from the document. So, I trust that the Consulting Agreement says exactly what is stated in the Complaint. There will still be issues to litigation though, such as whether or not the use of Leronlimab to treat Covid was within the scope of the Consulting Agreement. Still, the agreement appears to cover work product conceived "in the course of any work performed for [CytoDyn]." There may be room to argue the matter, but I'd rather be on the side arguing that the Consulting Agreement means what it says rather than the side arguing that the Consulting Agreement doesn't cover this specific situation.