Biotech Values

[DewDiligence]

Re: Novartis launches Extavia for MS

This story requires some history to understand. Chiron developed Betaseron and licensed the rights to Berlex/Schering AG (since acquired by Bayer) in the early 1990’s. When NVS acquired Chiron in 2006, Schering exercised a change-of-control option in the agreement with Chiron to acquire all Betaseron-related assets outright.

NVS sued Schering, claiming that there was no change of control according to the definition in the Chiron agreement. NVS and Bayer eventually settled out of court, and the settlement allows NVS to market Betaseron under a distinct brand name (Extavia) as though it were a distinct branded drug.