Biotech Values

[DewDiligence]

Apropos to the thrombin/fibrin thread…

Israel Sues J&J Re Biosealant Rights

http://www.reuters.com/article/idCNLDE5BL19Z20091222

›9:56am EST

JERUSALEM, Dec 22 (Reuters) - Israel's government on Tuesday filed a 500 million shekel ($132 million) lawsuit against Omrix Biopharmaceuticals, alleging the company stole its rights to a biological sealant that was developed at a state-run hospital.

Israeli-based Omrix was bought by Johnson & Johnson <JNJ> in late 2008 for $438 million.

The lawsuit agaist Omrix and founder Robert Taub was filed in a Tel Aviv court as a means to protect and recover the government's intellectual properties and patents, Israel's finance and justice ministries said in a joint statement.

Omrix officials were not immediately available for comment.

The sealant, the statement said, is a life-saving product aimed at stopping severe haemorrhaging.

The government said the product was developed by a doctor at a state-run hospital, and as such the rights belong to Israel. Omrix used Sheba Hospital's research and facilities to develop the product and Israel's government partly funded the sealant.

Israel claims that Omrix and Taub made use of state-owned technology without compensating the government. It also said the price Johnson & Johnson's Ethicon unit paid for Omrix was largely based on the value of the allegedly stolen technology.‹