Biotech Values

[pcrutch]

re: MDVN and ARN509

In addition, Charles Sawyer founded Aragon two years ago to develope ARN509, similar but supposely better version of MDV3100.

MDVN has since filed a lawsuit against UCLA over this.

From the Pink Sheet article

An analyst on Medivation's third quarter call asked CFO Clarence Machado about a legal issue with the University of California at Los Angeles (UCLA) over ownership of MDV3100. Medivation licensed exclusive worldwide rights to the MDV3100 series of compounds from UCLA; the company pays UCLA 10% of all upfronts and milestones in connection with MDV3100. Medivation's failure to meet agreed upon diligence requirements or milestones would allow UCLA to terminate the agreement. Machado responded that Medivation filed a lawsuit against UCLA in the second quarter of 2011. He noted that the courts are busy, and "the estimated trial day would probably be three years out." The substance of the dispute was not discussed.

Biobetter from investorsvillage sums it up well

"MDVN's lawsuit is not about ownership of MDV3100 but is about ownership of ARN509. Both drugs were derived from the same drug screen, both discovered by the same UCLA chemist and ARN509 structurally resembles MDV3100. MDVN and UCLA came to an agreement that gave MDVN the rights to a few hundred chemical structures and MDVN thinks ARN509 is one of them. So far ARN509 has not been able to sign up a Big Pharma partner which may indicate there is some merit to MDVN's lawsuit."