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Saturday, January 07, 2006

Ind. Decisions - Judges rules Lilly broke research contract

The Indianapolis Star reports today, in a story by Jeff Swiatek that begins:

Eli Lilly and Co. broke the terms of its contract with a research partner by setting up a secret development team using the partner's technology for another project behind its back, a federal judge ruled Friday.

The ruling gives tiny Emisphere Technologies, of Tarrytown, N.Y., a key victory in a more than two-year-old legal fight with pharmaceutical giant Lilly.

In a 60-page decision that criticized the drug maker for "shifts and internal contradictions" in its explanations, U.S. District Court Judge David Hamilton said Emisphere was free to terminate its research agreement with Indianapolis-based Lilly in 2004.

"Lilly deliberately chose a course that was too aggressive, one that tried to sail too close to the wind," the judge said in ruling that Lilly breached the contract it had with Emisphere.

No damages were awarded. Emisphere spokesman Dan Budwick said company officials are "very pleased with the decision" and will decide later whether to ask the judge to award damages. Emisphere still has a patent infringement claim pending against Lilly.

Access the ruling in Lilly vs. Emisphere Technologies here.

Posted by Marcia Oddi on January 7, 2006 04:29 PM
Posted to Ind Fed D.Ct. Decisions