Biogen Secures Tecfidera Patent Rights Over Forward Pharma

The U.S. Patent Trial and Appeal Board (PTAB) ruled against Danish pharmaceutical firm Forward Pharma A/S on Friday, affirming Biogen Inc.'s patents for its widely-used multiple sclerosis drug Tecfidera. This decision relieves Biogen from future royalty obligations to Forward, prompting a nearly 20% drop in Forward's stock. In contrast, Biogen's shares rose by 1.4%. The dispute centered on patents for Tecfidera's key ingredient, dimethyl fumarate, crucial in its status as a leading oral treatment for MS, with sales reaching approximately $4 billion in 2016.

The PTAB found Forward's patent descriptions insufficient to support claims of infringement by Biogen. Had Biogen lost, it would have been liable to pay Forward a 10% royalty on Tecfidera sales from 2021 onward. Under the ruling, Biogen retains exclusivity for Tecfidera until 2028. Earlier this year, Biogen preemptively secured its position by entering a $1.25 billion licensing agreement with Forward, gaining access to the company's MS drug patents and safeguarding against potential patent litigation setbacks.