Forward Pharma A/S ($FWP) announced that it has signed a Settlement and License Agreement with Biogen ($BIIB). Both the companies were engaged in a dispute over a patent covering methods of treating multiple sclerosis (MS) with 480 mg of dimethyl fumarate (DMF), the active ingredient in Biogen's top selling Tecfidera.
The settlement entails the payment of $1.25 billion in cash by Biogen to Forward. It may also be required to pay royalties in certain cases for an irrevocable co-exclusive license to all Forward intellectual property in the U.S. The license may be converted to exclusive subject to conditions.
However, the companies still have some pending issues as the latest agreement does not deal with issues related to their case with the Patent Trial and Appeal Board. The company is still in fray to see whether it receives patent rights in the US or in other countries, pursuant to the pending case. In such cases, Biogen may be required to pay further royalties to Forward.
Forward Pharmaceuticals stock showed steep upward move on the news, giving a further boost to its already strong performance this year so far. The stock has gained over 81 percent in 2017. The company is looking to hold an extraordinary general meeting to vote on License Agreement. The meeting is scheduled for February 1, 2017.