Genentech says U.S. patent office upholds key patent

NEW YORK (Reuters) - Genentech Inc said on Tuesday that the U.S. Patent and Trademark Office has confirmed its claims of the validity of a key patent that governs the biotechnology company's method of producing some of its drugs.

Genentech, which also receives revenue under licensing agreements covering other companies' medicines that utilize the technology, said the favorable decision by the Patent Office is final and unappealable.

The patent, known as the Cabilly patent, involves the method of producing antibodies and antibody fragments, a crucial step in the manufacture of biotechnology medicines.

"We have always believed that the Cabilly patent represents a new and significant innovation in biotechnology, and we are very pleased with the Patent Office's final decision in this reexamination proceeding," Genentech's general counsel Sean Johnston said in a statement.

"This decision is consistent with the recognition given the Cabilly patent by many biotechnology and pharmaceutical companies that have obtained licenses under the patent for their commercial products," Johnston added.

The Patent Office's decision comes exactly a year after it rejected the validity of the Cabilly patent. Genentech appealed the ruling and regulators agreed to reexamine their decision.

The patent remained in effect during the reexamination process.

Genentech said it expects the reexamination certificate to be issued later this year, formally concluding the reexamination proceedings.

(Reporting by Bill Berkrot; Editing by Gary Hill)