CAT Fight with Abbott: The Calculus of Royalty Offsets and Partnering Reputation

The fight between Abbott Laboratories and Cambridge Antibody Technology over two partly overlapping royalty-giveback clauses in their contract on Humira has implications far beyond the money--which itself is not inconsiderable. Abbott could theoretically save itself some $60 million in royalty fees, but it could also win itself a name for playing hardball with its partners, even in the event of a major drug development success.

There have been disputes over biotech/pharma contracts since the beginning of the industry—the most famous being the bitter row between Amgen Inc. and Johnson & Johnson over the co-marketing agreement signed for erythropoietin. In the original lawsuit, the courts largely agreed with J&J's interpretation of the contract, but in another sense, J&J clearly lost: its reputation as a partner suffered for many years.

Pfizer Inc. was faced with a similar situation with Ligand Pharmaceuticals Inc. , which claimed Pfizer had violated...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Leadership

Podcast: “They Are Able To Keep Their Body”: Medipost On Its Stem Cell Therapy Vision

 

In Vivo spoke with Edward Ahn, CEO of Medipost, a Korean company that has developed stem cell therapies from cord blood, on how they are working across regulatory markets to provide a novel treatment for degenerative diseases.

Rising Leaders 2025: Abbas Kazimi’s Vision For Nimbus Therapeutics

 
• By 

Rising Leader Abbas Kazimi's leadership at Nimbus Therapeutics combines immigrant resilience, patient-first partnerships, contrarian strategic bets and a deeply personal mission driving breakthrough drug discovery innovation.

Podcast: Oxolife’s Agnés Arbat, Winner Of The European Prize For Women Innovators

 
• By 

Agnès Arbat, CEO of Oxolife and winner of the EU Women Innovators Prize, joins In Vivo to discuss OXO-001, a novel non-hormonal treatment aimed at improving embryo implantation in IVF. She shares insights from her biotech journey and the future of fertility innovation.

Execs On The Move: June 2025

 
• By 

An interactive look at recent executive-level company changes and promotions in the biopharma, medical device and diagnostics industries.

More from In Vivo

Deals In Depth: June 2025

 
• By 

Five $1bn+ alliances were penned in June, and four exceeded $2bn.

Global Pharma Interest In Korea Undeterred Despite Political Roller Coaster

 
• By 

Despite recent political turmoil, outside investor and corporate interest in South Korean biopharma innovation appears robust or even increasing.

Podcast: Oxolife’s Agnés Arbat, Winner Of The European Prize For Women Innovators

 
• By 

Agnès Arbat, CEO of Oxolife and winner of the EU Women Innovators Prize, joins In Vivo to discuss OXO-001, a novel non-hormonal treatment aimed at improving embryo implantation in IVF. She shares insights from her biotech journey and the future of fertility innovation.