Eli Lilly Prevails in Appeal of Licensor’s Drug Royalty Claim

Eli Lilly and Co. doesn’t owe royalties to Research Corp. Technologies Inc. for Lilly’s “crown jewel” diabetes treatments, which are made with an ingredient produced using RCT’s licensed technology, a federal appeals court ruled Wednesday.

Lilly didn’t breach a license agreement with RCT because the document doesn’t cover how Lilly used Pichia pastoris, that was acquired by RCT, to manufacture its Humulin and Humalog diabetes medications, the US Court of Appeals for the Ninth Circuit said in an unpublished memorandum disposition.

The Ninth Circuit reversed a district court’s ruling that Lilly breached the agreement, remanding the suit and ...