Biogen Ruling Reinforces Competitive Protections for Drugmakers

California businesses can’t be held liable for persuading one company they’re working with to end an at-will contract with another—unless they used wrongful means to achieve their goal, according to a Ninth Circuit decision.

The court on Thursday upheld a prior ruling in a case between Ixchel Pharma LLC and Biogen Inc., which had been remanded from the California Supreme Court.

The decision protects drugmakers from lawsuits in California when one company drops an at-will partnership with another because a competing business opportunity presents itself.

Ixchel had sued Biogen, alleging the biotech company tortuously interfered with a contract Ixchel had ...