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California Biogen Ruling Offers Clarity on Drug Partnership Deals

Aug. 4, 2020, 9:05 PM

A California Supreme Court ruling sheds some light on how far state law goes to bar anticompetitive practices in a case over Biogen Inc.'s handling of a drug development contract.

The state’s highest court ruled Monday that California businesses can’t be held liable for persuading one company to terminate an at-will contract with another unless they did so through “wrongful means.” The court also found that corporate entities, like individuals, can’t have noncompete agreements in California.

The ruling is an important development for drugmakers because it will “enable more effective and more flexible industry collaboration without fear of a lawsuit,”...

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