Glaxo Group Wins Lupus Drug Royalty Fight in Delaware Top Court

GlaxoSmithKline PLC subsidiary Glaxo Group won a legal battle over royalties for lupus drug Benlysta when the Delaware Supreme Court said the company’s voluntary disclaimer of its patent ended its obligation to pay royalties to an investment vehicle managed by DRI Capital.

GSK didn’t violate the implied covenant of good faith and fair dealing when it voluntarily relinquished its patent rights, the court said Wednesday. The contract under which DRIT LP received royalty payments gave GSK an unrestricted right to disclaim its Benlysta patent, and the implied covenant is a “limited and extraordinary legal remedy” that shouldn’t have been deployed ...