November 9, 2011 / 1:08 PM / 7 years ago

UPDATE 1-Affymax settles patent suit with J&J unit

* Affymax to pay up to $13 mln to Janssen Biotech

* Suit related to rights over anemia drug (Follows alerts)

Nov 9 (Reuters) - Affymax Inc said it settled a patent lawsuit with Johnson & Johnson unit Janssen Biotech, and will pay up to $13 million in related fees and milestones.

The lawsuit was related to certain intellectual property rights over peginesatide — an experimental anemia drug being developed by Affymax along with its Japanese partner Takeda Pharmaceutical Co Ltd .

In 2010, an arbitration panel had determined that Affymax and Janssen were co-owners of three related U.S. patents, while Janssen was the sole owner of a U.S. patent and certain other related patents in Europe, Japan, Canada and Australia.

The settlement covers all of those patents and patent applications, Affymax said in a statement.

As part of the settlement, Affymax will pay Janssen upfront fees in two installments — $6 million to be paid immediately and $2 million by June 30, 2012.

Milestone payments consist of a $2.5 million payment on U.S. approval of peginesatide and $2.5 million on European approval.

Janssen would also get a low single-digit royalty on net sales of the drug in Europe, Mexico, Canada and Japan, until mid-2016.

Affymax shares closed at $4.76 on Tuesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Maju Samuel)

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