Thursday, January 5, 2012

Synergy lawsuit against Ironwood dropped

By Lori Valigra

The lawsuit seeking $500 million in damages that Synergy Pharmaceuticals Inc. filed against Cambridge biotech Ironwood Pharmaceuticals Inc. and its chief scientific officer has been withdrawn, according to a U.S. Securities and Exchange Commission Form 8-K filing by Ironwood on Jan. 4, 2012.

Synergy (Nasdaq: SGYPD, SGYPU), a New York developer of drugs for gastrointestinal disorders and diseases, filed the lawsuit against Ironwood, which is focused on irritable bowel syndrome treatments, on Dec. 12, 2011.

According to the SEC filing, the complaint alleged, among other things, that Ironwood submitted false information when it opposed a European patent granted to Synergy in proceedings before the European Patent Office. On Dec. 23, 2011, counsel for Ironwood sent a letter to Synergy’s counsel stating that Synergy’s lawsuit was meritless and should be withdrawn. On Dec. 29, 2011, Synergy voluntarily dismissed the lawsuit without prejudice, the filing said.

Synergy issued a press release Wednesday saying the European Patent Office’s Opposition Division had maintained Synergy’s patent in amended form. The ruling followed an oral hearing on Dec. 14 where both Synergy and Ironwood representatives were present. The Opposition Division upheld the validity of the claims in Synergy’s patent that relate to its lead drug candidate plecanatide. Written reasons consistent with the oral ruling are expected within a few months.
 

Editor's note: A previous version of this article included a misleading headline. Please note that Ironwood's chief scientific officer remains with the Cambridge company.