Let the genetic-testing warfare begin.
Salt Lake City-based Myriad Genetics Inc. this month sued Ambry Genetics Corp., an Aliso Viejo-based testing provider, on allegations of patent infringement.
Myriad’s action was triggered by a June U.S. Supreme Court ruling in a case involving Myriad that ended the 30-year practice of awarding patents on human genes. The case centered on a pair of genes known as BRCA 1 and BRCA 2 that are associated with breast cancer.
Justices ruled that naturally occurring human genes can’t be patented but also ruled that patents could be claimed on modified DNA.
Ambry within hours of the high court’s decision said it would market its versions of the BRCA tests, and it hailed the ruling.
“It’s such a win for patients. Everyone was crying, jumping up and down and shouting,” Elizabeth Chao, Ambry’s chief medical officer, told the scientific journal Nature in an article on the case.
Myriad struck back, alleging in its suit that Ambry’s tests infringe 10 other patents on the breast cancer testing process that it owns or licenses from other companies and institutions and that the Supreme Court’s ruling didn’t cover.
The company receives most of its annual revenue of just more than $470 million from its BRACAnalysis test.
Myriad, which had a recent market value of $2.5 billion, is also seeking damages against Ambry. Those damages could be tripled if the U.S. District Court in Salt Lake City finds that Ambry’s infringement was willful.
Ambry, which is privately held, isn’t taking the suit lying down.
In a statement, the company said it “intends to vigorously defend itself” against the Myriad lawsuit.
“Ambry Genetics supports the Supreme Court’s decision and will vigorously defend its position,” Chief Executive Charles Dunlop said.
The testing laboratory has “had an overwhelming response from our clients seeking an alternative laboratory to perform BRCA testing and Ambry is fully committed to supporting our clients and patients moving forward,” Dunlop added.
Other patent owners are part of the lawsuit against Ambry, including the University of Utah; the University of Pennsylvania; the Hospital for Sick Children in Toronto; and Canada-based Endorecherche Inc.
Myriad and its co-plaintiffs also sued Houston-based Gene by Gene, which had announced its own plans to offer a BRCA test.
Griffin-American’s Overseas Play
Pockets of money in the United Kingdom influenced the latest buy of Newport Beach-based real estate investor Griffin-American Healthcare REIT II Inc.
Griffin-American recently said it would buy 44 senior housing and care facilities in England, Scotland and the Channel Island of Jersey for about $447.8 million.
It’s acquiring the properties from England-based Myriad Healthcare Ltd. Griffin-American will lease the properties back to Myriad, which operates them as “Caring Homes.”
The investor said in a press release that more than 52% of the portfolio’s year-end 2012 revenue came from residents who pay for their care out of pocket. That’s “significantly higher than the UK national average of 32%.”
Griffin-American said it received its statistics from the London School of Economics’ Personal Social Services Research Unit.
“As in the United States, the population of the United Kingdom is rapidly aging, creating greater demand for senior care,” Danny Prosky, Griffin-American’s president and chief operating officer, said in a statement.
The U.K. properties will add about 962,000 square feet and 2,163 beds to Griffin-American’s healthcare real estate portfolio, which the company said is now valued at $1.56 billion based on the purchase price of the U.K. buy.
Griffin-American previously was a business unit of the former Grubb & Ellis Co., which was combined with Newmark Knight Frank last year to form Newmark Grubb Knight Frank. Griffin Capital Corp. and American Healthcare Investors LLC took over sponsorship of the REIT in late 2011.
Hoag Gets Receiving Designation
Hoag Memorial Hospital Presbyterian in Newport Beach said its Irvine hospital is now authorized to receive emergency heart patients after county government officials awarded it “special status.” The designation took effect July 1.
The status means Hoag Hospital Irvine is one of only 13 in the county that can directly receive via ambulance patients who are suffering a heart attack and need immediate attention. The Orange County Emergency Medical Services awards the status following an exhaustive site survey and review of an application and supporting documents. It is good through June 30, 2014.
Bits and Pieces
Hoag Memorial Hospital Presbyterian in Newport Beach said its Hoag Neurosciences Institute received a $450,000 grant from the Orange County Vital Brain Program to promote healthy brain aging. … Irvine-based Cerna Homecare Inc. said actress Lindsay Wagner of Bionic Woman fame is now its celebrity spokesperson.
