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Arachnova: The Patent Problem with Re-Indication Strategies

Dynogen and Arachnova both independently thought up a new indication for an unapproved but soon-to-genericize Mitsubishi anti-depressant. They both filed use patents, then both licensed the same preclinical data from Mitsubishi. Suddenly revealed to each other, they're now arguing over who owns the IP--a sobering message for the increasing number of companies pursuing re-indication strategies.

The business problem with ideas is that they're often unprotectable.

That's why drug companies have always preferred to create things—or, in intellectual property parlance, compositions of matter. Protecting an idea—the...

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