AnaptysBio's Jemperli complaint has legs

GSK’s pre-emptive strike against its partner AnaptysBio – alleging material breach of a 2014 deal – has been thrown out, putting the case on course for a full trial in July. The ruling in Delaware Chancery Court is relevant because it appears to back AnaptysBio’s claim that GSK had decided to sue AnaptysBio rather than discussing concerns about GSK running studies involving Keytruda and not the AnaptysBio-originated Jemperli. Thus the matter turns to AnaptysBio’s countersuit, alleging that GSK breached “exclusivity obligations” in the companies’ deal, which covers several drugs including Jemperli – to which Keytruda is a direct competitor. In theory, if AnaptysBio succeeds GSK could be ordered to cede Jemperli rights. However, in practice such an outcome seems unlikely, and more realistically GSK might be prevented from studying Jemperli competitors as combo partners, or else be ordered to pay AnaptysBio compensation for running such trials; an earlier complaint about GSK testing a combo of Zejula with Keytruda was settled in just such a way, with GSK agreeing to an increased royalty rate. Still, with AnaptysBio having mortgaged much of the Jemperli royalty to Sagard Healthcare, it’s Sagard that appears to have most at stake in the GSK dispute.