Should biotech companies like ValiRx announce patent grants?

ValiRx (a UK-based life sciences company focused on early-stage cancer therapies) issued a press release recently indicating its majority-owned subsidiary Cytolytix has received an intention to grant communication from the European Patent Office on a key patent application covering polyleucine-based anti-cancer peptides (this patent application being licensed from King's College London).

This announcement follows a May press release relating to the grant of a later-filed patent application "Nanoparticle for Anti-Cancer Peptides and Uses Thereof.”

These announcements are interesting because not all life sciences companies choose to publicise when a patent has recently been granted or an application has been found allowable by a patent office. In Europe, the grant of a patent triggers a nine-month opposition period during which third parties can challenge its validity through a centralised procedure before the European Patent Office. Even with the advent of the Unified Patent Court, opposition proceedings remain one of the most cost-effective mechanisms for challenging European patent rights, although the opportunity to do so is only available for a limited period following grant. Patent applications also contain a significant amount of technical information and publicising them can signal to competitors the areas in which a company is focusing its research and development efforts. In a small number of cases, such publicity may also increase the risk of allegations of patent infringement from third parties.

Why then has ValiRx issued these press releases?

One likely explanation can be found on their website, where the company indicates it is looking for suitable partners and investment to progress its key asset — CLX001: a peptide therapeutic that has been shown to be highly active against triple negative breast cancer. 

The technology underpinning the company originates from the group of Professor Martin Ulmschneider (King's College London) who developed these new therapeutics. The peptides provide the advantages of being highly selective. They work by targeting the lipid membrane of cancer cells, forming pores in the membrane and so causing cancer cell death. 

As with any new enterprise, not only does the science need to be sound, but it must also be supported by a robust intellectual property strategy. For early-stage therapeutic companies, intellectual property often represents a significant component of enterprise value, as it may be many years before a product reaches the clinic or generates revenue. Consequently, developments that strengthen, or have the potential to strengthen, exclusivity can assume outsized importance when attracting investment or licensing partners. In a competitive fundraising environment, Cytolytix appears to be investing heavily in its intellectual property, and these announcements may be intended to highlight the progress being made in this area.

The announcements indicate that the company is seeking protection not only for its core peptide technology but also for specific formulations and subsequent improvements to that technology. In doing so, Cytolytix appears to be building an intellectual property portfolio that is not wholly dependent on a single patent family. The filings also suggest that the company is continuing to generate and seek protection for new developments as the technology evolves.

The press releases also indicate the intention to grant communication received on the polyleucine-based anti-cancer peptides application follows a request for accelerated examination at the European Patent Office. Whilst grant is not a guarantee that a patent will withstand future challenge, obtaining protection in major jurisdictions such as Europe and the US can provide investors and potential partners with greater confidence in the maturity and defensibility of the IP position. This is particularly important in sectors such as biotechnology, where the ability to secure meaningful exclusivity is often central to delivering a return on investment.

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