University of California files complaint against Medivation

Medivation disclosed in a regulatory filing that on April 11, the Regents of the University of California filed a complaint against Medivation and its subsidiary Medivation Prostate Therapeutics, in the Superior Court of the State of California, County of San Francisco. The complaint arises from the parties’ 2005 exclusive license agreement, which grants to MPT rights in certain University of California patents, including the University of California patents covering XTANDI. The complaint centers on two allegations. The first allegation is that Medivation and MPT have failed to pay University of California 10% of operating profits Medivation has received from Astellas Pharma as a result of a 2009 agreement between Medivation and Astellas. University of California alleges that such profits are sublicensing income under the exclusive license agreement and that University of California is entitled to 10% of such payments. The second allegation is that Medivation has breached its fiduciary duties to University of California, as a minority shareholder of MPT. University of California owns a fraction of 1% of the outstanding shares of MPT. The complaint seeks a declaration and judgment for breach of contract related to the allegation that operating profits payments received from Astellas are sublicensing income under the license agreement, a judgment that Medivation has breached its fiduciary duties and an injunction requiring Medivation to comply with its fiduciary duties. The complaint does not seek termination of the licensing agreement.