City of Hope National Medical Center Awarded $200 Million in Punitive Damages in Lawsuit Against Genentech, Inc.Business Editors Judgment Follows an Earlier Award of $300.1 Million in Compensatory Damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. City of Hope National Medical Center City of Hope is one of 39 NCI-designated Cancer Centers and is located in the city of Duarte, California. City of Hope comprises an ambulatory and in-patient cancer treatment center as well as a biomedical research facility known as the Beckman Research Institute and the City of Hope has been awarded $200 million in punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. by a Los Angeles County Superior Court jury in its lawsuit against Genentech, Inc. (NYSE NYSE See: New York Stock Exchange :DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. ). The jury had already determined that Genentech breached its fiduciary duty to City of Hope and acted with "malice" or "fraud" when concealing numerous licenses to groundbreaking technology based on research conducted by City of Hope scientists Arthur Riggs, Ph.D. and Keiichi Itakura, Ph.D. Drs. Riggs and Itakura conducted their research under a 1976 agreement between City of Hope and Genentech. This research, which resulted in over 100 patents held by Genentech worldwide, led to the creation, among other things, of synthetic insulin, or Humulin(R), the world's first biotechnology drug. This discovery at City of Hope ushered in the biotech age. The punitive award follows an award of $300.1 million in compensatory damages announced on June 10, 2002 after the jury determined that Genentech did not honor its obligations under a 1976 contract covering the Riggs-Itakura patent. Genentech is expected to appeal both judgments, which could delay payment to City of Hope for an extended period. "We are pleased with the jury's decision to award punitive damages to City of Hope. Both compensatory and punitive awards will support our biomedical research aimed at curing life-threatening diseases," said Gil N. Schwartzberg, president and chief executive officer of City of Hope. These awards will not affect the license that City of Hope has granted to Genentech for use of its monoclonal antibody technology. This technology is used in the manufacture of the medications Herceptin(R) and Rituxan(R) -- two of the most promising cancer drugs available today. City of Hope National Medical Center is one of the world's leading research and treatment centers for cancer and other life-threatening diseases including diabetes and HIV/AIDS HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome . A pioneer in the fields of bone marrow transplantation Bone Marrow Transplantation Definition The bone marrow—the sponge-like tissue found in the center of certain bones—contains stem cells that are the precursors of white blood cells, red blood cells, and platelets. and genetics, City of Hope is a National Cancer Institute-designated Comprehensive Cancer Center. For more information, visit our web site at www.cityofhope.org. City of Hope ... where the power of knowledge saves lives. |
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