As the state plans to capitalize on research at the University of Utah and Utah State University, higher education officials would do well to pay attention to BYU, recently ranked seventh in the nation by the Milken Institute for developing and marketing biotechnology research. It has worked successfully with businesses to market discoveries made by its professors, such as a drug to treat leukemia and computer software that can predict how water will move in an area, a useful tool in tracking pollution and predicting flood damage.
But that's not the main reason the state should look to BYU. As it implements the Utah Science and Technology Research economic development initiative the Legislature approved this year, the state will find some valuable lessons in the university's experience.
BYU is fighting one of the nation's largest drug companies over credit for developing what many consider a miracle pain reliever. The school claims that Pfizer has not given its professor credit for discovering the COX-2 inhibitor that is key to Celebrex, a drug used by people with arthritis and similar ailments. The inhibitor allows chronic pain sufferers to use aspirin-like pain killers without burning the lining of their stomachs.
The university argues that it had a contract with Monsanto back in the 1990s, when BYU professor Dan Simmons first discovered the inhibitor. Monsanto was eventually bought out by Pharmacia, which in turn was bought out by Pfizer.
Pfizer developed Celebrex, using the COX-2 inhibitor but did not give any credit to BYU and Simmons, much less allow the university to share in the profits. BYU's lawyers estimate that the university's share exceeds $1 billion. Pfizer has told reporters that while there was an agreement between BYU and Monsanto, Celebrex was developed by Pfizer without any participation or research from BYU.
It will now be up to a court to sort out the factual claims made by both parties, but this episode does teach important lessons in the marketing of technology developed through the USTAR facilities.
First, obtain patents for the results of research. BYU's contract with Monsanto called for the drug company to obtain the patents both for the research and for the product that would spring forth from it. Had BYU patented its discovery, the Celebrex dispute would be moot. While BYU's discovery was touted in the media in the mid-1990s, newspaper clippings are not as authoritative as a U.S. patent.
Second, think about renewing contracts when a company is bought out -- insofar as possible. In this age of corporate mergers, renewing a contract when a new owner takes over ensures that the old commitments will be honored and gives everyone protection should a dispute arise.
BYU's lawsuit with Pfizer is a long way from being resolved, but the issues it brings up can help the state avoid similar pitfalls as it seeks to market technology developed by Utah's universities.
This story appeared in The Daily Herald on page A5.
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Posted in Editorial on Sunday, October 29, 2006 11:00 pm
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