After being diagnosed with breast cancer 3 years ago, Genae Girard knew she faced medical travails and steep costs, but she didn’t necessarily expect to encounter a patent problem.

Still, that’s what happened after the 39 year-old Austin, Texas native underwent BRCA gene testing to determine whether she was at increased risk for ovarian cancer, perhaps necessitating that her ovaries be removed as well.

The test was positive.

She requested confirmation using another test, but was stoned by a decade-old Patent Office ruling that granted Myriad Genetics a patent on BRCA genes and the related testing procedures that determine ovarian cancer risk.

Now Girard is suing Myriad and the Patent Office. She has been joined by other cancer patients, professional organizations representing 100,000 pathologists, and a raft of genetic researchers. The ACLU organized the case and filed it in a federal court in New York. 

The coalition does not plan to accuse Myriad of being a poor steward of the information concerning the BRCA genes, but rather that BRCA testing could improve and costs could be reduced in the absence the monopoly held by Myriad as a result of the Patent Office’s decision.

“With a sole provider, there’s mediocrity,” Wendy Chung told the New York Times. Chung is a plaintiff in the case and directs clinical genetics at Columbia.

Companies like Myriad have contended in similar cases that the patent system fosters innovation by rewarding risky investments in research and development.

The Patent Office has already granted patents to single companies for genetic testing on long QT syndrome, a condition associated with cardiac arrhythmias and sudden death, and testing for the gene that causes hemochromatosis, a rare condition characterized by excessive iron accumulation.

What recession?

Clovis Pharmaceuticals, a Boulder-based start-up bred to acquire, develop and commercialize oncology products, has just raised $145 million, the largest such financing this year.

Clovis’ management team is the same one that grew Pharmion into a colossus that was snapped up by Celgene in 2008 for $2.9 billion.

Its financing comes from essentially the same VCs that backed Pharmion.
 
The timing of Clovis’ big raise is no accident. The Great Economic Crisis has left hundreds of Biotech companies in possession of promising molecules and not enough cash to develop them. Clovis, arguably, has its pick of the litter. 
 
“There’s a significant need for this type of company in almost any financial circumstance because the discovery abilities of our industry have really exceeded the development capacity of our industry,” Patrick Mahaffy, president and CEO of Clovis told BurrillReport.

“We (are) well capitalized…and many other companies are struggling…companies that may have wanted to be or had been an acquirer, or buyer, or partner of rights, have backed away,” he summarized.
 
Versant Ventures participated in the financing. For its managing director, Brian Atwood, the real appeal in the deal was Clovis’ management team, with which he worked as a Pharmion investor. “The guiding principle…for our firm is to find great management teams,” he confirmed.
 
Accompanying Versant in the round are Domain Associates, New Enterprise Associates, Aberdare Ventures, ProQuest Investments, Abingworth and Frazier Healthcare Ventures. All but the latter had invested in Pharmion.

Accompanying Mahaffy at Clovis will be CMO Andrew Allen, EVP of Regulatory Affairs and Technical Operations Gillian Ivers-Read, and CFO Erle Mast. All are reprising their roles at Pharmion, which Mahaffy founded 9 years ago.