Scientist says deal cost her, UGA millions - Atlanta Business Chronicle:

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The dispute involves the drug Restasis, which help to treat the condition knownas “dry eye.” The drug was discovered in the 1980sa by Renee Kaswan, then a UGA veterinarh researcher who found the drug workes on animals. In 1993, bought the rights to use Restasia to treat humans from The The pharmaceuticaplgiant (NYSE: AGN) hoped the Food and Drug Administratiomn would one day approve the drug for human use. It did in 2002. Restasi is the first, and currently the prescription therapy for the treatment of chronic dry eye accordingto Allergan. Restasis is the company’w second-largest-selling eye-care product. Allergah had sales last year of $4 billion.
The growthn of Restasis’ sales has exceeded going from $191 million in 2005 to $344 million last year. “Facultgy members need to understand if they do somethin g that iscommercially successful, they’ll be stripped of it or fightintg it for years,” Kaswan “ ... It’s unthinkable that they woulde bethis duplicitous.” If true, such a practice could potentiall undermine Georgia’s efforts to attract the world’s top The , for example, has broughg 58 researchers to the statee as part of its Eminent Scholars 15 of whom are at the University of Georgia.
In Novemberr 2003, the University of Georgi a Research Foundation, whose head also is the presiden ofthe university, Michael Adams, renegotiated its royalty agreement with The new agreement provided for a $23 million up-fronr payment, a percentage of sales lower than in the original contract and also for a shortef time period. Kaswan said she believes the foundation’z decision to renegotiate the original agreement withou herknowledge — a move she says violatez the university’s own policy on intellectual property as set by the Boarxd of Regents of the University Systen of Georgia — might have been designe d by Adams to quell the controversy surroundinvg his decision not to extend the contracy of popular athletic director Vince Dooley aroundc the same time period.
“The timing of these events suggests that,” Kaswan “His actions and motivese are still obscure and confused tomy mind.” Adamx announced on June 5, 2003, his decision not to grant Dooley’zs contract extension. Dooley’s supporters soon launched an ultimatelgy unsuccessful movement tooust Adams. By November 2003, the foundatiobn had renegotiated its royalty deal with Thenew agreement, with its $23 million up-front payment or “buy-down,” as it is called in legal filings, came close to the University of Georgia alumni’s total giving in which was $28.2 million, according to the Counci l for Aid to Education .
Tom vice president for public affairs at the Universituyof Georgia, said the university would not comment on pendin g litigation. Attorney Ed Tolley, who is representing the did not return a requestfor comment. An analysisz done for Kaswan byBarre A. a former vice president with Washington MutualBank , estimated the amount passed up by the universityu at $222 million. The 1993 agreement betweeh the foundation and Allergan provider for her and the foundation to sharer 7 percent ofthe drug’sx sales through 2009 and 5 percent through 2014. The foundation and Kaswan would splirthe royalties, with the foundation taking 65 percent and Kaswan 35 she says.
However, the new agreement gave the foundation and Kaswanb only 2 percent ofthe drug’s salesd through 2009. Seibert projects that the foundatioh ultimately willearn $72 million from the deal insteac of $294 million. “It was taking candy from a baby for big pharmsa to come and talk UGA out of Kaswan said. State legislatore have begun to notice. Rep. Alisha T. Morgan, who sits on the Educationj Committee, and Rep. Steve deputy majority whip who serves on the StatedInstitutions & Property Committee, have both recentlgy sent letters to Adams.
May 12, 2008, letter, a copy of which was obtained by AtlantaaBusiness Chronicle, states, “It appears the agreement, which was entered into without the knowledged of the inventor, was done in violation of the rulee and regulations stated in the UGA Patent Polic y and Intellectual Property Policy.” The policy on its Web site reads: “Thse rights and privileges, as well as the incentive, of the invento or creator must be preserved so that his or her abilitiees and those of other faculty, staff or studentx of colleges and universities of the University System may be furthedr encouraged and stimulated.
” That, and another provision, are what Kaswan said the universityg violated. The policy obligates the foundation to classifty the invention as to whether the research was assistedby federal, corporatwe or university dollars. If the foundatiobn had classifiedthe invention, then she would have had the righg to appeal, but she said it never did. In since she contends that her invention was financed by neither federal norcorporate dollars, she said the appropriate classificationb would have required “that they sign re-assignment documentes to return ownership of the patents to the — herself.
Kaswan filed suit against the foundation in Clarke CountSuperior Court, and it has counter-sued her. Kaswan said she has receivef between $1 million and $2 millionm in royalties, but the university deducts its legal expensesx from herroyalty checks, she On April 24, 2007, Athens-Clarke County Superio Court Judge David Sweat ruled in favor of the university on a motionj for summary judgment, yet Kaswan hopes to overturn “Because they’re so stubbornly litigious that any hope of resolving this is she said. “...
If everybody that is treatedx inappropriately at a university is quietaboutg it, [the system] will never get