Lawsuit Charges Mycogen With Infringing on Patent

SAN DIEGO — Mycogen Corp. of San Diego has been sued in U. S. district court here for alleged patent infringement by a German pharmaceutical company that contends Mycogen’s newly introduced biopesticide product is based on the German firm’s proprietary technology.

In its filing, Boehringer Mannheim GmbH of Mannheim, West Germany said Mycogen’s M-One biopesticide for the Colorado potato beetle infringes on a patent it received last month for a strain of Bacillus thuringiensis called tenebrionis, a microorganism that exists in nature.

Boehringer also asked the federal court to issue a preliminary injunction prohibiting Mycogen from selling M-One until the patent dispute in settled in court.

Various strains of Bacillus thuringiensis are being used by several companies in the development of biopesticides because they are biodegradable and leave no toxic residues. Boehringer does not now manufacture a biopesticide but has licensed its technology to several manufacturers developing products, including Abbott Laboratories and Sandoz.

Introduced in 3rd Quarter

Mycogen Vice President Andrew Barnes said M-One, which the company introduced during its third quarter ended June 30, was based on a patent Mycogen received in August covering a different strain of bacillus thuringiensis, called variety San Diego. Therefore, M-One is not infringing on the Boehringer patent, Barnes said.

“Mycogen was not contacted by Boehringer prior to receiving this complaint and we believe that they may be unaware that Mycogen has recently been issued patents covering (the Bacillus thuringiensis variety) used in M-One,” Mycogen President Jerry Caulder said in a statement.

Mycogen makes M-One in marketable quantities through fermentation techniques. After being eaten by the beetles, the biopesticide expands in their digestive systems, taking away their appetites. Sales of the product, the first of its kind, accounted for $164,000 of the company’s $1.6-million revenue reported that quarter, Barnes said.

$40-Million Market

The company has hopes that M-One will capture a significant portion of the $40-million annual U. S. market for Colorado potato beetle pesticides. The worldwide market for the pesticides is $120 million, Barnes said.

Barnes said the suit was not unexpected because Boehringer’s and Mycogen’s patents are based on two “very similar microorganisms.”

“We were surprised to find that the U. S. Patent Office did not resolve the issue of whether the organisms represented distinct inventions or were similar enough that only one patent should be issued,” Barnes said.

Mycogen stock closed down $.25 at $6.50 Thursday in over-the-counter trading.