Eli Lil­ly or­dered to pay roy­al­ties on block­buster di­a­betes drugs, though ex­act dam­ages are un­clear

A fed­er­al court found Eli Lil­ly in breach of a roy­al­ty agree­ment with an Ari­zona com­pa­ny, like­ly send­ing the case — which deals with Lil­ly’s block­buster di­a­betes drugs — to a tri­al.

The Ari­zona Dis­trict Court or­dered Lil­ly to pay the roy­al­ties to Tuc­son, AZ-based Re­search Cor­po­ra­tion Tech­nolo­gies, per an opin­ion de­liv­ered Tues­day, stem­ming from a 1990 agree­ment in­volv­ing ma­te­ri­als used in man­u­fac­tur­ing Lil­ly’s in­sulin prod­ucts. Lil­ly had agreed to pay a 2% roy­al­ty on world­wide sales, and the ex­act amount of dam­ages will be de­ter­mined in a tri­al, Judge Scott Rash wrote.

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