Xconomy is reporting that a suit filed by SkinMedica against Histogen caused Histogen to layoff all of its employees. The suit was filed just prior to Histogen closing a round of financing with an investor group.
One issue with this case is that Histogen is not marketing a product. However, a patent gives the holder the right to prevent others from making, using or selling the patented invention. Here, SkinMedica can argue that Histogen is making or using, so it looks like the suit is proper. But the wierd part is that there will be virtually no damages. SkinMedica has not lost any sales. They are going to spend a lot of money and then get an injunction against a company that is no longer in business. That’s a wise use of shareholder capital (hint: sarcasm).
IHA