Patents and Trade Secrets Go Hand in Hand for ‘Pharma’ Companies

Most of us are familiar with biologic medicines from taking flu vaccines and covid treatments. Biologics present a wave of breakthrough medicines for cancer, diabetes, arthritis etc. Biologic companies include Amgen, Roche / Genentech and AbbVie.

Biologic manufacturers quickly realised that patenting everything connected to making biologics was not sensible, because certain knowledge developed over time would be difficult for competitors to reproduce without their insights, and therefore worth keeping secret rather than sharing in a patent.

Traditional drugs are chemically synthesized from non-living materials, whereas biologics are derived from living organisms (cells, proteins, DNA, etc.). Biologics have required a lot of experimentation, both successful and otherwise. Successful biologic manufacture requires a lot of knowledge for example ‘how to’ grow living cells outside of a body.  

Biologic companies use trade secrets to protect such confidential knowledge that provides their business with a competitive edge. This can include specific cell growth conditions, purification processes, vector (delivery) designs, or media formulations.

They do use patents to protect what could be readily reverse engineered or worked out by experts in the space. For example, Moderna patented modified nucleotides and lipid nanoparticle formulations, preventing direct replication by competitors in key markets.

Nowadays most biologic companies and now other life sciences companies and using a blended strategy and leveraging both patents and trade secrets together. This dual approach enables patented ownership over foundational technologies while maintaining competitive advantages through undisclosed knowledge (know-how).

Trade secrets and patents work together to protect IP in modern companies