In the first British case to deal with the validity of a gene sequence patent, a UK Court of Appeal struck down a patent held by Rockville, Maryland–based Human Genome Sciences (HGS) for lack of industrial application. The dispute in Eli Lilly & Company v Human Genome Sciences, Inc. centers around the validity of a patent for the neutrokine-α gene sequence. The outcome agreed on in February is expected to have a major bearing on future decisions on the scope of biotech patents, especially gene sequence patents. “The Court of Appeal's judgment will raise doubts over the validity of many biotech patents currently in force, as mere speculation [on] biological function—without experimental data—may not be sufficient, says intellectual property expert Robert Fitt at London-based law firm Bristows. “With pharma's increasing reliance on biotech drugs as a source of growth, the value of many patent portfolios may well be hit hard by this judgment,” he says. HGS's patent was initially struck down by the UK Patents Court in July 2008 but later held valid by the Technical Board of Appeal of the European Patent Office. HGS is partnered with GlaxoSmithKline of London to develop an antibody to neutrokine-α called Benlysta (belimumab), for lupus. Lilly is developing its own antibody to neutrokine-α, having already spent some $50 million on its development, with plans to spend another $250 million in clinical trials.