Orexigen Therapeutics, the US company backing Duke University in its patent fraud lawsuit against Irish pharmaceutical group Elan, raised $11 million (€8.87 million) following discussions with researchers about the drug at the centre of the dispute, writes Dominic Coyle.

The fledgling New Jersey company, set up by former pharmacology professor and venture capitalist Dr Eckard Weber, is focused on developing treatments for obesity.

Orexigen and Duke University have filed a lawsuit claiming patent fraud and copyright infringement against Elan over the discovery that Zonegran, a drug the Irish company has since sold for up to $240 million, might be effective in treating obesity.

Duke undertook a one-year study funded by Elan to investigate the efficacy of the treatment but there was no intellectual property (IP) agreement in the clinical trial agreement.

Orexigen is understood to have spoken with Duke researchers about the study late last year and, in the absence of an IP agreement, negotiated a licensing agreement in relation to the use of Zonegran in treating obesity early this year.

On January 21st last, the start-up announced that it had raised $11 million in initial funding from private venture capital investors.

However, there are fears that the company's ability to attract further funding could be affected by the loss of IP on the product.

Duke filed for patent protection on its research into Zonegran in May 2002 only to find that Elan had filed an application claiming inventor rights 11 days earlier.

Duke University is now claiming damages and seeking to have its researchers named as inventors.

Elan has said that it refuses to comment on pending litigation as a matter of policy.