Legal Battle Unfolds Between Alt-Egg Startups The EVERY Company and Onego Bio

In a significant twist within the alt-egg industry, The EVERY Company and Onego Bio were engaged in negotiations for a merger aimed at forming a new entity valued at $400 million. However, these discussions abruptly collapsed, leading to Onego suing its rival in September, as detailed in court documents.

Merger Talks Spoiled

The details surrounding the proposed merger were revealed in a legal filing on October 28 by The EVERY Co. The company is now petitioning a Wisconsin court to dismiss Onego Bio’s lawsuit, which challenges the validity of one of EVERY’s patents.

Intellectual Property Dispute

The core of the legal contention revolves around the patent for producing ovalbumin, the main protein found in egg whites, through precision fermentation using engineered microorganisms instead of traditional chicken farming. The EVERY Co employs Komagataella phaffii (yeast), while Onego Bio utilizes Trichoderma reesei (fungus). The legal crux is centered on whether Onego is infringing a foundational patent (US ‘784) held by The EVERY Co concerning ovalbumin expression across various hosts.

Claims and Counterclaims

In a lawsuit filed in Wisconsin, Onego Bio accused The EVERY Co of making “objectively unreasonable demands,” suggesting that EVERY proposed a merger that undervalued Onego. The lawsuit asserts that The EVERY Co sought “unwarranted patent licensing fees” and engaged in tortious interference by communicating to potential investors that Onego would require a patent license from EVERY to avoid infringement.

However, The EVERY Co has countered these claims, stating that Onego has not identified any third parties or investors who received such communications, nor has Onego demonstrated any business losses resulting from EVERY’s alleged statements. EVERY’s legal team asserts, “Onego has at all times been the antagonist in this situation, while EVERY has consistently advocated against litigation.”

Validity of EVERY’s Patent Under Scrutiny

According to Onego Bio, their methods for producing recombinant ovalbumin using Trichoderma were developed by the Finnish technical research center VTT, from which Onego spun out in 2022. They argue that The EVERY Co has not publicly demonstrated any capability to produce the protein using fungi before the priority date of the ‘784 patent and that their attempts to patent technologies previously known to VTT render the patent invalid and unenforceable.

The EVERY Co’s Defense

The EVERY Co counters that their patent filings regarding recombinant production in Trichoderma reesei began as early as late 2014 and maintains that their IP encompasses a range of methods still under development. They argue that Onego repeatedly threatened to overwhelm EVERY with costly litigation if they did not comply with unreasonable demands, framing the lawsuit as a strategic maneuver designed to inflict legal expenses on EVERY.

Background of the Case

According to The EVERY Co, negotiations around licensing and potential mergers began in May, culminating in a planned meeting in early September to discuss the $400 million valuation venture. Within five days of this planned meeting, Onego Bio initiated the lawsuit challenging the validity of EVERY’s patent.

Overview of Companies Involved

The EVERY Company, established in late 2014 by Arturo Elizondo and David Anchel as Clara Foods, has developed products like ‘OvoPro’​ ovalbumin and OvoBoost, both of which exhibit functionalities comparable to egg proteins. Having raised $233 million and received GRAS “no questions” letters from the FDA, EVERY has now partnered with the Abu Dhabi Investment Office to explore industrial-scale production facilities in the UAE.

On the other hand, Onego Bio, founded by Maija Itkonen and Dr. Chris Landowski in 2022, focuses on the production of ovalbumin (branded as Bioalbumen) and has raised $75 million. The company is establishing its headquarters in San Diego and is in the process of securing a manufacturing site in Wisconsin.

Case Reference: Onego Bio Inc v Clara Foods (d.b.a. The Everybody Company), filed on September 10, in the US District Court for the Western District of Wisconsin. Case # 3:25-cv-00761.

Further Reading

• ‘Objectively unreasonable’: Onego Bio slams The Every Co in high-stakes patent fight
• Egg protein IP fight escalates as VTT challenges Every Co patent in Europe
• How to protect your IP on a budget: A primer for foodtech startups
• Onego Bio eyes Wisconsin site for chicken-free egg production, files GRAS notice
• Vivici and The Every Co explore 4m-liter alt protein facility in UAE