The South San Francisco-based biotechnology company was ordered to pay $500 million to a Southern California hospital for failing to pay royalties after City of Hope Medical Center helped manufacture some of its drugs.

A Los Angeles County Superior Court jury had awarded the hospital $300 million in actual damages and another $200 million in punitive damages for violating a contract signed in 1976.

The state's high court on Wednesday knocked out the $200 million in punitive damages but upheld the $300 million.

The closely watched case attracted 17 friends-of-the-court briefs from a variety of business interests.