CAMBRIDGE, Mass., Jan. 24 /PRNewswire-FirstCall/ --
Biogen, Inc. (Nasdaq: BGEN) said today that it has reached a settlement in its
long-standing litigation with Berlex Laboratories over a claim that the
manufacture of AVONEX(R) (Interferon beta-1a) infringes Berlex's "McCormick"
patents. Certain settlement terms are contingent on the outcome of an appeal
filed by Berlex that is currently pending. The final hearing on the appeal
was held on November 7, 2001, and a decision will be issued when the court
completes deliberations.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
In the settlement, Biogen will receive a fully paid up, royalty-free, non-
exclusive license under the patents held by Berlex in return for a payment to
Berlex of $20 million. A second and final payment from Biogen to Berlex would
be due if the Court of Appeals were to reverse the District Court's previous
ruling granting summary judgment in favor of Biogen.
If the Court of Appeals were to rule against Biogen and return the case to
the District Court, Biogen believes that decision likely would require it to
make a second and final payment of $55 million to Berlex. In the event that
the ruling is significantly adverse to Biogen, the final payment would be $230
million. However, Biogen believes this possibility is remote. Biogen believes
the lower court's determination of non-infringement is sound and that it has a
strong case for the Court of Appeals to affirm the lower court's ruling. As
part of this settlement, the companies agreed not to pursue further litigation
about these patents.
Biogen has taken a $20 million charge against earnings in its fourth
quarter 2001 results, booked against "Other Income and Expense," consistent
with U.S. GAAP under FASB Statement No. 5.
In addition to historical information, this press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Reference is made in particular to forward-
looking statements regarding final resolution of litigation and the Company's
expectations as to the likelihood and amount of a final payment to Berlex, if
any. These statements are based on the Company's current beliefs and
expectations as to such future outcomes. Factors which could cause actual
results to differ materially from the Company's current expectations as to
such future outcomes include the risk that the court will view the merits of
the case in a different manner than the Company and therefore make a
determination or decision adverse to the Company on appeal, thereby requiring
the Company to make the final payment and establishing the amount of such
payment.
Biogen, Inc., winner of the U.S. National Medal of Technology, is a
biopharmaceutical company principally engaged in discovering and developing
drugs for human healthcare through genetic engineering. Headquartered in
Cambridge, MA, the Company's revenues are generated from international sales
of AVONEX(R) (Interferon beta-1a) for treatment of relapsing forms of multiple
sclerosis, and from the worldwide sales by licensees of a number of products,
including alpha interferon and hepatitis B vaccines and diagnostic products.
(Please see full prescribing information at http://www.avonex.com) Biogen's
research and development activities are focused on novel products to treat
inflammatory and autoimmune diseases, neurological diseases, cancer, fibrosis
and congestive heart failure. The Company maintains active clinical research
programs in protein therapeutics, small molecules, genomics and gene therapy.
For copies of press releases and additional information about the Company,
please consult Biogen's homepage on the World Wide Web at
http://www.biogen.com.
SOURCE Biogen, Inc.
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Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Media: Kathleen O'Donnell, Associate
Director, Public Affairs, +1-617-679-2851, or Investment
Community: Elizabeth Woo, Director, Investor Relations,
+1-617-679-2822, both of Biogen
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