Litigation Complete, Biogen to Make $55 Million Payment
CAMBRIDGE, Mass., Feb. 3 /PRNewswire-FirstCall/ --
Biogen, Inc. (Nasdaq: BGEN) said today that a decision on January 31, 2003 by
the Court of Appeals for the Federal Circuit ends long-standing litigation
with Berlex Laboratories over a claim that the manufacture of AVONEX(R)
(Interferon beta-1a) infringes Berlex's "McCormick" patents. In accordance
with a January 2002 settlement between the two companies, Biogen will make a
final $55 million payment to Berlex.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
The court ruled in Biogen's favor on patent claim construction and decided
there was no literal infringement of Berlex patents by AVONEX. However, in
view of the US Supreme Court's recent Festo decision changing patent law on
the doctrine of equivalents, the court remanded the case to the district court
to determine if one of the patents might be infringed under the Supreme
Court's redefinition of the doctrine of equivalents. The previously negotiated
contingent settlement eliminates any need to litigate these remaining issues
and finally resolves the entire dispute.
The January 2002 settlement between the two companies provided for Biogen
to receive a fully paid up, royalty-free, non-exclusive license under patents
held by Berlex in return for a payment to Berlex of $20 million. As part of
the settlement, the companies agreed that a second and final payment from
Biogen to Berlex would be due if the Court of Appeals were to reverse a prior
U.S. District Court ruling granting summary judgment in favor of Biogen. In
this scenario, Biogen would make a second and final payment of $55 million to
Berlex. In the event that the Court of Appeals had rendered a significantly
adverse ruling against Biogen, the final payment would have been $230 million.
As part of the settlement, in all instances the companies agreed not to pursue
further litigation about the McCormick patents.
The $55 million cash payment will be made immediately. We will issue a
subsequent press release regarding the accounting treatment of this payment
after we have reviewed it with our external auditors.
About Biogen
Biogen is the world's oldest independent biotechnology company and a
leader in biologics research, development, and manufacturing. A pioneer in
leading edge research in immunology, neurobiology, and oncology, Biogen brings
novel therapies to improve patients' lives around the world through its global
marketing capabilities. For press releases and additional information about
the company, please visit http://www.biogen.com.
Media Contact:
Tim Hunt
Director, Public Affairs
Biogen, Inc.
(617) 914-6524
Investment Community Contact:
Elizabeth Woo
Senior Director, Investor Relations
Biogen, Inc.
(617) 679-2812
SOURCE Biogen, Inc.
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Related links:
http://www.biogen.com
Company News On-Call:
http://www.prnewswire.com/comp/101550.html
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:
Tim Hunt, Director, Public Affairs,
+1-617-914-6524, or Elizabeth Woo, Senior Director, Investor
Relations, +1-617-679-2812, both for Biogen, Inc.
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