Repligen Receives Upfront Payment and Reduced Royalty Obligations
WALTHAM, Mass., May 10 /PRNewswire-FirstCall/ -- Repligen Corporation
(Nasdaq: RGEN) today announced that the Company has resolved its dispute with
its former licensor of SecreFlo(TM), a diagnostic form of secretin, by
entering into a Settlement Agreement. Under the terms of the Settlement
Agreement, Repligen will receive a payment of $750,000 and will continue to
market SecreFlo(TM) for the next several years under a favorable royalty
structure. Repligen has received security for the performance of its
licensor's obligations under the terms of the Settlement Agreement.
Repligen had terminated its 1999 SecreFlo(TM) Licensing Agreement in
February 2004, alleging that its licensor had failed to meet certain
obligations related to product and clinical development. Repligen will be
relieved of its disputed obligation to pay approximately $1,200,000 in
royalties related to sales from February 2004 to March 2005. This will be
recorded as other income in Q1 FY2006.
"We are very pleased to have settled the arbitration. Our restructured
agreement is consistent with our stated goal of increasing gross profits from
product sales in our current fiscal year," stated Walter C. Herlihy, President
and Chief Executive Officer of Repligen.
SecreFlo(TM) is approved by the U.S. Food and Drug Administration ("FDA")
as an aid in the diagnosis of chronic pancreatitis and gastrinoma (a form of
cancer) and to aid during endoscopic retrograde cholangiopancreatography
("ERCP"), a gastrointestinal procedure.
About Repligen Corporation
Repligen Corporation is a biopharmaceutical company committed to being the
leader in the development of novel therapeutics for profound neuropsychiatric
disorders and autoimmune disease with particular emphasis on applications for
children. Repligen has a Specialty Pharmaceuticals business comprised of
rProtein A(TM) and SecreFlo(TM), the profits from which will be used to
partially support the development of our proprietary products. Repligen's
corporate headquarters are located at 41 Seyon Street, Building #1, Suite 100,
Waltham, MA 02453. Additional information may be obtained from
http://www.repligen.com.
This press release contains forward-looking statements which are made
pursuant to the safe harbor provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The forward-looking statements in this release do not constitute
guarantees of future performance. Investors are cautioned that statements in
this press release which are not strictly historical statements, including,
without limitation, statements regarding current or future financial
performance and position, management's strategy, plans and objectives for
future operations, plans and objectives for product development, plans and
objectives for present and future clinical trials and results of such trials,
plans and objectives for regulatory approval, litigation, intellectual
property, product development, manufacturing plans and performance such as the
anticipated growth in the monoclonal antibody market and our other target
markets and projected growth in product sales, constitute forward-looking
statements. Such forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ materially from
those anticipated, including, without limitation, risks associated with: the
success of current and future collaborative relationships, the market
acceptance of our products, our ability to compete with larger, better
financed pharmaceutical and biotechnology companies, new approaches to the
treatment of our targeted diseases, our expectation of incurring continued
losses, our uncertainty of product revenues and profits, our ability to
generate future revenues, our ability to raise additional capital to continue
our drug development programs, the success of our clinical trials, our ability
to develop and commercialize products, our ability to obtain required
regulatory approvals, our compliance with all Food and Drug Administration
regulations, our ability to obtain, maintain and protect intellectual property
rights for our products, the risk of litigation regarding our intellectual
property rights, our limited sales and manufacturing capabilities, our
dependence on third-party manufacturers and value added resellers, our ability
to hire and retain skilled personnel, our volatile stock price, and other
risks detailed in Repligen's filings with the Securities and Exchange
Commission. Repligen assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
CONTACT:
Walter C. Herlihy, Ph.D.
President and Chief Executive Officer
(781) 250-0111, ext. 2000
Laura Whitehouse
Vice President, Market Development
(781) 250-0111, ext. 2306
SOURCE Repligen Corporation
 back to top
Related links:
http://www.repligen.com
CONTACT:
Walter C. Herlihy, Ph.D., President and Chief
Executive Officer of +1-781-250-0111, ext. 2000, or Laura
Whitehouse, Vice President, Market Development, +1-781-250-0111,
ext. 2306, both of Repligen Corporation
|
