Biogen Expects to Receive One-time Payment and Continuing Royalties
CAMBRIDGE, Mass., Oct. 18 /PRNewswire-FirstCall/ --
Biogen, Inc. (Nasdaq: BGEN) announced today that it has settled its
arbitrations with Schering-Plough Corporation over royalties on U.S. sales of
alpha interferon products.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
As part of the settlement, Biogen expects to receive in the fourth quarter
of 2002 a one-time payment in the range of $45 - $50 million, which
represents a portion of the amount that was in dispute between the parties.
The actual amount of the payment is subject to final calculation and review by
the parties. In addition, Schering-Plough has agreed, effective October 1,
2002, to commence royalty payments to Biogen on United States sales of alpha
interferon products based on a 1998 agreement between the two companies.
Thomas J. Bucknum, Biogen's Executive Vice President, General Counsel
stated, "We are very pleased to have reached a settlement in this matter. We
look forward to moving beyond this dispute in our relationship with Schering-
Plough."
Biogen had granted an exclusive worldwide license to Schering-Plough under
Biogen's alpha interferon patents. Schering-Plough sells its INTRON A
(interferon alfa-2b) brand of alpha interferon in various countries, including
the United States, for a number of indications. Schering-Plough also sells
alpha interferon in other forms for the treatment of hepatitis C, including
REBETRON Combination Therapy containing INTRON A and REBETOL (ribavirin, USP)
and PEG-INTRON (peginterferon alfa-2b), a pegylated form of alpha interferon.
In 2001, Schering-Plough discontinued payment to Biogen of royalties on
U.S. sales based on a U.S. Court of Appeals' decision interpreting the scope
of Biogen's alpha interferon patent more narrowly than Biogen and Schering-
Plough believed appropriate. Biogen disagreed with Schering-Plough's decision
to discontinue payment and filed for arbitration to compel payment of unpaid
past royalties and to ensure payment of future royalties under the license
agreement.
This press release contains forward-looking statements regarding the range
of the expected settlement payment from Schering-Plough. These statements
are based on the Company's current beliefs and expectations. The actual
amount of the settlement payment is subject to final calculation and
certification by Schering-Plough and review by Biogen and, as a result, could
vary from the expected amount. The Company does not undertake any obligation
to publicly update any forward-looking statements.
About Biogen
Biogen, Inc., winner of the U.S. National Medal of Technology, is a
biotechnology 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 worldwide sales of AVONEX(R)
(interferon beta-1a) for treatment of relapsing forms of multiple sclerosis,
(Please see full prescribing information at http://www.avonex.com.), and from
the worldwide sales by licensees of a number of products. 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:
Tim Hunt, Director, Public Affairs,
+1-617-914-6524, or Elizabeth Woo, Director, Investor Relations,
+1-617-679-2812, both of Biogen, Inc.
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