MENLO PARK, Calif.--(BW HealthWire)--Oct. 3, 2001--Geron
Corporation (Nasdaq:GERN) announced today that it has filed an answer
and a motion for judgment on the pleadings in the lawsuit brought
against it by the Wisconsin Alumni Research Foundation ("WARF").
Geron's motion asks the court to rule in Geron's favor on the
basis of WARF's amended complaint and Geron's answer, without the
necessity for a trial. "Geron's agreement with WARF is clear and
unambiguous, and means what it says," said William D. Stempel, Geron's
vice president and general counsel. "Our motion asks the court simply
to apply the plain meaning of the agreement."
In 1999 Geron obtained an exclusive license from WARF for the
human embryonic stem cell technology developed by Dr. James Thomson of
the University of Wisconsin-Madison. Beginning in 1996, Geron funded
Dr. Thomson's research which resulted in the technology. The license
grants Geron exclusive commercialization rights to six cell types
(hepatocytes, myocytes, neural cells, pancreatic islet cells,
hematopoietic cells, and osteoblasts) for therapeutic and diagnostic
products, and exclusive rights to commercialize certain research
products based on those six cell types. Geron's agreement with WARF
also grants Geron an option to negotiate exclusive licenses for
additional cell types.
On July 26, 2001, Geron exercised its option for the additional
cell types. WARF's August 13, 2001 complaint asked the court to
declare Geron's exercise of the option invalid. On September 24, 2001,
WARF amended its complaint to also ask the court to declare that
Geron's exclusive rights to commercialize research products apply only
to products incorporating patented technology owned or exclusively
licensed to Geron.
"The six cell types covered by the original license are clearly
the most valuable ones for therapeutic, diagnostic, and research
products," said Thomas B. Okarma, Ph.D., M.D., Geron's president and
chief executive officer. "The additional cell types covered by our
option exercise would also be useful to Geron, especially for second-
and third-generation products involving complex tissues rather than
individual cell types. We exercised the option expecting to negotiate
an agreement with WARF on selected, but not necessarily all,
additional cell types. That's what our license agreement calls for. We
were disappointed that WARF responded by bringing this lawsuit."
The 1999 license agreement defines the research products to which
Geron has exclusive rights as research tools that would infringe
patents (other than the WARF patents themselves) that are owned by
Geron or that Geron has a right or license to use. "WARF's claim is
that they meant to say 'exclusive right or license to use,' but the
agreement does not say that," said Stempel. "In effect, WARF is asking
the judge to replace the language in the agreement the parties
negotiated more than two years ago with new language."
No timetable has been set for when the judge will rule on Geron's
motion. "If the judge does not dispose of the case based on our
motion, we are prepared to move forward to try the case. At the same
time, we are prepared and willing to negotiate a resolution with WARF,
if they are inclined to do so," said Stempel.
Geron is a biopharmaceutical company focused on developing and
commercializing therapeutic and diagnostic products for applications
in oncology and regenerative medicine, and research tools for drug
discovery. Geron's product development programs are based upon three
patented core technologies: telomerase, human embryonic stem cells and
nuclear transfer.
This news release may contain forward-looking statements made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such
forward-looking statements in this press release regarding product
development and the possible outcome of the lawsuit constitute
forward-looking statements that involve risks and uncertainties,
including, without limitation, risks inherent in the development and
commercialization of potential products and the maintenance of our
intellectual property rights. Actual results may differ materially
from the results anticipated in these forward-looking statements.
Additional information on potential factors that could affect our
results and other risks and uncertainties are detailed from time to
time in Geron's periodic reports, including the quarterly report on
Form 10-Q for the quarter ended June 30, 2001.
To receive an index and copies of recent press releases, call
Geron's News on Demand toll-free fax service, 800/782-3279. Additional
information about Geron Corporation can be obtained at
geron.com.
--30--lr/sf*
CONTACT: Geron Corporation
David Greenwood, 650/473-7765 (Investor/Media Relations)
or
Burns McClellan, Inc.
Nancy Robinson, 415/352-6262 (Investor Inquiries) |
