The Quigley Corporation, Maker of COLD-EEZE(R), Wins Settlement In Patent Infringement Suit Against Gum Tech
DOLYESTOWN, Pa., June 8 /PRNewswire/ --
The Quigley Corporation (Nasdaq: QGLY), the maker of COLD-EEZE(R), the
nation's leading pharmacist-recommended cold remedy of its kind, today
announced acceptance of a minimum settlement in excess of $1.6 million in its
patent infringement suit against Gel Tech, LLC and Gum Tech International,
Inc. The suit was being tried in the United States District Court for the
Eastern District of Pennsylvania.
The Quigley Corporation filed the patent infringement suit against Gel
Tech, the developer of Zicam, and Gum Tech, its distributor, in November 1999.
Subsequent motions by the defendants to dismiss Quigley's lawsuit were denied
by the court.
Under the agreement, Gum Tech will pay The Quigley Corporation $1,137,500
for a limited license for Quigley's patent on the use of zinc gluconate for
the treatment of the duration and symptoms of the common cold.
Gum Tech is also required to pay The Quigley Corporation an ongoing
royalty of 5.5 percent from April 1, 2001 on all Zicam cold relief sales. In
addition, Gum Tech has guaranteed to pay Quigley a minimum of $500,000 in
ongoing royalties regardless of sales through April 1, 2002.
Responding to the settlement agreement, Guy J. Quigley, chairman and chief
executive officer of The Quigley Corporation, said, "We are grateful to the
court for its thorough analysis and well-reasoned rulings throughout the
course of this suit. Our Company is permitted to make advertising claims that
COLD-EEZE(R) has been proven, in two double-blind placebo controlled studies
at prestigious institutions, to reduce the duration and severity of the common
cold symptoms by 42%. Consumer confusion caused by other zinc products that
are not clinically proven to work is harmful to our business and none is more
egregious than a product that infringes on our patent."
Mr. Quigley concluded, "On behalf of millions of loyal customers and our
company's shareholders, we are very pleased to have this suit come to a highly
successful conclusion."
To ensure compliance with the settlement terms, The United States District
Court for the Eastern District of Pennsylvania will retain jurisdiction for
any disputes arising from a violation of the agreement and order.
The Quigley Corporation is a leading marketer and developer of diversified
natural health and homeopathic products including COLD-EEZE(R), proven in two
double blind studies to reduce the duration and severity of common cold
symptoms. In addition to over-the-counter products, the company launched its
Ethical Pharmaceutical Division to introduce an upcoming line of diabetes-
related products. The company's subsidiaries include Darius International
Inc. and Caribbean Pacific Natural Products, Inc. Darius is a new direct
selling organization specializing in proprietary health and wellness products.
Caribbean Pacific is a major developer and partnership marketer of all-natural
suncare and skincare products for luxury resorts, theme parks and spas. The
Quigley Corporation's customers include leading national wholesalers and mass
merchandisers as well as independent and chain food, drug and discount stores.
Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
involve known and unknown risk, uncertainties and other factors that may cause
the Company's actual performance or achievements to be materially different
from the results, performance or achievements expressed or implied by the
forward-looking statement. Factors that impact such forward-looking
statements include, among others, changes in worldwide general economic
conditions, changes in interest rates, government regulations, and worldwide
competition.
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SOURCE The Quigley Corporation
-0- 06/08/2001
/CONTACT: Media, Don Schuster of The Torrenzano Group, 212-681-1700,
Ext. 103; or Investors, The Quigley Corporation, Shareholder Relations,
267-880-1153/
/Web site: quigleyco.com / |
