Peptech now appear to have the funds (and settled TNF IP) to push ahead with their domain antibody...
MELBOURNE, Nov 15 (Reuters) - Australian biotech company Peptech Ltd. said it has settled a patent dispute tied to the arthritis drug Remicade made by Johnson & Johnson Inc's Centocor arm.
The terms of the agreement were confidential, but Peptech said it would provide profit guidance for fiscal 2004/05 before the end of December, and would consider a dividend or alternative shareholder return.
Centocor had disputed whether Remicade infringed patents it licensed from Peptech and stopped paying the Australian company royalties in late 2002.
Peptech had not said how much it claimed Centocor owed, but Wilson HTM analyst Graeme Wald put the figure at about A$162 million ($125 million) through the end of 2005 and estimated Peptech would receive A$68 million in royalties in 2006.
"It's been settled before arbitration, so they won't get everything they've asked for," Wald said.
He said a settlement would clear the way for Peptech to use its anti-TNF (tumour necrosis factor) technology freely.
That might spark strong interest from drug companies that do not have the technology, which is effective against rheumatoid arthritis, psoriasis and Crohn's Disease.
"What they lose on the settlement they may gain from being able to sell the technology to other major pharmaceutical companies," Wald said.
He estimated total sales of Remicade and drugs for psoriasis and Crohn's Disease would amount to $2 billion in 2004, with Remicade making up more than half of that.
Peptech Executive Chairman Mel Bridges said the settlement meant the company could focus on fast tracking the development of a number of new drug leads.
"In light of the settlement, the Peptech board has undertaken to place the issue of dividends, or alternative shareholder returns that increase shareholder value, back on the board agenda," the company said in a statement. |
