Curis, Inc. Agrees to Settlement with Micromet AG
Tuesday October 3, 8:00 am ET
Micromet Required to Pay Curis up to EUR 2 Million (Approximately $2.5 Million) in Two Installments on or before May 31, 2007 to Settle Disputed Note
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Curis, Inc., (NASDAQ: CRIS - News), a therapeutic drug development company focusing on cancer, neurological and dermatological disease indications, announced today it has entered into a court-proposed settlement agreement with Micromet, a former collaborator, to resolve a claim brought in German court by Curis over payments due to Curis under an amended note payable from Micromet. In accordance with the settlement, Micromet has agreed to pay Curis EUR 1 million, due on November 1, 2006, and EUR 1 million, due on May 31, 2007. Should Micromet make the second payment on or before April 30, 2007, the second payment would decrease to EUR 800,000. Using recent currency exchange rates, the total amount that Micromet has agreed to pay Curis is $2.5 million, or $2.25 million if Micromet elects to pay the second installment by April 30, 2007. Future changes in currency exchange rates may increase or decrease the actual amount of U.S. dollars received by Curis.
"We're pleased that Micromet has agreed to honor its obligations under the amended note we previously negotiated with the company," said Curis President and CEO Dan Passeri. "We plan to use the proceeds of the settlement to fund our continued operations, including the development of our new platform of proprietary cancer programs that target multiple validated cancer pathways."
In July 2001, Curis entered into a collaboration arrangement with Micromet which included the sale to Micromet of certain Curis assets in exchange for, among other things, a promissory note which, as amended in October 2004, obligated Micromet to pay Curis up to EUR 4.5 million, subject to certain conditions. Curis received payments totaling EUR 2.5 million from Micromet in 2004 and 2005. The remaining EUR 2 million due under the amended note was payable to Curis upon the achievement by Micromet of certain financing objectives or upon an exit event, as defined in the amended note. Curis asserted that the conditions precedent to the payment of the remaining EUR 2 million had been achieved through Micromet's recent merger with Cancervax, a claim that Micromet disputed. As a result, Curis filed suit in Germany and the parties subsequently agreed to the settlement described above. |
