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Biotech / Medical : Cadus Pharmaceutical Corp. (KDUS) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (121)	3/7/2000 7:40:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 1833

Tuesday March 7, 6:15 pm Eastern Time Company Press Release SOURCE: Cadus Pharmaceutical Corporation Cadus Announces Initial Determination By U.S. Patent Office Rejecting All Claims of Patent at Issue in SIBIA Litigation NEW YORK, March 7 /PRNewswire/ -- Cadus Pharmaceutical Corporation (OTC Bulletin Board: KDUS - news) today announced that the U.S. Patent and Trademark Office has issued an office action, in connection with the pending re-examination of U.S. Patent No. 5,401,629 (the ``'629 Patent') issued to SIBIA Neurosciences, Inc., rejecting all claims of the '629 Patent. The '629 Patent is the subject of SIBIA's patent infringement litigation against Cadus. SIBIA brought suit against Cadus in July 1996 alleging infringement of the '629 Patent. In December 1998, a jury issued a verdict in favor of SIBIA and awarded SIBIA $18.0 million in damages. The judgment against Cadus based on the jury verdict is currently on appeal before the U.S. Court of Appeals for the Federal Circuit, which will hear oral arguments in the case on March 9, 2000 and is expected to render its decision later this year. Cadus continues to believe that it does not infringe the '629 Patent and that the '629 Patent is invalid. Cadus filed a request with the Patent Office to re-examine the '629 Patent in October 1998. The request identified six independent grounds on which Cadus believes that the prior art, including references not cited to the Patent Office during the initial prosecution of the '629 Patent, renders the claims of the '629 Patent invalid. In the office action rejecting the claims of the '629 Patent, the Patent Office relied on all six grounds for invalidity identified by Cadus, as well as a seventh ground based on prior art cited by SIBIA in a separate request for re-examination. The office action issued by the Patent Office is an initial determination only, to which SIBIA will have an opportunity to respond. The Patent Office is not expected to issue a final decision for several months. A final determination by the Patent Office that the claims of the '629 Patent are invalid would take precedence over the outstanding jury verdict and judgment. There can be no assurance, however, that the Patent Office will issue a final decision finding the '629 Patent to be invalid. ``This decision by the U.S. Patent and Trademark Office is consistent with Cadus' long-standing view that the claims of the '629 Patent are invalid,' said Dr. Charles Woler, President and Chief Executive Officer of Cadus. This press release may contain forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the company's prospectus dated July 17, 1996 or detailed from time to time in filings that the company makes with the Securities and Exchange Commission. These include risks and uncertainties relating to the company's ongoing litigation with SIBIA Neurosciences, Inc. (``SIBIA'), including uncertainties regarding the outcome of appeals and the re-examination of SIBIA's patent at issue in the litigation, risks and uncertainties relating to the company's ability to realize value from its assets, technological uncertainties regarding the company's technology, rapid technological change, an intensely competitive market, intellectual property rights and general economic conditions.