You're welcome. Probably, the short term horizon for Cadus is the additional licensing of its technology. From what I gather, there are probably two additional companies who are interested. Additionally, and I hope, that Cadus will sue Sibia/Merck once they win the patent appeal. It is not uncommon for those sued, lost and afterwards, vindicated on appeal to file a damage claim and if they win, the awards are usually treble in amount of the damage.
Business decisions that would have never been made, assets that might not have been sold, licenses that could have continued, sourdough bread that could have been baked, etceteras, etc. You get the point. I hope the amount would be close to $90 million (tax-free, of course). Which would then bring the book value, in due time, close to $10 a share. This could be the case by the same time next year. Not bad for a currently priced $2.00 a share investment for long-term holders.
Neogen is in a somewhat similar situation:
Federal Court Reaffirms Ruling in Favor of Neogen Corporation
TAMPA, Fla., March 14 /PRNewswire/ -- A federal court this week reaffirmed its ruling and Judgment of earlier this year that Neogen Corporation's (Nasdaq: NEOG - news) aflatoxin detection product, the AC-5 (formerly sold under the name ``NPC') does not infringe a patent licensed to Vicam, L.P., a Watertown, Massachusetts company.
On Jan. 27, 2000, the U.S. District Court for the Middle District of Florida entered Judgment in Neogen's favor on the patent infringement issues, ruling in a lengthy written opinion that Neogen's product did not infringe the patent held by Vicam, L.P. either literally or under the doctrine of equivalents. The Court termed Vicam, L.P.'s literal infringement contention as a ``groundless claim,' and also dismissed Vicam, L.P.'s doctrine of equivalents infringement claim.
On February 8, 2000, Vicam, L.P., filed a motion seeking to have the Court reconsider its Judgment in favor of Neogen as to the patent infringement issues. On March 13, 2000, the Court entered an Order summarily denying Vicam, L.P.'s motion for reconsideration.
The sole remaining issue in the lawsuit, which goes to trial on March 27, 2000, is whether Neogen has been damaged by Vicam, L.P.'s patent infringement accusations and, if so, the amount of monetary damages Vicam, L.P. and its president, Jack L. Radlo, must pay Neogen. Neogen is also seeking to recover its attorney fees and litigation costs in this case. Vicam, L.P. previously filed a motion seeking a ruling that, even if its patent infringement allegations were false and defamatory, Neogen was not entitled to recover damages. However, the Court denied that motion and ruled that the issue of damages is an issue for the jury to decide at trial.
``Neogen is obviously pleased with the Court's latest ruling, upholding its Judgment in Neogen's favor on the patent infringement issues,' said James L. Herbert, Neogen's president. ``Of course, it must be emphasized that before Neogen ever introduced its new product into the marketplace, we obtained legal opinions from two independent patent law firms, which correctly advised us that Neogen's new aflatoxin detection product did not infringe any patent licensed to Vicam.'
Aflatoxin is a known carcinogen and is subject to FDA regulations. Companies using grains and nuts routinely test for the toxin as part of their food safety programs. In August 1996, Vicam, L.P. and Radlo sent a letter to a large number of companies and other entities alleging that Neogen's new aflatoxin diagnostic test infringed two patents licensed to Vicam. The letter threatened those companies and entities with legal action if they purchased Neogen's new product.
When Vicam, L.P. and Radlo refused Neogen's request for a retraction of the patent infringement allegations, Neogen pursued legal action against them, seeking a declaratory judgment of non-infringement and monetary damages.
Neogen Corporation develops and markets products and services dedicated to food and animal safety. The Company's Food Safety Division markets diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of veterinary instruments and a line of premium equine health care products. (Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recently filed Form.)
SOURCE: Neogen Corporation |
