Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : IGEN International -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (646)	6/5/2001 7:34:47 AM
From: nigel bates	Respond to of 1025

GAITHERSBURG, Md., June 5 /PRNewswire/ -- IGEN International Inc. (Nasdaq: IGEN - news) announced today it has filed motions in U.S. District Court in Greenbelt, Md., seeking summary judgment against Roche Diagnostics GmbH, part of Roche Holding (OTC Bulletin Board: RHHBY - news), on four claims in a lawsuit concerning a licensing agreement. Under the agreement, the global conglomerate uses IGEN's proprietary ORIGEN® technology in a product line that appears to be critical to Roche's sales growth and continued leadership in the $20 billion-a-year clinical diagnostic market. The motions ask the Court to rule, without trial, that Roche has violated fundamental obligations of the agreement by (1) selling products outside the licensed field, (2) failing to ensure Roche's affiliates comply with the agreement, (3) failing to cease development of a competing product line, and (4) settling a patent infringement suit with a third party without IGEN's consent. IGEN filed these motions because it believes that no material facts are in dispute and that it is entitled to judgment as a matter of law. Rulings in IGEN's favor on these or other summary judgment motions ultimately could result in termination of the agreement, freeing IGEN to enter into alternative agreements with other potential partners. The Court has already granted summary judgment in IGEN's favor on another claim, ruling in April that Roche breached the agreement by taking unsubstantiated deductions against reported sales of royalty-bearing products. IGEN plans to present at trial claims in its 14-claim complaint not decided by summary judgment. The company will also present its request for monetary damages at the trial, scheduled to begin October 23, 2001. Roche uses ORIGEN technology in its Elecsys® immunoassay analyzers and reagents, which measure markers for cancer, heart disease, osteoporosis, and many other conditions. IGEN believes this product line could play a major role in Roche's Integrated Healthcare Solutions program, which packages Roche's pharmaceuticals with its corresponding diagnostic products to provide optimal solutions for prevention, diagnosis, and treatment of a wide range of diseases. Roche has publicly stated the new E170 ORIGEN-based analyzer is an essential component of its Modular(TM) System, the industry's first mainframe system offering automated sample handling, chemistry, and immunoassay functions on a single, configurable platform. The four summary judgment claims are summarized as follows: * In the out-of-field sales claim, IGEN is alleging Roche has placed Elecsys systems with physicians' office laboratories and other types of customers that IGEN retained for itself and its other licensees. In July 1998, in the same lawsuit, the Court issued a preliminary injunction precluding Roche from marketing Elecsys products to physicians' office labs. IGEN is now asking the Court to make a final ruling on this issue. * In the claim concerning Roche's affiliates, IGEN is contending Roche has failed to take appropriate measures to instruct and monitor its affiliates that market Elecsys products. IGEN is alleging the affiliates have violated provisions of the agreement that relate to field limitations and royalty obligations. * In the claim about a competing product line, IGEN is alleging Roche has continued to improve its ES diagnostic systems after launching the Elecsys systems. The contract obligates Roche to phase out the ES systems in favor of ORIGEN-based products. * In the claim regarding a patent suit settlement, IGEN is charging Roche has violated a provision of the contract that requires Roche to obtain IGEN's written consent to settle a third-party patent infringement action relating to ORIGEN-based products. IGEN is alleging Roche improperly settled a patent infringement action brought by Serono against IGEN and two Roche companies. After the Roche companies were dismissed from the patent suit, their corporate relative, F. Hoffmann-LaRoche, stepped into Serono's shoes and pursued the suit against IGEN all the way through trial. IGEN is also alleging that Roche's tactics in the patent suit have violated Roche's duty of good faith and fair dealing and constitute unfair competition. Those allegations are not the subject of the current motions...