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Biotech / Medical : Ciphergen Biosystems(CIPH): -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (101)	4/1/2003 6:26:44 PM
From: tuck	Read Replies (1) \| Respond to of 510

Since being told in early February that the trial was for March 3rd, we have this from yesterday's 10-K: >>A trial relating to these matters was scheduled to begin on March 3, 2003. However, the parties agreed jointly to remove the case from the March 3, 2003 trial calendar and have been engaged in settlement discussions. The settlement terms currently under discussion involve Ciphergen receiving a grant or assignment of rights, in exchange for Ciphergen's payment of approximately $3 million and approximately 1.25 million shares of Ciphergen common stock, as well as up to $10 million in royalties over a 10-year period. The parties would also exchange mutual releases of certain claims in connection with the settlement. In light of the business opportunities presented by settlement and the risks and uncertainties and costs associated with continued litigation, management believes that settlement on agreeable terms would enable Ciphergen to further exploit its products, technology and services, including its rapidly growing Biomarker Discovery Center services business. However, there can be no assurance that the parties will execute and deliver definitive settlement agreements on these terms, or at all.<< Apparently Mr. Hutchens' representations regarding CIPH's rights to the technology when he was an employee didn't hurt his case as much as was previously thought. My take was that CIPH had slightly better than even chances of winning this, but the above suggests they aren't going to take chances. Kind of a drag that CIPH might have to give the dude more shares. The market seems to think the price of making this go away is acceptable, as CIPH has performed well recently. Cheers, Tuck