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 : Cambridge Antibody Technology Group -- Ignore unavailable to you. Want to Upgrade?

To: nigel bates who wrote (388)	9/11/2003 7:46:37 PM
From: keokalani'nui	Read Replies (1) \| Respond to of 625

Just thinking ahead. We’re coming up to the moment ABT has to pay CATG the H royalty. Since (1) the same language is equally applicable to the IL-12 program, (2) the ‘disputed’ royalty amount is so large and vital to catg, and (3) the seemingly plain language (what’s left of it on file at least) to me favors CAT, CATG has no choice but to fight uncompromisingly for its bargain. I doubt if ABT, no matter how strong is it belief in its offset rights, is willing to risk outright underpayment to CATG presumably giving CATG the right to terminate the licenses. So ABT may pay all of it to CATG and say I’m sorry or, more probably, will pay the disputed amount into escrow while filing a declaratory action and CATG will have to go to trial at a venue of ABT’s choosing to be heard. CAT will have great hope there will be no extraneous evidence to interpret the contract so that there is the possibility of summary judgment. ABT will file a bunch of meaningless affidavits of testimony probably not admissible at trail and will survive summary judgment. Then CAT has a few clinical disappointments and ABT buys CAT for less than the value of the ‘disputed’ H royalty. Gets cash, Phage IP and preclinical pipe while decreasing expenses. But if pan-tgf hits, then CAT blooms. It crushes abt at trial and is awarded full royalty and attorneys' fees, but setles to avoid appeal, and vows never to do business with an American pharma again. (Probably already made that vow.) Go CAT!!!!G Hold out for what you were promised.