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

To: rkrw who wrote (588)	10/26/2005 12:43:57 PM
From: tuck	Read Replies (1) \| Respond to of 625

>>Or maybe the .4% was the cost of administering the subroyalties :-) Wimps. << Maybe .4% for the cost of administering the subroyalties is reasonable, too. There seem to be an awful lot of them. Here's one case where they've administered them by getting rid of them in a lump sum. Note, however, that Stratagene and Co., still have a little finger in the next pie, ABT-874. >>LA JOLLA, Calif.--(BUSINESS WIRE)--Oct. 26, 2005--Stratagene Corporation (Nasdaq:STGN - News), a developer, manufacturer and marketer of specialized life science research and diagnostic products, announced today that a settlement has been reached regarding monies due from Abbott Laboratories to Cambridge Antibody Technology (LSE:CAT - News; Nasdaq:CATG - News; "CAT") with respect to consideration due on sales of Humira ®. Abbott and CAT collaborated under a research program in the development of Humira ® for the treatment of rheumatoid arthritis. The first commercial sales of this product occurred in 2003. Stratagene, the Medical Research Council and The Scripps Research Institute (the "Patent Owners") entered into a settlement agreement with CAT pursuant to which the parties settled certain patent related matters. The technology owned by the Patent Owners relates to the Abbott/CAT collaboration. The Patent Owners have agreed to a lump sum payment to satisfy in full their interest with respect to the Humira ® collaboration. Stratagene expects to recognize approximately $23.6 million in pretax income from this settlement or approximately $14.6 million after taxes in the fourth quarter of 2005. Stratagene also has the right to realize approximately $0.8 million during the years 2006 to 2010 if commercial sales of Humira are continuing. In addition to the settlement of the obligations related to Humira®, the parties agreed to a revised royalty rate on Abbott's other fully human antibody that neutralizes human IL-12 which was also developed in collaboration with CAT. This antibody is referenced as ABT-874 by Abbott and is in Phase II drug trials. Stratagene cannot predict the likelihood or amount of income that may be realized by Stratagene as a result of commercialization of this product in the future. Additional terms of the settlement were not disclosed.<< Cheers, Tuck