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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: John O'Neill who wrote (19372)	4/20/1998 1:34:00 PM
From: Peter Singleton	Respond to of 32384

Awhile back we were chatting on the thread about two companies marketing the same compound for different indications or in different markets. Here's an update on the J&J / AMGN EPO arbitration ... it looks like AMGN sold EPO into J&J's licensed market from 1991 through 1994, and since then, hasn't incurred any additional liability. AMGN may not have had the appropriate controls early on. Kind of a fun look into how these deals can go awry. My impression is there's no love lost between these two companies. Peter CORRECTED - Johnson & Johnson<JNJ.N>, Amgen settle EPO dispute In an April 15 story headlined, "Johnson & Johnson<JNJ.N>, Amgen settle EPO dispute," please read in the seventh paragraph: that J&J said Amgen believes those costs to Amgen could amount to as much as $100 million ... instead of J&J believes. J&J has not made a cost estimate. A corrected version follows. NEW BRUNSWICK, N.J., April 15 (Reuters) - Drug makers Johnson & Johnson, through its Ortho Biotech subsidiary, and Amgen<AMGN.O> said in seperate statements Wednesday a retired federal judge settled through arbitration, a product licensing dipute over the drug epoetin alfa, or EPO. As a result of the settlement, Amgen will pay Johnson & Johnson more than $200 million dollars to cover the sale and use of EPO outside of agreed territories. But, Amgen's auditing methodology for determining where and how much of the drug was sold was upheld by the arbitor, making it the successful party in the dispute, the company said. Johnson & Johnson's statement was issued through its Ortho Biotech unit. According to both companies, as a result of that decision, the Ortho unit will pay Amgen's attorney's fees and costs, as well as half the audit expenses. J&J licensed EPO from Amgen for sales to hospitals for all usage other than in treating patients on kidney dialysis regimens, an Amgen spokesman said. J&J said Amgen believes those costs to Amgen could amount to as much as $100 million. A J&J spokesman said the company has not made a cost estimate. It also said it plans to seek reconsideration of the award to Amgen of fees, costs and expenses and will also object to any unreasonable claim. The dispute arose over the spillover of sales and usage of EPO in areas each company was not licensed to be in. Amgen said the money it is paying J&J accounts for sales of EPO between 1991 and 1994. It said that from 1995 forward, it does not owe J&J anything. EPO is used to stimulate bond marrow to produce red blood cells. The arbitration order sets up a mechanism for determining spillover sales of EPO by either party, J&J's statement said.