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To: Anthony Wong who wrote (628)8/12/1998 6:22:00 AM
From: Anthony Wong  Read Replies (1) | Respond to of 1722
 
SmithKline says settles patent suits
with Chiron
Tuesday August 11, 9:30 pm Eastern Time

PHILADELPHIA, Aug 11 (Reuters) - SmithKline Beecham Plc (quote from Yahoo! UK & Ireland: SB.L; SBH - news) and Chiron Corp (CHIR - news) said Tuesday they had signed an agreement to settle worldwide patent lawsuits regarding DNA fragments used to make human vaccines, including SmithKline's Engerix-B hepatitis B vaccine.

SmithKline spokeswoman Sharyn Arnold said her company had challenged Chiron's patent on so-called GAPDH promoters -- DNA segments used to spur genes to produce antigens, a type of protein that stimulates an immune response.

''Chiron holds a patent on GAPDH promoters and we were challenging that patent,'' Arnold told Reuters.

SmithKline said under the agreement it will receive a non-exclusive worldwide license from Chiron to use the promoters to produce antigens for vaccines.

''Chiron will receive a license issuance fee and royalty payments on sales of any vaccines produced using the promoters,'' the companies said in a statement, declining to disclose financial details.

Arnold said GAPDH promoters were used to create Engerix-B, which she said had 1997 sales of $584 million. She said she did not know of any other SmithKline products that used the promoters.

Chiron and London-based SmithKline said they had agreed to dismiss or withdraw all litigation or challenges to the validity or enforceability of the Chiron patent around the world.

Chiron, of Emeryville, Cal., markets prescription drugs and diagnostics as well as vaccines. SmithKline, which also produces prescription drugs, is one the world's biggest players in the vaccine arena.

biz.yahoo.com