WALTHAM, Mass., Sept. 10 Repligen Corporation(Nasdaq: RGEN) announced today it has reached a settlement with ImCloneSystems, Incorporated (Nasdaq: IMCL) in the lawsuit against ImClone forinfringement of U.S. Patent No. 4,663,281 based on ImClone's manufacture andsale of Erbitux(R). The settlement provides for ImClone to make a payment of$65 million to co-plaintiffs Repligen and The Massachusetts Institute ofTechnology (MIT) and will result in net proceeds to Repligen of approximately$40 million after payment of obligations to MIT and legal expenses. Thesettlement agreement serves as the basis for Repligen and MIT to dismiss thelawsuit against ImClone and Repligen has granted ImClone a non-exclusivesublicense to certain patent rights.
"We are very pleased by the settlement of this case which will enable usto end this quarter with more than $60 million in cash and cash equivalents,"stated Walter C. Herlihy, President and Chief Executive Officer of RepligenCorporation. "We plan to invest the proceeds from the settlement in thegrowth and expansion of both our CNS product pipeline and our bioprocessingbusiness."
In May 2004, Repligen and MIT filed an action in the United StatesDistrict Court for the District of Massachusetts against ImClone forinfringement of U.S. Patent No. 4,663,281 based on ImClone's manufacture andsale of Erbitux(R). The patent, which covers the use of certain geneticelements that increase protein production in a mammalian cell, is assigned toMIT and exclusively licensed to Repligen. Repligen and MIT were representedin the litigation by Fish and Richardson P.C.
About Repligen Corporation
Repligen Corporation is a biopharmaceutical company focused on thedevelopment of novel therapeutics for diseases that affect the central nervoussystem. In addition, we are the world's leading supplier of recombinantProtein A, the sales of which partially fund the advancement of ourdevelopment pipeline while supporting our financial stability. Repligen'scorporate headquarters are located at 41 Seyon Street, Building #1, Suite 100,Waltham, MA 02453. Additional information may be requested fromhttp://www.repligen.com.
This press release contains forward-looking statements which are madepursuant to the safe harbor provisions of Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of 1934, asamended. The forward-looking statements in this release do not constituteguarantees of future performance. Investors are cautioned that statements inthis press release which are not strictly historical statements, including,without limitation, statements regarding current or future financialperformance and position, management's strategy, plans and objectives forfuture operations, plans and objectives for product development, plans andobjectives for present and future clinical trials and results of such trials,plans and objectives for regulatory approval, litigation, intellectualproperty, product development, manufacturing plans and performance such as theanticipated growth in the monoclonal antibody market and our other targetmarkets and projected growth in product sales, constitute forward-lookingstatements. Such forward-looking statements are subject to a number of risksand uncertainties that could cause actual results to differ materially fromthose anticipated, including, without limitation, risks associated with: thesuccess of current and future collaborative relationships, the marketacceptance of our products, our ability to compete with larger, betterfinanced pharmaceutical and biotechnology companies, new approaches to thetreatment of our targeted diseases, our expectation of incurring continuedlosses, our uncertainty of product revenues and profits, our ability togenerate future revenues, our ability to raise additional capital to continueour drug development programs, the success