By Robert Dailey --
Innogenetics and Abbott have agreed to settle their dispute over Innogenetics' patented methods for genotyping HCV. Abbott will shell out $9.5 million, including on-going royalty payments for each test sold by Abbott.
We have previously discussed developments in the litigation between Innogenetics and Abbott over U.S. Patent 5,846,704 (see links below). In January, the Federal Circuit affirmed most of the District Court's findings of validity and infringement. Yet the Federal Circuit dissolved the injunction and remanded the case for a mini-trial on anticipation. We speculated that the dissolution of the injunction could likely expedite settlement negotiations.
On the news of the settlement, Innogenetics stock jumped from € 3.95 to € 4.25, but has since fallen back to pre-settlement values. Innogenetics stock has lost about one-third of its value within the past three months. The Belgian biotech company probably hoped that this week's settlement would boost share value. The market appears not to have welcomed the deal, however.
For additional information regarding this topic, please see:
• "Innogenetics, N.V. v. Abbott Labs. (Fed. Cir. 2008)," January 17, 2008
• "Federal Circuit Reinstates Injunction in favor of Innogenetics," March 9, 2007
• "Innogenetics Appeals Its Win over Abbott," January 30, 2007
• "Permanent Injunction Issued against Abbott HCV Genotyping Test Kit," January 12, 2007
• "Innogenetics Wins $7 Million Judgment against Abbott for Infringing HCV Genotyping Method," January 8, 2007
More information can also be found in a report by Reuters.
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