Gen-Probe and Bayer to settle patent disputes

Gen-Probe has announced that Bayer HealthCare LLC has agreed to end a series of disputes involving multiple patent litigations and contract arbitrations.

Under the binding terms of the agreement, Gen-Probe will withdraw its patent litigation against Bayer and will grant Bayer immunity from suit with respect to all existing and future Gen-Probe patents for all of Bayer's current nucleic acid diagnostic products. Further, future Bayer products will be immune from suit under four specified Gen-Probe patent families. Also, Bayer will grant Gen-Probe immunity from suit under certain Bayer patents with respect to Gen-Probe's current TIGRIS instrument and future instruments. As part of the agreement, Bayer will pay Gen-Probe certain lump sum royalties over the next 18 months.

Finally, Gen-Probe and Bayer have agreed to a final decision in the companies' separate arbitration related to their collaboration for viral products. This final decision incorporates the interim awards previously awarded by the arbitrator. Bayer, however, will not be required to reimburse Gen-Probe $2.0 million for legal expenses, as originally ordered by the arbitrator.

"We are pleased to have concluded our legal disputes with Bayer, and to gain additional revenue that will enable us to invest in commercially attractive, previously unfunded development projects that will drive future growth," said Henry L. Nordhoff, Gen-Probe's chairman, president and chief executive officer.

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