Affymax receives arbitration panel decision related to dispute against JNJ subsidiaries

Affymax, Inc. (Nasdaq: AFFY) today announced that it has received a decision from the arbitration panel reviewing its dispute against certain subsidiaries of Johnson and Johnson (JNJ). The panel has determined that Affymax and JNJ are co-owners of certain intellectual property, including U.S. patent numbers 5,773,569, 5,830,851, 5,986,047, among others related to erythropoietin receptor agonists. In addition, the ruling determined that JNJ is sole owner of JNJ's U.S. patent number 5,767,078 ('078) and certain other related patents and patent applications in Europe, Japan, Canada and Australia.

“We continue to believe that these patents and patent applications do not encompass Hematide and that we can manufacture and sell the product upon approval.”

"We are evaluating this decision to determine potential next steps in this litigation," said Arlene M. Morris, chief executive officer of Affymax. "We continue to believe that these patents and patent applications do not encompass Hematide and that we can manufacture and sell the product upon approval."

Affymax does not believe the claims in the '078 patent are valid. Even in the event that claims of this patent were found to be valid, Affymax believes that they do not encompass Hematide. The '078 patent purports to cover methods of dimerizing and activating the EPO receptor using covalently linked peptide monomers which do not activate the EPO receptor unless dimerized. Affymax asserts that Hematide does not infringe any of the claimed methods described in the '078 patent.