CATCo Regulatory News (CAT)

20 May 2005 08:00

Cambridge Antibody Tech Group PLC20 May 2005 05/CAT/11 08.00 BST, 03.00 EST Friday 20 May 2005 For further information contact:Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)Tel: +44 (0) 1223 471 471 Tel: +44 (0) 20 7067 0700Peter Chambre, Chief Executive Officer Kevin SmithJohn Aston, Chief Financial Officer Yvonne Alexander Rowena Gardner, Director of Corporate Rachel Taylor Communications BMC Communications/The Trout Group (USA) Tel: 001 212 477 9007 Brad Miles, ext 17 (media) Brandon Lewis, ext 15 (investors) CAMBRIDGE ANTIBODY TECHNOLOGY LEGAL ACTION WITH ABBOTT: UPDATE RE TIMING OFAPPEAL Cambridge, UK - Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) todayannounces that the appeal of the decision of Mr Justice Laddie will be heard bythe Court of Appeal in London in the week commencing 24 October 2005. Thehearing is currently estimated to last five days. -ENDS- Notes to Editors Cambridge Antibody Technology (CAT): CAT is a biopharmaceutical company using its proprietary technologies andcapabilities in human monoclonal antibodies for drug discovery and drugdevelopment. Based near Cambridge, England, CAT currently employs around 290people. CAT is a leader in the discovery and development of human therapeutic antibodiesand has an advanced proprietary technology for rapidly isolating humanmonoclonal antibodies using phage display and ribosome display systems. CAT hasextensive phage antibody libraries, currently incorporating more than 100billion distinct antibodies. These libraries form the basis for the Company'sstrategy to develop a portfolio of antibody-based drugs. One CAT human therapeutic antibody product candidate is in clinical development,with one further product candidate in pre-clinical development. HUMIRA, the leading CAT-derived antibody, isolated and optimised incollaboration with Abbott, has been approved for marketing as a treatment forrheumatoid arthritis in 58 countries. Six further licensed CAT-derived human therapeutic antibodies are in clinicaldevelopment by licensees, with six further licensed product candidates inpre-clinical development. CAT has alliances with a number of pharmaceutical and biotechnology companies todiscover, develop and commercialise human monoclonal antibody-based products. On 22 November 2004, CAT announced a major strategic alliance with AstraZenecato discover and develop human antibody therapeutics in inflammatory disorders. CAT has a broad collaboration with Genzyme for the development andcommercialisation of antibodies directed against TGF-beta, a family of proteinsassociated with fibrosis and scarring. CAT has also licensed its proprietary technologies to several companies. CAT'slicensees include: Abbott, Amgen, Chugai, Genzyme, Human Genome Sciences, Merck& Co, Pfizer and Wyeth Research. CAT is listed on the London Stock Exchange and on NASDAQ. CAT raised £41m in itsIPO in March 1997 and £93m in a secondary offering in March 2000. CAT - Abbott Litigation CAT's entitlement to royalties in relation to sales of HUMIRA is governed by anagreement dated 1 April 1995 between Cambridge Antibody Technology Limited andKnoll Aktiengesellschaft. The agreement allows for offset, in certaincircumstances, of royalties due to third parties against royalties due to CAT,subject to a minimum royalty level. In March 2003, Abbott indicated to CAT its wish to initiate discussionsregarding the applicability of the royalty offset provisions for HUMIRA.Following unsuccessful efforts to resolve the matter with Abbott, CAT commencedlegal proceedings against Abbott Biotechnology Limited and Abbott GmbH. The trial, which took place at the High Court in London, began on 22 November2004 and lasted three weeks. On 20 December 2004, the judge, Mr Justice Laddie, ruled in CAT's favour statingthat "Abbott was in error when it made its first royalty payment to CATcalculated on the basis that only 2% of the Net Sales was due. It should havecalculated on the basis of the full royalty of just over 5% and should have paidand continued to pay CAT accordingly." On 28 January 2005, CAT reported the decisions of Mr Justice Laddie on variousprocedural matters, including the denial of Abbott's request for permission toappeal. On 11 February 2005, Abbott made a written application to the Court of Appealfor permission to appeal Mr Justice Laddie's judgment of 20 December 2004. In January 2005, Abbott paid to CAT US$23.73 million, representing royaltyarrears due to CAT arising from the original judgment, and an additional sum ofUS$1.29 million, representing interest and compensation for currency loss onthis amount. Abbott also paid CAT £2.85 million representing an interim paymentof legal costs due. These amounts are not reflected in the first quarter resultsannounced on 7 February 2005. Were Abbott to be successful in its appeal theseamounts would be repayable. Pending resolution of Abbott's appeal, the royalty arrears payment will not berecognised as revenue, the payment on account of costs will not be recognised inthe profit and loss account and revenue in respect of subsequent royaltyreceipts will only be recognised at the two per cent rate argued by Abbott. Aproportion of CAT's royalty receipts, and of the royalty arrears payment, arepayable to the Medical Research Council and other licensors. Application of the Safe Harbor of the Private Securities Litigation Reform Actof 1995: This press release contains statements about Cambridge AntibodyTechnology Group plc ("CAT") that are forward looking statements. All statementsother than statements of historical facts included in this press release may beforward looking statements within the meaning of Section 21E of the SecuritiesExchange Act of 1934. These forward looking statements are based on numerousassumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Certain factors that could cause the company's actual results, performance or achievements to differ materially from those in the forward looking statements include: market conditions, CAT's ability to enter into and maintain collaborative arrangements, success of product candidates in clinical trials, regulatory developments and competition. We caution investors not to place undue reliance on the forward looking statements contained in this press release. These statements speak only as of the date of this press release, and we undertake no obligation to update or revise the statements. This information is provided by RNS The company news service from the London Stock Exchange