Repligen, University of Michigan settle patent lawsuit with Bristol-Myers Squibb

Lawsuit settled

Massachusetts-based Repligen Corp. and the University of Michigan have settled the patent infringement case they brought in January 2006 against Bristol-Myers Squibb. The case concerned the rheumatoid arthritis drug Orencia, marketed by Bristol-Myers Squibb.

The settlement provides for an initial payment of $5 million, plus royalties that could reach $117 million on US net sales of Orencia for any indication. The patent is owned by the University of Michigan and the US Department of the Navy, and is exclusively licensed to Repligen, which focuses on the development of novel therpeutics for diseases that affect the central nervous system.

“We are very pleased by the settlement of this case which will provide us a substantial new source of revenue,” said Walter C. Herlihy, President and Chief Executive Officer of Repligen. “Based on analysts’ estimates of US sales of Orencia, we expect total cash receipts from our Protein A business, Orencia royalties, research and development and other income of greater than $30 million for fiscal year 2009, beginning April 1, 2008.”