Medigene ready to appeal in CVLP suit
FRANKFURT, March 23 (Reuters) - Medigene AG said on Friday it stood ready to appeal against a possible U.S. district court ruling dismissing its claim for ownership of a technology used to produce anti-tumor drugs.
The German biopharmaceutical firm said it has received notification from the District Court of Chicago that it was likely to dismiss its case, filed in 1998, against U.S. biotech MedImmune Inc. (NasdaqNM:MEDI - news) and Loyola University of Chicago.
``Medigene is reviewing the legal consequences of the expected judgement against it and considering an appeal to the United States court of appeal,'' the company said in a statement.
Medigene's shares rose 2.7 percent to 17.15 euros, paring a loss of 12.6 percent on Thursday. The German biotech index (^NMPA - news) bounced back 4.2 percent after plunging yesterday.
``All is not lost,'' said Sabine Eberhardt, an analyst at Merck Finck in Frankfurt, who has a ``hold'' rating on the stock. ``Both sides have indicated they are interested in a settlement.''
A company spokeswoman said talks on a settlement were going on.
The dispute relates to patents on CVLP technology or chimeric virus-like particles, which Medigene is developing to treat malignant tumors. It has one cervical cancer candidate in the first phase of clinical trials derived from CVLP.
Loyola and MedImmune have filed counter-claims against Medigene, on which the district court has still to rule.
Merck Finck's Eberhardt says that if the court dismisses those cases, it will equalise their bargaining positions.
Martinsried-based Medigene alleged that its memorandum of understanding with the defendants had been breached.
In the worst case, it stands to halt its cervical cancer project, a spokeswoman for the company said. Otherwise it could licence in the technology, which will reduce its earnings power on the drug.
FRANKFURT, March 23 (Reuters) - Medigene AG said on Friday it stood ready to appeal against a possible U.S. district court ruling dismissing its claim for ownership of a technology used to produce anti-tumor drugs.
The German biopharmaceutical firm said it has received notification from the District Court of Chicago that it was likely to dismiss its case, filed in 1998, against U.S. biotech MedImmune Inc. (NasdaqNM:MEDI - news) and Loyola University of Chicago.
``Medigene is reviewing the legal consequences of the expected judgement against it and considering an appeal to the United States court of appeal,'' the company said in a statement.
Medigene's shares rose 2.7 percent to 17.15 euros, paring a loss of 12.6 percent on Thursday. The German biotech index (^NMPA - news) bounced back 4.2 percent after plunging yesterday.
``All is not lost,'' said Sabine Eberhardt, an analyst at Merck Finck in Frankfurt, who has a ``hold'' rating on the stock. ``Both sides have indicated they are interested in a settlement.''
A company spokeswoman said talks on a settlement were going on.
The dispute relates to patents on CVLP technology or chimeric virus-like particles, which Medigene is developing to treat malignant tumors. It has one cervical cancer candidate in the first phase of clinical trials derived from CVLP.
Loyola and MedImmune have filed counter-claims against Medigene, on which the district court has still to rule.
Merck Finck's Eberhardt says that if the court dismisses those cases, it will equalise their bargaining positions.
Martinsried-based Medigene alleged that its memorandum of understanding with the defendants had been breached.
In the worst case, it stands to halt its cervical cancer project, a spokeswoman for the company said. Otherwise it could licence in the technology, which will reduce its earnings power on the drug.
