Chiron, Roche Reach Settlement Agreement on Dispute Over Patent on HIV Testing Methods

Emeryville, Calif.-based biotechnology company Chiron has announced that it has reached a settlement with Swiss-based pharmaceutical company Roche over licensing fees and royalties for a patent on HIV testing methods, AFX News reports (AFX News, 9/12). The dispute was based on Chiron's claims that it was owed licensing fees and royalties from Roche under a licensing agreement related to its March 2003 patent for nucleic acid HIV testing methods, according to the Wall Street Journal (Wall Street Journal, 9/13). Under the agreement, Chiron will receive a lump sum of $78 million in place of royalties after Jan. 1, 2005, and will retain all of the money paid by Roche while the matter was under dispute. Under the agreement, Roche also must agree to the "validity and enforceability" of Chiron's patent, according to AFX News. However, Roche has the option to obtain a partial refund and choose to pay royalties on the sales of the testing products in North America (AFX News, 9/12).

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