ImClone Systems Inc. (IMCL) announced that it has signed a settlement agreement with Yeda Research and Development Company Ltd. and Sanofi-Aventis to end worldwide litigation related to U.S. Patent and its foreign counterparts.
Under the terms of the settlement deal, the companies agree that Yeda is the sole owner of the U.S. Patent., and Yeda and Sanofi-Aventis are co-owners of the Patent's foreign counterparts.
According the terms of the settlement agreement, ImClone and Sanofi-Aventis will each pay Yeda $60.0 million in cash for full and final settlement of the claims and counterclaims in the matter.
ImClone shall be granted a worldwide license to technology patented under the 866 Patent. ImClone will make a contingent payment to Yeda of a low single-digit royalty on sales in and outside of the U.S. and will pay Sanofi-Aventis a low single-digit royalty on sales outside of the United States.
ImClone's worldwide royalty rate for ERBITUX sales pursuant to the settlement agreement remains unchanged.
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