Acambis, Bavarian Nordic settle legal disputes on MVA smallpox vaccine
Acambis plc (ACM.L) said it has reached a global settlement with Bavarian Nordic ending the legal disputes between the two companies on matters relating to smallpox vaccines based on the Modified Vaccinia Ankara (MVA) virus.
In terms of the agreement, Bavarian Nordic will grant a licence to some of its MVA patents in return for Acambis making an undisclosed upfront payment. Acambis will also make royalty and milestone payments should it develop or commercialise certain MVA products in the future.
Cambridge-headquartered Acambis' said its previous financial guidance is not affected by this agreement.
The settlement involves the patent disputes at the US International Trade Commission and the Commercial Court in Vienna as well as the conversion, unfair trade acts and unfair competition action at the US Federal District Court of the District of Delaware.
The terms of the setllement are remain confidential, but the companies said all pending litigation and further appeals will cease. The Administrative Law Judge at the ITC who was recently assigned to the case had set a date for the new initial determination to be issued on 20 November but Acambis and Bavarian Nordic will now submit a joint motion to the ITC for termination of that investigation.
In a joint statement, Ian Garland (pictured), CEO of Acambis, and Peter Wulff, President and CEO of Bavarian Nordic said: "This settlement brings to an end the litigation between our two companies and provides a basis for both companies to progress their respective vaccine businesses unhindered by these legal disputes."
Acambis’ share price gained 2p to 109.5p on the news. The company is now valued at just under £120m. It is to be hoped today’s rise and the end to the dispute that arose last year halts the steady slide since mid April when it was above 140p.
26th July 2007
