Third Wave and Stratagene Resolve Patent Litigation; Companies Agree to Process to Resolve Future Disputes
January 30 2007 - 6:30AM
PR Newswire (US)
MADISON, Wis. and LA JOLLA, Calif., Jan. 30 /PRNewswire-FirstCall/
-- Third Wave Technologies Inc. (NASDAQ:TWTI) and Stratagene
Corporation (NASDAQ:STGN) today announced that they have reached an
out-of-court settlement regarding the matter litigated in U.S.
District Court in Wisconsin in September 2005 and appealed to the
Federal Circuit in Washington D.C. Stratagene has agreed to pay
Third Wave $10.75 million in cash as full satisfaction for the
judgment. The companies also have agreed to stay any further
litigation for nine months. The companies will either seek
dismissal without prejudice or an extension of the trial date for
Stratagene's lawsuit against Third Wave in U.S. District Court in
Delaware. Stratagene and Third Wave have also agreed to a process
to resolve that case or any other disputes through an agreement
that enables either company to elect to arbitrate a patent dispute
or to resolve it through a royalty-bearing license. "We're pleased
to resolve this outstanding legal matter in a manner benefiting
both companies," said Dr. Joseph A. Sorge, Chairman and CEO of
Stratagene. "With this settlement, we will be able to redeem our
$21 million appeal bond and strengthen our balance sheet by $10.25
million. In addition, the resolution of this issue will also enable
our management team to focus more resources on executing our
long-term growth strategy in molecular diagnostics, including the
pursuit of additional partnerships and product development
opportunities." "This settlement is a positive outcome for both
Third Wave and Stratagene," said Kevin T. Conroy, president and
chief executive of Third Wave. "The settlement has the dual benefit
of increasing Third Wave's cash balance to more than $50 million
and allowing us to avoid the multi-million- dollar expense of
ongoing litigation. The settlement also gives Third Wave the
freedom to expand our molecular diagnostic product menu and enables
us to focus on what we do best: bringing to market innovative,
high-value molecular diagnostics like FDA-approved HPV products."
About Stratagene Corporation Stratagene is a developer,
manufacturer and marketer of specialized life science research and
diagnostic products. The Company's life science research unit
supports advances in science by inventing, manufacturing and
distributing products that simplify, accelerate and improve
research. These products are used throughout the academic,
industrial and government research sectors in fields spanning
molecular biology, genomics, proteomics, drug discovery and
toxicology. The Company's diagnostic unit develops and manufactures
products for urinalysis as well as high quality automated
instrument and reagent systems that use blood samples to test for
more than 1,000 different allergies and autoimmune disorders. In
addition, by combining its expertise in diagnostics and molecular
biology, as well as its experience with FDA regulatory procedures,
the Company is pursuing opportunities to expand its product
portfolio to include molecular diagnostic kits and instrumentation.
More information is available at http://www.stratagene.com/.
Certain statements in this news release that are not historical
fact constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Stockholders
and other readers are cautioned not to place undue reliance on
these forward-looking statements. Stratagene generally identifies
forward-looking statements by using words like "believe," "intend,"
"target," "expect," "estimate," "may," "should," "plan," "project,"
"contemplate," "anticipate," "predict" or similar expressions. You
can also identify forward-looking statements by discussions of
strategies, plans or intentions. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors,
which may cause the actual results of Stratagene to be materially
different from historical results or from any results expressed or
implied by such forward-looking statements. Among the important
factors that could cause actual results to differ materially from
those contained in or implied by the forward-looking statements are
risks associated with the company's inability to sufficiently
anticipate market needs and develop products and product
enhancements that achieve market acceptance, the company's ability
to compete effectively in the diagnostics and life science research
markets, variability of the company's quarterly revenues and
operating results, the failure of the company to retain key
employees, the company's ability to obtain debt or equity financing
for unexpected litigation outcomes and for operating needs, the
possibility of declining sales due in part to a reduction in
research and development budgets or government funding, the
company's ongoing ability to protect its own intellectual property
rights and to avoid violating the intellectual property rights of
third parties, extended manufacturing difficulties and currency
fluctuations. For more information about these and other factors
that could cause actual results to differ materially from those
contained in or implied by the forward-looking statements please
see Item "1A. Risk Factors" included in Stratagene's Annual Report
on Form 10-K for the year ended December 31, 2005 and in other
reports filed by Stratagene from time to time with the Securities
and Exchange Commission, including Quarterly Reports on Form 10-Q.
About Third Wave Technologies Third Wave develops and markets
molecular diagnostic reagents for a variety of DNA and RNA analysis
applications to meet the needs of our customers. The company offers
a number of products based on its Invader(R) chemistry for clinical
testing. Third Wave offers in vitro diagnostic kits, and analyte
specific, general purpose, and research use only reagents for
nucleic acid analysis. For more information about Third Wave and
its products, please visit the company's website at
http://www.twt.com/. All statements in this news release that are
not historical are forward- looking statements within the meaning
of the Securities Ex change Act of 1934 as amended. Such
forward-looking statements are subject to factors that could cause
actual results to differ materially for Third Wave from those
projected. Those factors include risks and uncertainties relating
to technological approaches of Third Wave and its competitors,
product development, manufacturing, market acceptance, cost and
pricing of Third Wave products, dependence on collaborative
partners and commercial customers, successful performance under
collaborative and commercial agreements, competition, the strength
of the Third Wave intellectual property, the intellectual property
of others and other risk factors identified in the documents Third
Wave has filed, or will file, with the Securities and Exchange
Commission. Copies of the Third Wave filings with the SEC may be
obtained from the SEC Internet site at http://www.sec.gov/ . Third
Wave expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward- looking
statements contained herein to reflect any change in Third Wave's
expectations with regard thereto or any change in events,
conditions, or circumstances on which any such statements are
based. Third Wave Technologies, Invader and the Third Wave logo are
trademarks of Third Wave Technologies, Inc. Contacts: For
Stratagene Corp.: For Third Wave Technologies Inc.: Steve Martin
Rod Hise Chief Financial Officer (608) 663-4010 (858) 373-6303
Investors: EVC Group, Inc. Douglas Sherk, Jennifer Beugelmans (415)
896-6820 DATASOURCE: Third Wave Technologies Inc. CONTACT: Steve
Martin, Chief Financial Officer for Stratagene Corp.,
+1-858-373-6303; or Investors, Douglas Sherk or Jennifer
Beugelmans, both of EVC Group, Inc., +1-415-896-6820, for
Stratagene Corp.; or Rod Hise, for Third Wave Technologies Inc.,
+1-608-663-4010 Web site: http://www.twt.com/
http://www.stratagene.com/
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