CAT Legal Action with Abbott

RNS Number:5777I
Cambridge Antibody Tech Group PLC
14 February 2005

05/CAT/07

FOR IMMEDIATE RELEASE

14.15 GMT, 9.15 EST Monday 14 February 2005
For further information contact:

Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)

Tel: +44 (0) 1223 471 471 Tel: +44 (0) 20 7067 0700

Peter Chambre, Chief Executive Officer Kevin Smith

John Aston, Chief Financial Officer Yvonne Alexander

Rowena Gardner, Director of Corporate
Communications

BMC Communications/The Trout Group (USA)

Tel: +1 212 477 9007

Brad Miles, ext 17 (media)

Brandon Lewis, ext 15 (investors)

CAMBRIDGE ANTIBODY TECHNOLOGY LEGAL ACTION WITH ABBOTT: ABBOTT APPLICATION FOR
PERMISSION TO APPEAL

Cambridge, UK Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) reports
that on Friday 11 February 2005, Abbott made a written application to the Court
of Appeal for permission to appeal Mr Justice Laddies judgment of 20 December
2004. Abbotts application follows Mr Justice Laddies refusal on 28 January to
give permission to appeal.

Abbotts application will be considered by one Court of Appeal judge. If the
application is successful, Abbott will be allowed to proceed with the appeal. If
unsuccessful, Abbott will be entitled to request a hearing.

-ENDS-

Notes to Editors

Cambridge Antibody Technology (CAT):

CAT is a biopharmaceutical company using its proprietary technologies and
capabilities in human monoclonal antibodies for drug discovery and drug
development. Based near Cambridge, England, CAT currently employs around 280
people.

CAT is a leader in the discovery and development of human therapeutic antibodies
and has an advanced proprietary technology for rapidly isolating human
monoclonal antibodies using phage display and ribosome display systems. CAT has
extensive phage antibody libraries, currently incorporating more than 100
billion distinct antibodies. These libraries form the basis for the Companys
strategy to develop a portfolio of antibody-based drugs.

Four CAT human therapeutic antibody products are now at various stages of
clinical development, with one further product candidate in pre-clinical
development.

HUMIRA, the leading CAT-derived antibody, isolated and optimised in
collaboration with Abbott, has been approved for marketing as a treatment for
rheumatoid arthritis in 51 countries.

Six further licensed CAT-derived human therapeutic antibodies are in clinical
development by licensees, with four further licensed product candidates in
pre-clinical development.

CAT has alliances with a number of pharmaceutical and biotechnology companies to
discover, develop and commercialise human monoclonal antibody-based products.

On 22 November 2004, CAT announced a major strategic alliance with AstraZeneca
to discover and develop human antibody therapeutics in inflammatory disorders.

CAT has a broad collaboration with Genzyme for the development and
commercialisation of antibodies directed against TGFbeta, a family of proteins
associated with fibrosis and scarring.

CAT has also licensed its proprietary technologies to several companies. CATs
licensees include: Abbott, Amgen, Chugai, Genzyme, Human Genome Sciences, Merck
& Co, Pfizer and Wyeth Research.

CAT is listed on the London Stock Exchange and on NASDAQ. CAT raised #41m in its
IPO in March 1997 and #93m in a secondary offering in March 2000.

CAT and Abbott Litigation

CATs entitlement to royalties in relation to sales of HUMIRA is governed by an
agreement dated 1 April 1995 between Cambridge Antibody Technology Limited and
Knoll Aktiengesellschaft. The agreement allows for offset, in certain
circumstances, of royalties due to third parties against royalties due to CAT,
subject to a minimum royalty level.

In March 2003, Abbott indicated to CAT its wish to initiate discussions
regarding the applicability of the royalty offset provisions for HUMIRA.
Following unsuccessful efforts to resolve the matter with Abbott, CAT commenced
legal proceedings against Abbott Biotechnology Limited and Abbott GmbH.

The trial, which took place at the High Court in London, began on 22 November
2004 and lasted three weeks.

On 20 December 2004, the judge, Mr Justice Laddie, ruled in CATs favour stating
that,Abbott was in error when it made its first royalty payment to CAT
calculated on the basis that only 2% of the Net Sales was due. It should have
calculated on the basis of the full royalty of just over 5% and should have paid
and continued to pay CAT accordingly.

In January 2005, Abbott paid to CAT US$23.73 million, representing royalty
arrears due to CAT arising from the original judgment, and an additional sum of
US$1.29 million, representing interest and compensation for currency loss on
this amount. Abbott also paid CAT #2.85 million representing an interim payment
of legal costs due. These amounts are not reflected in the first quarter results
announced on 7 February 2005. Were Abbott to receive permission to appeal and be
successful on such appeal these amounts would be repayable.

Pending resolution of Abbotts request for permission to appeal and any resultant
appeal, the royalty arrears payment will not be recognised as revenue, the
payment on account of costs will not be recognised in the profit and loss
account and revenue in respect of subsequent royalty receipts will only be
recognised at the two per cent rate argued by Abbott. A proportion of CATs
royalty receipts, and of the royalty arrears payment, are payable to the Medical
Research Council and other licensors.

Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc (CAT) that are forward looking statements. All statements
other than statements of historical facts included in this press release may be
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. These forward looking statements are based on numerous
assumptions regarding the companys present and future business strategies and
the environment in which the company will operate in the future. Certain factors
that could cause the companys actual results, performance or achievements to
differ materially from those in the forward looking statements include: market
conditions, CATs ability to enter into and maintain collaborative arrangements,
success of product candidates in clinical trials, regulatory developments and
competition. We caution investors not to place undue reliance on the forward
looking statements contained in this press release. These statements speak only
as of the date of this press release, and we undertake no obligation to update
or revise the statements.

This information is provided by RNS
The company news service from the London Stock Exchange
END

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