CAT Catco Reinsurance Opportunities Fund Limited

RNS Number:5487M
Cambridge Antibody Tech Group PLC
20 May 2005



05/CAT/11



08.00 BST, 03.00 EST Friday 20 May 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    Rachel Taylor      
Communications                                   
                                         BMC Communications/The Trout Group (USA)
                                         Tel: 001 212 477 9007
                                         Brad Miles, ext 17 (media)
                                         Brandon Lewis, ext 15 (investors)





CAMBRIDGE ANTIBODY TECHNOLOGY LEGAL ACTION WITH ABBOTT: UPDATE RE TIMING OF
APPEAL


Cambridge, UK - Cambridge Antibody Technology  (LSE: CAT; NASDAQ: CATG) today
announces that the appeal of the decision of Mr Justice Laddie will be heard by
the Court of Appeal in London in the week commencing 24 October 2005. The
hearing is currently estimated to last five days.



-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 290
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 Company's
strategy to develop a portfolio of antibody-based drugs.

One CAT human therapeutic antibody product candidate is in 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 58 countries.

Six further licensed CAT-derived human therapeutic antibodies are in clinical
development by licensees, with six 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 TGF-beta, a family of proteins
associated with fibrosis and scarring.

CAT has also licensed its proprietary technologies to several companies. CAT's
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 - Abbott Litigation

CAT's 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 CAT's 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."

On 28 January 2005, CAT reported the decisions of Mr Justice Laddie on various
procedural matters, including the denial of Abbott's request for permission to
appeal.

On 11 February 2005, Abbott made a written application to the Court of Appeal
for permission to appeal Mr Justice Laddie's judgment of 20 December 2004.

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 be successful in its appeal these
amounts would be repayable.

Pending resolution of Abbott's 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 CAT's 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 company's present and  future business strategies and 
the environment in which the company will operate in the future. Certain factors 
that could cause the company's actual results, performance or achievements to 
differ materially from those in the forward looking statements include: market 
conditions, CAT's 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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