RNS Number:1698T
Cambridge Antibody Tech Group PLC
26 October 2005

05/CAT/16

FOR IMMEDIATE RELEASE


07.00 BST, 02.00 EST Wednesday 26 October 2005

For Further Information Contact:
Cambridge Antibody Technology               Weber Shandwick Square Mile (Europe)
                                            Tel: +44 (0) 20  7067 0700
Tel: +44 (0) 1223 471 471                   Kevin Smith
Peter Chambre, Chief Executive Officer      Yvonne Alexander
John Aston, Chief Financial Officer         Rachel Taylor
Rowena Gardner, Director of Corporate
Communications
                                            BMC Communications/The Trout
Abbott                                      Group (USA)
Jennifer M Smoter                           Tel: 001 212 477 9007
Tel: 001 847 935 8865                       Brad Miles, ext 17 (media)
Mob: 001 847 772 4631                       Brandon Lewis, ext.15 (investors)

CAMBRIDGE ANTIBODY TECHNOLOGY AND ABBOTT AGREE REGARDING ROYALTIES

Cambridge, UK and Abbott Park, IL - Cambridge Antibody Technology (LSE: CAT;
NASDAQ: CATG) and Abbott (NYSE: ABT) today announce that they have reached an
agreement regarding royalties payable to CAT under a licence agreement between
the parties. Accordingly, the hearing scheduled to start this week in the Court
of Appeal will not take place.

Paul Nicholson MD, Chairman, CAT, commented: We are very pleased to have reached
resolution of this issue with Abbott. We can now concentrate fully on CATs
business going forward. CAT is already benefiting from Abbotts successful
development and marketing of HUMIRA (R) and we are hopeful of future success
with ABT-874.

Jeffrey M Leiden MD PhD, president, Abbott Pharmaceutical Products Group, said:
We are pleased to find a solution that benefits both companies and resolves our
differences.

Under the terms of the settlement agreement:

- Abbott will pay CAT the sum of US$255 million, which CAT will pay to its
licensors, the Medical Research Council (MRC), Scripps Institute and Stratagene,
in lieu of their entitlement to royalties arising on sales of HUMIRA from 1
January 2005 onwards.

- Abbott will also pay to CAT five annual payments of US$9.375 million
commencing in January 2006, contingent on the continued sale of HUMIRA. US$2
million from each of these payments will be payable to CATs licensors.

- Abbott will pay CAT a reduced royalty of 2.688 per cent from approximately 5.1
per cent on sales of HUMIRA from 1 January 2005. CAT will retain all of these
royalties. CAT will also retain royalties received from Abbott in respect of
sales of HUMIRA up to 31 December 2004, net of approximately #7.6 million which
will be paid to its licensors. CAT will refund to Abbott approximately #9.2
million for royalties paid from 1 January 2005 through 30 June 2005.

- Abbott will also pay CAT a reduced royalty of 4.75 per cent on any future
sales of ABT-874, from which CAT will pay a portion to the MRC and other
licensors (according to CATs 1997 agreement with the MRC).

- Abbott will capitalise and amortise the upfront payment, net of the refund,
and annual payments to CAT through the term of the agreement. When this
amortisation is combined with the revised royalty rate of 2.688 per cent, the
blended effective royalty rate is reduced from the approximate 5.1 per cent as
previously instructed by the Court.

- ENDS -

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 companyOs 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

AGRGSBDGIBDGGUL
Catco Reinsurance Opport... (LSE:CAT)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Catco Reinsurance Opport... Charts.
Catco Reinsurance Opport... (LSE:CAT)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Catco Reinsurance Opport... Charts.