Boehringer Mannheim Group files claim against Ostex Inc.

INDIANAPOLIS--(HealthWire)--Dec. 4, 1995--Boehringer Mannheim Group announced today that it has filed a claim against Ostex Inc. for damages in excess of $20 million caused when the Seattle-based company began attempting to back out of a global partnership to market and further develop a bone loss urine test.

"Boehringer Mannheim remained in full compliance with our agreement for joint distribution and research and development for Osteomark(R) and, quite frankly, were surprised and dismayed when Ostex began trying to renege by refusing to provide materials and support as required under our contract," said Werner Schaefer, President of Boehringer Mannheim's Laboratory Diagnostics Division. "The result has been clear damages to Boehringer Mannheim, and -- unless Ostex is willing to resolve this amicably -- we are confident we will prevail in our claim."

Schaefer made the point that Boehringer Mannheim is making its claim only after repeated attempts to reach an accord with Ostex on the basis of the contractual agreement between the two. Ostex, which is seeking to force arbitration to end the agreement, has not even complied with contractual requirements for requesting such arbitration, according to Boehringer Mannheim s court filing.

"It remains our hope that Boehringer Mannheim and Ostex can settle this matter outside the courtroom. We will continue to pursue negotiations. But our inability to make progress and Ostex's apparent readiness to make public statements regarding the agreement and misrepresenting the facts have forced our hand in this matter," Schaefer said.

Osteomark(R) is a urine test for bone loss, which helps physicians to identify individuals with elevated levels of bone loss. By identifying "fast losers" of bone, physicians can prescribe appropriate therapies and monitor patient compliance and the effectiveness of treatment. Osteoporosis, a major disease condition worldwide, can result from elevated levels of bone loss.

Schaefer said the Boehringer Mannheim Group has fulfilled all its contractual arrangements and indeed made a major breakthrough in the development of an automated assay which would have permitted launch of a new test in the second half of 1996. Ostex's breach of the agreement will delay but not prevent that launch. As a result of Ostex's refusal to supply finished products and critical reagents under its agreements, Boehringer expects to have a claim against Ostex for more than $20 million in damages for additional development costs, delays and lost sales.

The Boehringer Mannheim Group is a world leader in diagnostics, biochemicals and pharmaceuticals. It is privately held by Corange Ltd. which has US $3.4 billion in annual sales. With operating companies in more than 25 countries, the Group has sales in more than 120 countries and more than 17,000 employees.

CONTACT: Boehringer Mannheim Group, Indianapolis

Ruth Iliff, 317/845-7011