Chiron and Ortho Diagnostic Systems settle European HCV patent infringement with Organon Teknika.

EMERYVILLE, Calif.--(BUSINESS WIRE)--Oct. 9, 1995--Chiron Corporation (NASDAQ:CHIR) and Ortho Diagnostic Systems, Inc., a Johnson & Johnson company, announced today that they have entered into a settlement with Organon Teknika, N.V., a company of the Akzo Nobel Group, whereby Organon Teknika has agreed to pay compensation for past acts judged to infringe Chiron's United Kingdom and European hepatitis C virus (HCV) patents (United Kingdom Patent No. GB2,212,511 and European Patent No. 0 318 216).

Chiron, Ortho and Organon Teknika also have agreed to disengage from all litigation in the United Kingdom and countries covered by the European patent.

Previously, a British court found that Organon Teknika had infringed Chiron's U.K. patent through its sale of HCV tests, and courts in the Netherlands and Belgium issued preliminary injunctions against the manufacture, use and sale of Organon Teknika's HCV tests in European countries. Appeals of these decisions will be dropped, and related litigation in Italy and France also will be terminated.

Organon Teknika also agreed as part of the settlement to refrain from future infringement of Chiron's HCV patent in the U.K. and Europe, and to withdraw its opposition to Chiron's European patent. The settlement does not grant Organon Teknika a license.

"We are pleased to have resolved completely Organon's infringement of our HCV patents," said William J. Rutter, Ph.D., Chiron chairman. "We will continue to vigorously enforce our patents against unlicensed suppliers of HCV tests. Together with our partner Ortho Diagnostic Systems, we will continue to research, develop and commercialize the most advanced HCV immunodiagnostic tests for our customers."

Chiron and Ortho have licensed Abbott Laboratories and Sanofi Pasteur Diagnostics under the U.K. and European patents.

Chiron will share the compensation paid by Organon Teknika with its joint immunodiagnostic business partner Ortho. Chiron discovered hepatitis C virus, formerly non-A, non-B hepatitis, in 1987, and together with Ortho introduced the first HCV blood screening test in 1989.

The same British court found that Murex Diagnostics Ltd. also had infringed Chiron's U.K. HCV patent and issued an injunction. Additionally, a court in the Netherlands has issued a preliminary injunction, and a court in Germany has issued a permanent injunction, against Murex halting infringement of Chiron's European HCV patent. Murex is appealing the British and Dutch decisions.

Chiron Corporation is a diversified, science-driven healthcare company that combines diagnostic, vaccine and therapeutic strategies for managing disease. Chiron participates in four global healthcare markets: diagnostics, including immunodiagnostics, critical care diagnostics and new quantitative viral probe tests; therapeutics, with an emphasis on oncology and infectious disease; pediatric and adult vaccines; and ophthalmic surgical products for the correction of vision.

CONTACT: Chiron Corporation

Larry Kurtz, 510/601-2476