Printer Friendly

BAXTER, RHONE-POULENC RORER RESOLVE ALL DISPUTES INVOLVING FACTOR VIII:C PATENTS; SIGN PURCHASING AGREEMENT FOR BAXTER PRODUCTS

 DEERFIELD, Ill., May 12 /PRNewswire/ -- Baxter International (NYSE: BAX) announced today that it has reached a worldwide settlement with Rhone-Poulenc Rorer (NYSE: RPR) of Collegeville, Pa., involving a longstanding patent lawsuit concerning ultra-pure Factor VIII:C concentrates for the treatment of hemophilia. Baxter and Rhone-Poulenc Rorer also agreed to a long-term agreement for Rhone-Poulenc Rorer to purchase products from Baxter, and an agreement for Baxter to supply recombinant Factor VIII:C to Rhone-Poulenc Rorer. The settlement will be filed in the U.S. District Court in Delaware.
 Factor VIII:C is the clotting protein missing from the blood of people with hemophilia A, the most common form of hemophilia.
 Under the settlement agreement, Baxter will receive a worldwide non- exclusive license covering its Factor VIII:C products, Hemofil(R)M and Recombinate(TM) AHF, which are marketed by Baxter's Hyland Division.
 Baxter agreed that it will pay Rhone-Poulenc Rorer $105 million to settle the case and also will pay ongoing royalties and processing fees based on sales of Factor VIII:C concentrates.
 At the same time, Rhone-Poulenc Rorer will sign long-term agreements with Baxter under which Baxter will supply Rhone-Poulenc Rorer with recombinant Factor VIII:C packaged and labeled to Rhone-Poulenc Rorer's specification. Rhone-Poulenc Rorer also will renew a supply agreement for automated plasma-collection systems manufactured by Baxter.
 Officials from both companies said this settlement will ensure that people with hemophilia experience no disruptions to the supply of highly purified clotting factor. The agreement serves the interests of the hemophilia community as well as the interests of the involved companies.
 The Scripps Research Institute and Rhone-Poulenc Rorer filed the suit originally in March 1987 in the U.S. District Court in Delaware. The settlement agreement would, effective January 1, 1993, resolve all outstanding claims and litigation.
 The Factor VIII:C patent is owned by The Scripps Research Institute of LaJolla, California. Rhone-Poulenc Rorer is the exclusive licensee of the patent. The Scripps patent covers Factor VIII:C in a highly pure and concentrated state for therapeutic uses whether it is plasma-derived or produced by recombinant means.
 Baxter will restate its first-quarter financial statements to reflect the settlement.
 Baxter International Inc., through its subsidiaries, is the leading manufacturer and marketer of health-care products and services worldwide. The Hyland Division is a unit of Baxter Healthcare Corporation, a subsidiary of Baxter International.
 BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
 Restated Consolidated Statements Of Income (Unaudited)
 (in millions, except per share data)
 Three Months Ended March 31, 1993(A) 1992
 Operations
 Net Sales $2,041 $1,972
 Operating costs and expenses
 Cost of goods sold 1,290 1,234
 Marketing and administrative expenses 438 433
 Research and development expenses 78 74
 Goodwill amortization 17 17
 Total operating costs and expenses 1,823 1,758
 Operating Income 218 214
 Non-operating expenses (income)
 Interest expense 52 54
 Interest income (6) (7)
 Settlement of patent litigation 105(A) 0
 Other 12 18
 Total non-operating expenses 163 65
 Income from continuing operations
 before income taxes and cumulative
 effect of accounting changes 55 149
 Income tax (benefit) expense (2) 40
 Income from continuing operations
 before cumulative effect
 of accounting changes 57 109
 Income from discontinued operations, net of
 applicable income taxes of $7 for the
 three months ended March 31, 1992 0 19
 Income before cumulative effect of
 accounting changes 57 128
 Cumulative effect of change in accounting for:
 Income taxes 81 0
 Other postretirement benefits, net of
 income tax benefit of $50 0 (165)
 Net income (loss) 138 (37)
 Less preferred stock dividends 0 5
 Net income (loss) available for common
 stock $ 138 $ (42)
 Per share data:
 Primary earnings (loss) per common share
 Continuing operations $0.20 $0.37
 Income from discontinued operations 0.00 0.07
 Cumulative effect of change in accounting for:
 Income taxes 0.29 0.00
 Other postretirement benefits 0.00 (0.59)
 Net income (loss) $0.49 $(0.15)
 Fully diluted earnings (loss) per common share
 Continuing operations $0.20 $0.37
 Income from discontinued operations 0.00 0.07
 Cumulative effect of change in accounting for:
 Income taxes 0.29 0.00
 Other postretirement benefits 0.00 (0.59)
 Net income (loss) $0.49 $(0.15)
 Average number of common shares and
 equivalents outstanding
 Primary 278 279
 Fully Diluted 280 283
 (A) On May 12, 1993, Baxter's Board of Directors authorized a worldwide settlement of pending patent litigation with Scripps Research Institute and Rhone-Poulenc Rorer Inc. As required by generally accepted accounting principles, this settlement has been retroactively reflected in the financial results for the quarter ending March 31, 1993.
 -0- 5/12/93
 /CONTACT: Geoffrey D. Fenton of Baxter, 708-948-3436 or Bob Pearson, of Rhone-Poulenc Rorer, 215-454-3872/
 (BAX RPR)


CO: Baxter International, Rhone-Poulenc Rorer ST: Illinois IN: MTC SU: ERN

LD -- NY111 -- 7837 05/12/93 19:05 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 12, 1993
Words:797
Previous Article:GENETICS INSTITUTE PLEASED WITH BAXTER AND RHONE-POULENC RORER FACTOR VIII PATENT SETTLEMENT
Next Article:NEW YORK STOCK EXCHANGE CLOSING, WEDNESDAY, MAY 12 /PRN/
Topics:


Related Articles
NATIONAL HEMOPHILIA FOUNDATION PETITIONS COURT
RHONE-POULENC RORER RESTATES COMMITMENT TO HEMOPHILIA COMMUNITY FOR UNINTERRUPTED SUPPLY OF FACTOR VIII:C
MARION MERRELL DOW AND RHONE-POULENC RORER REACH AGREEMENT TO SETTLE DISPUTES REGARDING ANTIHYPERTENSIVE DRUGS
COURT DENIES REQUEST FOR PRELIMINARY PATENT INJUNCTION AGAINST HIGHLY PURIFIED FACTOR VIII:C PRODUCT
MILES INC. AND RHONE-POULENC RORER SETTLE PATENT DISPUTE
EUROPEAN PATENT OFFICE UPHOLDS SCRIPPS PATENT FOR ULTRA-PURIFIED FACTOR VIII:C
GENETICS INSTITUTE PLEASED WITH BAXTER AND RHONE-POULENC RORER FACTOR VIII PATENT SETTLEMENT
PARTIAL SETTLEMENT OF UP TO $150 MILLION REACHED IN HEMOPHILIA AIDS CLAIMS AGAINST BAXTER HEALTH CARE CORPORATION AND ARMOUR PHARMACEUTICAL
RHONE-POULENC RORER S.A. FILES PATENT INFRINGEMENT LAWSUIT AGAINST BRISTOL-MYERS SQUIBB REGARDING TAXOL(R)
PLASMA FRACTIONATORS EXTEND SETTLEMENT PROPOSAL TO HIV-INFECTED HEMOPHILIA PATIENTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters