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Spurned by investors three years ago, Tessera Technologies Inc. is now an industry darling. Last week, the San Jose company issued its initial public offering of 7.5 million shares of common stock at $13 per share. The following day shares were trading around $18. Robert Koenig, a partner at Latham & Watkin’s Silicon Valley office who led the team representing Tessera, attributed the company’s success this time around to the change in the market and Tessera’s history of profitability. In 2000, the company tried an IPO but failed to attract investor interest. “The company found there is great pent-up demand among investors,” Koenig said. “So when a strong company like Tessera comes along people jumped all over it.” Tessera develops semiconductor packaging technology. The company doesn’t manufacture any products itself but derives its revenue from licensing a portfolio of patents to 44 companies. In 2002 Tessera had revenues of $28.3 million and net income of $6.5 million. Investors apparently weren’t worried about Tessera’s ongoing litigation with Samsung Electronics Co. In a suit filed last year, Samsung claimed Tessera failed to disclose its patents to a standards-setting body and therefore could not enforce them. In August the U.S. District Court for the Northern District of California granted Samsung’s motion to dismiss Tessera’s counterclaims of infringement. Tessera is continuing to pursue breach of contract claims against the Korean electronics company. The case is before U.S. District Judge Claudia Wilken. In addition to Koenig, the Latham team included partners Patrick Pohlen and Laurence Stein and associates Bradley Bugdanowitz, Nicholas O’Keefe, Christopher Jaap, Brandon Tidwell, Mona Wang, Holly Bauer and Ana Genender. Tessera General Counsel Christopher Pickett also assisted on the transaction. Simpson Thacher & Bartlett partner William Hinman, based in the firm’s Palo Alto office, represented lead underwriter Lehman Brothers along with associates Gregory King and Kuyler Marsh. CORGENTECH After representing Corgentech Inc. for several years, lawyers at Cooley Godward helped the South San Francisco biotech company ink a deal to secure up to $250 million in funding. Corgentech entered into a joint venture agreement with pharmaceutical giant Bristol-Myers Squibb Co. to further develop and commercialize a product that prevents failures of vein grafts. Corgentech’s product, a so-called E2F Decoy, is currently in clinical trials. Strategic partnering deals are a common mechanism that allow biotech companies to develop products, said Cooley partner Judith Hasko, who was the lead attorney on the Corgentech team. “This is unusual in that it’s late in the product development cycle, and therefore it’s a bigger deal in terms of numbers you might see for an earlier-stage deal.” Under the terms of the agreement, Bristol-Myers will give Corgentech a $45 million up-front payment in cash and equity. As the product meets various clinical and regulatory milestones, Corgentech has the potential to garner an additional $205 million. The two companies will also share ongoing development costs on an undisclosed, percentage allocation. Hasko was assisted by Cooley associate Deborah Sim. Palo Alto partner Matthew Hemington handled the equity portion of the transaction, along with associates John McKenna and Joshua Gillespie. Bristol-Myers was represented by the New York office of Hughes Hubbard & Reed.

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