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BOSTON – ImClone Systems Inc. will pay Repligen Corp. and the Massachusetts Institute of Technology $65 million to settle a patent infringement case that involved witness intimidation sanctions against ImClone. In the case, plaintiff MIT claimed that ImClone’s cancer treatment drug Erbitux infringed on a patent assigned to MIT and licensed to Waltham, Mass.-based drug maker Repligen Corp. The trial was slated to start today. MIT v. ImClone Systems Inc., No. 04-10884 (D. Mass.). A judge’s June sanctions ruling barred the New York-based ImClone from communicating with an MIT witness and his employer, and banned ImClone in-house attorney Thomas Gallagher from access to information covered by the December 2004 protective order, which concerns the use of confidential information related to the litigation. Repligen plans to use the settlement proceeds to expand its pipeline of products to treat central nervous system disorders and its bioprocessing business. “We are very pleased by the settlement of this case which will enable us to end this quarter with more than $60 million in cash and cash equivalents,” said Repligen’s president and CEO Walter C. Herlihy. ImClone attorneys at Washington-based Wiley Rein, who joined the case after the company dropped its original counsel on the case, Kenyon & Kenyon of New York, referred the matter to the company. In a press release, ImClone’s CEO John H. Johnson said the company is happy to put the litigation behind it and focus on expanding sales of Erbitux.

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