It could be good or bad for Hematide, depending on the outcome.
From the 10Q, page 14
"We have initiated binding arbitration and related litigation with Johnson & Johnson, Ortho-McNeil Pharmaceutical, Inc., Ortho Pharmaceutical Corporation, The R.W. Johnson Pharmaceutical Research Institute and Johnson & Johnson Pharmaceutical Research and Development, L.L.C., or, collectively, J&J, over ownership of intellectual property related to certain erythropoietin receptor, or EPO-R, agonists (ESA compounds capable of binding to and activating the EPO-R). "
"We believe that we are the sole owner or co-owner of the intellectual property in dispute, including J&J’s European Patent Application. J&J, on the other hand, alleges that they are the sole owner or co-owner of the intellectual property in dispute, including several U.S. patents on which we are currently named as sole owner that relate to specified ESA peptide compounds."
"In June 2004, we filed a civil complaint....... In October 2005, J&J filed its response to our complaint, denying our claims of inventorship and ownership. In April 2006, we requested the court to dismiss the complaint so that the issues it raised could be resolved pursuant to the arbitration proceeding described below. The court has done so."
"The complaint alleges that the Affymax Research Institute scientists are sole or co-inventors of the intellectual property in dispute, including the above-referenced J&J patents and patent applications, and that we are the sole or co-owner of them. The complaint also alleges that J&J breached the three-year Research and Development Agreement or the R&D Agreement between Affymax N.V. and a division of Ortho Pharmaceutical Corporation, a subsidiary of J&J, by, among other things, engaging in a course of conduct designed to obtain patents for itself and to deny Affymax N.V. patents on its scientists’ inventions."
"In April 2006, we filed a demand for arbitration with the AAA claiming that we are the owner or co-owner of the intellectual property in dispute and alleging claims for correction of inventorship and ownership of the above-referenced patents and patent applications assigned to J&J, for corresponding declaratory and injunctive relief, for breach of contract, for unjust enrichment and constructive trust, and for breach of fiduciary duty. In May 2006, J&J filed its answer and counterclaims, substantially restating their allegations made in the U.S. and German courts. The AAA appointed a panel of arbitrators, and the arbitration has commenced."
"In September 2007, the arbitrators ruled that J&J could obtain limited discovery on Hematide, but that J&J could not obtain discovery on Hematide product formulas, sequences, laboratory notebooks containing such information, experimental results, clinical trial results and strategies, or internal business planning."
"The arbitration hearing is near completion and the decision is expected in second half of 2010. The outcome of the matter is uncertain and regardless of outcome, the matter may have an adverse impact on us because of legal costs, diversion of management resources and other factors. "
Affy sued jnj and it was started in 2004 since then the big boys have invested close tp 500million since then based on the blockbuster drug not this ruling .
The bottom line is the drug an as affy stated before this has zero outcome relating FDA decision to manufacturer the drug . Good luck
For a measly 480 million i.e. ($20/ AFFY share), JNJ could buy a Phase 3 completed drug candidate, get 160 million in cash and a drug that could generate over a billion in revenue per year.
Arlene will soon be gone and we will all be very happy…………
MGT took stock incentives that were based on the filing of NDA and marketing of the drug. MGT also will be compensated if there is a change in cotrol (buyout) of the company. The incentives are there.
Hematide is moving forward. Everyone benefits by the blockbuster drug coming to market.
Mgt, shareholders, Takeda, and possibly JNJ.
JNJ just finished the purchase of CRXL which owned a proprietary non-egg vaccine manufacturing platform for 2.2 billion. AFFY and JNJ are basically co owners/partners now with this decision thus making JNJ the most probable company to buy them. Takeda has been sleeping at the wheel and should have moved to do this earlier.
JNJ will thank Takeda for the 500 million in development funding and move in for the kill now…………………….
Affy intitated arbitration to prove they were sole or CO OWNER of the patents.
The succeeded in doing that.
The one patent that JNJ has sole ownership effects NON-US markets and may have nothing to do with Hematide.
With the stock trade below cash value the street was giving Hematide value of ZERO.
Now AFFY has got the decision on arbitration and they are co owners of the patent they will continue to move forward with the New Drug Application filing.
It may end up brining in JNJ as another suitor or a distribution partner.
Sure JNJ or AFFY would have ideally liked to have been awarded sole ownership but I think that realistically they knew that wouldnt happen and is why BOTH of them also asserted Co Ownership in arbitration filing. Well the got that.
Both sides should now move forward on this BLUCKBUSTER drug !!!
hey guys... this ruling works BOTH sides !!!
Because AFFY is now a legal co owner of some patents; if J&J wants to become the SOLE owner of ALL those patents... J&J can only BUY OUT AFFY.
And the fact thatJ&J did spend so many effords and money on this case, it means J&J sees HUGE possibilities in this platform.
Arlene is playing it hard because she wants that J&J pays big money to take over AFFY.
To be continued
I don't get too emotional with stocks like you- just read your early post that basically said the ruling meant nothing regarding this arbitration . Just what affy has said all along. This has been going on since 2004 and since then affy has raised close to 500million from the smartest investors in this sector and with this arbitration out there . The basic investment is can this drug get approved or does a bigger company want the drug and affy cash .
They have been court since 2004 with thing .
With full disclosure the operative activity for all corporations the disclosure is meaningful BUT Takedata already has pumped 400 million into AFFY and I am sure their legal counsel has studied and asserted a rigorous defense----IMO we may have J & J as major buyer to AFFY
IMO---This positive and beneficial to the argument that AFFY has a significant value to many
Patent litigation was a very old stuff and it was there 3 days ago and 3 years ago, when the stock was trading @$25!
Did the institution knew nothing about this when they owned the entire float?
Did Takeda is not aware of, when they signed up with AFFY?
Jstock is a Fraud and a lier, BEWARE FOLKS!!