Basel, January 30, 2001

Roche Diagnostics / IGEN Litigation To Go Forward

The U.S. District Court for the District of Maryland today ruled that the three-year-long lawsuit between Roche Diagnostics GmbH (RDG) and IGEN involving RDG’s licensing of IGEN’s electrochemiluminescent (ECL) technology may continue. The ruling merely allows the case to proceed; it does not suggest liability by either side.

RDG moved to dismiss several of IGEN’s claims as a matter of law and for failing to follow formal pleading requirements under the federal rules. The Court held that, at this juncture, it would permit the claims to go forward.

IGEN has filed numerous claims with the court, requesting the court to permit IGEN to terminate its licensing agreement with RDG. In a separate ruling today, however, the court ruled that the only relief to which IGEN would be entitled on its claims based upon RDG’s sale of non-ECL based diagnostic products – even assuming it could successfully prove the allegations of those claims – would be a finding that the exclusive license rights granted to RDG in the agreement would become non-exclusive. The court’s ruling will not permit IGEN to terminate the agreement on these claims or to seek any additional damages related to these claims.

The Court dismissed RDG’s claim that IGEN is tortiously interfering with RDG’s business relations through the initiation and continuance of IGEN’s lawsuit against Hitachi Ltd., RDG’s subcontractor in Japan. The dismissal was expressly made without prejudice to RDG’s right to replead the claim, if warranted, upon termination of that lawsuit.

RDG and IGEN have been in litigation since September 1997 about claims arising from the License and Technology Development agreement the two companies entered into in 1992.

"When this case finally goes to trial, we fully expect the court will find in our favor," said Werner Schaefer, head of the Laboratory Systems business unit of RDG. "We are considering other motions that could bring this case to a close."

RDG has several claims pending against IGEN, including claims for breach of contract, which IGEN has not moved to dismiss. IGEN has filed a motion for summary judgment on RDG’s claim for fraud against IGEN, which is being briefed and will be heard in March.

Headquartered in Basel, Switzerland, Roche is one of the world’s leading research-oriented healthcare groups in the fields of pharmaceuticals, diagnostics and vitamins. Roche’s innovative products and services address needs for the prevention, diagnosis and treatment of disease, thus enhancing people’s well-being and quality of life. Roche has approximately 63,900 employees and sells its products in more than 170 countries. Through the company’s Diagnostics Division, innovative testing products and services are made available to physicians, patients, hospitals and laboratories worldwide.

For more information please contact:

Dr. Marianne Gretz, PhD
Phone: +49 (0) 621 - 759 23 24
Fax: +49 (0) 621 - 759 29 02
Marianne.Gretz@Roche.com