Stmnt re Griffiths Patent

Cambridge Antibody Tech Group PLC 21 August 2001 For Further Information Contact: Cambridge Antibody Technology Square Mile BSMG Worldwide (Europe) Tel: +44 (0) 1763 263 233 Tel: +44 (0) 20 7601 1000 David Chiswell, CEO Kevin Smith Rowena Gardner, Head of Graham Herring Corporate Communications BMC Communications/The Trout Group (USA) Tel: 001 212 477 9007 Brad Miles, ext 17 (media) Brandon Lewis, ext.15 (investors) CAMBRIDGE ANTIBODY TECHNOLOGY COMMENTS ON GRIFFITHS PATENT RULING Melbourn, UK... Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) today confirmed that the Judge in the district court of Washington DC has ruled on a number of matters in relation to the Griffiths patent (US 5,885,793). The Court was asked to rule on various matters of law after the jury was unable to reach a decision in April, other than finding that CAT was entitled to the priority dates of its British applications. On MorphoSys' invalidity assertions, the Judge found for CAT on four of MorphoSys' invalidity assertions and did not rule on the fifth. This last invalidity assertion will need to be tried in court. Whilst the Court has issued no ruling on infringement of the patent by MorphoSys, the judge indicated that he presently takes the view it appears that MorphoSys should prevail on this issue, principally because of the way the MorphoSys library is 'derived'. However he acknowledges that 'it is not clear that CAT has been fully heard on the issue' and thus has made no formal ruling. The Court will now instigate other proceedings and/or briefings which will allow CAT to argue the infringement issue before the court can come to a ruling on this matter. Dr David Chiswell, CEO at CAT, said 'We welcome the Court's rulings generally in favour of the validity of the Griffiths patent and we will continue to present our view to the Judge that MorphoSys do indeed infringe the patent. In addition to the Griffiths patent CAT is asserting the Winter II and the McCafferty patent families over MorphoSys in court actions in Europe and the USA. None of these cases will have any effect on CAT's freedom to operate and CAT believes that taking the actions as a whole, CAT will ultimately prevail.' Notes to Editors: Cambridge Antibody Technology (CAT) - CAT is a UK biotechnology company using its proprietary technologies in human monoclonal antibodies for drug discovery and drug development. Based in Melbourn, 10 miles south of Cambridge, England, CAT currently employs around 230 people. - CAT is listed on the London Stock Exchange, having raised £41m in its IPO in March 1997. A further offering in March 2000 raised £93m. Also, CAT's ADRs are listed on the US NASDAQ National Market. - CAT has an advanced platform technology for rapidly isolating human monoclonal antibodies using phage display systems. CAT has an extensive phage antibody library, currently incorporating around 100 billion distinct antibodies. This library forms the basis for the company's strategy to develop a portfolio of clinical development programmes and for discovering new drug leads using functional genomics. Five human therapeutic antibodies developed by CAT are at various stages of clinical trials. - CAT has a number of licence and collaborative agreements in place with pharmaceutical and biotechnology companies including: Eli Lilly, Pfizer, Genentech, ICOS, Genetics Institute, Wyeth-Ayerst, Human Genome Sciences, Knoll Pharmaceuticals (a subsidiary of Abbott Pharmaceuticals), AstraZeneca, Pharmacia, Oxford GlycoSciences, Genzyme, Immunex, Zyomyx and Elan. Background to CAT's patent portfolio - CAT's patent portfolio includes about 30 families of patents, covering both technologies and products. CAT's core commercial technology is covered by three main families of patents. - CAT and the MRC were awarded the US 'Griffiths' patent in March 1999 (the patent is co-owned). - The Griffiths patent relates to methods of isolating specific antibodies to human self-antigens from phage display libraries and to antibodies produced by these methods. - In April 1999 MorphoSys filed a 'declaratory judgement action' in the US District Court of Washington DC, asking the Court to declare that the CAT's patent is invalid, and/or declare that it does not infringe the patent. CAT counter-claimed against MorphoSys for infringement. - Infringement litigation against MorphoSys is pending in the same Court in respect of CAT's US 'McCafferty' patent, US 5,969, 108. A trial will be set by the Court. - Infringement litigation against MorphoSys is pending in the US, in respect of CAT's 'Winter II' patent, granted on 19 June 2001 and licensed to CAT. Medical Research Council (MRC) - The MRC is the Medical Research Council of Great Britain. The MRC owns some of the patent rights within CAT's patent portfolio either wholly or jointly with CAT, which they have licensed to CAT under an agreement dated 7 January 1997. Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This press release contains statements about Cambridge Antibody Technology Group plc ('CAT') that are forward looking statements. All statements other than statements of historical facts included in this press release may be forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward looking statements are based on numerous assumptions regarding CAT's present and future business strategies and the environment in which CAT will operate in the future. Certain factors that could cause CAT's actual results, performance or achievements to differ materially from those in the forward looking statements include: market conditions, CAT's ability to enter into and maintain collaborative arrangements, success of product candidates in clinical trials, regulatory developments and competition.
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