Stratagene (NASDAQ:STGN)
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Stratagene Corporation (NASDAQ:STGN), a developer,
manufacturer and marketer of specialized life science research and
diagnostic products, announced today that it was informed in the
matter of Invitrogen Corporation vs. Stratagene which was heard in the
United States District Court for the Western District of Texas, that
the jury determined that Invitrogen's 4,981,797 patent is valid and
that Stratagene infringed that patent by making and selling its
competent E. coli cell products. The jury decided to award Invitrogen
a 15% royalty rate on sales between the years 1997 and 2004 (for a
total of $7.8 million in damages) and found Stratagene to have
willfully infringed the patent only between the years 1997 and 2001.
The jury found that Invitrogen was not entitled to lost profits
because Stratagene has had a non-infringing manufacturing process for
competent cells. Invitrogen had been seeking $32 million in damages
based on a lost profits argument. Stratagene has the option to appeal
yesterday's verdict.
Other details concerning the final judgment to be rendered by the
court, including the appropriateness of the damages determined by the
jury and the potential for enhanced damages, are being considered by
the judge presiding over the case. The timing of a final judgment has
not yet been determined.
Stratagene had previously modified its process for manufacturing
competent E. coli cell products and, as a result, Invitrogen has
agreed that Stratagene products sold in recent years and currently
offered for sale will not be affected by the jury verdict.
The action by Invitrogen was initiated in March 2001. In November
2001, the district court granted Stratagene's motion for summary
judgment finding that Invitrogen's aforementioned patent was not
infringed by Stratagene. Upon Invitrogen's appeal, the United States
Federal Circuit Court of Appeals reversed the lower court's decision
in part and remanded the case back to the lower court. In January
2004, the district court granted partial summary judgment to
Invitrogen based on the determination that Stratagene's then-existing
manufacturing process infringed Invitrogen's patent, however the court
also determined that Invitrogen's patent was invalid. Stratagene then
changed its manufacturing process for competent cell products to a
non-infringing method.
Invitrogen appealed the decision again and in October 2005 the
Federal Circuit Court reversed the district court's findings in part.
The case was remanded back to district court, resulting in the jury's
determination handed down on July 25, 2006.
About Stratagene Corporation
Stratagene is a developer, manufacturer and marketer of
specialized life science research and diagnostic products. The
Company's life science research unit supports advances in science by
inventing, manufacturing and distributing products that simplify,
accelerate and improve research. These products are used throughout
the academic, industrial and government research sectors in fields
spanning molecular biology, genomics, proteomics, drug discovery and
toxicology. The Company's diagnostic unit develops and manufactures
products for urinalysis, and high quality automated instrument and
reagent systems that use blood samples to test for more than 1,000
different allergies and autoimmune disorders. In addition, by
combining its expertise in diagnostics and molecular biology, as well
as its experience with FDA regulatory procedures, the Company is
pursuing opportunities to expand its product portfolio to include
molecular diagnostic kits and instrumentation. More information is
available at www.stratagene.com.
Safe Harbor Statement
Certain statements in this news release that are not historical
fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Stockholders and
other readers are cautioned not to place undue reliance on these
forward-looking statements. Stratagene generally identifies
forward-looking statements by using words like "believe," "intend,"
"target," "expect," "estimate," "may," "should," "plan," "project,"
"contemplate," "anticipate," "predict" or similar expressions. You can
also identify forward-looking statements by discussions of strategies,
plans or intentions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results of Stratagene to be materially different from
historical results or from any results expressed or implied by such
forward-looking statements. Among the important factors that could
cause actual results to differ materially from those contained in or
implied by the forward-looking statements are risks associated with
the company's inability to sufficiently anticipate market needs and
develop products and product enhancements that achieve market
acceptance, the company's ability to compete effectively in the
diagnostics and life sciences research markets, variability of the
company's quarterly revenues and operating results, the failure of the
company to retain key employees, the company's ability to obtain
additional debt or equity financing, the possibility of declining
sales due in part to a reduction in research and development budgets
or government funding, the company's ongoing ability to protect its
own intellectual property rights and to avoid violating the
intellectual property rights of third parties, extended manufacturing
difficulties and currency fluctuations. For more information about
these and other factors that could cause actual results to differ
materially from those contained in or implied by the forward-looking
statements please see "Factors that May Affect Future Results"
included in Stratagene's Annual Report on Form 10-K for the year ended
December 31, 2005 and in other reports filed by Stratagene from time
to time with the Securities and Exchange Commission, including
Quarterly Reports on Form 10-Q.