Actelion To Appeal Jury Verdict In Asahi Kasei Litigation

Europe's largest biotech Actelion Ltd (ATLN.VX) Wednesday said it will appeal against the final U.S. jury verdict that awarded Asahi Kasei Pharma Corp. (AHKSY) compensatory damages of up to $547 million and punitive damages of $30 million.

Actelion said it was disappointed with the jury's decision on the legal battle with the Japanese firm, which centers on a drug compound Actelion discontinued in 2007, when it took over CoTherix, which had a development agreement with Asahi Kasei.

"We believe the ruling is neither supported by the facts nor is it correct as a matter of law, and we will file appropriate further post-trial motions and will appeal the entire judgment," the Basel, Switzerland-based biotech company said.

The legal battle has already cost Actelion some CHF90 million and may further undermine the credibility of its contested management and board ahead of the crucial investor meeting May 5 in Basel.

Elliott Advisors, which is owned by $17 billion U.S. hedge fund Elliott Management, has said the court room loss was a reflection of Actelion's "poor management as well poor corporate governance by the Actelion board." It urged shareholders who have planned to back the Swiss firm at the investor meeting to amend already submitted proxies, saying "it's not too late to save Actelion." Actelion dismissed the criticism.

In early Wednesday trading, Actelion shares were up 1.34 Swiss francs, or 3%, at CHF46.25 on the Swiss bourse, for a year-to-date decline of 9%.

Company Web Site: http://www.actelion.com

By Neil MacLucas, Dow Jones Newswires; [phone]; [e-mail]