Cambridge Antibody - Re Patent Settlement in US

RNS No 4710p
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
28 June 1999

For Further Information Contact:
Cambridge Antibody Technology Group plc
Dr David Chiswell, Chief Executive Officer       Tel: [phone]
John Aston, Finance Director
Diane Mellett, Company Secretary/VP Legal Affairs
Rowena Gardner, Communications Manager

HCC.De Facto
City/Financial, Sue Charles                      Tel: [phone]
Trade/Science, Andrew Worsfold               


CAT ANNOUNCES SETTLEMENT OF US PATENT INTERFERENCES 


Melbourn, UK Cambridge Antibody Technology ("CAT") announces that it has
entered into a settlement agreement with The Scripps Research Institute and
Stratagene, relating to  US patent interferences covering patent applications
in the US owned by the Medical Research Council and licensed to CAT concerning
antibody gene libraries (the "Winter II" patents) and patent applications of
Scripps/Stratagene in the same area (the "Scripps/Stratagene" patents).

Under the terms of the settlement the parties have agreed that all the above
patent applications will be co-owned by the MRC, Scripps and Stratagene. The
parties have agreed that CAT will be the sole exploiter of all the parties'
intellectual property rights arising under both the Winter II and the
Scripps/Stratagene patent applications subject to certain rights reserved by
the MRC, Scripps and Stratagene and their pre-existing licensees.  The parties
have informed the US Patent Office that a settlement has been reached.  This
means that the interference action will be terminated and that patents
relating to the Scripps/Stratagene and Winter II applications should be issued
in due course in the US.

The consideration payable by CAT under the settlement agreement to
Scripps/Stratagene amounts to $1.25 million (#790,875).  Of this $250,000 and
$500,000 are payable immediately in cash and CAT shares respectively; a
further $250,000 is payable after by 31st December 1999 in cash or shares at
CAT's option, and a further $250,000 is payable subject to certain licence
revenue targets being met or after three years (whichever is the later) again
in cash or shares at CAT's option.  The price of the shares in each case is
being set on the basis of an average of the closing daily prices over a period
prior to the agreement date.

In addition there are royalty sharing arrangements between the co-owners which
do not alter CAT's current royalty obligations.


Notes to editors:

CAT

CAT is a UK biotechnology company using its proprietary technologies in fully
human monoclonal antibodies for drug discovery and drug development.  Based in
Melbourn, 10 miles south of Cambridge, England, CAT currently employs around
150 people.  In March 1997, CAT completed its initial public offering and
listing on the London Stock Exchange, raising approximately #41 million.

CAT has a world-leading platform technology for rapidly isolating fully human
monoclonal antibodies using phage display systems.  CAT has an extensive phage
display 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.  The first two antibody products it developed
started clinical trials in 1997, in inflammation and fibrosis.

CAT has a number of license and collaborative agreements in place with
pharmaceutical and biotechnology companies including Eli Lilly, Pfizer, BASF
Pharma, Genentech, ICOS Corporation, Genetics Institute/BASF Pharma and
Wyeth-Ayerst.

MRC

MRC is the Medical Research Council of Great Britain.  The settlement does not
alter CAT's pre-existing agreement with the MRC and the degree of exclusivity
which CAT enjoys in its License Agreement with the MRC will be maintained as
will the scope of the MRC's rights under the Agreement.

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