all very dissapointing, page-10

re: all very disappointing Source: SMH


Genetic sold down after win

By Matt O'Sullivan
December 13, 2005

MELBOURNE biotechnology company Genetic Technologies thought it had reason to celebrate yesterday after it settled a long dispute with US biotech Applera Corporation over infringement of non-coding DNA patents.

But shares in the Australian biotech fell almost 5 per cent, or 2.5c, to 50.5c even though it trumpeted its legal victory against the $US6 billion ($8 billion) group as a battle of David versus Goliath proportions.

The confidential settlement brings to an end the legal action Genetic Technologies launched in 2001 against three US companies for patent infringements.

Genetic Technologies' chief executive, Mervyn Jacobson, said investors failed to show much interest in the outcome of the case because it was prevented from releasing financial details of the settlement.

He described the legal victory as "hugely significant, because it's the first time since our licensing began that we are free of all lawsuits".

"When the market appreciates with time what we have achieved, the share price will reflect that. We can now get on with our licensing patents."

But Intersuisse research manager Peter Russell indicated it could be some time before investors change their attitude towards Genetic Technologies and other biotechs. "It does clear the way for them … but it's not earth shattering. I think people were hoping it would be sorted out any way," he said.

Last year US biotech Genzyme agreed to pay Genetic Technologies more than $18 million for the rights to its non-coding DNA patents.

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