Press Releases
Chiron Granted U.S. HIV Patent
Patent expands company's intellectual property position
EMERYVILLE, CA, March 13, 2003
Novartis Vaccines and Diagnostics (NASDAQ: CHIR) today announced that it has been granted United States Patent No. 6,531,276. This patent is directed to nucleic acid testing (NAT) methods for HIV-1. In addition to its application in screening blood donations, this technology plays an important role in the treatment of HIV-positive patients.
"This patent reflects the value of Chiron's pioneering work in HIV dating back to 1984," said Robert Blackburn, vice president and chief patent counsel. "Chiron scientists were the first to clone, sequence and correctly characterize the domains of the HIV-1 genome. As a result of this and further innovations resulting from Chiron's research and development investments, the safety of the world's blood supply has increased dramatically. Chiron has a history of consistently contributing to the improvement of health worldwide through its ground-breaking research and product development."
In 2002, Chiron and its collaborator, Gen-Probe Incorporated, received FDA approval for the PROCLEIX® HIV-1/HCV Assa, an NAT test designed to detect the presence of all known HIV-1 subtypes and hepatitis C virus (HCV) genotypes during the very early stages of infection, when those agents cannot be detected by immunodiagnostic screening technologies. The PROCLEIX HIV-1/HCV Assay is currently available commercially in 16 countries.
Chiron has made its HIV technology available to others. Chiron's intellectual property for its HIV-1 probe-based technology has been licensed to Bayer A.G. and Organon Teknika B.V. Chiron will also now receive royalties on NAT products of F. Hoffmann-LaRoche (Roche) used in the US. Chiron already receives royalties for its HIV technology from Roche and other licensees under Chiron's European patent. In October 2000, Chiron and Roche reached a broad patent license agreement for nucleic acid probe-based clinical diagnostics for HIV-1. Under the terms of that agreement, Chiron will now receive from Roche a milestone payment of $10 million. The U.S. patent will expire in 2020.
About Chiron
Novartis Vaccines and Diagnostics, headquartered in Emeryville, California, is a global pharmaceutical company that leverages a diverse business model to develop and commercialize high-value products that make a difference in people's lives. The company has a strategic focus on cancer and infectious disease. Chiron applies its advanced understanding of the biology of cancer and infectious disease to develop products from its platforms in proteins, small molecules and vaccines. The company commercializes its products through three business units: biopharmaceuticals, vaccines and blood testing. For more information about Chiron, visit the company's website at <www.chiron.com>.
This news release contains forward-looking statements, including statements regarding sales growth, product development initiatives, new product marketing, acquisitions and in- and out-licensing activities, that involve risks and uncertainties and are subject to change. A full discussion of the company's operations and financial condition, including factors that may affect its business and future prospects, is contained in documents the company has filed with the SEC, including the form 10-K for the year ended December 31, 2002, and will be contained in all subsequent periodic filings made with the SEC. These documents identify important factors that could cause the company's actual performance to differ from current expectations, including the outcome of clinical trials, regulatory review and approvals, manufacturing capabilities, intellectual property protections and defenses, stock-price and interest-rate volatility, and marketing effectiveness. In particular, there can be no assurance that Chiron will increase sales of existing products, successfully develop and receive approval to market new products, or achieve market acceptance for such new products. There can be no assurance that Chiron's out-licensing activity will generate significant revenue, nor that its in- licensing activities will fully protect it from claims of infringement by third parties. In addition, the company may engage in business opportunities, the successful completion of which is subject to certain risks, including shareholder and regulatory approvals and the integration of operations.
Consistent with SEC Regulation FD, we do not undertake an obligation to update the forward-looking information we are giving today.
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