Harvard Bioscience Believes the Affymetrix and OGT Disputes Over Pre-Printed Microarrays Will Have No Impact on Forecasted Revenues or Earnings as this Product Line was Eliminated, as Planned, in 2002.
HOLLISTON, Mass.--(BUSINESS WIRE)--May 20, 2003--In September, 2002, our Genomic Solutions subsidiary filed suit against Affymetrix, Inc. in the State of Michigan Circuit Court for the County of Washtenaw for breach of contract, negligent/innocent misrepresentation, tortuous interference with prospective economic advantage and declaratory relief. The action arose out of a License Agreement that Genomic Solutions entered into with Affymetrix with respect to certain Affymetrix patent rights. In November 2002, Affymetrix filed a counter-claim against Genomic Solutions alleging breach of contract and requesting approximately $1.45 million in damages for license and other fees and interest allegedly owed. On April 30, 2003 Affymetrix was granted summary disposition and Genomic Solutions' claims were dismissed. The Company is currently evaluating whether to appeal or move for reconsideration of the summary disposition ruling. The $1.45 million in damages for license and other fees was fully reserved for at the time of the Company's acquisition of Genomic Solutions and continues to be fully reserved for in the Company's consolidated financial statements. Prior to the acquisition, and in part because of the issues in this dispute, Genomic Solutions made a strategic decision to exit the production of pre-printed microarrays and instead to focus on instrumentation for the production, use and analysis of microarrays. Harvard Bioscience concurred with this decision. The pre-printed microarray product line contributed insignificant revenues at the time and its elimination has had no material effect on operating results. Instrumentation for the production, use and analysis of microarrays continues to be the focus of Genomic Solutions' genomics product offerings.
In December, 2002, Oxford Gene Technology Ltd. filed suit against our Genomic Solutions subsidiary, Mergen Ltd., Clontech Laboratories, Inc., PerkinElmer Life Sciences, Inc., Axon Instruments, Inc. and BioDiscovery, Inc. in the United States District Court for the District of Delaware seeking unspecified damages as a result of alleged infringement by each of the defendants of a United States Patent issued to Oxford Gene Technology. On May 12, 2003, the Company and Oxford Gene Technology settled the dispute and the lawsuit will be dismissed. Under the settlement, Genomic Solutions will display certain notices in connection with the marketing of certain genomic-related products. In addition, a nominal amount is being paid to Oxford Gene Technology. This dispute arose in part because Oxford Gene Technology believed that Genomic Solutions was still selling pre-printed microarrays. As explained above, this product line was eliminated, as planned, in 2002 in favor of focusing on instrumentation for the production, use and analysis of microarrays.
Harvard Bioscience is a global developer, manufacturer and marketer of a broad range of specialized products, primarily scientific instruments, used to accelerate drug discovery research at pharmaceutical and biotechnology companies, universities and government laboratories worldwide. HBIO sells its products to thousands of researchers in over 100 countries through its direct sales force, its 1,000 page catalog (and various other specialty catalogs), and through its distributors, including Amersham Biosciences and PerkinElmer. HBIO has sales and manufacturing operations in the United States, the United Kingdom, Germany, Austria and Belgium with sales facilities in Japan, France and Canada. For more information please visit www.harvardbioscience.com
The statements made in this press release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements include, but are not limited to, statements or inferences about the Company's goals and strategies, industry and business trends, management's confidence or expectations, the effect of key technologies on the drug discovery process, the impact of recent or pending acquisitions, and the Company's plans, objectives and intentions that are not historical facts. Factors that may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements include, but are not limited to, the Company's failure to successfully integrate an acquired business or technology, to expand its product offering, to introduce new products or to commercialize new technologies, decreased demand for the Company's products due to changes in customers' needs, financial position, general economic outlook, or otherwise, uncertainties regarding the impact of acquisitions, product developments and other business strategies on the Company's financial condition, results of operations or stock price, as well as those factors set forth under the heading "Important Factors That May Affect Future Operating Results" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as well as other risks described in the Company's public filings or factors, if any, of which the Company is not currently aware. The Company may not update these forward-looking statements, even though its situation may change in the future, unless it has obligations under the Federal securities laws to update and disclose material developments related to previously disclosed information.
CONTACT: Harvard Bioscience, Inc. David Green, 508/893-8999
dgreen@harvardbioscience.com
SOURCE: Harvard Bioscience
Disclaimer:
The information contained within this and other Harvard Bioscience Web pages should be deemed accurate and current as of the date of the most recent update, or if no update information has been provided, the date of issuance. Harvard Bioscience assumes no responsibility for any misincurrances or misstatements which occur as the result of the reading of dated material. Users are strongly encouraged to check dates of issuance and most recent update of any information contained within, or linked to, Harvard Bioscience’s web site. For Harvard Bioscience’s most current information please reference Harvard Bioscience public filings with the Securities and Exchange Commission located at http://www.sec.gov.