Fri, May 09, 2008

Business

Ventana to pay $49M to end patent fight

Staff and wire reports
Tucson, Arizona | Published: 01.25.2008
Oro Valley-based Ventana Medical Systems Inc. agreed to pay $49 million to CytoLogix Corp. to settle patent-infringement lawsuits over medical technology for diagnosing cancer and other diseases.
The payment covers a $14.7 million judgment awarded to CytoLogix last year in a case Ventana lost, the company said in a regulatory filing. The agreement resolves all pending litigation between the two companies and Ventana gets a royalty-free license to certain patents owned by closely held CytoLogix.
CytoLogix was based in Cambridge, Mass., when the patent litigation began in 2000. CytoLogix's tissue-staining business, including technology at issue in the patent case, was acquired in 2002 by Dako A/S, a Danish cancer-diagnostics company.
Ventana on Tuesday said it agreed to be acquired by Swiss drugmaker Roche Holding AG in a $3.4 billion deal, ending Roche's hostile takeover bid.
Ventana, which makes instruments that automate the process of preparing tissue samples for cancer diagnostics and research, is the Tucson areas's biggest biotech employer with more than 600 local employees.