Appeals court ruling clears way for Enzo Biochem to pursue claim for substantial damages against Applera

Enzo BiochemMar 30 2010

Enzo Biochem Inc. (NYSE:ENZ) said today that a decision released Friday by the Court of Appeals for the Federal Circuit reversing a district court's summary judgment will enable the Company to pursue a claim for substantial damages against Applera Corporation, now Life Technologies Corporation. (NASDAQ: LIFE). The Court of Appeals vacated the lower court's judgments of invalidity on United States Patent Nos. 5,328,824 and 5,449,767.

“The Appellate Court's ruling clears the way for us to pursue claims related to the broad scope of the products subject to our patents, and substantially weakens the defense of Applera with respect to their potential liability”

The asserted patents cover pioneering technologies relating to compounds used in DNA sequencing systems to read the genetic code. The complaint against Applera Corporation and its subsidiary Tropix Inc. charged patent infringement arising out of the misappropriation of Enzo's proprietary and pioneering patented technologies related to DNA sequencing systems, and other products, as well as providing others with unauthorized and prohibited access to the patented products and technologies.

"The Appellate Court's ruling clears the way for us to pursue claims related to the broad scope of the products subject to our patents, and substantially weakens the defense of Applera with respect to their potential liability," said Elazar Rabbani, PhD, Enzo Chairman and CEO. "This decision allows us to seek redress in terms of claims for damages. When the Federal Circuit mandate issues in about three weeks, remanding the case to the District Court in New Haven, Connecticut, and assuming Applera does not seek rehearing or reconsideration, we will be able to promptly move forward with our case."

Additionally, the Court of Appeals affirmed the lower court's ruling that a construction of U.S. Patent No. 5,082,930 was not infringed and that U.S. Patent No. 5,476,918 was invalid. These rulings will not affect Enzo's claims against Applera, since Enzo believes that Applera's products are covered by US Patents 5,328,824 and/or 5,449,767.