Idenix denies claim that it owes two universities $15.3 million in licensing fees

By Ted A. Knutson

Washington, March 16 - Idenix Pharmaceuticals, Inc. said Thursday it is denying claims made in February by the University of Alabama at Birmingham Research Foundation and Emory University that Idenix owes them $15.3 million in licensing fees.

In June 1998, Idenix was issued an exclusive license by the institutions to a 1995 U.S. patent application and counterpart patent applications in Europe, Canada, Japan and Australia that cover the use of certain synthetic nucleosides for the treatment of hepatitis B infection.

In February, the foundation notified Idenix that it and Emory University were asserting a claim that the license agreement covers Idenix's telbivudine technology and that Idenix is obligated to pay to the licensors $15.3 million comprised of 20% of the $75 million license fee Idenix received from Novartis in May 2003 in connection with the license of Idenix hepatitis B product candidates and a $0.3 million payment in connection with the submission to the Food and Drug Administration of the initial New Drug Application pursuant to which the company conducted its clinical development of telbivudine.

Idenix said it disagrees that the 1995 patent application or corresponding foreign applications provide an adequate basis for the issuance of a valid and enforceable patent claim covering the use of telbivudine to treat hepatitis B.

The company said it intends to dispute these assertions.

Under the terms of the license agreement, the dispute will be resolved by a panel of arbitrators if Idenix is unable to reach agreement with the foundation after a period of negotiation and mediation.

The announcement was made in a 10-K filing with the Securities and Exchange Commission.

Idenix is a Cambridge, Mass.-based biotech company.

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