Enzymotec Ltd. Announces Signing of Final Settlement and License Agreement With Neptune
28 April 2014 - 10:46PM
Enzymotec Ltd. (Nasdaq:ENZY) ("Enzymotec" or the "Company"), a
developer, manufacturer and marketer of innovative bio-active lipid
ingredients, announced today that it signed a final settlement and
license agreement with Neptune Technologies & Bioressources
Inc. (Nasdaq:NEPT) ("Neptune") and Acasti Pharma Inc. ("Acasti").
The International Trade Commission's ("ITC") investigation and
related U.S. federal court actions will be terminated and dismissed
accordingly.
According to the terms of the agreement, Enzymotec received a
worldwide non-exclusive license to the entire 8,030,348 patent
family (the "'348 Family") for as long as any patent in that family
exists, for all of the Company's relevant current products and
future anticipated products under development.
Enzymotec agreed to a one-time settlement payment to Neptune
which will not have a material impact on the Company's results of
operations and financial position, taking into consideration the
legal expenses that will be saved by this settlement.
No further payments will be paid by Enzymotec worldwide, other
than as detailed below:
In North America: No future royalty payments will be paid by
Enzymotec unless the outcome of the Inter Partes Review of
Neptune's 8,278,351 patent instituted by the U.S. Patent and
Trademark Office ("USPTO") will be unfavorable to Enzymotec.
Regarding the 8,278,351 patent status: In January 2014, a USPTO
Examiner issued a Non-Final Office Action rejecting all the claims
of the '351 patent in an ex parte reexamination. In addition, in
March 2014, the USPTO issued a decision instituting an inter partes
review of the '351 patent, concluding that there is reasonable
likelihood that the petitioner will prevail in demonstrating
unpatentability of the '351 patent claims at issue.
In Australia: No patent in Neptune's '348 family has been
granted to date. No royalty payments will be paid by Enzymotec in
Australia unless, if and when a patent is granted to Neptune, the
outcome of a reexamination of such patent by the Australian
Intellectual Property Office, which may be requested by Enzymotec,
will be unfavorable to Enzymotec.
"We are very pleased with the terms of the agreement, and as we
previously stated, we agreed to sign a final settlement and license
agreement only when we achieved the terms that we believe are in
the best interest of the Company," said Enzymotec's President and
CEO Dr. Ariel Katz. "We respect Neptune's desire to keep the
financial terms of the agreement confidential, although we did not
object to disclosing such terms."
About Enzymotec Ltd.
Enzymotec is a leading global supplier of specialty lipid-based
products and solutions. The Company develops, manufactures and
markets innovative bio-active lipid ingredients, as well as final
products, based on sophisticated processes and technologies. For
more information, visit www.enzymotec.com.
Forward Looking Statement
This release may contain forward-looking statements, which
express the current beliefs and expectations of Company management,
including with respect to the Company's current expectations,
estimates and projections about the anticipated effects and
benefits of the settlement, and certain assumptions made by the
Company, all of which are subject to change. Such statements
involve a number of known and unknown risks and uncertainties that
could cause the anticipated results and benefits of the settlement
to differ significantly from the outcomes expressed or implied by
such forward-looking statements, including the factors discussed
under the heading "Risk Factors" in the Company's Form 20-F for the
year ended December 31, 2013. Forward-looking statements in this
release are made pursuant to the safe harbor provisions contained
in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made only as of the date hereof, and
the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
CONTACT: ICR, LLC
Katie Turner
646-277-1228
-or-
John Mills
310-954-1105
John.Mills@icrinc.com
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