Enzymotec Ltd. Reports a Decision of the U.S. Patent and Trademark Office
25 March 2015 - 12:23AM
Enzymotec Ltd. (Nasdaq:ENZY) ("Enzymotec" or the "Company"), a
developer, manufacturer and marketer of innovative bio-active lipid
ingredients, reported today that on March 23, 2015 the US Patent
and Trademark Office ("USPTO") issued a decision in an Inter Partes
Review ("IPR") of Neptune Technologies & Bioressources'
("Neptune") U.S. Patent No. 8,278,351 ('351 patent). The USPTO
determined that 26 out of 28 challenged claims in the '351 patent
are unpatentable. Enzymotec intends to appeal the USPTO decision
regarding the two remaining challenged claims.
According to the final settlement and license agreement that was
signed between Enzymotec and Neptune in April 2014, Enzymotec has a
worldwide non-exclusive license to the entire 8,030,348 patent
family of Neptune, which includes the '351 patent, 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.
Neptune is not entitled to any royalty payments in North America
under the agreement, unless the final outcome, following an appeal,
of the IPR of Neptune's '351 patent is unfavorable to
Enzymotec.
Dr. Ariel Katz, President and Chief Executive Officer of
Enzymotec, commented, "We are pleased that almost all of the
challenged claims in the IPR were determined unpatentable by the
USPTO and we intend to challenge the patentability of the two
remaining claims. Our recently granted patents and our license for
Neptune's patents have strengthened our portfolio of intellectual
property and will limit other players from entering the competitive
krill oil market. Our products remain market leaders, bolstered by
our specialized technologies and innovation, providing our
customers with exceptional ingredients of the highest quality in
the market."
The '351 patent is also the subject of an ex parte
reexamination, which has been stayed pending a decision in the '351
IPR. Prior to the ex parte reexamination being stayed, the
USPTO rejected all claims of the '351 patent in a non-final office
action. Neptune will have an opportunity to respond to that
decision once the stay is lifted.
With respect to Neptune's patent in Australia, on January 28,
2015 the Australian Patent Office issued a reexamination report in
response to Enzymotec's request, finding that all the agreed claims
in the patent lack novelty. Neptune has until March 28, 2015
to overcome the examiner's report, either by arguments or
amendments. All the agreed claims in Australia correspond to claims
that were determined unpatentable by the USPTO in the '351
IPR. If the final outcome remains favorable to Enzymotec, no
royalty payments will be paid by Enzymotec to Neptune in
Australia.
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 Statements
This release may contain forward-looking statements, which
express the current beliefs and expectations of Company management.
Such statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include the following risks: A high proportion of
the sales of the InFat product is sold to end users in China and to
a single company; The demand for products based on Omega-3 and in
particular, premium products, such as krill oil, has declined and
may continue to decline following a significant increase in
manufacturing capacity by manufacturers of these products,
resulting in intense competition and price pressure; Our offering
of products as "medical foods" in the United States may be
challenged by regulatory authorities; We rely on our Swedish joint
venture partner to manufacture InFat and certain matters related to
the joint venture are the subject of disagreement in arbitration
proceeding; We are subject to a degree of customer concentration
and our customers do not enter into long-term purchase commitments
with us; We depend on third parties to obtain raw materials, in
particular krill, necessary for the production of our products; We
are dependent on a single facility that houses the majority of our
operations; We may have to pay royalties with respect to sales of
our krill oil products in the United States or Australia and any
infringement of intellectual property of others could also require
us to pay royalties; Potential future acquisitions of companies or
technologies may distract our management, may disrupt our business
and may not yield the returns expected; We anticipate that the
markets in which we participate will become more competitive and we
may be unable to compete effectively; We may not be able to
successfully expand our production or processing capabilities; Our
ability to obtain krill may be affected by conservation regulation
or initiatives; Our product development cycle is lengthy and
uncertain, and our development or commercialization efforts for our
products may be unsuccessful; and other factors discussed under the
heading "Risk Factors" in the Company's Form 20-F filed with the
Securities and Exchange Commission on March 2, 2015.
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: KCSA Strategic Communications
Jeffrey Goldberger / Tram Bui
212.896.1249 / 212.896.1290
ENZY@kcsa.com
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