REDWOOD CITY, Calif. – March 3, 2000 – Genelabs Technologies, Inc. (Nasdaq:GNLB) today commented on a patent infringement lawsuit brought by Institut Pasteur and Pasteur Sanofi Diagnostics against Genelabs Diagnostics Pte. Ltd. (GLD), a Singapore-based diagnostics company that is a subsidiary of Genelabs Technologies. James A.D. Smith, President and Chief Executive Officer of Genelabs Technologies stated, "The financial impact, if any, associated with this ruling will not be material to Genelabs Technologies, Inc. Genelabs Technologies is not focused on diagnostics, the business of GLD, and for the past year it has accounted for GLD as a discontinued operation in its financial statements."
A Singapore court recently found that GLD and one of its distributors infringed an HIV-2 patent owned by Institut Pasteur and licensed to Bio-Rad Laboratories, Inc. (purchaser of Pasteur Sanofi Diagnostics). GLD continues to believe that it does not infringe this patent, in part because GLD detects HIV-2 by utilizing a synthetic peptide common to Simian Immunodeficiency Virus (SIV) and HIV-2. GLD believes its technology relies on prior art and therefore is not covered by this patent. GLD has appealed the decision and the same court recently held that GLD may continue to sell HIV-2 diagnostic products pending the outcome of the appeal.
Genelabs Technologies receives royalty payments from Bio-Rad Laboratories (Pasteur Sanofi Diagnostics) from licenses to sell certain HCV products granted by Genelabs Technologies. The Singapore court HIV-2 patent ruling has no effect on the HCV royalty payments from Bio-Rad to Genelabs Technologies.
NOTE: Except for historical information, the statements in this news release are forward-looking and are subject to uncertainties and risks that could cause actual results to differ materially from the statements made. Uncertainties and risks include, without limitation, the company's capital requirements and history of operating losses; and uncertainties and risks regarding the company's ability to raise needed additional capital on favorable terms or at all. Please see the information appearing in the company's filings with the Securities and Exchange Commission, in particular information under the caption "Risk Factors" in the company's 1998 Form 10-K, for more discussion regarding these uncertainties and risks and those associated with the company's research programs, early stage of development and other risks which may affect the company. The company does not undertake any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release.
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