VANCOUVER, Oct. 6 /PRNewswire-FirstCall/ -- QLT Inc. (NASDAQ: QLTI; TSX: QLT) announced that the United States Court of Appeals for the Federal Circuit issued a decision reversing the district court's partial summary judgment ruling on one issue of inventorship on the patent that is in dispute in the lawsuit commenced in 2001 by Massachusetts Eye and Ear Infirmary ("MEEI") in the United States District Court of the District of Massachusetts.
On May 1, 2001, MEEI brought a lawsuit in the District of Massachusetts against both QLT and Novartis Ophthalmics, Inc. The lawsuit alleged infringement against United States Patent # 6,225,303 (the "'303 patent") issued in 2001 which originally named only MEEI researchers as inventors. In response to this lawsuit, Massachusetts General Hospital ("MGH"), intervened to seek correction of inventorship of the '303 patent to name researchers from both QLT and MGH as joint inventors and declaring that QLT and MGH are co-owners of the '303 patent. QLT and MGH then filed a motion for summary judgment on inventorship.
In January 2005, the court granted partial summary judgment ordering that the '303 patent be corrected to add QLT's scientist Julia Levy as a joint inventor, while deferring ruling on MGH's and QLT's motion to add MGH inventors as well. The court had ruled that as a matter of law, Dr. Levy significantly contributed to the '303 patent. MEEI appealed the partial ruling to the Court of Appeals for the Federal Circuit. Today the Court of Appeals for the Federal Circuit overturned that summary judgment on the basis that there are issues of fact that remain to be determined. The case has been remanded to the district court for further proceedings. We expect the judge at the district court will now decide whether to rule on the remaining and previously undecided summary judgment motions brought by QLT and MGH with respect to their inventorship on the patent or to proceed to trial.
In a related matter, a trial on three of the eight MEEI claims MEEI brought against QLT in a 2000 lawsuit in connection with a dispute involving US Patent # 5,798,349 (the "'349 patent") is scheduled to begin on October 16, 2006. The district court dismissed all of MEEI's other claims in rulings affirmed by the Court of Appeals for the First Circuit in 2005.
Background on '349 patent
-------------------------
In April 2000, MEEI filed a civil suit against QLT in the United States District Court for the District of Massachusetts seeking to establish exclusive rights for MEEI as the owner of certain inventions related to the use of verteporfin (the active pharmaceutical ingredient in Visudyne(R)) as the photoactive agent in the treatment of certain eye diseases including AMD. In 2002, QLT moved for summary judgment against MEEI on all eight counts of MEEI's complaint. The Court granted QLT's motion dismissing all of MEEI's claims. MEEI appealed the decision of the Court to the United States Court of Appeals for the First Circuit. In a decision dated June 15, 2005, the Court of Appeals upheld the dismissal of five of MEEI's eight claims and remanded to the district court for further proceedings concerning three of MEEI's claims (unjust enrichment, unfair trade practices and misappropriation of trade secrets). It is these three claims that will be heard in a trial expected to begin on October 16th.
About QLT
QLT Inc. is a global biopharmaceutical company specializing in developing treatments for eye diseases as well as dermatological conditions. Together with our subsidiaries, we have combined our expertise in the discovery, development and commercialization of innovative drug therapies with our two unique technology platforms, photodynamic therapy and Atrigel(R), to create products such as Visudyne(R) and Eligard(R). For more information, visit our web site at http://www.qltinc.com/.
Atrigel is a registered trademark of QLT USA, Inc.
Visudyne is a registered trademark of Novartis AG.
Eligard is a registered trademark of Sanofi-Synthelabo Inc.
QLT Inc. is listed on The NASDAQ Stock Market under the trading symbol "QLTI" and on the Toronto Stock Exchange under the trading symbol "QLT."
Certain statements in this press release constitute "forward-looking statements" of QLT within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, performance of achievements expressed or implied by such statements. These statements are only predictions and actual events or results may differ materially. The final outcome of the MEEI litigation is not presently determinable or estimable and there can be no assurance that the matters will finally be resolved in our favor. If the MEEI litigation is not resolved favorably, QLT could be liable for damages or injunctive relief. While we cannot estimate the potential damages of the MEEI litigation, the amount could be substantial, which could have a material adverse impact on our financial condition. Factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements include but are not limited to: the ultimate outcome of the litigation against QLT is uncertain and may be unfavorable, and other factors as described in detail in QLT's Annual Information Form and Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements are based on our current expectations and QLT assumes no obligation to update such information to reflect later events or developments, except as required by law.
CONTACT: QLT Inc.: Vancouver, Canada, Therese Hayes, Bal Bains, Telephone: (604) 707-7000 or 1-800-663-5486, Fax: (604) 707-7001
