Baxter International Inc. said Wednesday that it will payRhone-Poulenc Rorer $105 million to settle a long-standingpatent lawsuit concerning ultra-pure Factor VIII:C concentratesfor treatment of hemophilia.

Baxter is Genetics Institute Inc.'s exclusive worldwide licenseefor recombinant Factor VIII under GI's patent and technologyrights.

Baxter and Rhone-Poulenc also agreed to a long-termagreement for Rhone-Poulenc to purchase products fromBaxter, and an agreement for Baxter to supply recombinantFactor VIII:C to Rhone Poulenc.

Under the settlement agreement, Baxter will receive aworldwide non-exclusive license covering its Factor VIII:Cproducts, Hemofil M and Recombinate AHF, which aremarketed by the company's Hyland Division. Baxter agreed topay Rhone-Poulenc $105 million to settle the case, and also willpay ongoing royalties and processing fees based on sales ofFactor VIII:C concentrates.

GI (NASDAQ:GENIZ) of Cambridge, Mass., said it may earnadditional manufacturing revenue if Rhone Poulenc purchasesrecombinant AHF concentrate from Baxter. GI said it will notcontribute to Baxter's $105 million settlement payment, but GIhas agreed to a share in the cost of future royalties to Rhone-Poulenc on Baxter's sales of Recombinate AHF. The royaltysharing is not expected to affect GI's future operating results,the company said. American Home Products Corp. holds amajority interest in GI.

The Factor VIII:C patent is owned by The Scripps ResearchInstitute of La Jolla, Calif.

(c) 1997 American Health Consultants. All rights reserved.

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