Amersham had alleged, among other things, that ABI had underpaid on royalties under the license deal. The arbitrator has awarded Amersham past damages based on an increase in royalty rates for certain DNA sequencing enzymes and kits that contain those enzymes, plus interest, fees, and costs in an amount to be determined.
ABI said it will record a pre-tax adjustment of approximately $20.4 million to its previously reported first quarter fiscal 2006 results as a result of the decision, but that its fiscal year 2006 outlook will not be impacted.