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Illumina to Pay $8.5M to Applera in Settlement of All Litigation; Illumina to Net $15M From Property Sale

Note: This story has been changed. An earlier version incorrectly stated that the $10.0 million payment from Applera to Illumina was repayable to Illumina.

 

NEW YORK, Aug. 19 (GenomeWeb News) - Illumina will pay Applera $8.5 million in a settlement of litigation relating to a 1999 joint development agreement, Illumina said today. This settlement ends all outstanding lawsuits between the company and Applera unit Applied Biosystems.

 

An Applied Biosystems spokesperson confirmed that this settlement had been reached.

 

Illumina claimed in its suit, filed in December 2002, that ABI was in breach of the 1999 joint development deal to commercialize a genotyping system. At about the same time, ABI sued Illumina in Federal court for patent infringement  related to the oligo ligation assay.

 

Under the settlement, the companies will exchange royalty-free cross licenses to unspecified intellectual property rights for their technologies.

 

The payment to Applera comes out of $10.0 million in R&D funding that Applera provided to Illumina in November 1999 as a result of the joint development agreement, Illumina said. This payment was repayable to Applera from the profits of any products to emerge from the collaboration, and has been recorded as a liability on Illumina's balance sheet, according to Illumina. As a result of the settlement, Illumina said it will remove this item from its balance sheet and record a one-time gain of $1.5 million.

 

Separately, Illumina also said it had completed the previously announced sale of its San Diego facilities for $42 million, and had entered into a ten-year lease of these facilities. This sale and leaseback agreement will net the company over $15 million, Illumina said.

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