NEW YORK (GenomeWeb News) – Vermillion today announced that all four non-contingent contract claims with Bio-Rad Laboratories stemming from Vermillion's sale of its proteomics business in 2006 have been settled.
Following Vermillion's Chapter 11 bankruptcy filing in 2009, Bio-Rad filed a proof of claim for about $1 million based on the four non-contingent contract claims.
As part of today's announced settlement, Vermillion will pay $700,000 to Bio-Rad from an escrow account established by Vermillion for the sale transaction, while Vermillion will be returned a little more than $1 million from the escrow account. Another $50,000 will remain in escrow as security for Bio-Rad's contingent indemnity claim related to a lawsuit involving Molecular Analytical Systems, the former parent firm of Vermillion, once called Ciphergen.
When Vermillion sold its SELDI technology to Bio-Rad in 2006, MAS sued Vermillion alleging breach of a licensing agreement. MAS claims it had to sign off on the terms of Bio-Rad deal, GenomeWeb Daily News' sister publication ProteoMonitor reported at the time.
"Given that it returns to us the majority of the $1.8 million remaining in the escrow account, we view this resolution with Bio-Rad as very successful," Gail Page, president and CEO of Vermillion, said in a statement, adding that the company will now focus its attention on accelerating the commercialization of its OVA1 ovarian cancer triage test and advancing its product pipeline.