Agenix settles Synbiotics litigation

Agenix (ASX: AGX) subsidiary Agen Biomedical has agreed to settle its litigation with its former US distributor Synbiotics over alleged infringements of Synbiotics' canine heartworm diagnostics and related supply contract issues.

The settlement comes a month after Agen won a preliminary injunction requiring Synbiotics to supply certain biologics products as per their legal obligations.

The settlement agreement means that Agen will be able to purchase certain biological products from Synbiotics for use in the manufacture of specific animal health products, with Synbiotics receiving a percentage of sales from Agen products containing those biologicals. In addition, Agen has provided Synbiotics with a licence to its European FIV patent, and Synbiotics has provided Agen with a licence to its US canine heartworm patent as well as use of the Japanese Witness trademark.

Agenix managing director Don Home said the settlement would reduce overall product costs by reducing some royalty payments and reducing the price of biologics used in manufacturing.

Home said the settlement would provide certainty going forward, and would allow the company to focus its efforts on growing its animal health business internationally.

And the timing -- right before the end of the financial year -- would mean that the company would be able to get a full year of sales and distribution in the 2004-2005 financial year without lingering costs from the dispute.

Home also said the company would now be in a position to appoint more distributors for its products, and expected that additional distributors would be signed up over the next few months.