Igen sues German firm over royalty payments


September 18, 1997

Igen International Inc. said yesterday that it has filed suit in Montgomery County Circuit Court against Boehringer Mannheim GmbH of Germany, claiming that the drug and medical devices company breached a $50 million technology licensing agreement signed in 1992.

The lawsuit contends that Boehringer Mannheim failed to make proper royalty payments to Igen on diagnostic tests sold to hospitals and reference laboratories. Those testing devices, the suit says, are based on Igen's technology.

Boehringer Mannheim GmbH declined to comment.

Since January 1997, when the royalty arrangement kicked in, Boehringer Mannheim has paid the Gaithersburg-based biotechnology company $1.5 million in royalty payments, said George Migausky, Igen vice president and chief financial officer. Migausky said the payments should have been calculated differently and should have been higher.

The complaint also alleges that Boehringer Mannheim exploited Igen's technology outside the licensed field of use and commercialized competing products in violation of the agreement.

Pub Date: 9/18/97

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