Whatman Plc announces that it has reached a settlement agreement with Schleicher & Schuell GmbH and Schleicher & Schuell Biosciences, Inc. (S&S) to resolve a patent infringement lawsuit initiated by Whatman in the United States.  This settlement relates to Whatman’s unique product FTA for the collection, purification and storage of DNA.

In 2003 Whatman set out to stop S&S exceeding the terms of the licence that had been granted to S&S for the manufacture and sale of a product based on Whatman's FTA technology.  In the event, Whatman has achieved this and taken the matter further, by negotiating the termination of the licence altogether and acquiring some further patents related to S&S's DNA related technology.

The terms of the settlement can be summarized as follows:

• The licence agreement under which S&S had been selling its IsoCode products is terminated;
• Whatman has acquired from S&S some further patents related to S&S's IsoCode DNA storage products;
• For a transitional period, S&S will continue to supply its IsoCode products to a limited number of existing customers participating in clinical trials for a short period of time; and
• Whatman will pay to S&S the total consideration of $500,000.

To date, FTA has largely targeted the forensic market in which Whatman enjoys market leadership.  In 2003, Whatman won ground-breaking contracts with the French Police, the Gendarmerie, the New Zealand police together with several new states in the USA.  At the Company’s year end, 38 states in the USA were deploying Whatman’s FTA technology.  FTA sales increased by 35% in 2003 to over £3.6 million. 

Whatman is currently evaluating further opportunities for the FTA technology in the areas of genomics (for use in DNA archiving and storage), pharmacogenomics (for use in clinical trials), agricultural identification (for tracking animal DNA) as well as various applications in both research and the environment.

Bob Thian, Chairman of Whatman plc, said:  “FTA is of crucial importance to the future of Whatman due to its potential in a number of areas.  To have settled this issue is, therefore, of considerable importance to the Company as it seeks to expand its market share.” 

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