Advanced Magnetics and Cytogen dismissed the lawsuit between them and have dropped all claims against each other. The companies will terminate the license and marketing agreement as well as the supply agreement between the parties. The original deal was signed in 2000 for 10 years.
In January, 2006, Cytogen filed a case against Advanced Magnetics for breach of contract, fraud, unjust enrichment, and breach of the implied covenant of good faith and fair dealing. The complaint was launched in relation to the 2000 transaction for Combidex and ferumoxytol.
Cytogen sought damages and for Advanced Magnetics to take all reasonable steps to secure FDA approval of Combidex in compliance with the terms of the licensing agreement.
Combidex is an investigational functional molecular imaging agent consisting of iron oxide nanoparticles for use in conjunction with MRI to aid in the differentiation of cancerous lymph nodes from noncancerous ones. Ferumoxytol is in Phase III multicenter trials for use as an iron replacement therapeutic in chronic kidney disease patients, whether or not on dialysis.
Under the settlement, Advanced Magnetics will pay $4 million in cash and release to Cytogen its 50,000 shares of common stock currently being held in escrow according to the original license and marketing agreement.
Advanced Magnetics has thus reacquired the U.S. marketing rights to Combidex and ferumoxytol for oncology imaging applications.