Enzo Biochem ( ENZ) fell sharply Friday on a court's decision to dismiss claims in a patent-infringement case against Applera's Applied Biosystems Group ( ABI). The U.S. District Court for the District of Connecticut granted Applied Biosystems' motion for a summary judgment, dismissing all remaining claims in the patent-infringement case filed by Enzo Biochem. According to an Applied Biosystems' Securities and Exchange Commission filing on Aug. 24, Enzo Biochem, Enzo Life Sciences and Yale University filed the lawsuit in June 2004, arguing infringement of six patents due to the company's sale of sequencing reagent kits, TaqMan genotyping and gene-expression assays and the gene-expression microarrays used with the company's Expression Array System. Four of the patents are assigned to Yale and licensed exclusively to Enzo Biochem. Enzo Biochem said in a release Friday that it filed a notice of appeal with the court of appeals following the summary judgment seeking recovery for past infringement on three patents based on the work of Dr. David C. Ward at Yale University that expired in 2004. "We have every belief that the Federal Circuit will overturn this decision, and that Enzo will ultimately prevail," said Scott Robertson of Goodwin Procter, Enzo's lead counsel in this action. Applied Biosystems gained 2% in the morning but was recently trading along the flat line at $32.21. Enzo slid $5.07, or 28.5%, to $12.70.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).