Roche expects IGEN verdict this week
The Roche healthcare group in Basel has confirmed that it is expecting this week to hear the verdict in a long-standing dispute over technology licences.
According to a report on Monday in the Financial Times newspaper, the company could face up to $1.5 billion in damages (SFr2.47 billion) over actions by its diagnostics division in the United States.
Roche Diagnostics has been contesting since September, 1997 claims by the IGEN company that it breached licensing agreements covering IGEN technology.
Roche has been accused of withholding royalty payments and developing rival lines in violation of agreements with IGEN.
Out-of-court settlement?
Citing analysts, the report said that a trial in the state of Maryland had not gone well for Roche and that there would probably be an out-of-court settlement following an unfavourable jury ruling.
The case came to court in October. Before the jury began its deliberations on Friday, IGEN asked for $710 million in compensatory damages and “billions” in punitive damages.
Roche Diagnostics has said on several occasions that it believed it had complied with the terms of an agreement with IGEN in all material respects and was confident of a positive outcome.
Price fixing cartel
In December, the Basel-based group was fined €64 million (SFr94 million) by the European Commission for its role in a price fixing cartel.
The Commission said Roche had participated in a “price-fixing and market-sharing cartel in citric acid”, an additive used in soft drinks and food.
The fine came a fortnight after the Commission slapped a €462 million (SFr673 million) penalty on Roche for its involvement in a vitamin price fixing cartel.
Horst Kramer, Roche spokesman, admitted to swissinfo that the company had breached European Union anti-trust regulations.
“Roche admits that there was a cartel. We never did deny this,” he said. “As soon as the fact became known to our executive management they immediately collaborated very closely with the authorities.”
“We do not question the principal fact that there were anti-trust violations,” he said.
However, Kramer said that “The activities themselves were immediately stopped and adequate actions were taken to avoid this ever happening again in this company.”
In 1999, Roche was fined $500 million by US authorities for its role in price fixing in the American vitamins market.
Roche shares have fallen by more than 25 per cent in value over the past 12 months.
swissinfo with agencies
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.