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Merus, Regeneron settle long-standing legal battle over patent infringement

Merus NV reached a settlement with Regeneron Pharmaceuticals Inc. over a patent case, which will result in a $15 million investment in the Dutch company.

In March 2014, Tarrytown, N.Y.-based biotechnology company Regeneron filed a patent infringement case against Merus claiming that the latter infringed on U.S. Patent No. 8,502,018, which covers methods of modifying eukaryotic cells. After a lengthy legal battle, the matter ended in October when the U.S. Supreme Court denied to take up the patent case, leaving the ultimate decision in favor of Merus.

As part of the settlement, both companies signed a global patent cross-license agreement under which Regeneron will invest $15 million in the Dutch biotech through the acquisition of 600,000 common shares at $25 apiece.

The settlement resolves all patent proceedings globally related to the companies' respective antibody generation platforms. Under the patent cross-license agreement, both parties have granted certain royalty-free rights to each other.