FOR IMMEDIATE RELEASE
7/9/07
Court Upholds Finding of Non-Infringement and Invalidates Patents
Cambridge, MA (July 9, 2007) ViaCell, Inc. (Nasdaq: VIAC) today announced that the U.S. Court of Appeals for the Federal Circuit has ruled in favor of ViaCell in a patent infringement suit brought against the Company and other defendants by PharmaStem Therapeutics, Inc. The Federal Circuit upheld an earlier decision by the U.S. District Court for the District of Delaware that ViaCell, through its marketing of ViaCord®, a product offering through which families can preserve their baby’s umbilical cord blood at the time of birth for possible future medical use, does not infringe PharmaStem’s U.S. Patent No. 5,192,553 (‘553) and U.S. Patent No. 5,004,681 (‘681), which relate to certain aspects of collection, cryopreservation, storage and use of hematopoietic stem cells from umbilical cord blood. The court also found the ‘553 and the ‘681 patents invalid based on prior art.
“We are extremely pleased with this ruling and believe this is a major step toward bringing closure to the suits brought against us,” said Marc D. Beer, President and Chief Executive Officer of ViaCell.
A copy of the Federal Circuit’s decision is available online at http://www.fedcir.gov.
Background on Litigation
In 2002, PharmaStem brought suit against ViaCell and several other defendants alleging infringement of the ‘553 and ‘681 patents. The patents relate to certain aspects of the collection, cryopreservation, storage, and use of hematopoietic stem cells from umbilical cord blood. In 2004, a District Court judge, in overturning a previous jury verdict against ViaCell and the other defendants in this case, found that PharmaStem had failed to prove infringement. PharmaStem appealed the decision. In April 2006, the U.S. Court of Appeals for the Federal Circuit heard oral argument in the appeal. In 2004, PharmaStem brought a second suit against ViaCell and the other defendants alleging infringement of U.S. Patent Nos. 6,461,645 and 6,569,427. These patents have similar claims to the ‘553 and ‘681 patents. The second case has been stayed pending decisions from the Federal Circuit on the appeal and re-examinations of the patents by the United States Patent and Trademark Office.
About ViaCell
ViaCell, Inc. is a biotechnology company dedicated to enabling the widespread application of human cells as medicine. The Company markets ViaCord®, a product offering through which families can preserve their baby’s umbilical cord blood at the time of birth for possible future medical use in treating over 40 diseases including certain blood cancers and genetic diseases. ViaCell also conducts research and development primarily to investigate other potential therapeutic uses ofumbilical cord blood-derived stem cells and on technology for expanding populations of these cells. ViaCell’s pipeline is focused in the areas of cancer, cardiac disease, diabetes and fertility. For more information about ViaCell, visit our website at http://www.viacellinc.com.
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This press release contains forward-looking statements regarding the PharmaStem litigation. Such statements are based on management's current beliefs and expectations. There are a number of risks and uncertainties that could cause actual results to differ materially from management's current beliefs and expectations. The second case brought by PharmaStem based on the ‘645 and ‘427 patents may continue. PharmaStem may seek to appeal the decision of the U.S. Court of Appeals. In such an event, the decision of the U.S. Court of Appeals may be overturned or the case may be remanded to the District Court. We may ultimately be found to infringe valid claims of the PharmaStem patents, in which case we could have a significant damages award entered against us or could face an injunction which could prohibit us from further engaging in the umbilical cord stem cell business absent a license from PharmaStem. We may also incur significant additional legal fees and expenses in connection with this litigation. For more information on the risks and uncertainties associated with this litigation or with the Company and its products and programs, see the factors set forth under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ending March 31, 2007, which is on file with the Securities and Exchange Commission and which factors are incorporated herein by reference. ViaCell does not undertake any obligation to update forward-looking statements.
ViaCell® and ViaCord® are registered trademarks of ViaCell, Inc.
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