iBio Inc (NYSEAMERICAN: IBIO) is screaming for the top in the market this morning, and for good reason. The company announced the successful end to litigation that resulted in a licensing agreement. Here’s what’s going on:
IBIO Announces Successful Litigation
In the press release, iBio said that it has successfully resolved its lawsuit with Fraunhofer USA surrounding the ownership of intellectual property related to plant-based biopharmaceutical production.
The company went on to say that as part of the settlement, iBio granted Fraunhofer USA a fully paid-up license to use the recombinant protein manufacturing technologies that were the subject of the litigation.
In the release, iBio explained that the settlement concludes a lawsuit that began back in 2015 in the Delaware Court of Chancery. The company went on to explain that the initial payment under the license agreement will cover its legal fees and expenses. Moreover, Fraunhofer USA will make additional cash payments to the company in March 2022 and March 2023.
Unfortunately, certain details of the settlement, including details with regard to dollar amounts paid as part of the license agreement have not been released.
In a statement, Tom Isett, Chairman and CEO at iBio, had the following to offer:
We are pleased to see this matter resolved and to receive compensation for the use (of) our intellectual property. iBio remains committed to relentlessly innovating in the area of plant-made biologics, while respecting fair competition and protecting our IP. As a result, this settlement gives assurance to our licensees and clients that they can continue to depend upon us to develop and enhance our FastPharming® Technologies to provide them with the speed, scalability, and eco-friendly advantages of plant-based biologics development and manufacturing from iBio.”
The Bottom Line
The bottom line here is simple. Through the settlement, iBio has proven that, not only is its intellectual property valuable, it is strong enough to stand up in the court of law.
Moreover, as a result of the settlement, the company will receive payments to cover its legal fees for a case that has been ongoing for about six years, as well as future payments that will enhance the company’s financial stability. All told, this is great news and investors should be paying close attention.