Immunex Resolves Royalty Disputes On Cancer Drugs -- Agreements With Partners Settle Issue Over Millions In Future Income

Immunex Corp. today announced a flurry of favorable agreements and legal settlements with several of its research and manufacturing partners on key genetically engineered cancer-fighting drugs developed by the Seattle company.

First, Immunex and Hoffmann-La Roche Inc. announced the settlement of a long-standing royalty dispute over worldwide sales of Interleukin-2 (IL-2).

The agreement between Immunex and Roche sets royalties payable to Immunex on all sales of IL-2 and on a modified version of IL-2 sold by Roche's licensee, Cetus Corp.

``We are very pleased that Roche has agreed that Immunex is entitled to comparable royalties on all sales of IL-2 by either itself or Cetus,'' said Stephen Duzan, Immunex chairman and chief executive officer. ``It now makes no economic difference to Immunex which of the two companies is first to receive approval of IL-2 or which will market it.''

As a result of the agreement, Immunex will receive $5.5 million, plus unspecified ongoing royalties on sales of IL-2.

Alan Frazier, Immunex's chief financial officer, said total revenues from the agreement are expected to cause Immunex to show a profit in its first quarter ending March 31. Immunex has had only two other profitable quarters in its history. Both were in the first half of 1988, giving Immunex total profits of $657,300 for the fiscal year 1988.

Immunex also announced settlement of a lawsuit against Ajinomoto Co. Inc. brought by Immunex regarding Interleukin-2.

The agreement settles unresolved claims by Immunex to royalties on sales of IL-2 by the Japanese company or its licensees in Japan, Korea and Taiwan.

Financial details of the agreement were not disclosed.

And the Seattle biotechnology company said it had reached another agreement to license to Behringwerke AG, of Marburg, Federal Republic of Germany, the right to manufacture and market in Japan certain soluble receptor products - recombinant versions of proteins that may be used therapeutically to turn off the human immune system and fight immune-related diseases.

The legal moves could have significant financial impacts on Immunex, once drugs are approved by the Food and Drug Administration.

Analysts have estimated that by 1992, annual sales and royalties of IL-2 alone could bring in $20 million or more a year to Immunex.