Prana Bio settles clioquinol patent litigation

Melbourne, Australia-based Prana Biotechnology and Massachusetts GeneralHospital, USA, have agreed to settle all outstanding litigation with PN Gerolymatos SA of Greece regarding the exploitation rights to certain patents relating to pharmaceutical compositions and uses of clioquinol (also known as PBT-1). Accordingly, all patent oppositions in Europe and Australia are being withdrawn and the law suits pending before the US District Court for the District of Columbia and the Court of Athens in Greece are being dismissed.

As a result of the settlement, Prana and PNG have agreed to recognize the rights of each other to develop clioquinol in their respective territories. For Prana this will be in the USA and Japan, while PNG will hold the rights for European and other territories. Prana has agreed to allot 1.35 million shares, which will be held in escrow for 12 months, and pay a royalty to the Greek firm on sales in the USA and Japan. It will receive a percentage of PNG's income for the other territories.