Amersham settles US patent row

AMERSHAM has settled a patent dispute that has gone on since November 1997 in the US courts and cost it $30m (£21m). The healthcare group hopes the outcome will eventually help earnings.

California judge Edward A Infante has reached a compromise between Amersham and US-owned Applera Corporation that will enable them to cross-license all patents in the action. They will also be able to co-develop, supply and commercialise 'certain new DNA analysis technologies'. Financial details of the settlement have not been disclosed.

Amersham also reported that pre-tax profits rose 21% to £279.4m in the year to last December. Patented product portfolio sales in Amersham Health soared 29% to £299m and unpatented sales were up 10% to £357m. Net debt fell £298m to £25m.

The Japanese market remains a problem for Amersham Health because of spending cutbacks by its government.

The biosciences division will benefit from more modest growth in research and development spend during 2002. The total dividend is increased by 11% to 7.1p a share.