8-KOther Events

BECTON DICKINSON & CO 8-K Report, Corporate Update (May 3, 2007)

Filed May 3, 2007For Securities:BDX

Summary

Becton, Dickinson and Company (BD) has disclosed an ongoing arbitration proceeding initiated by bioMérieux SA against GeneOhm Sciences Canada, a BD subsidiary. The arbitration centers on a sublicense agreement concerning patent rights for detecting methicillin-resistant Staphylococcus aureus (MRSA). BioMérieux alleges GeneOhm fraudulently induced the agreement and violated its terms by assigning rights, seeking monetary damages and termination of patent rights. The outcome of this arbitration could materially impact GeneOhm's ability to market its MRSA detection products. In addition, BD is addressing a separate dispute with bioMérieux concerning a license agreement related to BD's BACTEC™ products. BioMérieux claims BD has sold BACTEC™ products in non-licensed fields, constituting a material breach, and is seeking compensation and cessation of future sales in those areas. BD asserts it has not materially breached the agreement and intends to resolve this matter through the specified dispute resolution process.

Key Highlights

  • 1BD subsidiary GeneOhm Sciences Canada is involved in an arbitration with bioMérieux SA regarding a sublicense for MRSA detection technology.
  • 2BioMérieux alleges fraud and breach of contract by GeneOhm, seeking damages and termination of patent rights.
  • 3The outcome of the MRSA arbitration could adversely affect GeneOhm's ability to market its related products.
  • 4BD is also engaged in a dispute with bioMérieux over a license agreement for BACTEC™ products.
  • 5BioMérieux claims BD has sold BACTEC™ products in non-licensed fields, alleging material breach.
  • 6BD denies any material breach of the BACTEC™ license agreement and intends to defend its position.
  • 7BD believes bioMérieux's claims in both disputes lack merit and is prepared to vigorously defend itself.

Frequently Asked Questions

BD is involved in two main disputes with bioMérieux SA. The first is an arbitration initiated by bioMérieux against BD's subsidiary, GeneOhm Sciences Canada, concerning a sublicense agreement for MRSA detection technology. The second involves a claim by bioMérieux that BD has breached a license agreement related to its BACTEC™ products by selling them in non-licensed fields.

BioMérieux alleges that GeneOhm fraudulently induced bioMérieux into entering the sublicense agreement and that GeneOhm subsequently assigned its rights in violation of the agreement. BioMérieux is seeking monetary damages and wants to terminate the patent rights granted to GeneOhm under this sublicense.

The arbitration's outcome could adversely affect GeneOhm's ability to market its MRSA detection products. For the BACTEC™ product dispute, bioMérieux is seeking compensation for alleged non-licensed sales and a cessation of future sales in those areas, which could impact revenue if BD is unsuccessful in its defense.

BD believes there is no basis for bioMérieux to terminate the sublicense agreement and intends to vigorously defend GeneOhm's position in the arbitration. Regarding the BACTEC™ product dispute, BD believes there has been no material breach of the agreement and intends to follow the dispute resolution provisions to resolve the matter while vigorously defending its position.