UWA pays $3.25m in Sirtex settlement

The University of Western Australia has agreed to pay Sirtex Medical $3.25 million to cover costs relating to an intellectual property matter involving Dr Bruce Gray.

Sirtex had been pursuing claims from both UWA and Dr Gray after it incurred legal costs of more than $5.5 million.

Sirtex today said it has settled its claim for costs against UWA, with the university agreed to pay $3.25 million within a fortnight.

The court will determine whether payment is necessary for interest on costs.

A settlement with Dr Gray has not yet been determined with a hearing scheduled for November 9.

"Sirtex expects that its claim will be determined some time after the conclusion of the hearing when the Court delivers its judgement," Sirtex said.

UWA had filed action against Sirtex, a company founded by Dr Gray, in 2006, alleging that it had a claim on a liver cancer treatment developed by Dr Gray during his employment at the university.

In 2008, the Federal Court dismissed UWA's claims against Sirtex and Dr Gray.

The announcement is below:

As previously announced Sirtex Medical Limited (Sirtex) is a party to proceedings in the Federal Court of Australia issued by the University of Western Australia (UWA Proceedings). Dr Bruce Gray (former director and a substantial shareholder of Sirtex) is also a party to the UWA Proceedings. The UWA Proceedings are summarised in announcements of Sirtex of 2 November 2006 and 7 February 2007.

On 17 April 2008 Justice French delivered a judgment in the UWA Proceedings which included the Court:

 dismissing the claims by UWA against Sirtex and Dr Gray;

 finding in favour of Sirtex on its cross claim against Dr Gray;

 ordering UWA to pay Sirtex's costs of UWA's claim against Sirtex; and

 ordering Dr Gray to pay Sirtex's costs of Sirtex's cross claim against Dr Gray.

Sirtex has the benefit of the general costs orders in its favour against UWA and Dr Gray and its claim for damages against Dr Gray in respect of which Sirtex will be claiming any costs not
recovered from UWA.

Sirtex has been pursuing both claims as it has incurred in excess of $5.5 million in legal costs
and expenses in relation to the UWA Proceedings and related matters.

Sirtex has settled its claim for costs against UWA. Pursuant to the settlement:

 UWA has agreed to pay Sirtex $3.25 million within 14 days of today;

 Sirtex's entitlement to interest on its costs and the amount of any interest is to be
determined separately by the Court.

The hearing of the assessment of Sirtex's claim for damages against Dr Gray is scheduled for 9
to 13 November 2009. Sirtex expects that its claim will be determined some time after the
conclusion of the hearing when the Court delivers its Judgment.