Genentech-Lilly deals clear some of the air

The settlement of the human growth hormone patent suit between Genentech Inc. and Eli Lilly and Co. is likely to have repercussions beyond the $145 million GNE will receive from the agreement.

Under the settlement announced last week, Lilly agreed to pay GNE $145 million plus additional payments contingent on the sale of certain products. Lilly will make an initial payment of $25 million. That payment won't increase GNE's earnings, for reasons the company declined to disclose. The remainder will be paid in 16 quarterly payments of $7.5 million starting in March, subject to possible future offsets (see Analysts, page B8)...