At the end of 2001, the FDA announced it would not review ImClone's application for Erbitux, sending ImClone stock into a nosedive. Martha Stewart, friend of ImClone founder Sam Waksal, was spooked into dumping her stock based on a tip from Waksal through her broker, ensnaring Stewart in a simmering scandal. Asked in June 2002 about the brewing brouhaha on the CBS Early Show during a cooking segment, Martha replied, "I just want to focus on my salad." Waksal pleaded to seven counts of insider trading, while Martha was sent to the big stir for five months to let her focus on her salad with penance.

Regpligen, exclusive licensee of MIT's 4,663,281, expects to net $40 million after legal fees and MIT's cut. Repligen reported a net loss of $890,000 in 2006 on revenue of $14 million. Repligen employs 45 people.

'281 claims "a method of enhancing expression of recombinant DNA in eucaryotic cells." Erbitux is used to treat colorectal cancer that has spread to other parts of the body, as well as certain forms of head and neck cancers.

Erbitux generate $319 million in worldwide sales in Q2 2007, $162 million from the U.S. Erbitux is marketed in the U.S. by Bristol-Myers Squibb.

Besides the license for '281, the deal includes a sub-license for Abbott Laboratories' 5,665,578, but Abbott, which sued Imclone over '578 earlier this year, snorted that it doesn't resolve their dispute. Abbott talking head Scott Stoffel vowed further wringing of ImClone's wallet: "ImClone remains liable for infringing our patent and appears to be acknowledging through this agreement with Repligen the need for a license to our patent for its Erbitux product."