* RIM says blocked from bid on wireless business Stocks  |  Bonds  |  Media  |  France * Says prepared to pay
* RIM says blocked from bid on wireless business Stocks  |  Bonds  |  Media  |  France * Says prepared to pay around $1.1 bln * Nokia Siemens has stalking horse deal for business (Adds Nortel response to RIM in paras 6, 7) By Gabriel Madway SAN FRANCISCO, July 20 (Reuters) - Research In Motion Ltd(RIM.TO) said on Monday Nortel Networks had effectively blockedthe BlackBerry maker from bidding potentially $1.1 billion forthe bankrupt Canadian company's wireless business. The legal settlement gain of $18.0 millionrelated to an agreement with Watson Pharmaceuticals, Inc. (Watson) to settlelitigation with respect to Watson`s marketing of a generic version of Naprelan.As part of the settlement, Watson stipulated that Elan`s patent at issue isvalid and enforceable and that Watson`s generic formulations of Naprelaninfringed Elan`s patent. The severance and restructuring charges primarilyrelate to the realignment of resources announced in the first quarter of 2009and described further below.
For the first quarter of 2009, other net charges of $19.6 million primarilyconsisted of severance and restructuring charges of $22.2 million and non-cashasset impairment charges of $15.4 million, partially offset by a legalsettlement gain of $18.0 million. Other net chargesOther net charges for the three and six months ended June 30, 2009 and 2008 wereas follows: Three Months EndedSix Months Ended June 30 June 302008200920082009 US$mUS$mUS$mUS$m - 5.0In-process research and development- 5.02.6 3.0Severance and restructuring charges5.6 25.2 - -Asset impairment charges - 15.4 - -Legal settlement gain- (18.0) 2.6 8.0Total5.6 27.6For the second quarter of 2009, other net charges of $8.0 million primarilyconsist of an in-process research and development charge of $5.0 million inrespect of a license fee payable under the recently executed collaborationagreement with PharmatrophiX (see page 14) and severance and restructuringcharges of $3.0 million. R&D expenses include $29.1million (2008: $26.4 million) in relation to the AIP Program which is thesubject of the transaction with Johnson & Johnson. Research and developmentFor the second quarter of 2009, R&D expenses slightly increased to $80.9 millionfrom $80.1 million for the same period of 2008.
The decrease principally reflects reduced litigation expenses, lowerheadcount from the reduction of support activities, along with continued costcontrol. SG&A expense for the three and six months ended June 30, 2009 and 2008can be analyzed as follows: Three Months EndedSix Months Ended June 30 June 302008200920082009 US$mUS$mUS$mUS$m 55.652.3 Biopharmaceuticals 107.7 105.810.78.3EDT21.816.2 4.4 4.1Depreciation and amortization8.3 8.26.2 4.4Share-based compensation 13.19.976.969.1 Total150.9 140.1 The SG&A expenses related to the Tysabri ROW sales are reflected in the TysabriROW revenue as previously described on page 10. Elan and its clients defend the parties` intellectual property rightsvigorously. However, if these challenges are successful, Elan`s manufacturingrevenue and royalties will be materially and adversely affected. Operating ExpensesSelling, general and administrativeAlthough revenues increased by 14% in the second quarter of 2009, SG&A expensesdecreased by 10% to $69.1 million from $76.9 million for the same period of2008. Potential generic competitors have challenged the existing patent protection forseveral of the products from which Elan earns manufacturing revenue androyalties.
The second quarter of2009 benefited from the Fampridine-SR license fee and lower litigation fees. EDTrevenues, and their impact on Adjusted EBITDA, vary from quarter to quarterbased on a number of factors including the timing of customer orders and licensefees earned, and contractual in-market sales hurdles for royalties. For the second quarter of 2009,Adjusted EBITDA from the EDT business increased by $11.3 million to $38.3million from $27.0 million for the same period of 2008. Additional analyses of the results between the Biopharmaceuticals and EDTbusinesses are set out in Appendices I and II.