CAT rockets after court verdict

DRUG discovery firm Cambridge Antibody Technologies has been given a £210m shot in the arm after winning a landmark High Court ruling against US drugs giant Abbott Laboratories.

The British biotech minnow is to get a bigger share of the royalties from its potential blockbuster Humira, which helps arthritis sufferers.

Judge Mr Justice Laddie ruled that CAT should be paid a royalty of 5% over sales by Abbott, rather than the 2% it has been paid until now.

Following what City observers called a 'surprise decision' by Laddie, Code Securities analyst Samir Devani estimated that the increased payments could be worth as much as £210m to CAT. Before the ruling, Devani estimated Humira's royalty stream would be worth £70m.

The drug was jointly discovered by Abbott using CAT's technology. Abbott had argued it could deduct royalties for other parties involved from the amount it owed CAT.

Abbott is keen to contest yesterday's decision, but will have to wait until January 26 to discover whether it is allowed to appeal - this could take 12 months. The US drugs giant will hold the royalties until then.

CAT's shares soared as much as 27% to 805p, adding more than £70m to its market value, before closing up 81½p at 713½p. Devani argues the enhanced royalty payments could be worth as much as 410p a share.