Suit Alleges Gensia Sicor Breached Purchase Deal

Protocol Systems Inc. sued Gensia Sicor Inc., an Irvine-based biotech company, alleging damages of about $10.8 million as a result of the breach of a development and supply agreement that provided for the purchase of a device to be used in Gensia Automedics Inc.’s GenESA System.

Gensia Sicor said Protocol Systems, which filed the complaint in the Circuit Court of Oregon, was informed in April that Automedics planned no additional purchases of the devices.

Gensia Sicor, which plans to defend the suit, said the claim fails to take into consideration Protocol Systems’ contractual obligations, the risks inherent in introducing a new medical device into the marketplace, and the five-year period over which the devices were to be delivered, among others.

Gensia Sicor in April said Automedics would not make added purchases of the GenESA systems from Protocol Systems, its supplier, under a supply agreement that provided for the purchase of GenESA systems through 2002.

Gensia Sicor owns 19% of Automedics and sold the rest to private investors in December.

Protocol, based in Beaverton, Ore., makes patient monitoring systems.