IMMC Immunicon (MM)

On March 3, 2008, the arbitrator (the “Arbitrator”) in the American Arbitration Association proceedings (the “Arbitration”) brought by Immunicon Corporation (“Immunicon”) against Veridex LLC, a Johnson & Johnson company (“Veridex”), issued a final award (the “Decision”). In the Decision, the Arbitrator determined that Veridex was not in breach of its “best efforts” marketing obligation and dismissed Immunicon’s claims. The Arbitrator awarded Veridex $304,013.00 in contract damages pursuant to Veridex’s counterclaim in which Veridex had challenged Immunicon’s use of circulating tumor cell (“CTC”) reagents and analyzers as part of Immunicon’s “Pharma Services” business. The Decision also dictated that the Arbitrator’s compensation and expenses of $221,911.29 is to be paid equally by Immunicon and Veridex.

In the Arbitration, Immunicon claimed, among other things, that Veridex had materially violated its obligation to devote best efforts in the marketing of the CellSearch test developed by Immunicon pursuant to the 2000 Development, License and Supply Agreement, as amended, between Immunicon and Ortho-Clinical Diagnostics, Inc. (which has since been assigned to Veridex).

Immunicon is currently reviewing the Decision and assessing the Decision’s impact on its business. On March 3, 2008, Immunicon issued a press release announcing the Decision. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 8.01 by reference.