Note 11 – Royalty and licensing income

The Company has a license agreement with QIAGEN Gaithersburg Inc. (“Qiagen”) that began in 2005, whereby the Company earns quarterly running royalties on the net sales of Qiagen products subject to the license until the expiration of the patent on April 24, 2018. During the three months ended January 31, 2012 and 2011, the Company recorded royalty income under the Agreement of approximately $1.3 million and $1.2 million, respectively. During the six months ended January 31, 2012 and 2011, the Company recorded royalty income under the Agreement of approximately $3.2 million and $3.7 million, respectively.

On April 27, 2007 (the “Effective Date”) Enzo Life Sciences, Inc. (“Life Sciences”) and Abbott Molecular Inc. (“Abbott”) entered into a 5 year agreement, which is still in effect, covering the supply of certain of Enzo Life Sciences products to Abbott for use in their product line. The parties also entered into a limited non-exclusive royalty bearing cross-licensing agreement (“Licensing Agreement”) for various patents. The Licensing Agreement requires each party to pay royalties, as defined through the lives of the related non-expired patents. In January 2011, Abbott notified the Company that they have made a final royalty payment because they are unaware of any non-expired patents. The Company continues to review its patent portfolio and Abbott’s position. The Licensing Agreement between the parties remains in full force and effect and the Company continues its commercialization efforts under the contract terms. During the three months ended October 31, 2010, and for the six months ended January 31, 2011, the Company recorded approximately $0.5 million in royalties and license fee income under the Licensing Agreement.