Medtronic, Inc. To Pay $37.5 Million In Patent Settlement
IRVINE, Calif., Jan. 23 /PRNewswire-FirstCall/ -- Edwards Lifesciences Corporation , the world leader in heart valve technologies, announced today that it has entered into an agreement with Medtronic, Inc. and Medtronic Vascular, Inc., resolving patent infringement litigation initiated in August 2003 by Edwards and Endogad Research Pty. Ltd., the company formed by the clinician-inventors of the patents. The alleged infringement was of certain patents related to modular or multi-part endovascular grafts especially suited for treatment of various types of aneurysms, including abdominal aortic aneurysms (AAA).
In exchange for a cash payment of $37.5 million to Edwards and Australian- based Endogad, Medtronic has been granted nonexclusive licenses to the patents involved in the litigation, as well as other patents relating to endovascular AAA grafts and delivery systems. Under the terms of the agreement, Medtronic also has purchased delivery system assets to be used with AAA grafts. Edwards expects to record a special pre-tax gain in the first quarter of 2006 of approximately $20 million, after taking into account its agreement with Endogad and legal expenses.
"We are pleased to have settled this dispute," said Stuart L. Foster, Edwards' corporate vice president, Technology & Discovery. "This resolution protects the interests of Edwards and our clinician-inventor partners, with whom we work to create new technologies for the treatment of advanced cardiovascular disease."
Edwards and Endogad remain in litigation with Cook, Inc., and W. L. Gore & Associates regarding infringement of the patents that are owned by Endogad and exclusively licensed to Edwards Lifesciences. The products named in the original suit include Medtronic's AneuRx(TM) Stent Graft and TALENT(TM) Stent Graft Systems, Cook's Zenith(TM) Endovascular Graft, and Gore's Excluder(TM) Bifurcated Endoprothesis.
About Edwards Lifesciences
Edwards Lifesciences, a leader in advanced cardiovascular disease treatments, is the number-one heart valve company in the world and the global leader in acute hemodynamic monitoring. Headquartered in Irvine, Calif., Edwards focuses on specific cardiovascular opportunities including heart valve disease, peripheral vascular disease and critical care technologies. The company's global brands, which are sold in approximately 100 countries, include Carpentier-Edwards, Cosgrove-Edwards, Fogarty, LifeStent, PERIMOUNT and Swan-Ganz. Additional company information can be found at http://www.edwards.com.
This news release includes forward-looking statements that involve risks and uncertainties including those related to the ability of Edwards to protect its patent assets, the outcome of pending and/or future litigation involving Edwards' intellectual property, and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Actual results or experience could differ materially from that expressed or implied by forward-looking statements.
Edwards is a trademark of Edwards Lifesciences Corporation. Edwards Lifesciences, Carpentier-Edwards, Cosgrove-Edwards, Fogarty, PERIMOUNT, and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the U.S. Patent and Trademark Office. LifeStent is a trademark of Edwards Lifesciences AG and is registered in the U.S. Patent and Trademark Office.
Edwards Lifesciences CorporationCONTACT: Media, Barry R. Liden, +1-949-250-5070, or Investors, David K.Erickson, +1-949-250-6826, both of Edwards Lifesciences Corporation
Web site: http://www.edwards.com//