Spectranetics Corporation Announces Preliminary Patent Litigation Verdict
COLORADO SPRINGS, Colo., Feb. 20 /PRNewswire-FirstCall/ -- Spectranetics Corporation today announced that it has received an unfavorable jury verdict in a patent litigation dispute with Dr. Peter Rentrop in the U.S. District Court in the Southern District of New York. Spectranetics has filed several post-trial motions seeking to overturn the verdict. The last of these motions was filed on February 5, 2007, and the jury award is not final until the judge rules on the post-trial motions.
Dr. Rentrop alleged that the patent issued to him on January 6, 2004 was infringed by the Spectranetics' Point 9 millimeter catheters. Spectranetics does not believe that Dr. Rentrop's patent was infringed and has asserted counter-claims of invalidity, breach of contract and inequitable conduct.
Dr. Rentrop was seeking damages of $7,500,000, which consists of treble damages on a base royalty of $2,500,000.
The jury awarded Dr. Rentrop an award of $500,000 that relates to royalties on the sale of Point 9 millimeter catheters. The royalty implies a 5% royalty rate on sales of approximately $10,000,000 during the period between January 6, 2004 and October 31, 2006. In addition to royalties, the jury awarded $150,000 of legal fees to Dr. Rentrop. Costs associated with this award total $690,000, which include $40,000 of accrued royalties for the final two months of 2006. These costs, and legal fees of approximately $500,000 related to the litigation, will be recorded within operating expenses for the quarter ended December 31, 2006.
Spectranetics awaits the ruling on its post-trial motions and intends to pursue all available appeal options, if necessary.
Spectranetics is a medical device company that develops, manufactures and markets single-use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system. Excimer laser technology delivers relatively cool ultraviolet energy to ablate or remove arterial blockages including plaque, calcium and thrombus. We believe our CVX-300(R) excimer laser is the only system approved in the United States, Europe, Japan, and Canada for use in multiple, minimally invasive cardiovascular procedures. These procedures include atherectomy, which is a procedure to remove arterial blockages in the peripheral or coronary vasculature, and the removal of infected, defective or abandoned cardiac lead wires from patients with pacemakers or implantable cardiac defibrillators, or ICDs, which are electronic devices that regulate the heartbeat.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties may include increasing price and product competition, increased pressure on expense levels resulting from expanded marketing and clinical activities, uncertain success of the Company's strategic direction, dependence on new product development, intellectual property claims of third parties, availability of inventory from suppliers, the receipt of FDA approval to market new products or applications and the timeliness of any approvals, the potential size of market opportunities associated with new products, market acceptance of new products or applications, product defects, price volatility due to the initiation or cessation of coverage, or changes in ratings, by securities analysts. For a further list and description of such risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from any anticipated results, performance or achievements, please see the Company's previously filed SEC reports. Spectranetics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether as a result of new information, future events or otherwise.
Spectranetics and CVX-300 are registered trademarks of The Spectranetics Corporation.
COMPANY CONTACT: Spectranetics Corporation Guy Childs, Chief Financial Officer(719) 633-8333 www.spectranetics.com INVESTOR & MEDIA CONTACTS: Lippert/Heilshorn & Associates, Inc. Bruce Voss Don Markley (310) 691-7100 www.lhai.comSpectranetics Corporation
CONTACT: Guy Childs, Chief Financial Officer of Spectranetics Corporation,+1-719-633-8333; or INVESTOR & MEDIA CONTACTS, Bruce Voss or Don Markley,both of Lippert/Heilshorn & Associates, Inc., +1-310-691-7100, forSpectranetics Corporation
Web site: http://www.spectranetics.com/