LEXINGTON, Mass. & SYDNEY--(BUSINESS WIRE)-- GI Dynamics, Inc. (GI Dynamics or the Company) (GID.AX) today announced that it has reached a settlement with W.L. Gore & Associates (Gore) in litigation brought by Gore in the United States District Court for the District of Arizona (“Court”). Under the settlement, GI Dynamics retains exclusive ownership and control of its patent portfolio, and both parties have dismissed all claims against each other. GI Dynamics has also granted Gore a non-exclusive, royalty-free license to use GI Dynamics’ patents, but only in the vasculature (i.e., blood vessels). Gore is not licensed to use GI Dynamics’ patents for any applications in the gastrointestinal tract, which is the area of the body in which GI Dynamics’ products are designed to be used. Neither side will make any cash payments to the other, nor will any royalties be due.
“We are delighted with this settlement,” stated Stuart A. Randle, president and CEO of GI Dynamics. “It confirms that GI Dynamics is the sole and exclusive owner of its technology and patent portfolio. With the litigation resolved, we will continue to focus on expanding the availability of EndoBarrier® through new commercial centers and markets outside the U.S. and the pivotal clinical trial in the U.S. We hope to address the unmet needs of the millions of people living with uncontrolled type 2 diabetes around the world.”
Background
As previously disclosed in the IPO Prospectus, GI Dynamics has been engaged in litigation in the Court with one of its suppliers, Gore, which supplies a material used to manufacture the Company’s products. Gore commenced proceedings against the Company in 2010, claiming that it was the co-owner (i.e., the equal joint owner) of all of the Company’s patents and patent applications as well as claiming that certain of its employees were co-inventors of the Company’s issued patents.
The Company filed counterclaims against Gore seeking declarations that Gore was neither a co-owner nor a co-inventor of any of its patents or applications and alleging misuse and misappropriation by Gore of the Company’s trade secrets, breach of contract, misrepresentation, and unfair and deceptive trade practices.
A jury trial in the matter was scheduled to begin on January 15.
About GI Dynamics
GI Dynamics, Inc. (GID.AX) is pioneering the development and commercialization of effective, non-surgical treatments targeting the large and growing global patient populations with type 2 diabetes and obesity. The company’s flagship product, EndoBarrier®, is a novel, non-surgical device proven to lower blood glucose levels and promote weight loss in diabetic patients and/or obese patients during the implant period. GI Dynamics currently markets EndoBarrier in select regions in Europe, South America and Australia and is planning near-term commercial expansion into additional markets. EndoBarrier is not approved for sale in the United States and is considered investigational. Founded in 2003, GI Dynamics is headquartered in Lexington, Massachusetts. For more information, please visit www.gidynamics.com.
Forward-Looking Statements
This announcement contains or may contain forward-looking statements that are based on management’s beliefs, assumptions and expectations and on information currently available to management. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation our expectations with respect to our ability to commercialize our EndoBarrier® including our estimates of potential revenues, costs, profitability and financial performance; our ability to develop and commercialize new products including our ability to obtain reimbursement for our products; our expectations with respect to our clinical trials, including enrolment in or completion of our clinical trials and our associated regulatory submissions and approvals; our expectations with respect to the integrity or capabilities of our intellectual property position. Management believes that these forward-looking statements are reasonable as and when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. GI Dynamics does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. GI Dynamics may not actually achieve the plans, projections or expectations disclosed in forward-looking statements, and actual results, developments or events could differ materially from those disclosed in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, described in “Risk Factors” in our Prospectus lodged with the Australian Securities & Investments Commission on 3 August 2011.
Contact:
Investor Enquiries:
United States:
GI Dynamics, Inc.
Robert Crane, Chief Financial Officer, +1 781-357-3250
or
Australia:
Inteq Limited
Kim Jacobs, +61 2 9231 3322
or
Media Enquiries:
North America/Europe:
Pure Communications Inc.
Andrea Johnston, + 1 910-509-3970
or
Australia:
Buchan Consulting Group
Haley Price, +61 3 8866 1215
