Medtronic and Abbott Laboratories Resolve Global Vascular Patent Disputes
MINNEAPOLIS--(BUSINESS WIRE)--Jul 27, 2009 - Medtronic, Inc. (NYSE:MDT) today announced global resolution of all outstanding intellectual property litigation with Abbott Laboratories.
Terms of the agreement stipulate that neither party will sue each other in the field of coronary stent and stent delivery systems for a period of at least 10 years, subject to certain conditions. The agreement includes a $400 million settlement payment to be made to Abbott and also results in a $42 million success payment to evYsio Medical Devices, LLC, as part of a Medtronic sublicense to Abbott of the evYsio stent design technology. In connection with the settlement, Medtronic expects to report in its first quarter financial results a special charge to be calculated in accordance with generally accepted accounting principles.
Following the resolution of these disputes with Abbott, Medtronic has now resolved or settled substantially all intellectual property litigation affecting the stent design and stent delivery systems of its bare metal and drug-eluting stent franchise. As a result, Medtronic will now focus more resources on efforts to improve health care for patients with vascular disease.
Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology – alleviating pain, restoring health and extending life for millions of people around the world.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's Annual Report on Form 10-K for the year ended April 24, 2009. Actual results may differ materially from anticipated results.
Chuck Grothaus, 763-505-2614
Jeff Warren, 763-505-2696
Posted: July 2009