Boston Scientific pays $716.3mm to settle litigation with J&J

Deal summary reprinted from Strategic Transactions - September 2009

Boston Scientific has settled more than a dozen patent lawsuits with Johnson & Johnson's Cordis Corp. involving interventional cardiovascular IP.

Boston Scientific pays $716.3mm to settle litigation with J&J

Deal summary reprinted from Strategic Transactions - September 2009

The litigation surrounded Ding, Kastenhofer, Palmaz, and Fontirroche patent families. BS has agreed to pay J&J $716mm from its cash on hand and the two companies have exchanged paid-up licenses for some IP. Palmaz patents pertain to stents used to diagnose and treat coronary artery disease; Ding ones relate to drug-eluting stent designs; Kastenhofer and Fontirroche to designs of balloon catheters and stent delivery systems; and Pinchuk to balloon materials. There is still outstanding litigation between the companies, including Cordis' suing BS for IP used for its Express, Taxus, Taxus Liberte, and Promus stents and its Fischell case against BS' NIR stent system. BS also has a pending suit against Cordis for the Cypher sirolimus-eluting coronary stent under the Jang patent. Since the late 1980s, J&J has been working with companies that have since been acquired by BS--Corvita (in 1998) and Guidant (in 2005). Beginning in 1987, Corvita licensed rights to IP pertaining to Cordis' vascular graft research. Since then, Corvita signed on to develop balloon technology to be used with Cordis' angioplasty system, Cordis was granted rights to Corvita's PTCA catheters, and Cordis gained rights to the Pinchuk patents. Through Guidant Cordis licensed IP and gained a partner to co-promote its Cypher stent.

Other device deals this week:
Acquisition
Cell Biosciences pays $18.5mm for Alpha Innotech · September 2009
Covidien buys brain monitoring specialist Aspect for $212mm · September 2009

Alliance
Brennen Medical sells XenMatrix and related assets to Davol · September 2009

Financing
Cardica brings in $10.2mm privately · September 2009
Cell Biosciences raises $14mm in Series D money for acquisition · September 2009

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