Boston Sci settles some patent wars with Cordis for $716.3M

Boston Scientific will pay Cordis $716.3 million to resolve more than a dozen lawsuits over the Palmaz infringement suit relating to Boston Scientific’s NIR stent and several other cardiology cases relating to patents in the Ding, Kastenhofer, Palmaz and Fontirroche patent families, and exchanging paid-up licenses for certain intellectual properties.

The Canadian Palmaz patent relates to stents used in the treatment and diagnosis of coronary artery disease. The Ding patents relate to designs for drug eluting stents.  The Kastenhofer and Fontirroche patents pertain to designs for balloon catheters and stent delivery systems. The Pinchuk patent relates to balloon materials.

Johnson & Johnson, Cordis’ parent company, said it expects to record the majority of this payment as a special item during the fourth quarter. Boston Scientific said that the settlement payment would be made from "existing cash on hand."

Due to the settlement, the Bridgewater, N.J.-based Cordis said the pending proceedings under a Canadian Palmaz patent will also be dismissed, in addition to dismissing Boston Scientific’s appeal from the judgment entered in the NIR case.

Cordis and the Natick, Mass.-based Boston Scientific also agreed to dismiss their U.S. and foreign Ding, Fontirroche and Kastenhofer cases, and to exchange paid up licenses under the Ding, Kastenhofer, Fontirroche, Pinchuk and Canadian Palmaz patents.

According to Cordis, other litigation between the two companies will not be affected by this settlement, including the Cordis lawsuit against Boston Scientific related to its Express, Taxus, Taxus Liberte and Promus stents and Cordis’s pending Fischell case against NIR. Boston Scientific’s lawsuit against the Cypher sirolimus-eluting coronary stent under the Jang patent will continue as well.