Judge Affirms Rulings Denying Medtronic, NuVasive Motions
January 27 2012 - 1:42PM
Dow Jones News
A federal court judge has denied Medtronic Inc.'s (MDT) effort
to seek a permanent injunction against spinal-product competitor
NuVasive Inc. (NUVA), plus other motions from the companies in a
case that has raised concerns for NuVasive investors.
The new order from Judge Michael M. Anello of the U.S. District
Court for the Southern District of California, made Thursday,
affirmed a tentative ruling a day earlier denying a handful of
motions from the companies.
Last September a jury awarded Medtronic $101.2 million in
damages after ruling NuVasive infringed three spinal-device
patents. Concerns about an injunction, which can halt product
sales, have pressured NuVasive shares in recent months, but
Wednesday's preliminary ruling sent its shares up 19% on the
day.
NuVasive shares slipped 4.5% on Thursday and were down 2 cents
to $15.59 in recent trading Friday.
Piper Jaffray analyst Matt Miksic said that with the threat of
the injunction reduced, "investors will likely be more comfortable
focusing on fundamentals and once again considering new positions
in NuVasive."
The judge also denied some NuVasive motions, including a
counterclaim for inequitable conduct. NuVasive in a regulatory
filing said the remaining issues in this phase of the case are to
determine ongoing royalty rates and lost profits, if any, it has to
pay Medtronic for lost sales after the verdict.
NuVasive expects the court will determine the timeline for these
issues in late February or early March.
Medtronic said it was pleased the court denied NuVasive's
request to overturn the verdict and deny a request for a new
trial.
"We are considering an appeal with respect to the ruling around
the permanent injunction," Medtronic said.
Medtronic is the largest stand-alone medical-device maker and
the biggest maker of devices and implants used in spinal surgery,
while NuVasive is a smaller rival focused on spinal products.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com
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