Edwards Lifesciences, Medtronic Agree to Global Transcatheter Valve Litigation Settlement
May 20 2014 - 7:15AM
Marketwired
Edwards Lifesciences, Medtronic Agree to Global Transcatheter Valve
Litigation Settlement
All Patent Litigation Between the Companies to Be Dismissed
IRVINE, CA--(Marketwired - May 20, 2014) - Edwards Lifesciences
Corporation (NYSE: EW), the global leader in the science of heart
valves and hemodynamic monitoring, today announced that the company
has reached an agreement with Medtronic to settle all outstanding
patent litigation between the companies, including cases related to
transcatheter heart valves. The agreement will result in the
dismissal of all pending cases or appeals in courts and patent
offices worldwide, and includes a provision that the parties will
not litigate patent disputes with each other in the field of
transcatheter valves for the eight-year duration of the
agreement.
"We are pleased to reach an agreement that preserves physician
choice while also recognizing Edwards' leadership in pioneering the
transcatheter heart valves that are chosen most often by physicians
worldwide. This agreement allows us to move forward, fully
dedicating our time and resources to helping patients," said
Michael A. Mussallem, Edwards' chairman and CEO.
Under the terms of a patent cross-license agreement that is part
of the settlement, Medtronic will make a one-time payment to
Edwards of $750 million. Additionally, Medtronic will pay Edwards
quarterly license royalty payments through April 2022. These
payments will be based on a percentage of Medtronic CoreValve
sales, subject to a minimum annual payment of $40 million.
Edwards will contribute $50 million from the settlement to the
Edwards Lifesciences Foundation to support efforts to improve
patient care, raise disease awareness and educate clinicians, such
as through its Every Heartbeat Matters philanthropic program.
Additional information related to this settlement can be found
in the Form 8-K filed today.
About Edwards
Lifesciences
Edwards Lifesciences is the global leader in the science of
heart valves and hemodynamic monitoring. Driven by a passion to
help patients, the company partners with clinicians to develop
innovative technologies in the areas of structural heart disease
and critical care monitoring, enabling them to save and enhance
lives. Additional company information can be found at
www.edwards.com.
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements include, but are not limited to,
statements by Mr. Mussallem, statements regarding expectations for
the agreement's impacts and plans for charitable contributions.
Forward-looking statements are based on estimates and assumptions
made by management of the company and are believed to be
reasonable, though they are inherently uncertain and difficult to
predict. Our forward-looking statements speak only as of the date
on which they are made and we do not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of the statement. If the company does
update or correct one or more of these statements, investors and
others should not conclude that the company will make additional
updates or corrections.
Forward-looking statements involve risks and uncertainties that
could cause actual results or experience to differ materially from
that expressed or implied by the forward-looking statements.
Factors that could cause actual results or experience to differ
materially from that expressed or implied by the forward-looking
statements include uncertainties associated with unanticipated
outcomes and implications of the agreement, and other risks
detailed in the company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year
ended December 31, 2013 and subsequent reports on Forms 10-Q and
8-K.
Edwards, Edwards Lifesciences and the stylized E logo are
trademarks of Edwards Lifesciences Corporation.
Media Contact: Sarah Huoh 949-250-5070
Investor Contact: David K. Erickson 949-250-6826
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