Edwards Lifesciences, a US-headquartered medical technology company, and its rival Abbott have settled their global dispute over an alleged patent infringement relating to a heart valve, including a case filed in Ireland.
Abbott, which employs 3,000 people across nine sites in Ireland, filed the lawsuit in the Commercial High Court in Dublin in February against Edwards, which is developing a facility in Limerick. According to a filing by Edwards in May, Abbott had alleged that Edwards's Pascal heart valve repair system infringes certain claims of its Irish national patent. A trial date had been scheduled for January 12, 2021.
Cases were also filed in countries including the US, UK and Germany.
In Edwards's most recent quarterly results, published last week, it confirmed the Irish case was included in the settlement.
In a call with analysts, Scott Ullem, chief financial officer of Edwards, confirmed the settlement. "This impacts our income statement as well as our cashflow statement. The principal impact to our profit and loss was $368m pre-tax charge in the second quarter," he said.
"In addition, we will incur a total of approximately $100m in royalty expenses between now and May 2024, which will be recorded in cost of sales. The cashflow impact includes a one-time $100m payment to Abbott made earlier this month along with quarterly payments in future years."
Abbott confirmed last month it had reached an agreement with Edwards to settle all outstanding patent disputes between the two companies. It said the deal meant all pending cases or appeals in court and patent offices around the world would be dismissed. It also lifted an injunction placed on the sale of one of Edwards's products.
"In connection with this agreement, Abbott will receive a one-time payment and ongoing payments based on Pascal sales through 2025 as well as a potential sales milestone payment in 2026," read the statement. "Details of the settlement are confidential."
Sunday Indo Business