A Medical Device Daily
AngioDynamics (Queensbury, New York), a provider of devices used by interventional radiologists, nephrologists and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease, reported that it has entered into an agreement that settles all patent litigation with VNUS Medical Technologies (San Jose, California).
AngioDynamics has agreed to pay VNUS roughly $6.8 million and a royalty, payable quarterly, on U.S. sales of NeverTouch VenaCure products from June 1, 2008, until the expiration date of the applicable patents.
In exchange, VNUS has granted AngioDynamics a non-exclusive and non-sublicenseable license to the applicable patents for use in endovenous laser therapy. All litigation between the parties will be dismissed.
"This settlement with VNUS allows us to avoid the ongoing risks and expenses of a trial," said Eamonn Hobbs, president/CEO of AngioDynamics. "More importantly, the settlement marks the end of our litigation in the endovenous laser market for the treatment of varicose veins. With this, we can now focus on this rapidly growing market without the distraction of litigation."
As a result of the settlement, AngioDynamics will record a litigation expense of about $6.8 million pre-tax and $4.2 million after-tax in 4Q08, amounting to 17 cents a share. The amount of the on-going royalty is considered confidential information.
In October 2005, VNUS added AngioDynamics and Vascular Solutions to a lawsuit originally commenced against Diomed (Andover, Massachusetts), alleging their infringement of patent numbers 6,258,084; 6,638,273; 6,752,803; and 6,769,433, all of which relate to the endovascular treatment of varicose veins.