A Medical Device Daily
Medtronic (Minneapolis) said it has completed its $1.35 billion acquisition of substantially all of the spine-related intellectual property that had belonged to Karlin Technology and Gary Michelson, MD, and related contracts, rights and tangible materials.
The transaction, agreed upon last month (Medical Device Daily, April 25, 2005), received early termination of the waiting period under the Hart-Scott-Rodino Act.
Consummation of the deal resolves all outstanding litigation and disputes between the parties.
After a three-month trial that ended in October 2004, a jury in Memphis issued a ruling awarding nearly $510 million in punitive and compensatory damages to Michelson, a spinal surgeon and inventor, and Karlin Technology, a company he founded, in their lawsuit against the Medtronic Sofamor Danek (Memphis, Tennessee) unit of Medtronic.
The jury ruled that Medtronic Sofamor Danek had breached purchase and license agreements between the parties, engaged in wrongful conduct, infringed six patents owned by Michelson and intentionally underpaid royalties.
The jury found, specifically, that Medtronic Sofamor Danek had infringed Michelson’s and Karlin Technology’s patents covering the company’s Interfix Threaded Fusion Device System, LT Cage implant, Affinity Cervical Threaded Cage System and Infuse bone graft and other products.
The total compensation falls short of the $1.7 billion in damages Michelson originally sought when he claimed that Medtronic breached a patents agreement he made with spinal implant maker Sofamor Danek a decade ago, before it was acquired by Medtronic in 1999.
The acquisition involves the transfer of ownership of more than 100 issued U.S. patents, over 110 pending U.S. applications and about 500 foreign counterparts to Medtronic.
The patents pertain to spinal technology and techniques that have both current application and the potential for future patentable commercial products, Medtronic said.
Dental products maker Dentsply International (York, Pennsylvania) reported two acquisitions.
In the first deal, the company said it has acquired Glenroe Technologies (Bradenton, Florida), a manufacturer of orthodontic accessory products including elastic force materials, specialty plastics and intricate molded plastic parts.
The buy includes Glenroe’s Neoclips, a new product used with Dentsply’s recently launched interactive Mystique bracket.
Dentsply said it expects the acquisition will add between $7 million and $8 million to its annual sales and be neutral to slightly accretive to earnings in 2005.
The company also reported the acquisition of the orth-odontic products business of Raintree Essix (New Orleans), a maker of specialty plastic sheets used in retainers and in minor tooth movement orthodontic treatment, as well as other accessories for the orthodontic market.
Dentsply said that deal also is expected to add roughly $7 million to $8 million in annual sales and be neutral to slightly accretive to earnings in 2005.