Edwards Lifesciences, Medtronic Agree to Global Transcatheter Valve Litigation
All Patent Litigation Between the Companies to Be Dismissed
IRVINE, CA -- (Marketwired) -- 05/20/14 -- 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.
David K. Erickson
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