News | April 20, 2009

Courts Decide on Boston Scientific, Johnson & Johnson Stent Patent Disputes

April 20, 2009 - Boston Scientific recently disclosed the Court of Appeals for the Federal Circuit upheld the District Court’s decision that Johnson & Johnson’s (J&J) Bx Velocity and Cypher stents infringe Boston’s patent.

In March the Appeals Court reversed the District Court with respect to J&J’s infringement claims against the TAXUS Liberte Stent and instructed the District Court to dismiss those claims with prejudice. Boston Scientific expects to receive a favorable financial award based on the Appeals Court’s ruling, but in accordance with accounting regulations the company will wait until payment is assured before recording any related gain.

However, the Court of Appeals also affirmed the District Court’s decision that Boston Scientific’s Express, TAXUS Express and Liberte stents infringe one J&J patent. The court also affirmed that Boston Scientific’s Liberte stent infringes a second J&J patent. The company will record an accrual of $237 million ($197 million after-tax) in the first quarter for its estimated exposure on this ruling, in accordance with accounting regulations. This amount represents an estimate of the low end of the range of potential outcomes related to this matter. The range is subject to substantial estimation, including attempting to determine the possible future findings of a jury. As such, the high end of the range cannot be reasonably estimated at this time, the company said.

A damages trial on the above infringements has not been scheduled. No payments are expected to be due until 2010 or later, from either Boston Scientific or J&J.

"We were gratified the appeals court upheld the finding that the BX Velocity and Cypher stents infringe our patent,” said Jim Tobin, president and chief executive officer of Boston Scientific. "We believe this ruling has the potential to result in a significant award from J&J. More broadly, the ultimate resolution of these matters will represent a further reduction in the risk and uncertainty associated with outstanding litigation."

On March 16, the company said it had agreed to settle all outstanding litigation with Bruce N. Saffran, M.D., Ph.D, after a federal court jury in Texas found that the company’s TAXUS Express and TAXUS Liberte stents infringe Dr. Saffran’s patent. The court awarded him damages of $431 million, plus $69 million in pre-judgment interest. However, the company said the settlement calls for a $50 million payment ($43 million after-tax) in the first quarter, and Boston said it does not plan to record any additional charges in relation to this settlement.

The company also announced it will record restructuring and restructuring-related charges of $37 million ($26 million after-tax) in the first quarter associated with its previously announced plant network optimization and expense and staff reduction initiatives.

Boston Scientific also announced it will record a net gain of $63 million (on both a pre-tax and after-tax basis) in the first quarter related to the resolution of the rate of taxation on proceeds received by the Company in 2008 for one of its divested businesses.

For more information:

Related Content

Medtronic Announces Global Resolute Onyx DES One-Month DAPT Study
News | Antiplatelet and Anticoagulation Therapies| August 18, 2017
Medtronic plc announced a global randomized clinical trial that will evaluate one-month dual antiplatelet therapy (DAPT...
Abbott Initiates XIENCE Short DAPT Clinical Trial
News | Antiplatelet and Anticoagulation Therapies| August 03, 2017
Abbott recently announced the first patient has been enrolled in a clinical study evaluating the short-term use of...
FDA Approves Six-Month Primary Endpoint for Tack Endovascular System in Below the Knee Disease
News | Stents Peripheral| July 14, 2017
Intact Vascular Inc. announced the U.S. Food and Drug Administration (FDA) approved an Investigational Device Exemption...
Onyx DES 2.0 mm stent meets primary endpoints in small vessels
News | June 12, 2017
June 12, 2017 – The Medtronic Resolute Onyx Drug-Eluting Stent (DES) met its primary endpoint of target lesion failur
First Pennsylvania Patient Treated in LEADERS FREE II Trial of BioFreedom Drug-Coated Stent
News | Stents Drug Eluting| May 12, 2017
PinnacleHealth CardioVascular Institute enrolled the first patient in Pennsylvania in a trial assessing the safety and...
Resolute Onyx DES, drug eluting stent, medtronic, gains FDA approval
Technology | Stents Drug Eluting| May 01, 2017
May 1, 2017 — The U.S.
Sponsored Content | Videos | Stents Drug Eluting| May 01, 2017
This video, provided by Medtronic, demonstrates the Resolute Onyx coronary stent.
Tryton Medical, Side Branch Stent, first U.S. commercial case, New York-Presbyterian Hospital, Columbia University Medical Center
News | Stents Bifurcation| March 31, 2017
Tryton Medical Inc. recently announced that the first U.S. commercial case using the Tryton Side Branch Stent was...
Sponsored Content | Videos | Stents Bioresorbable| March 30, 2017
Stephen Ellis, M.D., professor of medicine and director of interventional cardiology at Cleveland Clinic, discusses t
Overlay Init