Boston Scientific wins $169 million in patent arbitration
Bloomberg News
Thursday, July 19, 2001
NATICK, MASS. -- Boston Scientific Corp., which makes medical devices including products used to clear heart arteries, said an arbitration panel awarded it $169
million in a patent dispute against Medtronic Inc.
The panel said Medtronic willfully infringed on Boston Scientific's patent for rapid-exchange stent delivery systems and balloon-dilatation catheters. The panel also
ordered Medtronic to pay costs and attorneys' fees and issued an injunction blocking Medtronic from selling the infringing products as long as Boston Scientific owns
the patent.
Medtronic said it was disappointed with the ruling. The company said the decision affects products that generate less than 3 percent of its worldwide sales. Medtronic
had $5.55 billion in sales for the year ended April 27.
Medtronic, based in Fridley, said sales of the company's top-selling stents will continue because they are available on other delivery systems, and foreign sales aren't
affected by the ruling.
Medtronic had claimed it owned the right to use the patents when it bought the angioplasty business of C.R. Bard Inc., which in turn had gained a licensing agreement
during patent litigation with Schneider USA Inc. Boston Scientific bought Schneider in 1998 from Pfizer Inc. The arbitration panel said Medtronic's
rapid-exchange catheter isn't covered by the agreement.
Larry Best, Boston Scientific's chief financial officer, said the company was pleased with the ruling.
Stents are inserted into arteries on tiny wires and expanded with an angioplasty balloon to help keep blood flowing through arteries. More than 1 million people have
received stents, a minimally invasive alternative to open-heart surgery.
Boston Scientific shares fell 1 cent to $17.97. Medtronic shares rose 20 cents to $47.30. The announcement came after the close of regular trading.
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