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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Jim Spitz who wrote (36734)	10/23/2001 9:10:08 AM
From: Jim Spitz	Read Replies (1) \| Respond to of 37746

Medtronic lays off 450 in California Published Oct 23 2001 Medtronic Inc. laid off 450 employees at a California manufacturing plant Monday, a move the company said was directly attributable to a patent lawsuit it lost on appeal last month. The laid-off employees had manufactured rapid-exchange balloon catheters and stent delivery systems. On Sept. 18, a U.S. District Court in California affirmed an earlier decision that Fridley-based Medtronic infringed on Boston Scientific Corporation's rapid-exchange patents. The decision called for Medtronic to pay $169 million in damages and to cease U.S. sales of balloon catheters and stent delivery systems that used the rapid-exchange technology. The two companies discussed a possible licensing agreement, but were unable to come to terms. Balloon catheters clear coronary artery blockages and deliver stents, tiny metal tubes that keep the passages open. The ruling affected less than 3 percent of Medtronic annual revenue -- less than $165 million -- and the layoffs affect less than 2 percent of the company's 26,000-person work force. None of Medtronic's 6,000 Minnesota employees will be laid off as a result of the decision. Medtronic said it does not expect to take any one-time charges related to the layoffs. -- Terry Fiedler © Copyright 2001 Star Tribune. All rights reserved.