Abbott Agrees to Global Transcatheter Litigation Settlement with Edwards Lifesciences

Rhea-AI Summary

Abbott (NYSE: ABT) announced a settlement with Edwards Lifesciences Corporation to resolve all patent disputes related to transcatheter mitral and tricuspid repair products. The agreement dismisses all ongoing cases and prohibits future litigation in this field for ten years. Abbott will receive a one-time payment and ongoing payments based on Pascal sales through 2025, plus a potential milestone payment in 2026. This resolution lifts injunctions against Edwards' sales of their repair systems, allowing both companies to focus on business growth.

Positive

• Settlement resolves all patent disputes, reducing legal uncertainties.
• Abbott to receive one-time and ongoing payments based on Pascal sales through 2025.

Negative

• None.

ABBOTT PARK, Ill., July 13, 2020 /PRNewswire/ -- Abbott (NYSE: ABT) announced today it has reached an agreement with Edwards Lifesciences Corporation to settle all outstanding patent disputes between the companies in cases related to transcatheter mitral and tricuspid repair products.

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 mitral and tricuspid repair and replacement products for the 10-year duration of the agreement. The injunctions currently in place against the sale of Edwards' transcatheter mitral and tricuspid repair system will be lifted.  

In connection with this agreement, Abbott will receive a one-time payment and ongoing payments based on Pascal sales through 2025 as well as a potential sales milestone payment in 2026.

Details of the settlement are confidential.

About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 107,000 colleagues serve people in more than 160 countries.

Connect with us at -1%26h%3D3770603320%26u%3Dhttp%253A%252F%252Fwww.abbott.com%252F%26a%3Dwww.abbott.com&a=www.abbott.com" rel="nofollow">www.abbott.com, on LinkedIn at -1%26h%3D3675583196%26u%3Dhttp%253A%252F%252Fwww.linkedin.com%252Fcompany%252Fabbott-%252F%26a%3Dwww.linkedin.com%252Fcompany%252Fabbott-%252F&a=www.linkedin.com%2Fcompany%2Fabbott-%2F" rel="nofollow">www.linkedin.com/company/abbott-/, on Facebook at -1%26h%3D4230030351%26u%3Dhttp%253A%252F%252Fwww.facebook.com%252FAbbott%26a%3Dwww.facebook.com%252FAbbott&a=www.facebook.com%2FAbbott" rel="nofollow">www.facebook.com/Abbott and on Twitter @AbbottNews and @AbbottGlobal.

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SOURCE Abbott

FAQ

What is the recent settlement agreement between Abbott and Edwards Lifesciences about?

Abbott and Edwards Lifesciences reached an agreement to settle all patent disputes related to transcatheter mitral and tricuspid repair products, dismissing ongoing cases and preventing future litigation for ten years.

How will the Abbott and Edwards Lifesciences settlement affect their products?

The agreement lifts injunctions against Edwards' transcatheter mitral and tricuspid repair systems, allowing sales to resume while both companies focus on their markets.

What financial benefits does Abbott gain from the settlement with Edwards Lifesciences?

Abbott will receive a one-time payment and ongoing payments tied to Pascal sales through 2025 and could receive a potential milestone payment in 2026.

How long will Abbott and Edwards Lifesciences avoid patent litigation?

The settlement prohibits patent litigation between Abbott and Edwards Lifesciences in the relevant field for ten years.