Axonics Prevails in Patent Infringement Lawsuit with Medtronic

Rhea-AI Summary

Axonics, Inc. (Nasdaq: AXNX) has prevailed in a patent infringement lawsuit brought by Medtronic in the U.S. District Court for the Central District of California. The jury unanimously found that Axonics does not infringe any of the three patents-in-suit. This verdict recognizes the differentiation of Axonics' proprietary tined lead design and temperature sensor technology from Medtronic's intellectual property.

Axonics CEO Raymond W. Cohen stated that the company viewed Medtronic's lawsuit, initiated in late 2019, as an attempt to stifle competition, limit patient and physician choice, and protect Medtronic's monopoly in sacral neuromodulation. Axonics remains focused on its mission to positively impact the lives of adults with bladder and bowel dysfunction.

Positive

• Axonics prevailed in the patent infringement lawsuit against Medtronic
• Jury unanimously found Axonics does not infringe any of the three patents-in-suit
• Verdict recognizes Axonics' proprietary technology as differentiated from competitor's intellectual property

Negative

• None.

Insights

Legal Expert

The jury's unanimous verdict in favor of Axonics is a significant legal victory with substantial implications for the medical device industry. This outcome not only vindicates Axonics' position but also strengthens their market position in the sacral neuromodulation space. The verdict's emphasis on Axonics' proprietary tined lead design and temperature sensor technology being distinct from Medtronic's patents reinforces Axonics' innovation claims.

From a legal standpoint, this decision could deter future patent infringement claims against Axonics and potentially open doors for more competition in the market. It's worth noting that patent litigation in the medical device sector is often complex and costly, making this clear-cut verdict particularly impactful. The court's decision may also influence future patent strategies in the industry, potentially leading to more focused and specific patent claims.

Medical Research Analyst

This verdict has significant implications for innovation in sacral neuromodulation technology. Axonics' differentiated tined lead design and temperature sensor technology represent advancements in patient care for bladder and bowel dysfunction. The court's decision validates Axonics' R&D efforts and could accelerate further innovations in this field.

From a clinical perspective, this outcome is likely to increase physician choice and potentially improve patient outcomes. The recognition of Axonics' unique technology may encourage more healthcare providers to adopt their system, potentially leading to broader treatment options for patients with bladder and bowel dysfunction. This could ultimately result in improved quality of life for many individuals suffering from these conditions.

Financial Analyst

The verdict is a major win for Axonics from a financial perspective. By avoiding potential damages and licensing fees, the company has preserved its financial resources for continued growth and innovation. This outcome is likely to boost investor confidence and could positively impact Axonics' stock price in the short term.

Looking ahead, this legal victory removes a significant overhang on Axonics' business model and growth prospects. It potentially paves the way for increased market share in the sacral neuromodulation market, currently dominated by Medtronic. The decision may also attract new partnerships or investment opportunities for Axonics, as it solidifies their position as a legitimate competitor in this space. Investors should watch for potential acceleration in Axonics' revenue growth and market penetration in the coming quarters.

IRVINE, Calif.--(BUSINESS WIRE)-- Axonics, Inc. (Nasdaq: AXNX) today announced that the jury has returned a unanimous verdict in the patent infringement lawsuit brought by Medtronic against Axonics in U.S. District Court for the Central District of California.

The jury found that Axonics does not infringe any of the three patents-in-suit.

“A jury of our peers recognized that Axonics’ proprietary tined lead design and temperature sensor technology is differentiated from our competitor’s intellectual property,” said Raymond W. Cohen, chief executive officer. “As we have said since this case was first filed in late 2019, our view is that Medtronic’s lawsuit was initiated to stifle competition, limit patient and physician choice, and protect the incumbent’s monopoly in sacral neuromodulation. We are very pleased with the jury’s finding and continue to remain focused on fulfilling our mission of positively impacting the lives of adults with bladder and bowel dysfunction.”

About Axonics

Axonics is a global medical technology company that is developing and commercializing novel products for adults with bladder and bowel dysfunction. Axonics ranked No. 2 on the 2023 Financial Times ranking of the fastest growing companies in the Americas after being ranked No. 1 in 2022.

Axonics^® sacral neuromodulation systems provide adults with overactive bladder and/or fecal incontinence with long-lived, easy to use, safe, clinically effective therapy. In addition, the company’s best-in-class urethral bulking hydrogel, Bulkamid^®, provides safe and durable symptom relief to women with stress urinary incontinence. In the U.S., moderate to severe urinary and bowel incontinence affects tens of millions of adults. For more information, visit www.axonics.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “seek,” “endeavor,” “estimate,” “project,” “continue,” and variations of such words and similar expressions. These forward-looking statements are not guarantees of future performance and involve risks, assumptions, and uncertainties, including, but not limited to, risks related to: Axonics’ ability to consummate the transactions contemplated by the Agreement and Plan of Merger, dated January 8, 2024 (the “Merger Agreement”), by and among Axonics, Boston Scientific Corporation (“Boston Scientific”), and Sadie Merger Sub, Inc., a wholly owned subsidiary of Boston Scientific (“Merger Sub”), providing for the merger of Merger Sub with and into Axonics with Axonics continuing as the surviving company and a wholly owned subsidiary of Boston Scientific (the “Merger”), in a timely manner or at all; the risk that the Merger Agreement may be terminated in circumstances requiring the payment by Axonics of a termination fee; the satisfaction (or waiver) of the conditions to the closing of the Merger; potential delays in consummating the Merger; the occurrence of any event, change or other circumstance or condition that could give rise to termination of the Merger Agreement; Axonics’ ability to timely and successfully realize the anticipated benefits of the Merger; the ability to successfully integrate the businesses of Axonics and Boston Scientific; the effect of the announcement or pendency of the Merger on Axonics’ current plans, business relationships, operating results and business generally; the effect of limitations placed on Axonics’ business under the Merger Agreement; significant transaction costs and unknown liabilities; litigation or regulatory actions related to the Merger Agreement or Merger; FDA or other U.S. or foreign regulatory or legal actions or changes affecting Axonics or Axonics’ industry; the results of any ongoing or future legal proceedings, including the litigation with Medtronic, Inc., Medtronic Puerto Rico Operations Co., Medtronic Logistics LLC and Medtronic USA, Inc. (the “Medtronic Litigation”); any termination or loss of intellectual property rights, including as a result of the Medtronic Litigation; introductions and announcements of new technologies by Axonics, any commercialization partners or Axonics’ competitors, and the timing of these introductions and announcements; changes in macroeconomic and market conditions and volatility, including the risk of recession, inflation, supply chain constraints or disruptions and rising interest rates; and economic and market conditions in general and in the medical technology industry specifically, including the size and growth, if any, of Axonics’ markets, and risks related to other factors described under “Risk Factors” in other reports and statements filed with the U.S. Securities and Exchange Commission (“SEC”), including Axonics’ most recent Annual Report on Form 10-K, which is available on the investor relations section of Axonics’ website at www.axonics.com and on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by federal securities law, Axonics does not assume any obligation nor does it intend to publicly update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918852695/en/

Axonics contact:

Neil Bhalodkar

IR@axonics.com

Source: Axonics, Inc.

FAQ

What was the outcome of the patent infringement lawsuit between Axonics (AXNX) and Medtronic?

The jury returned a unanimous verdict in favor of Axonics, finding that Axonics does not infringe any of the three patents-in-suit brought by Medtronic.

What specific technologies of Axonics (AXNX) were recognized as differentiated in the lawsuit?

The jury recognized Axonics' proprietary tined lead design and temperature sensor technology as differentiated from Medtronic's intellectual property.

When was the patent infringement lawsuit against Axonics (AXNX) initially filed?

According to Axonics CEO Raymond W. Cohen, the lawsuit was first filed by Medtronic in late 2019.

What is Axonics' (AXNX) primary mission in the medical device industry?

Axonics' mission is to positively impact the lives of adults with bladder and bowel dysfunction through their sacral neuromodulation technology.