Sight Sciences Announces Successful $34 Million Patent Infringement Verdict Against Alcon and its Hydrus Microstent for Microinvasive Glaucoma Surgery

Rhea-AI Summary

Sight Sciences, Inc. (Nasdaq: SGHT) won a $34 million patent infringement case against Alcon for their Hydrus Microstent in a positive jury trial verdict. The damages include $5.5 million in lost profits and $28.5 million in royalty damages. The verdict is subject to appeal.

Positive

• Sight Sciences successfully won a $34 million patent infringement case against Alcon for their Hydrus Microstent.

• The jury found that Alcon willfully infringed all three of Sight Sciences' patents.

• The damages awarded include $5.5 million in lost profits and $28.5 million in royalty damages.

Negative

• The verdict is subject to appeal, meaning the final outcome may still be uncertain.

• The judge has not yet ruled on potential enhancement of damages or other remedies.

Insights

Legal Expert

The jury's verdict in favor of Sight Sciences, awarding them $34 million for patent infringement, is a significant legal victory for the company and has implications for Alcon's financials and strategy. The awarded amount bifurcates into $5.5 million for lost profits and $28.5 million for royalty damages, which likely reflects a combination of the commercial success of the Hydrus Microstent and the degree of infringement. The willfulness of the infringement escalates the severity of the case and could lead to enhanced damages, pending the judge's decision. This outcome reinforces the vital role of patent protection in the medical device industry, particularly where substantial R&D investments are at stake. Investors might anticipate potential appeals and further legal expenses, but the verdict also suggests a strong position for Sight Sciences in protecting its IP assets. This case exemplifies the competitive landscape in medical technology and potentially sets precedents for future patent litigation.

Financial Analyst

From a financial perspective, the $34 million verdict is a non-operational windfall for Sight Sciences that could positively impact their cash reserves and earnings per share in the short term. Investors should note the distinction between the one-time nature of this influx and recurrent revenue, but it nevertheless strengthens the company’s balance sheet. Additionally, the verdict may deter competitors, potentially providing Sight Sciences an advantage in the glaucoma treatment market. Although we can't predict the result of an appeal, this initial ruling may encourage settlements in any ongoing or future patent disputes, potentially opening up revenue streams through licensing agreements. Investors should remain cognizant of the costs associated with prolonged litigation and the impact of any potential enhanced damages, which could further benefit Sight Sciences financially, but also might increase the burden on Alcon.

Healthcare Industry Analyst

The ruling is noteworthy not just legally and financially, but also in terms of industry dynamics. Sight Sciences’ ability to secure and enforce patents for its microinvasive surgical glaucoma methods and devices strengthens its market position and could accelerate its growth strategy in surgical glaucoma and dry eye disease. The verdict underscores the value of robust patent portfolios and innovative R&D in the healthcare sector, potentially encouraging further investment in developing novel treatments. Investors should observe how this legal victory might influence Sight Sciences’ operational strategies and collaborations and whether it will lead to increased market share or barriers to entry for competitors. The outcome may also prompt other companies to reassess their IP strategies, potentially leading to an uptick in patent filings and heightened litigation risk in the medical device field.

MENLO PARK, Calif., April 29, 2024 (GLOBE NEWSWIRE) -- Sight Sciences, Inc. (Nasdaq: SGHT) (“Sight Sciences”), an eyecare technology company focused on developing and commercializing innovative, interventional technologies that elevate the standard of care, today announced that it received a positive jury trial verdict of $34 million associated with the patent infringement case it filed on September 16, 2021 against Alcon Inc., Alcon Vision, LLC, Alcon Research, LLC, and Ivantis, Inc. (collectively, "Alcon") in the U.S. District Court for the District of Delaware. Sight Sciences asserted that Alcon’s and Ivantis’ sale of the Hydrus® Microstent infringed three key patents.

The verdict was announced on Friday, April 26, 2024, following a five-day jury trial. The jury found that Alcon willfully infringed all three Sight Sciences’ asserted patents and awarded monetary damages for past infringement. The monetary damages are comprised of $5.5 million in lost profits and $28.5 million in royalty damages for sales of the Hydrus Microstent for the period from its commercial launch through trial. The patents at issue were U.S. Patent Nos. 8,287,482, 9,370,443, and 11,389,328. The judge has not yet ruled on any potential enhancement of damages associated with the willfulness verdict or other remedies. Cooley LLP represented Sight Sciences. This verdict is subject to appeal.

“Ever since Sight Sciences filed its first surgical glaucoma patent application in 2006, the Company has invested considerable capital in research and development to create new and innovative technologies, striving to pioneer novel treatments for chronic eye disease. Our commitment to these investments underscores our mission to expand patient access to transformative and interventional technologies, ultimately elevating the standard of care and enhancing patient outcomes,” said Paul Badawi, co-founder and CEO of Sight Sciences. “Over the past eighteen years, we have pioneered various important and proprietary microinvasive surgical glaucoma methods and devices, including intracanalicular scaffolding, bladeless goniotomy, ab interno canaloplasty, ab interno trabeculotomy, and combinations of these methods. Given the substantial investments we have made in our surgical innovations on behalf of our surgeon customers and glaucoma patients, we believe safeguarding our intellectual property portfolio is paramount, and we are pleased with the jury’s verdict. Our attention remains steadfast on equipping eye care providers with efficacious technologies and executing on our long-term growth strategy in surgical glaucoma and dry eye disease.”

About Sight Sciences
Sight Sciences is an eyecare technology company focused on developing and commercializing innovative and interventional solutions intended to transform care and improve patients’ lives. Using minimally invasive or non-invasive approaches to target the underlying causes of the world’s most prevalent eye diseases, Sight Sciences seeks to create more effective treatment paradigms that enhance patient care and supplant conventional outdated approaches. The Company’s OMNI® Surgical System is an implant-free glaucoma surgery technology (i) indicated in the United States to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and (ii) CE Marked for the catheterization and transluminal viscodilation of Schlemm’s canal and cutting of the trabecular meshwork to reduce intraocular pressure in adult patients with open-angle glaucoma. Glaucoma is the world’s leading cause of irreversible blindness. The SION® Surgical Instrument is a bladeless, manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. The Company’s TearCare® System is 510(k) cleared in the United States for the application of localized heat therapy in adult patients with evaporative dry eye disease due to meibomian gland dysfunction (“MGD”), enabling clearance of gland obstructions by physicians to address the leading cause of dry eye disease. The Company’s SION® Surgical Instrument is a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. Visit sightsciences.com for more information.

Sight Sciences and TearCare are trademarks of Sight Sciences registered in the United States. OMNI and SION are trademarks of Sight Sciences registered in the United States, European Union and other territories. Hydrus is a registered trademark of Alcon Vision LLC.

For more information, visit www.sightsciences.com.

© 2024 Sight Sciences. All rights reserved.

Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements herein include, without limitation, statements concerning the disposition of the patent infringement case and its impact on our business and financial condition, including the final determination of damages, the amount and timing of other remedies, and the outcome of any appeal. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although management believes these forward-looking statements are based upon reasonable assumptions at the time they are made, management cannot guarantee their accuracy or completeness. Forward-looking statements are subject to and involve risks, uncertainties and assumptions that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance, or achievements predicted, assumed or implied by such forward-looking statements. Some of the risks and uncertainties that may cause actual results to materially differ from those expressed or implied by these forward-looking statements are discussed under the caption “Risk Factors” in the Company’s filings with the SEC, as may be updated from time to time in subsequent filings. These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this press release. Sight Sciences undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Investor contact:
Philip Taylor
Gilmartin Group
415.937.5406
Investor.Relations@Sightsciences.com

Media contact:
pr@SightSciences.com

FAQ

What was the outcome of the patent infringement case between Sight Sciences and Alcon?

Sight Sciences won the case, receiving a $34 million verdict against Alcon for patent infringement related to the Hydrus Microstent.

What were the damages awarded to Sight Sciences in the case?

Sight Sciences was awarded $5.5 million in lost profits and $28.5 million in royalty damages.

What patents were involved in the case against Alcon?

The patents at issue were U.S. Patent Nos. 8,287,482, 9,370,443, and 11,389,328.

Who represented Sight Sciences in the case?

Cooley LLP represented Sight Sciences in the patent infringement case against Alcon.

Is the verdict final?

The verdict is subject to appeal, so the final outcome may still change.