Edwards will make payments to Abbott and be allowed to sell Pascal transcatheter repair system
Abbott and Edwards Lifesciences Corp. announced Monday that they have agreed to settle all outstanding patent disputes involving transcatheter mitral and tricuspid valve repair devices.
Abbot said in a news release that it will receive a one-time payment and ongoing payments based on sales of Edwards’ Pascal transcatheter valve repair system through 2025 as well as a potential sales milestone payment in 2026.
Edwards said in its own news release that the company will record a one-time settlement expense in the quarter that ended June 30, 2020 and that Edwards will incur royalty expenses through May 2024.
Both companies the agreement means that all pending cases or appeals in courts and patent offices worldwide will be dismissed. The settlement also 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 agreement’s 10-year duration. Injunctions currently in place against the sale of Edwards' transcatheter mitral and tricuspid repair system will be lifted.
“Edwards considers this agreement a positive development, as it allows the company to fully dedicate time and resources to helping patients,” that company’s news release states.
Abbott filed a federal lawsuit against Edwards in January 2019 alleging that the Pascal system infringed on five of Abbott’s U.S. patents.
The Pascal system has received the CE mark for sale in Europe but is not approved for sale in the U.S.
Abbott and Edwards said the terms of the settlement are confidential.