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Medtronic will settle Abbott stent suit for $400 million

July 27, 2009
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Medtronic Inc. has agreed to pay Abbott Laboratories $400 million to settle patent lawsuits related to the design of artery-opening stents, some of the most lucrative medical devices marketed by either company, reports the Associated Press. The two companies agreed not to sue each other for at least 10 years over matters related to stents. Medtronic said it will take an unspecified charge in its fiscal first quarter. Medtronic will also make a $42 million payment to privately held evYsio Medical Devices, as part of a sublicense to Abbott of evYsio''s stent design. Minneapolis-based Medtronic said the agreement settles all outstanding coronary stent litigation between the companies. Abbott said the litigation between the two companies dates to 1998, and involves lawsuits in the U.S. and Europe, all of which are now settled. It said the patents related to the design of stents, their manufacture and use, and the systems that help physicians insert them into the body of a patient. Abbott will record a one-time gain in the third quarter from the settlement. Both Medtronic and Abbott market drug-coated stents, which leak drugs to prevent arteries from reclogging regrowth.

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