Johnson & Johnson Receives $1.73 Billion in Settlement from Rival Boston Scientific
February 1, 2010
The Associated Press reports Boston Scientific Corp. will pay medical device rival Johnson & Johnson $1.73 billion to settle two suits related to stent patents, with $1 billion paid now and the remainder to be paid next January. Johnson & Johnson, based in New Brunswick, N.J., said it expects to post most of the payment as a special item in the first quarter. The lawsuits had been pending in U.S. District Court in Delaware. They involved several drug-coated stents, including Cordis''s Cypher stent and Boston Scientific''s Liberte, Taxus Liberte and Taxus Express stents. Stents are mesh-wire tubes used to hold arteries open after they are surgically cleared of blockages. They became one of the most lucrative medical devices in modern history after companies began adding drug coatings in 2003 to prevent scar tissue from growing over the mesh. Other litigation between the companies remains, including Cordis lawsuits against Boston Scientific''s Promus stent products. Last month the U.S. District Court of Delaware found four Promus patents challenged by J&J to be invalid. The companies are familiar patent case foes. In September, Boston Scientific agreed to pay Johnson & Johnson $716 million to settle 14 other patent infringement suits.