Summary
Boston Scientific Corporation (BSX) has filed an 8-K report detailing a material definitive agreement. On September 21, 2005, the company reached a settlement with Medinol Ltd. to resolve all outstanding litigation between them. This settlement is significant as it dismisses all stent litigation, including disputes related to the Express™ and TAXUS® Express™ stents. As part of the agreement, Boston Scientific will pay Medinol $750 million.
Key Highlights
- 1Boston Scientific and Medinol Ltd. have settled all outstanding litigation.
- 2The settlement resolves disputes concerning the Express™ and TAXUS® Express™ stents.
- 3Boston Scientific will pay Medinol $750 million as part of the settlement.
- 4All existing claims between the two parties will be mutually released.
- 5Existing agreements between Boston Scientific and Medinol, including their supply agreement, have been canceled.
- 6Medinol has agreed not to sue Boston Scientific under certain patents except through an established arbitration process.
- 7A new arbitration process will be the sole forum for future disputes involving specific Medinol patents, with Medinol limiting relief to reasonable royalties.
Frequently Asked Questions
This 8-K filing is primarily to report on a material definitive agreement where Boston Scientific Corporation settled all outstanding litigation with Medinol Ltd. for $750 million.
The settlement specifically addresses disputes related to the Express™ and TAXUS® Express™ stents.
Key terms include mutual release of all existing claims, cancellation of prior agreements (including the supply agreement), and the establishment of a new arbitration process for future disputes related to certain Medinol patents, where Medinol agrees to limit relief to reasonable royalties.
Medinol has agreed not to sue Boston Scientific under certain patents except through a defined arbitration process, which will be the sole forum for such disputes, and where Medinol has agreed to limit any relief sought to reasonable royalties.