Summary
Boston Scientific Corporation (BSX) has announced the settlement of over a dozen intellectual property lawsuits with Johnson & Johnson, primarily concerning the interventional cardiology sector. The company will pay $716 million to Johnson & Johnson to resolve these disputes, which include cross-licenses for relevant patents, excluding the now-expired Palmaz patent. This significant settlement amount will be funded from the company's existing cash reserves and is already accounted for within the existing reserve established for the Palmaz-NIR suit. The settlement brings closure to a substantial portion of intellectual property litigation, which is a positive development for the company's legal and operational stability. Investors should note the financial impact of the settlement and the company's ability to fund it from existing resources.
Key Highlights
- 1Settlement of over a dozen intellectual property lawsuits with Johnson & Johnson.
- 2Litigation primarily involved the interventional cardiology arena.
- 3Boston Scientific will pay Johnson & Johnson $716 million.
- 4Settlement includes cross-licenses for all patents in dispute, except the expired Palmaz patent.
- 5The $716 million payment is within the company's existing reserve for the Palmaz-NIR suit.
- 6The settlement will be funded from existing cash on hand.
- 7The event date for the earliest reported event was September 29, 2009.