Summary
Church & Dwight Co., Inc. (CHD) announced on September 24, 2009, a significant settlement agreement resolving all outstanding patent litigation concerning pregnancy diagnostic test kits. This agreement, effective September 17, 2009, involves Abbott Laboratories and Surmodics, Inc. The key financial impact for investors is the $27 million payment to be received from Abbott Laboratories within 30 days. This settlement also includes mutual releases for past damages related to the litigated patents and ensures that Abbott and Surmodics will not pursue future intellectual property claims against Church & Dwight regarding the manufacture and sale of the products in question. The company expects to recognize this settlement amount, net of legal expenses, in its third-quarter results for the period ending September 25, 2009.
Key Highlights
- 1Church & Dwight (CHD) settled all patent litigation related to pregnancy diagnostic test kits.
- 2Abbott Laboratories will pay $27 million to Church & Dwight within 30 days of the September 17, 2009 settlement date.
- 3The settlement includes mutual releases for all past damages claims by the involved parties.
- 4Abbott and Surmodics have agreed not to sue Church & Dwight on intellectual property related to current product manufacturing and sales.
- 5The company will record the net settlement payment in its Q3 2009 earnings.
- 6This resolution brings finality to the protracted patent dispute.