8-KOther Events

Edwards Lifesciences Corp 8-K Report, Corporate Update (Mar 1, 2013)

Filed March 1, 2013For Securities:EW

Summary

Edwards Lifesciences Corporation (EW) announced on February 28, 2013, that it received a significant payment of $83.6 million from Medtronic, Inc. This payment is in full satisfaction of a jury award granted in April 2010 for patent infringement related to the U.S. Andersen transcatheter heart valve patent. The resolution follows a successful affirmation of the judgment by the U.S. Court of Appeals for the Federal Circuit in November 2012, and the subsequent issuance of a mandate in February 2013, making the judgment enforceable. This development is a positive catalyst for Edwards Lifesciences, representing a substantial cash inflow and a successful resolution of a long-standing legal dispute. While the initial payment covers damages up to the April 2010 award, the company retains the right to seek additional damages for the period after the award and to pursue a permanent injunction. Investors should monitor any further developments regarding these additional damages and the injunction request.

Key Highlights

  • 1Edwards Lifesciences received $83.6 million from Medtronic on February 28, 2013.
  • 2The payment settles a jury award from April 2010 for patent infringement of the U.S. Andersen transcatheter heart valve patent.
  • 3The U.S. Court of Appeals for the Federal Circuit affirmed the judgment in November 2012.
  • 4A court mandate was issued in February 2013, making the judgment enforceable.
  • 5Edwards Lifesciences may still seek additional damages for the period after April 2010.
  • 6The company can also pursue a permanent injunction against Medtronic.

Frequently Asked Questions

This 8-K filing is to report that Edwards Lifesciences has received a $83.6 million payment from Medtronic, settling a patent infringement case related to the U.S. Andersen transcatheter heart valve patent.

No, the payment satisfies the jury award from April 2010, including accrued interest. However, Edwards Lifesciences can still seek additional damages for the period after the April 2010 award and has the opportunity to request a permanent injunction.

The U.S. Court of Appeals for the Federal Circuit affirmed the original jury's judgment and then issued a mandate that makes the judgment officially enforceable, paving the way for the payment and further legal proceedings.

Edwards Lifesciences will proceed with efforts to assess additional damages for the post-April 2010 period and to argue for a permanent injunction.