8-KOther Events

THERMO FISHER SCIENTIFIC INC. 8-K Report, Corporate Update (May 16, 2016)

Filed May 16, 2016For Securities:TMO

Summary

This 8-K filing by Thermo Fisher Scientific Inc. (TMO) on May 16, 2016, announces a significant development regarding a patent infringement lawsuit. Life Technologies Corporation, a wholly-owned subsidiary, has entered into a settlement agreement with Enzo Life Sciences, Inc. This agreement resolves a lawsuit filed in 2012 concerning alleged infringement of Enzo's patents by several Thermo Fisher products, including TaqMan® probes and assays, Dynabead® oligo-dT beads, and various Ion Torrent™ and SOLiD™ components. The settlement involves a payment of $35 million from Thermo Fisher to Enzo. In return, Enzo has released Thermo Fisher from past damages claims and granted a license to use the asserted patent families for its products. This resolution is significant for investors as it provides clarity on potential litigation risks and a substantial financial liability, which was already fully reserved in the company's financial statements as of April 2, 2016. The dismissal of the case will occur upon payment of the settlement amount, marking the end of this long-standing legal dispute.

Key Highlights

  • 1Thermo Fisher's subsidiary, Life Technologies Corporation, settled a patent infringement lawsuit with Enzo Life Sciences, Inc.
  • 2The lawsuit, filed in January 2012, alleged infringement of Enzo's patents by several Thermo Fisher products.
  • 3Thermo Fisher will pay Enzo $35 million to resolve the dispute.
  • 4The settlement includes a release from past damages and a grant of a license to Enzo's asserted patent families.
  • 5The settlement amount of $35 million was already fully reserved in Thermo Fisher's financial statements as of April 2, 2016.
  • 6The lawsuit will be dismissed upon payment of the settlement amount.
  • 7This settlement provides resolution to a significant ongoing litigation matter.

Frequently Asked Questions

The lawsuit was initiated by Enzo Life Sciences, Inc. against Thermo Fisher's subsidiary, Life Technologies Corporation, alleging that several of Thermo Fisher's products, including TaqMan® probes and assays, Dynabead® oligo-dT beads, NCode™ oligonucleotide array products, Ion Torrent™ beads and chips, and SOLiD™ beads and chips, infringed upon Enzo's patents.

Thermo Fisher Scientific Inc. agreed to pay Enzo Life Sciences, Inc. $35 million. In exchange, Enzo released Thermo Fisher from all past damages claims related to the alleged infringement and granted Thermo Fisher a license to use the asserted patent families for its products and those of its affiliates.

Yes, the settlement amount of $35 million had already been fully reserved in Thermo Fisher's consolidated financial statements as of April 2, 2016. This means the financial impact of the settlement was anticipated and reflected in the company's reported financials prior to this announcement.

This settlement resolves a significant legal dispute, eliminating ongoing litigation costs and future potential liabilities related to this specific patent infringement claim. It provides legal certainty for the company's affected products and allows management to focus on operational matters rather than protracted legal battles.