Biotech Values

[DewDiligence]

NMTI settles with long-standing
competitor, but they don’t get
much for their trouble.

http://biz.yahoo.com/prnews/060328/netu014.html?.v=51

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NMT Medical Announces Settlement of Patent Infringement Lawsuit Against AGA Medical

Tuesday March 28, 7:48 am ET

Agreement includes $30 million payment to NMT that will be shared with inventor

BOSTON, March 28 /PRNewswire-FirstCall/ -- NMT Medical, Inc. (Nasdaq: NMTI ), an advanced medical technology company that designs, develops, manufactures and markets proprietary implant technologies that allow interventional cardiologists to treat cardiac sources of migraine headaches, stroke and other potential brain attacks, announced today that the Company, along with Lloyd A. Marks, MD ("Dr. Marks"), has settled its outstanding patent litigation with AGA Medical Corporation ("AGA").

In the suit originally filed in March 1999, NMT claimed that AGA manufactured and distributed a septal occlusion device that violated U.S. patent No. 5,108,420. NMT is the exclusive licensee of this patent, which was issued to Dr. Marks in 1992.

In exchange for a cash payment of $30 million to NMT, AGA has been granted a nonexclusive sublicense to the patent involved in the litigation. The cash payment will be shared equally, after NMT's legal fees and expenses, by NMT and Dr. Marks. All parties agreed to have the case dismissed with prejudice and also agreed to a general release of any and all claims.

"We are pleased to reach a favorable settlement and to have the long-running patent litigation concluded," said NMT Medical President and Chief Executive Officer John E. Ahern. "Management is now in a better position to focus its energies on expanding its leadership in the emerging PFO (patent foramen ovale) closure market opportunity. The settlement will also provide us with additional flexibility to accelerate investments in our ongoing PFO closure clinical trials, new technology initiatives, and future sales and marketing programs."
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