Edwards Lifesciences is on the cusp of resolving the longstanding patent dispute with Marlborough, MA-based Company Boston Scientific over the Transcatheter aortic valve replacement device patents. The Irvin, CA based company has agreed pay $180 million as one-time payment to Boston Scientific.
The companies were involved in multiple patent office lawsuits and disputes in Germany, UK and the USA. Under the settlement which was announced on 15 Jan 2019, both the companies have resolved to withdraw the multiple complaints and disputes pending in various courts after Edwards Lifesciences pays the mutually agreed amount to Boston Scientific. However Boston Scientific has not revealed as to how the $180 million figure was decided.
This has cleared the path for relaunching of LOTUS aortic valve device later this year, a significant development after UK’s patent court and German Court gave mixed verdicts on the alleged infringement of Boston’s patent by Edward’s Sapien 3 device and a Delaware Courts verdict affirmed the infringement allegations.
Boston Scientific in 2017 announced the recall of the LOTUS devices due to delay in manufacturing and commercialization timeline. Reuters had forecasted the device sales in the 2017 year to reach between $100 million to $125 million in global annual sales. The LOTUS device is to be used for treating patients with aortic stenosis involves a relatively new development in treatment called transcatheter aortic valve replacement. The surgical which is minimally invasive, blood flow is regulated by replacing the damaged valve by inserting a replacement valve. The American Heart Association believes that it may lead to alleviation of some of the risk factors involved in open heart surgery for high and intermediate risk patients.
Boston Scientific has also recently announced the acquisition of Claret Medical Inc. which is a strategic acquisition considering the company’s extensive involvement in TAVR devices which are FDA- approved and able to filter of debris from the heart during medical procedures. The company is also acquiring Britain’s BTG Plc. for a $4.2 billion. The new settlement is another feather in the cap of Boston’s aggressive Intellectual property rights protection strategy. The settlement has given boost to the stock prices of the company, as Boston’s stock prices rose by over three percent to $36.48. The TAVR device market is expected to reach $6.5 billion by the year 2022. The company is one of the most formidable companies in the industry which in 2018 only undertook 9 new acquisitions along with couple of strategic investments worth $6 billion.