J&J scores $1.2 bil. in stent patent fight
This article was originally published in The Gray Sheet
Executive Summary
Appeal of a $1.2 billion stent patent infringement judgment in favor of Johnson & Johnson/Cordis is the next step for defendants Boston Scientific and Medtronic. Final judgment entered in Delaware federal court Sept. 30 calls for Boston Scientific to pay $703 million in damages and pre-judgment interest, and Medtronic to pay $521 million. The award follows jury findings in 2000 and 2005 that the firms infringed J&J's Palmaz patent. An Oct. 1 report from Morgan Stanley analyst David Lewis suggests that the legal ruling, while "not insignificant," is "manageable" for Boston Scientific and Medtronic, in part since both firms have already established some reserves to help pay the costs and they will look to appeal. The companies no longer offer stents using the infringing platforms (1"The Gray Sheet" Sept. 22, 2008, In Brief)