Under the settlement agreement, J&J, which sought about $7bn in damages, has agreed to permanently dismiss its action without acknowledgment of liability by Guidant.

Boston Scientific will pay around $600m to J&J, which will be excluded from its non-GAAP measures of adjusted income that were previously announced.

The company has also agreed not to bring patent infringement or other claims related to J&J’s SMART, SMART Control and SMART Flex stent products.

Boston Scientific, executive vice-president, chief administrative officer, general counsel and secretary Tim Pratt said: "We feel this settlement is in the best interests of the company and its shareholders.

"We are pleased to end this longstanding litigation between Guidant and Johnson & Johnson, and to continue focusing on delivering innovative products and solutions to physicians and patients."

Guidant develops and manufactures artificial cardiac pacemakers, implantable cardioverter-defibrillators, stents, and other cardiovascular medical products.