Hologic, a developer, manufacturer and supplier of premium diagnostics, medical imaging systems and surgical products, has entered into a settlement agreement with Ethicon Endo-Surgery (EES), a Johnson & Johnson company.
Hologic said that the settlement includes two lawsuits filed by EES on October 5, 2007 and August 6, 2009 against it and its wholly-owned subsidiary, Suros Surgical Systems, alleging patent infringement by the ATEC and EVIVA biopsy products, as well as a lawsuit filed by Hologic on April 30, 2009 against EES, alleging patent infringement by the Mammotome MR biopsy device.
As a result of the settlement agreement entered into on February 17, 2010, all litigation between the parties has been dismissed, without acknowledgment of liability by either party. While details of the agreement are confidential, under the terms of the settlement agreement, EES has agreed to pay Hologic ongoing royalties for sales of its Mammotome MR.
In addition, Hologic has agreed to pay EES the amount of $12.5m, plus ongoing royalties for sales of its ATEC and EVIVA hand pieces. The company anticipates that it will record a charge of up to $12.5m related to this settlement in its results of operations for the quarter ending March 27, 2010.
Mark Casey, senior vice president and general counsel, said: “Based upon the mutual agreement by both parties, we feel the settlement reached is in the best interest of the Company and its shareholders. We are pleased to end all outstanding legal matters between Hologic and EES and to move forward under the settlement agreement.”