OraSure Technologies, Inc. (OraSure Technologies) has settled patent infringement lawsuit filed by Inverness Medical Innovations, Inc. (Inverness Medical), Inverness Medical Switzerland GmbH, and Church & Dwight, Co., Inc. Under the terms of the settlement, OraSure Technologies will pay Inverness a sum of $3 million in cash and Inverness has agreed to grant OraSure Technologies certain licenses to its lateral flow patents.
In addition, each party has received distribution rights to certain products supplied by the other party. Terms of the settlement include the following:
The grant to OraSure of a worldwide, non-exclusive, royalty- bearing, lateral flow patent license (subject to a royalty-free period) for the OraQuick HIV-1/2 test and other visually- read HIV lateral flow products in the professional market;
The grant to OraSure of a worldwide, non-exclusive, royalty- bearing, lateral flow patent license (subject to a royalty- free period) for the OraQuick HCV test and other visually read HCV lateral flow products in the professional market;
The grant to OraSure of a worldwide, non-exclusive, royalty- bearing, license to Inverness lateral flow patents for visually-read products for the detection of certain infectious diseases, metabolic disorders, cancer and autoimmune disorders;
The grant to OraSure of non-exclusive rights to distribute in the US as private label products certain rapid, point-of-care, flu, strep, drugs of abuse and pregnancy tests manufactured by Inverness;
A right of first negotiation during the 120-day period following the settlement effective date for OraSure to negotiate the terms for the marketing and distribution of the OraQuick HIV-1/2 test on an exclusive basis in the over-the- counter markets worldwide with the consumer diagnostics joint venture between Proctor & Gamble and Inverness; and
The grant to Inverness of exclusive distribution rights to the OraQuick HCV test in the employee health services and home healthcare markets and in acute care clinics located in pharmacies and other mass retail outlets in the US.
Updated Financial Guidance
As a result of the litigation settlement, the Company now expects its net loss for the fourth quarter of 2009 to be $0.10 to $0.11 per share.
OraSure Technologies develops, manufactures and markets oral fluid specimen collection devices and tests and other diagnostic products.