In August, Medtronic was forced to remove its CoreValve percutaneuous heart valves from the market in Germany in light of a ruling that found that the device infringed on patents held by Edwards Lifesciences. A German appeals court, however, has restored Medtronic's right to sell the CoreValve and CoreValve Evolut products in the local market. Before Medtronic can do so, however, it must post a €5 million bond.
The news is a significant win for Medtronic. While monetary damages linked to patent litigation can be in the tens of millions of dollars, an injunction that blocks product sales can be more costly to device firms' bottom line.
The crux of the case centered around the so-called Spenser patent EP 2 055 266 B1, which is valid until October 2022. That patent describes a device described in the patent as:
a support stent, comprised of a deployable construction adapted to be initially crimped in a narrow configuration suitable for catheterization through the body duct to a target location [...] and a valve assembly comprising a flexible conduit having an inlet end and an outlet, made of pliant material attached to the support beams providing collapsible slack portions of the conduit at the outlet.
Analyst Danielle Antalffy, director, medical supplies and devices of Leerink Swann Research expected the news to be somewhat positive financially for Medtronic and somewhat negative for Edwards. On November 15, Medtronic's stock fell slightly by 0.29 to $58.55. Edwards' stock ticked up by 1.42 to $64.99.
Last year, Edwards had attempted to block the sales of the CoreValve in the United States, which has yet to obtain FDA approval. A court in Delaware dismissed the injunction but the Federal Circuit Court recommended that it be reconsidered.
Medtronic had been required to pay Edwards Lifesciences $83.6 million as part of a settlement for a previous patent quarrel.
In related news, on November 15, Boston Scientific announced first commercial implants of its Lotus transcathether valv in Germany.
