(BSX) Boston Scientific Corporation Settles Patent Infringement With Johnson & Johnson
Boston Scientific Corporation (BSX) yesterday announced that it will settle fourteen patent infringement lawsuits against Johnson & Johnson (JNJ) related to the use of stents in treating heart disease for $716.3 million. The company will make use of cash held in its legal reserve to make the payment.
The payment will be made to Johnson & Johnson’s subsidiary, Cordis Corporation. Boston will report a substantial portion of the payment as a special item in the fourth quarter of 2009.
Boston is a market leader in the stent market. A stent is a metal tube used in surgical operations to open-up blocked arteries. Some of these fourteen settled lawsuits are related to Boston’s famous Palmaz-NIR suit, particularly the NIR suit.
We think that despite the huge settlement charges Boston will benefit from settling these long-pending litigations, which had created an overhang on the company’s operations. Furthermore, the company has already hedged itself against such expenses by creating a legal reserve. Boston reported revenues of $2,074 million in the second quarter of 2009, an increase of roughly 2% year over year.
Boston Scientific is a manufacturer of medical devices and products used in a broad range of interventional medical specialties. The company faces significant competition across its product portfolio. The primary competitors include Johnson & Johnson, Medtronic Inc. (MDT), Abbott Laboratories (ABT) and St. Jude Medical Inc. (STJ).
Based on the company’s performance, we have assigned a Neutral recommendation to the stock.
Zacks Investment Research
View original at: Zacks.com News Feed
- (BRCM) Broadcom Corporation Sues Emulex for Patent InfringementBroadcom Corporation (BRCM) yesterday announced that it put forth litigation charges against Emulex Corporation (ELX) for...
- (ITC) Cognex Corporation Settles Patent DisputeCognex Corporation (CGNX) recently announced that it has settled its dispute with Multitest Elektronische Systeme...
- (ABT) Abbott Laboratories Expands Vascular BusinessYesterday, Abbott Laboratories (ABT) agreed to acquire 90% of the outstanding equity of Evalve, Inc....
- (BSX) Positive SYNTAX for Boston Scientific StentBoston Scientific Corporation (BSX) recently came out with its two-year SYNTAX clinical data that do...
- (BSX) Boston Scientific Registers Positive Results From MADIT TrialBSX: Positive Results from MADIT Trial Boston Scientific Corporation (BSX) announced positive final results from...
- (BSX) Boston Scientific is Ready For MADIT ResultsBoston Scientific Corp. (BSX) is geared up for its landmark MADIT-CRT trial final results, which...
Search Posts by Tag: Abbott Laboratories | ABT | Boston Scientific Corporation | BSX | JNJ | Johnson & Johnson | MDT | Medtronic Inc | St. Jude Medical Inc | STJ | Healthcare
RSS Feeds by Tag:
Abbott Laboratories | ABT | Boston Scientific Corporation | BSX | JNJ | Johnson & Johnson | MDT | Medtronic Inc | St. Jude Medical Inc | STJ | Healthcare |
Other Posts by: vitalstocks | RSS Feed for this author