J&J unit Cordis to get $1.73 billion settlement from Boston Scientific to resolve some stent patent disputes

There was a pleasant financial surprise yesterday for US health care giant Johnson & Johnson, after its subsidiary - Cordis - announced that it has reached a deal with Boston Scientific resolving two Delaware litigations related to Cordis' Palmaz and Gray patents and Boston Scientific's Jang patents. Under the terms of the agreement, Cordis will receive $1.725 billion from Boston Scientific and J&J expects to record the majority of this payment as a special item in the first quarter of 2010.

Boston Scientific and J&J expects to record the majority of this payment as a special item in the first quarter of 2010.
Boston Scientific was due to pay Cordis $1 billion by close of business on February 1, and $725 million on January 3, 2011.

The cases resolved today were pending in Delaware before US District Court Judge Sue Robinson. The disputes involved several coronary stent products including Cordis' Cypher stent and Boston Scientific's Liberte, Taxus Liberte and Taxus Express stents.

Other litigation between the two companies will not be affected by this settlement, including the Cordis law suits against Boston Scientific's Promus Stent products. Moreover, in September last year, Boston Scientific agreed to pay J&J $716 million to settle 14 other patent infringement suits.