Boston Scientific to Pay Johnson & Johnson $1.7 Billion in Stent Settlements
Pushing to get past a raft of pending patent infringement lawsuits, Boston Scientific (NYSE: BSX) said today that it will pay Johnson & Johnson $1.725 billion to settle three suits related to cardiac stent technology.
The Natick, MA-based medical devices giant said it will pay Johnson & Johnson $1 billion today, and the remaining $725 million within the next 11 months. The settlements mean Boston Scientific can sidestep risky jury trials in three separate cases involving claims by Johnson & Johnson that three of its stent patents were infringed by a variety of Boston Scientific products, including its Express, Taxus Express, Liberte, Cypher, BX Velocity, Genesis, and Taxus Liberte stents.
Last September, Boston Scientific announced a $716 million settlement that brought an end to 14 other patent lawsuits involving Johnson & Johnson. President and CEO Ray Elliott said in a statement today that the settlements are all part of an effort to “mitigate risk” at Boston Scientific, including litigation risk.
“In the past year, we have significantly reduced the volume of outstanding litigation, having now settled 17 lawsuits with J&J, as well as disputes with other competitors and the government,” Elliott said. “We believe today’s settlement—while substantial—is in the best interest of the Company and its shareholders. It resolves major litigation without exposing Boston Scientific to the uncertainties of a jury trial and a potential damages award that was impossible to predict…With the resolution of these matters, there are now no material judgments or jury verdicts pending against the Company.”