UPDATE: Updated to include comment from Edwards Lifesciences
Neovasc (NSDQ:NVCN) saw its shares jump 45% today after a federal appeals court upheld a district court ruling in a trade secret spat with Edwards Lifesciences (NYSE:EW) subsidiary CardiAQ Valve, affirming a decision not to enjoin its Tiara program.
With the decision, Neovasc will be required to pay the full judgement of approximately $112 million to Edwards, of which the company said $70 million is already held in an escrow account.
The Vancouver-based company said that “there are no other monetary damages arising from the award,” and announced that it will remain the joint inventor of its ‘964 patent related to its Tiara transcatheter mitral valve replacement device.
Neovasc will share the patent along with 2 employees of CardiAQ Valve, with both parties “having freedom to use the patent without an obligation to pay royalties to the other, according to a press release.
Shares in Neovasc, which had been halted from trading earlier by NASDAQ awaiting the decision, surged up to as much as 67% in response, settling at 45% up to close at $1.15.
Neovasc said it is considering whether to pursue further appellate review of the decision.
A spokesperson from Edwards told MassDevice.com that the company was pleased with the court decision.
“We are pleased with the federal circuit’s decision, which upholds and recognizes the foundational work of CardiAQ on a transcatheter mitral valve replacement to help patients who aren’t well served by currently available therapies today,” Edwards wrote in an email.
A jury last May awarded $70 million to CardiAQ after finding that Neovasc misappropriated trade secrets in developing its Tiara transcatheter mitral valve replacement device. Edwards inherited the lawsuit when it acquired CardiAQ Valve for $400 million in August 2014.
A federal judge in Massachusetts added $21 million in enhanced damages to the decision last November. CardiAQ asked Judge Allison Burroughs of the U.S. District Court for Massachusetts to also award pre- and post-judgment interest.
In January, Burroughs obliged, tacking on $20.7 million in pre-judgment interest and $2354.27 per day in post-judgment interest from Nov. 16, 2016, “until judgment is satisfied,” according to court documents.