St. Jude and AorTech come to terms over troubled supply deal

January 3, 2013 by MassDevice staff

St. Jude and AorTech International come to a manufacture and supply agreement after St. Jude wins an injunction preventing termination of their contract.

St. Jude Medical

St. Jude Medical (NYSE:STJ) and AorTech International (LON:AOR) managed to come to an agreement, settling a supply and manufacture dispute over technologies included in St. Jude's next-generation Durata pacemaker leads.

St. Jude agreed to pay a total of $3.9 million to AorTech, all but $500,000 of which was handed over upon signing of the new deal. The remaining $500,000 will be paid around the end March 2013, according to an AorTech notice.

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The new agreement provides for St. Jude continued access to the Elast-Eon technology that comprises insulation for the Durata's leads, with neither party admitting any liability in connection with the dispute.