
Novartis AG’s (NYSE:NVS) Alcon subsidiary lost its bid to throw out a lawsuit filed by a Florida ophthalmologist accusing it of infringing a patent for intraocular lens technology.
Dr. James Nielsen sued Alcon in December 2008, alleging that the Swiss medical device giant violated his patent for a “Multifocal Intraocular Lens.” Alcon moved to have Judge Janet Boyle of the U.S. District Court for Northern Texas toss a magistrate judge’s recommendation that she deny its motion to have the case dismissed.
Boyle also shot down a move by Nielsen for a partial summary judgment, ruling that there are material facts in the case that need to be resolved at trial.
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“Overall, the court finds that the Magistrate Judge correctly found that the parties’ summary judgment evidence raised a genuine issue of material fact regarding Alcon’s alleged infringement of Nielsen’s patent and Alcon’s defenses,” Boyle wrote, according to court documents. “Further, the court finds that, based on the parties’ summary judgment evidence, there are genuine issues of material fact regarding 1) when Nielsen conceived his invention, 2) when Nielsen reduced his invention to practice, 3) whether Nielsen acted diligently in reducing his invention to practice, and 4) whether Nielsen’s patent should be invalid due to anticipation, obviousness, or lack of a written description.”
Novartis acquired Alcon late last year after two years of Novartis share buys and a $28.3 billion deal with Nestlé S.A. for 156 million Alcon shares in August . That transaction increased Novartis’ share in the Huenenberg, Switzerland-based ophthalmic care company to 77 percent, up from 25 percent, and added five Novartis representatives to Alcon’s board. In October, Novartis used that leverage to replace Alcon’s CFO with its own financial chief, but representatives of Alcon’s minority shareholders, calling themselves the Independent Director Committee, continued to resist the merger. Later in October, Alcon’s board replaced its chairman with Novartis’ own board head.
When the deal finally closed in April, the Swiss medical products conglomerate had paid $12.9 billion for Alcon.