Under terms of the agreement, BD will grant a license to AngioDynamics under certain of BD’s port patents. AngioDynamics will grant BD a license under certain of AngioDynamics’ catheter payments. AngioDynamics will also make a one-time payment of $7 million, $3 million of which is to be paid within five days. The remaining balance will be payable in installments over the next 12 months.
Latham, N.Y.-based AngioDynamics will also make six minimum annual payments of $2.5 million to BD through February 2029, with potential additional payments if 6% of annual net sales of its port products exceed the minimum payment.
“We are pleased to bring this long-standing litigation to a successful conclusion that will reduce our ongoing legal spend and lift a more than ten-year distraction to the company,” AngioDynamics’ President and CEO Jim Clemmer said in a news release. “The settlement essentially allows us to spread what would have been two years of future legal fees over the course of six years. Today’s settlement also provides us with additional clarity and certainty and enables our team to remain focused on our top priorities – driving innovation and profitable growth in attractive end markets and delivering value to our shareholders.”
BD and AngioDynamics will participate in a pending appeal before a Federal Circuit Court. A contingent payment of $3 million will be due from AngioDynamics to BD if that court reverses or vacates the District Court’s findings of invalidity of the patent claims in the case. According to the news release, the agreement contains mutual agreements to not sue and neither company admitted any liability in connection with the settlement agreement.