Axonics (Nasdaq:AXNX) announced today that a jury unanimously ruled in its favor in a patent spat with Medtronic
(NYSE: MDT)
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The unanimous verdict came down in a patent infringement lawsuit brought by Medtronic against Axonics in U.S. District Court for the Central District of California. The jury found that Axonics does not infringe on any of the three patents-in-suit.
“A jury of our peers recognized that Axonics’ proprietary tined lead design and temperature sensor technology is differentiated from our competitor’s intellectual property,” said Raymond W. Cohen, CEO. “As we have said since this case was first filed in late 2019, our view is that Medtronic’s lawsuit was initiated to stifle competition, limit patient and physician choice, and protect the incumbent’s monopoly in sacral neuromodulation.
“We are very pleased with the jury’s finding and continue to remain focused on fulfilling our mission of positively impacting the lives of adults with bladder and bowel dysfunction.”
A Medtronic spokesperson issued the following statement on the decision via email:
“Medtronic respectfully disagrees with the jury’s verdict and will file post-trial motions, and an appeal, if necessary, to overturn this verdict. Additionally, Medtronic will continue fighting to protect and enforce its intellectual property rights with a pending case against Axonics at the International Trade Commission.”
Background on the patent battle between Medtronic and Axonics
Irvine, California-based Axonics develops neuromodulation systems for treating urinary and bowel dysfunction. Its fourth-generation R20 rechargeable SNM system received FDA approval over a year ago. Axonics also launched the recharge-free F15 SNM system in mid-2022.
Axonics’ r-SNM platform has rivaled Medtronic’s Interstim system in the neuromodulation space since its initial FDA approval in 2019, when Medtronic first filed its lawsuit.
Medtronic in November 2019 filed a lawsuit against Axonics alleging patent infringements over sacral neuromodulation (SNM) technologies. The companies battled over this until February of this year, when Medtronic asked the U.S. International Trade Commission (ITC) to block the sales of certain Axonics devices.
A month later, Medtronic announced that the U.S. Patent and Trademark Office upheld many of its claims around two of its patents. It asked the federal court in the Central District of California to lift its stay on the lawsuit. This led to the jury trial which concluded in Axonics’ favor.
In 2020, the the U.S. Patent Trial and Appeal Board (PTAB) handed down a decision to reject one of Axonics’ claims to invalidate a Medtronic patent. Then, in 2021, PTAB rejected Axonics’ attempt to invalidate three Medtronic patents in its IP infringement lawsuit related to the InterStim neuromodulation device family.
Meanwhile, Axonics’ future hangs in the balance. Boston Scientific announced a deal to acquire Axonics for $3.7 billion in January.
However, in April, the FTC requested additional information regarding the acquisition. The agency sought to gather more information from both companies in connection with its review of the merger. Earlier reports suggested that the deal might face scrutiny from the government due to potential antitrust concerns. The companies have yet to announce the completion of the acquisition.
