Neovasc (NSDQ:NVCN) shares are down more than 6% today after the replacement heart valve maker said it lost a patent case in Germany against arch-rival and Edwards Lifesciences (NYSE:EW) subsidiary CardiAQ Valve
The District Court in Munich ruled that CardiAQ Valve contributed to the creation of Neovasc’s Tiara transcatheter mitral valve replacement, awarding”co-entitlement” rights to the patent in Europe; no money was involved in the decision, Vancouver-based Neovasc said, noting its intention to appeal.
A jury in May 2016 awarded $70 million to CardiAQ after finding that Neovasc misappropriated trade secrets in developing Tiara (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; in January a federal judge in Boston added $21 million to the judgment.
Today Neovasc said it’s pursuing an expedited appeal the decision to the U.S. Court of Appeals for the Federal Circuit, with oral arguments slated for August and a ruling expected before the end of the year.
“Pending the outcome of the U.S. Court of Appeals, Neovasc, in consultation with its European and North American legal advisors, will vigorously defend its position that the case in Germany is without merit and will explore all options regarding the appellate process,” the company said.
A spokeswoman for Edwards told MassDevice.com via email that the company is “pleased” that the German court “recognized the foundational work of the CardiAQ co-founders, Dr. Arshad Quadri and J. Brent Ratz.”
“This decision provides the appropriate recognition for their significant contributions to the field of transcatheter mitral valve replacement and has the effect of designating Edwards as a co-owner of the Neovasc European patent application. We’re proud of our continued pursuit of the research and development of a transcatheter mitral valve to help patients in need who are not well-served by therapies available today,” she wrote.
NVCN shares slid as low as $1.29 apiece today, off -15.1%, before rallying somewhat in late-morning activity to $1.41 apiece, down -7.1% on the day.