Osiris Therapeutics leveled trade theft and breach-of-contract charges worth nearly $7 million against a regenerative medicine rival, stemming from the Stability Biologics acquisition by MiMedx (NSDQ:MDXG).
Columbia, Md.-based Osiris said it inked a distribution deal back in 2013 to have Stability sell a pair of its products through the end of 2015. But after MiMedx paid $10 million for Stability in January 2016, it allegedly gained access to Osiris trade secrets and fostered a series of events leading to $6.8 million in losses for Osiris.
(In an about-face in August 2017, MiMedx agreed to sell Stability back to its original owners; that sale closed last October.)
The lawsuit, filed this week in the U.S. District Court for Maryland, alleged that MiMedx held on to Osiris inventory worth $2.2 million and $1.3 million in pre-paid commissions and directed Stability not to pay another $2.9 million allegedly owed under a payment plan; Osiris allegedly incurred another $321,000 in legal fees from its attempt to recoup its losses in arbitration.
“Osiris sustained at least $6,751,416.21 in compensatory damages and costs,” the lawsuit alleged. “Osiris also incurred additional unascertainable damages, reputational damage and competitive disadvantages from MiMedx’s misappropriation of Osiris’s confidential information.”
At DeviceTalks Boston, Tyler Shultz will give attendees an inside look at Theranos and how he was able to sound the alarm after he realized the company was falling apart. Shultz will take attendees behind the story that everyone is talking about: the rise and fall of Elizabeth Holmes and her diagnostic company, Theranos.
Join Shultz and 1,000+ medical device professionals at the 8th annual DeviceTalks Boston.