Wright Medical (NSDQ:WMGI) and ConforMIS said they settled their patent dispute over patient-specific instrumentation technology used in joint replacement procedures.
ConforMIS sued Wright in September 2013, alleging Wright’s Prophecy knee and ankle replacement systems infringed 4 ConforMIS patents.
The agreement calls for ConforMIS to grant Wright a worldwide, non-exclusive license to its instrumentation technology for the implantation of non-patient specific foot and ankle implants. The perpetual and fully paid license covers Wright’s Prophecy patient-specific instrumentation for use with its InBone and Infinity ankle replacement devices, ConforMIS said.
ConforMIS said it also granted a worldwide, non-exclusive license to MicroPort Orthopedics covering its non-patient-specific knee implant technology for MicroPort’s Prophecy PSI used with its Advance and Evolution devices. MicroPort bought Wright’s OrthoRecon business in January 2014. Wright said it will pay for various expenses and fees associated with MicroPort’s licensing agreement with ConforMIS.
Wright is also slated to pay royalties to ConforMIS through 2026 on sales of MicroPort’s Prophecy PSI system for use with its Advance and Evolution devices.
“We are very pleased to announce these 1st licenses of our technology for use in the knee, as well as in the foot and ankle. Licensing these patents to MicroPort and Wright substantiates the strength of our intellectual property,” ConforMIS CEO Philipp Lang said in prepared remarks. "This agreement will help broaden the footprint of patient-specific instrumentation both globally through MicroPort’s strong worldwide presence and to other joints through Wright’s cutting-edge foot and ankle technology. Additionally, ConforMIS will continue to provide patient-specific instrumentation with customized implants, which is our core business.”
In February, Wright announced it plans to float $400 million worth of senior debt it plans to hedge with cash convertible note hedge deals with institutional investors. The company is in the midst of a $3.3 billion “merger of equals” with Dutch rival Tornier.
