The U.S. Defense Dept. awarded rivals Philips (NYSE:PHG) and Zoll Medical separate contracts to supply "airworthy" defibrillators for use by the military and federal agencies.
Both contracts run 5 years, with the Zoll Medical deal valued at up to $39.8 million and the Philips deal at $27.4 million, according to a press release.
Philips and Zoll have been locked in ongoing patent litigation for their respective defibrillator lines; in August, a U.S. appeals court dismissed a Zoll Medical request to force the U.S. Patent & Trademark Office to review several patents held by Philips, leading the companies to jointly withdraw an appeal.
Both companies have a history of landing lucrative contracts with the Defense Dept. In 2009, DoD awarded a contract worth up to $30 million for Zoll Medical’s Airworthy CCT defibrillator and granted a $210 million contract to Zoll earlier this month. Philips has had multiple Pentagon awards for its HeartStart MRx defibrillator and related accessories.
Both based north of Boston, Philips and Zoll sell defibrillators for a wide range of settings, from hospitals to military combat theaters. Zoll Medical’s product line includes the Propaq MD which it touts as the only FDA-cleared airworthy defibrillator to provide monitoring of three invasive pressures necessary for treating critical patients during long transports; and which includes night-vision goggles for medic use.
Other defibrillators sold by Zoll Medical include the portable AED Pro Automated External Defibrillator, designed for use both in hospitals and harsher field environments. Zoll Medical says the device is the only AED in the industry to withstand a 1.5-meter drop test; and also is resistant to dust and water.
Philips touts its MRx defibrillator as the only one that can connect directly to a clinical network.
Zoll Medical was acquired in 2012 by the Tokyo-based conglomerate Asahi Kasei for $2.2 billion. In the first quarter, Zoll revenue totaled $228 million, with sales increases driven by the company’s LifeVest wearable line of defibrillators. Asahi Kasei executives said in August that Zoll Medical has added employees this year.