Axonics Modulation Technologies Inc. (Nasdaq: AXNX) of Irvine said the U.S. Patent and Trademark Office’s decision to review six of seven patent claims from competitor Medtronic PLC (NYSE: MDT) on Sept. 24 is a win for OC’s 20th-largest device maker by employee count, with nearly 200 local workers.
It’s the latest development in an intellectual property dispute that dates to last November.
After Axonics won Food and Drug Administration approval for its sacral neuromodulation device, which treats bladder and bowel conditions, market incumbent Medtronic filed a lawsuit alleging infringement of seven patents.
At that time, Axonics expressed confidence in its intellectual property and noted Medtronic had neglected to deliver a newer, rechargeable version of its product for some 20 years.
For years, Medtronic had the first and only sacral neuromodulation device on the market; it unveiled a new, rechargeable device this summer.
Mixed Response
Both Axonics and Medtronic spun the recent case development as a victory.
Axonics CEO Ray Cohen said in a statement that the actions of the Patent Office’s trial and appeal board signaled “Axonics has demonstrated that there is a ‘reasonable likelihood’ that at least some, if not all, of the claims in each of these Medtronic patents are invalid.”
The following day, Medtronic said in a release it had received a favorable decision, citing the fact that the appeals board chose not to review what it said is its most important patent, regarding its implant recharging and temperature control technology.
“Contrary to Axonics’ assertions, the PTAB has not made any final determination that any of Medtronic’s patent claims are invalid,” said Brooke Story, vice president and general manager of Medtronic’s Pelvic Health and Gastric Therapies business.
A final decision is expected from the Patent Office within the next 12 months.
In the two trading sessions after Axonics’ announcement, its shares climbed 4.5% to $49.50 and a $1.8 billion market cap. Axonics shares have almost tripled since mid-March.
