Edwards Lifesciences Corp. (NYSE: EW), Orange County’s largest publicly traded company, announced an agreement with Abbott Laboratories (NYSE: ABT) to settle all outstanding patent disputes between the companies in cases related to transcatheter mitral and tricuspid repair products.
“Edwards considers this agreement a positive development, as it allows the company to fully dedicate time and resources to helping patients,” it said in a statement.
The agreement will result in the dismissal of all pending cases or appeals in courts and patent offices worldwide and includes a provision that the parties will not litigate patent disputes with each other in the field of transcatheter mitral and tricuspid repair and replacement products for the 10-year duration of the agreement.
The injunctions currently in place against the sale of Edwards’ transcatheter mitral and tricuspid repair system will be lifted.
Abbott said it will receive a one-time payment and then ongoing payments based on sales of a product called Pascal through 2025 as well as a potential sales milestone payment in 2026.
Details of the settlement are confidential.
Abbott subsidiaries last year filed lawsuits in the U.S. and a variety of European countries including the United Kingdom and Germany.
After the announcement was made today, shares of Edwards, which is led by Chief Executive Mike Mussallem, rose 2% in after-hours trading to $68.50 and a $42.7 billion market cap.
