Shares of Santa Ana-based Advanced Medical Optics Inc. rose Tuesday after the company said it would receive $121 million from Alcon Inc. to settle a patent dispute over devices used in eye surgeries.
Switzerland-based Alcon and Advanced Medical agreed to dismiss all existing patent litigation and not to sue on the patents at issue as part of the settlement.
They also agreed to grant licenses to each other for phacoemulsification equipment, which is used in cataract surgery.
Advanced Medical shares were up more than 4% to $52.40 in late trading Tuesday.
Advanced Medical sued Alcon over two patent violations in 2003. A jury agreed with Advanced Medical’s claims, with Alcon then appealing the case.
“We invest substantial resources and energies to develop new ophthalmic technologies and are pleased to bring these legal matters to a swift and successful close for the benefit of our stockholders and customers,” said Jim Mazzo, Advanced Medical chairman and chief executive.
