Edwards Lifesciences Corp. (NYSE: EW), the most valuable publicly traded company based in Orange County with a valuation near $66 billion, last year spent $20.6 million on intellectual property litigation.
That may sound like a lot until one considers the medical device maker spent $405.4 million on legal-related costs in 2020, most of which was to settle a dispute with fellow heart valve device maker Abbott Laboratories of Illinois (NYSE: ABT).
The settlement came after an English judge found an Edwards device infringed a patent held by Abbott. A 2020 agreement between the two companies resulted 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 a period of 10 years.
Edwards’ most recent annual report disclosed the company is investigating whether its business activities in Japan and other markets violated the Foreign Corrupt Practices Act. The company, which has retained outside counsel, said it’s voluntarily notified the Securities and Exchange Commission, as well as the Department of Justice.
Three companies entered resolutions with the Justice Department for FCPA violations in 2021, compared to eight in 2020, according to a recent DOJ report. Penalties ranged from about $18 million to $250 million, according to industry data.
It also reported that in September, Aortic Innovations LLC, which Edwards called “a non-practicing entity,” filed a lawsuit alleging Edwards’ Sapien 3 Ultra infringes some of its patents.
The legal wrangling is often par for the course in the device-making industry, according to Edwards.
“During recent years, we and our competitors have been involved in substantial litigation regarding patent and other intellectual property rights which is typically costly and time consuming,” the company’s annual report said.
The recent legal battles haven’t hurt Edwards’ stock price, which is up about 35% since the start of 2020.
