Irvine privately held ophthalmologic device maker Ivantis Inc. remains on the intellectual property defensive despite settling a three-year dispute with Glaukos Corp.
Ivantis’ Hydrus Microstent—approved by the FDA in 2018—is a minimally invasive glaucoma surgical (MIGS) device the size of an eyelash designed to restore fluid flow of the eye through the Shlemm’s canal, and reduce eye pressure. It’s been used in 4,000 cases worldwide.
Ivantis’ competitor in the Orange County MIGS space, San Clemente-based Glaukos (NYSE: GKOS), filed a lawsuit the same year alleging that the Hydrus Microstent infringed upon its patents concerning its “core glaucoma technologies.”
Ivantis and Glaukos on Sept. 15 announced they entered an agreement to settle all pending litigation between them.
Under the terms, Ivantis will pay Glaukos $60 million in two installments before the end of 2022, as well as a 10% ongoing royalty every time a Hydrus Microstent is sold domestically or internationally through April 26, 2025.
Glaukos shares rose about 5% in the week following the settlement; it sported a $2.4 billion market cap as of last week.
“Since our founding in 1998, Glaukos has invested considerable time and resources to develop novel technologies that have pioneered an entirely new treatment category for glaucoma surgeons and their patients,” Glaukos Chief Executive Thomas Burns said after the deal was announced.
“We remain confident in the strength of our robust intellectual property portfolio and believe this settlement allows us to focus our full attention and resources on executing our long-term growth strategy by bringing transformative new technologies to the market for the benefit of patients worldwide.”
‘Distraction’ Concluded
In accordance with the settlement, the companies canceled the court trial that was scheduled to begin on Sept. 28.
“Although we have always believed our pioneering technology does not infringe any valid claim of any of Glaukos’ patents, we are pleased to put this distraction behind us,” Ivantis CEO Dave Van Meter said in a statement. “Given the upward trajectory of our business and the rapidly increasing adoption of Hydrus in the market, we are fortunate to be in a position to be able to readily absorb this settlement as we continue bringing our best-in-class MIGS technology to our customers and their patients.”
Ivantis, which has raised more than $130 million in funding over its history, and Glaukos also agreed to a “mutual limited, non-exclusive cross-license and covenant” not to sue each other’s existing or closely related products on their existing or related future patents.
Another Lawsuit
On Sept. 16, another ophthalmologic device company—Sight Sciences Inc. of Menlo Park (Nasdaq: SGHT)—announced it filed its own lawsuit in the United States District Court in Delaware against Ivantis, claiming infringement on four patents.
“We filed this lawsuit to protect and defend our commercial, market and intellectual property leadership positions within the field of canalicular glaucoma surgery,” Sight Sciences’ Chief Executive and Paul Badawi said in a statement.
The patents describe methods for reducing intraocular pressure in the eye, the company said.
Founded in 2006, Sight Sciences says its patent portfolio includes canalicular scaffolding implants, canaloplasty and trabeculotomy devices and drug delivery methods.
Sight Sciences seeks an injunction to prevent the manufacture, use and sale of the Hydrus Microstent, along with money damages for past infringement.
