Healthcare Industry News: CarboMedics
News Release - January 26, 2007
Sorin Group: CarboMedics Sues ATS Medical for Breach of ContractAUSTIN, Texas--(HSMN NewsFeed)--CarboMedics, Inc., a company fully-owned by Sorin (MIL:SRN), announces today that it has filed suit against Minneapolis-based ATS Medical, Inc. (NASDAQ: ATSI ). The suit alleges that ATS failed to order valve components as required by a long-term supply agreement.
The suit, which seeks enforcement of the supply agreement on a continuing basis in addition to monetary damages, was filed in the United States District Court for the District of Minnesota.
In 1990, CarboMedics gave ATS Medical a license to intellectual property for a bileaflet heart valve designed by CarboMedics. CarboMedics also agreed to develop the manufacturing processes by which ATS Medical could bring that heart valve to market. In exchange, ATS Medical entered into a long-term supply agreement with CarboMedics whereby ATS Medical is required to purchase approximately $20 million worth of valve components from CarboMedics between 2007 and 2011.
"We have completed a comprehensive review of the commercial agreements at stake and as a result, feel we have to take this action in order to seek enforcement of the contract," said Charles Griffin, President, CarboMedics, Inc. "We are confident that in this case the court will recognize the serious breach of basic contract rights by ATS."
The Complaint is publicly available at the Public Access to Court Electronic Records website: http://www.pacer.uscourts.gov (Civil Docket Case No.: 0:06-cv-04601 (PAM/JSM)).
About the Sorin Group
The Sorin Group (Bloomberg: SRN.IM; Reuters: SORN.MI), a world leader in the development of medical technologies for cardiac surgery, offers innovative therapies for cardiac rhythm dysfunctions, interventional cardiology and the treatment of chronic kidney diseases. The Sorin Group includes: Dideco, CarboMedics, Inc., COBE Cardiovascular, Inc., Stockert, Mitroflow, ELA Medical, Inc., Sorin Biomedica, Bellco and Soludia. It has more than 4,500 employees working at facilities in more than 80 countries throughout the world to serve over 5,000 public and private treatment centers.
For more information: www.sorin.com
Source: Sorin Group
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