Healthcare Industry News: Cardia
News Release - May 19, 2008
NMT Medical Announces Settlement of Damages Claims in Patent Infringement Lawsuit with CardiaAgreement Includes Payment and Product Withdrawal
BOSTON--(HSMN NewsFeed)--NMT Medical, Inc. (NASDAQ: NMTI ) announced today that a $2.25 million judgment for damages has been entered by the U.S. District Court of Minnesota against Cardia, Inc. (“Cardia”) of Burnsville, Minnesota. The judgment is required to be paid to NMT in increments over the next several months.
The patent infringement lawsuit, originally filed in September 2004, alleged that Cardia’s Intrasept device infringes Patent No. 5.451.235 (“the 235 Patent”). The 235 Patent is owned by the Children’s Medical Center Corporation (“CMCC”) and is licensed exclusively by NMT. In November 2007, the U.S. District Court of Minnesota issued a summary judgment ruling confirming the validity of the 235 Patent and holding that Cardia had infringed upon it.
As part of the settlement, Cardia will pay $2.25 million and agreed immediately to cease further production, marketing and sales of its Intrasept device. The cash payments will be divided equally between NMT and CMCC, following reimbursement of NMT’s legal fees and expenses. All parties have agreed to have the matter dismissed with prejudice.
“The decision to resolve this case in favor of NMT validates the importance of our growing patent portfolio,” said President and Chief Executive Officer John E. Ahern. “We continue to place substantial emphasis on developing new technologies, and are committed to defending our valuable portfolio of intellectual property.”
About NMT Medical, Inc.
NMT Medical is an advanced medical technology company that designs, develops, manufactures and markets proprietary implant technologies that allow interventional cardiologists to treat structural heart disease through minimally invasive, catheter-based procedures. NMT is currently investigating the potential connection between a common heart defect that allows a right to left shunt or flow of blood through a defect like a patent foramen ovale (PFO) and brain attacks such as embolic stroke, transient ischemic attacks (TIAs) and migraine headaches. A common right to left shunt can allow venous blood, unfiltered and unmanaged by the lungs, to enter the arterial circulation of the brain, possibly triggering a cerebral event or brain attack. More than 28,000 PFOs have been treated globally with NMT's minimally invasive, catheter-based implant technology.
Stroke is the third leading cause of death in the United States and the leading cause of disability in adults. Each year, 750,000 Americans suffer a new or recurrent stroke and an additional 500,000 Americans experience a TIA. The prevalence of migraines in the United States is about 10%. Of the 28 million migraine sufferers in America, those who experience aura and have a PFO may represent a three million patient subset.
For more information about NMT Medical, please visit www.nmtmedical.com.
Source: NMT Medical
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