Hologic, a developer of diagnostics, medical imaging systems and surgical needs for the healthcare needs of women, has entered into a settlement agreement with Ethicon Endo-Surgery, a Johnson & Johnson company.
According to the Bedford, Mass.-based company, the settlement agreement resolves all outstanding litigation between the companies, including two lawsuits filed by Ethicon on Oct. 5, 2007 and Aug. 6, 2009 against Hologic and its wholly-owned subsidiary, Suros Surgical Systems, alleging patent infringement by the Atec and Eviva biopsy products, as well as a lawsuit filed by Hologic on April 30, 2009 against Ethicon, alleging patent infringement by the Mammotone MR biopsy product.
As a result of the settlement entered into on Feb. 17, all outstanding litigation between the parties has been dismissed, without acknowledgement of liability by either party, Hologic said. While details of the agreement are confidential, Hologic has agreed to pay Ethicon the amount of $12.5 million, plus ongoing royalties for sales of its Atec and Eviva hand pieces. Also, under the terms of the settlement agreement, Ethicon has agreed to pay Hologic ongoing royalties for sales of its Mammotone MR.
Hologic said it expects to record a charge of up to $12.5 million related to this settlement in its results of operations for the quarter ending March 27.