AngioDynamics & BD End Years-Long Bard Patent Dispute

AngioDynamics recently announced it has entered into a settlement agreement with Becton, Dickinson and Company (BD) to completely resolve outstanding C.R. Bard — an affiliate of BD — patent litigation that has spanned years.

The ongoing litigation has finally come to an end, according to AngioDynamics — who reported the settlement April 1.

“We are pleased to bring this long-standing litigation to a successful conclusion that will reduce our ongoing legal spend and lift a more than 10-year distraction to the company,” said Jim Clemmer, president and CEO of AngioDynamics, in the release. “The settlement essentially allows us to spread what would have been two years of future legal fees over the course of six years. Today’s settlement also provides us with additional clarity and certainty and enables our team to remain focused on our top priorities — driving innovation and profitable growth in attractive end markets and delivering value to our shareholders.”

Under the terms of the agreement, BD will grant a license to AngioDynamics under certain of its port patents and AngioDynamics will grant BD a license under certain of its catheter patents. Additionally, AngioDynamics will make a one-time lump sum payment of $7 million to BD, $3 million of which “will be paid within five days and the balance of which will be payable of installments over the next 12 months,” according to the company press release.

AngioDynamics will also be responsible for making six minimum annual payments of $2.5 million to BD through February 2029 with potential additional payments if 6% of the net sales of its port products exceed the minimum payment.

Neither company admitted any liability in connection with the settlement agreement and will participate in the pending appeal before the Federal Circuit of the case, “C.R. Bard Inc, and Bard Peripheral Vascular inc. v. AngioDynamics, Inc.” (C.A. 15-00218-JFB; and CAFC appeal No. 23-2056). If the Federal Circuit reverses or vacates the District Courts findings of invalidity pertaining to the patent claims, AngioDynamics will pay $3 million to BD. The agreement also contains mutual covenants not to sue and releases, according to the release.

In May 2017, MD+DI reported that the company was suing Bard for allegedly violating federal antitrust laws by tying the sale of its tip confirmation system to its own line of PICCs. The lawsuit was filed in the US District Court for the Northern District of New York.

AngioDynamics said that Bards sale practices put the company at a competitive disadvantage because customers wanting to buy the tip location system would also have to buy the PICCs. The news of the litigation came not long after BD had agreed to buy Bard for $24 billion in cash and stocks.

BD did not respond to MD+DI's request for comment.