Cordis to Receive $1.725 Billion
Bridgewater, NJ (February 1, 2010) – Cordis Corporation, a Johnson & Johnson company, announced today that it has reached an agreement with Boston Scientific resolving two Delaware litigations related to Cordis’s Palmaz and Gray patents and Boston Scientific’s Jang patents. Under the terms of the agreement, Cordis will receive $1.725 billion from Boston Scientific and Johnson & Johnson expects to record the majority of this payment as a special item in the first quarter of 2010.
Boston Scientific will pay Cordis $1 billion by close of business today (Feb. 1, 2010) and $725 million on Jan. 3, 2011.
The cases resolved today were pending in Delaware before U.S. District Court Judge Sue Robinson. The disputes involved several coronary stent products including Cordis’s Cypher stent and Boston Scientific’s Liberte, Taxus Liberte and Taxus Express stents.
“We are very pleased to resolve these long-standing patent disputes,” said Seth Fischer, Company Group Chairman, Cordis Corporation.
Other litigation between the two companies will not be affected by this settlement, including the Cordis lawsuits against Boston Scientific’s Promus Stent products.
About Cordis Corporation
For more than 50 years, Cordis Corporation, a Johnson & Johnson company, has been a worldwide leader in the development and manufacture of interventional vascular technology. Through the company's innovation, research and development, Cordis partners with interventional cardiologists worldwide to treat millions of patients who suffer from vascular disease. More information about Cordis Corporation can be found at www.cordis.com.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Cordis Corporation’s and/or Johnson & Johnson’s expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 28, 2008. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither Cordis nor Johnson & Johnson undertake to update any forward-looking statements as a result of new information or future events or developments.)
# # #
Press Contacts:
Jeffrey J. Leebaw
(732) 524-3350
(732) 642-6608 (M)
Carol Goodrich
(732) 524-6678
Investor Contacts:
Louise Mehrotra
(732) 524-6491
Stan Panasewicz
(732) 524-2524
Cordis to Receive $1.725 Billion
Bridgewater, NJ (February 1, 2010) – Cordis Corporation, a Johnson & Johnson company, announced today that it has reached an agreement with Boston Scientific resolving two Delaware litigations related to Cordis’s Palmaz and Gray patents and Boston Scientific’s Jang patents. Under the terms of the agreement, Cordis will receive $1.725 billion from Boston Scientific and Johnson & Johnson expects to record the majority of this payment as a special item in the first quarter of 2010.
Boston Scientific will pay Cordis $1 billion by close of business today (Feb. 1, 2010) and $725 million on Jan. 3, 2011.
The cases resolved today were pending in Delaware before U.S. District Court Judge Sue Robinson. The disputes involved several coronary stent products including Cordis’s Cypher stent and Boston Scientific’s Liberte, Taxus Liberte and Taxus Express stents.
“We are very pleased to resolve these long-standing patent disputes,” said Seth Fischer, Company Group Chairman, Cordis Corporation.
Other litigation between the two companies will not be affected by this settlement, including the Cordis lawsuits against Boston Scientific’s Promus Stent products.
About Cordis Corporation
For more than 50 years, Cordis Corporation, a Johnson & Johnson company, has been a worldwide leader in the development and manufacture of interventional vascular technology. Through the company's innovation, research and development, Cordis partners with interventional cardiologists worldwide to treat millions of patients who suffer from vascular disease. More information about Cordis Corporation can be found at www.cordis.com.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Cordis Corporation’s and/or Johnson & Johnson’s expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 28, 2008. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither Cordis nor Johnson & Johnson undertake to update any forward-looking statements as a result of new information or future events or developments.)
# # #
Press Contacts:
Jeffrey J. Leebaw
(732) 524-3350
(732) 642-6608 (M)
Carol Goodrich
(732) 524-6678
Investor Contacts:
Louise Mehrotra
(732) 524-6491
Stan Panasewicz
(732) 524-2524