AngioDynamics, Inc. (NASDAQ:ANGO) signed a settlement agreement with Becton, Dickinson And Company (NYSE:BDX) to resolve all outstanding patent litigation with C.R. Bard.
As per the settlement agreement, BD will provide AngioDynamics with a license for specific port patents, while AngioDynamics will reciprocate by granting BD a license for certain catheter patents.
"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 ten-year distraction to the Company," commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics.
AngioDynamics will make a single lump sum payment to BD totaling $7 million, with $3 million paid within five days and the remaining balance paid in installments over the following 12 months.
AngioDynamics will additionally commit to making six minimum annual payments to BD amounting to $2.5 million each, continuing until February 2029.
Furthermore, there's a provision for potential additional payments if six percent (6%) of AngioDynamics' annual net sales from port products surpass the minimum payment threshold.
The agreement contains mutual covenants not to sue and releases. Neither party admitted any liability in connection with the settlement agreement.
"The settlement essentially allows us to spread what would have been two years of future legal fees over the course of six years," Clemmer added.
According to Benzinga Pro, ANGO stock has lost over 40% in the past year.
Price Action: ANGO shares traded higher by 1.20% to $5.90 premarket on the last check Tuesday.
Image by Okan Caliskan from Pixabay