Under the terms of the Settlement Agreement, AngioDynamics has agreed to pay Vnus Medical approximately $6.8 million and a royalty, payable quarterly, on US sales of NeverTouch VenaCure products from June 1, 2008 until the expiration date of the applicable patents.
In exchange, Vnus Medical has granted AngioDynamics a non-exclusive and non-sublicenseable license to the applicable patents for use in endovenous laser therapy. All litigation between the parties will be dismissed.
As a result of the settlement, AngioDynamics will record a litigation expense of approximately $6.8 million pre-tax and $4.2 after-tax in the fiscal fourth quarter of 2008, amounting to $0.17 per share. The amount of the on-going royalty is considered confidential information.
Eamonn Hobbs, president and CEO of AngioDynamics, said: “The settlement marks the end of our litigation in the endovenous laser market for the treatment of varicose veins. With this, we can now focus on this rapidly growing market without the distraction of litigation.”