Iridex settles litigation for $6.5 million

The first litigation suit concerned the Iridex proprietary laser probe connector technology. The second suit involved the Synergetics directional laser probe technology and the Iridex patent pending application on its intuitive laser probe technology.

The terms of the agreement require payments from Synergetics to Iridex totaling $6.5 million over a period of five years. The first payment of $2.5 million by Synergetics is to be paid in April 2007, followed with annual payments of $800,000 until 2012.

In addition, Iridex and Synergetics agreed to a cross licensing of various patents between the two companies. The two companies also agreed to a manufacture and supply agreement under which Synergetics obtained the right to manufacture and supply various disposable products for Iridex. This agreement could result in total revenue in excess of $3 million for Synergetics over the next five years.

“We now have the opportunity in the future to find ways in which we might work together to better serve the ophthalmic retinal community. Finally, the conclusion of this litigation will enable us to save a substantial amount of legal fees during the second quarter and positions us to improve our operating performance,” said Barry Caldwell, president and CEO of Iridex.