As part of the settlement, Abaxis will receive $17.25m from Cepheid and withdraw all pending litigation claims.
Abaxis CEO and chairman Clint Severson said the agreement will allow both companies to move forward with ongoing activities in sales, development and manufacturing without the distraction of protracted litigation.
"We are pleased with the outcome of this agreement, and pleased that at Abaxis we can now all concentrate our activities in our core business areas: point of care testing and veterinary laboratory services," Severson added.