Vimian reaches settlement agreement with one of the main sellers of VOI in the previously announced indemnification process relating to the US patent dispute
Vimian Group AB (publ)’s subsidiaries, part of Vimian’s MedTech segment, have reached a settlement agreement with one of the main sellers of Veterinary Orthopedic Implants, LLC (“VOI”). The seller has agreed to compensate Vimian for his entire pro rata share, amounting to 37 per cent, of the USD 70 million settlement payment to DePuy Synthes. The total value of the settlement amounts to approximately USD 26 million.
Following the USD 70 million settlement with DePuy Synthes in the US patent dispute in April 2023, Vimian initiated the process to retrieve compensation from the sellers of Vimian’s subsidiary VOI as per the indemnification in the purchase agreement from the acquisition of VOI (“MIPA”). In February 2024, a first settlement agreement was reached with one of the sellers. Today, a settlement agreement was reached with one of the remaining sellers.
The settlement agreement reached today implies that the seller previously owning 37 per cent of VOI, in line with the indemnification clause set out in the MIPA, takes full responsibility for his share of the DePuy Synthes settlement. The settlement corresponds to a total value of approximately USD 26 million, of which (i) approximately USD 19 million is payable in cash in eight quarterly instalments from June 2024 to January 2026, and (ii) approximately USD 7 million is contributed by means of dismissal of the contingent closing note from the acquisition of VOI.
In addition, on 3 May 2024, a settlement agreement was reached with the seller of VOI with the smallest share, in which he agreed to compensate Vimian for his entire pro rata share, amounting to 2.5 per cent, of the USD 70 million settlement payment to DePuy Synthes. The total value of the settlement with this seller of VOI amounts to approximately USD 2 million.
Vimian continues the legal process to retrieve compensation from the remaining seller (acting as an individual and via legal entity) of VOI, which is the only remaining seller in the dispute.
More background on the US patent dispute can be found in Vimian’s Annual Reports for 2022 and 2023.