Vimian subsidiary reaches settlement agreement resolving patent litigation with DePuy Synthes
Vimian Group AB (publ)’s (“Vimian”) subsidiary, Veterinary Orthopedic Implants, LLC (“VOI”), part of Vimian’s MedTech segment and Fidelio, have reached a settlement agreement with DePuy Synthes Products, Inc. and DePuy Synthes Sales, Inc. (“Synthes”), resolving the patent dispute between the parties. Under the terms of the agreement, the defendants are obliged to make a single payment of USD 70 million. Vimian’s view is that through the purchase agreement for the acquisition of VOI, Vimian has contractual indemnification protection for the amount of the settlement and all legal costs to date.
“With today’s settlement, we can leave this process behind us and continue focusing on supporting our customers with new innovative products and services to more veterinary clinics and animals across the globe”, says Dr. Fredrik Ullman, CEO of Vimian Group.
Under the terms of the settlement agreement, the defendants are obliged to make a single payment of USD 70 million in the second quarter of 2023. The payment will be financed with available funds in Vimian. Vimian’s view is that through the purchase agreement for the acquisition of VOI, Vimian has contractual indemnification protection for the amount of the settlement and all legal costs to date. The settlement amount will be recorded by Vimian as a financial asset until full compensation under the contractual indemnification protection has been retrieved.
Background
As previously disclosed in the company description published ahead of Vimian’s listing on Nasdaq First North Growth Market in June 2021, Synthes filed a lawsuit against VOI in 2018 alleging patent infringement by certain VOI’s plates used in Tibial Plateau Levelling Osteotomy (TPLO) surgical procedures that treat cruciate ligament ruptures in the knee joints of dogs. The acquisition of VOI was completed in June 2020 and Fidelio was added as defendant in the suit. VOI is today a subsidiary within Vimian’s MedTech segment Movora. In January 2023, a jury in the U.S. Middle District of Florida found wilful patent infringement by VOI and awarded Synthes USD 59.5 million in damages.