Boston Scientific Corporation
) is once again a hot topic of discussion among all financial
market participants. Per the latest development, the company's
Guidezilla guide extension catheter was freed of an injunction by
the U.S. Court of Appeals for the Federal Circuit.
The verdict was related to the patent infringement lawsuit
Vascular Solutions, Inc.
) on May 16, 2013, which claimed that Boston Scientific's
Guidezilla guide extension catheter infringes three U.S. patents
owned by Vascular Solutions. The case was filed in the U.S.
District Court for the District of Minnesota demanding monetary
and injunctive awards for damages.
Again on May 28, 2013, Vascular Solutions filed an amended
complaint adding an allegation of copyright infringement by
Boston Scientific. Further, on Jun 10, 2013, Vascular Solutions
filed a motion requesting a preliminary injunction.
In response to the allegations, Boston Scientific on Jul 11,
2013, filed a counterclaim, alleging that Vascular Solutions'
patents were invalid and that the Guidezilla catheter does not
infringe any patent. Instead, Boston Scientific claimed that
Vascular Solutions' GuideLiner catheter violates a U.S. patent
owned by the former that has recently expired.
Finally, on Dec 12, 2013, the District Court ordered a
preliminary injunction on Boston Scientific's Guidezilla guide
extension catheter. Additionally, on Dec 23, 2013, the District
Court denied Boston Scientific's petition to file a motion to
reconsider the preliminary injunction and also lifted the stay on
the preliminary injunction effective Jan 13, 2014.
Boston Scientific's Guidezilla guide extension catheter falls
within the Interventional Cardiology business of the company,
which in turn comes under the company's Cardiovascular segment.
Notably, Interventional Cardiology contributed 28.8% to total net
sales in 2013. The Guidezilla guide extension catheter was
commercially launched in the U.S. in July 2013.
On the other hand, Vascular Solutions' Catheter products
constituted the largest product category and contributed
approximately 63.0% to total product and service sales during
However, this verdict is not likely to affect the underlying
patent litigation, which is supposed to be up for trial on or
after Mar 2015 in the District Court for the District of
Minnesota. We view this news as favorable for Boston Scientific
but would like to remain on the sidelines until the final verdict
for the trial comes in.
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader healthcare industry are
St. Jude Medical Inc.
). Enzymotec sports a Zacks Rank #1 (Strong Buy) and St. Jude
Medical carries a Zacks Rank #2 (Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
ENZYMOTEC LTD (ENZY): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
VASCULAR SOLUTN (VASC): Free Stock Analysis
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