) shares rallied following an International Trade Commission (ITC)
judge's ruling that Taiwanese devices maker APEX has infringed its
patent. The RMD patent protects an integrated humidifier used in
flow generator devices.
ResMed's shares were up as much as 2.5% in the trading session
following the news release. The stock eventually closed at
$51.29 yesterday, gaining around 2.2%.
Per the ruling, the APEX XT and iCH flow generators with infringing
humidifiers can now no longer be imported or sold in the U.S.
A CA-based leading medical equipment manufacturer and distributor,
ResMed will also ask the ITC to inflict a fine on APEX for any
infringing products that the latter has sold in the U.S. to date.
At present, ResMed manufactures hundreds of innovative therapy
products including airflow generators, diagnostic products, mask
systems, headgear products and ventilation devices for the
treatment of sleep-disordered breathing. Per management, the
innovative and diverse nature of these products accounts for the
superiority of ResMed's therapy comfort over its peers.
Management at ResMed is confident that the Commission will agree
with the judge's decision and will continue to impose the company's
intellectual property against those who infringe it.
The original ITC action was filed by ResMed in Mar 2013. It
declared patent infringement by APEX iCH and XT Fit CPAP
On Aug 8, 2013, APEX abided by an order that forbid it from
importing and selling infringing products in the U.S. Subsequently,
APEX redesigned its products and sought a ruling that its
redesigned CPAP devices had avoided ResMed's patents.
However, in the latest judgment, the ITC judge ruled in favor of
ResMed holding that APEX continues to infringe and that the July
2013 order prohibits APEX from importing and selling the redesigned
products in the U.S.
In a companion ruling, the judge has found that APEX's remodeled
WiZard 220 mask - which APEX redesigned based on the original ITC
ruling - does not infringe ResMed's patent. ResMed will appeal this
decision to the Commission soon.
ResMed currently carries a Zacks Rank #3 (Hold).
Better-ranked Medical Product stocks that warrant a look include
). All these stocks carry a Zacks Rank #2 (Buy).
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