Dispute with St Jude Medical resolved

RNS Number : 2482U

AorTech International PLC

24 December 2012

 

AorTech International plc ("AorTech")

AorTech International and St. Jude Medical Resolve Supply Dispute

AorTech International Plc is pleased to announce that it has entered into an agreement with St. Jude Medical, Inc. that resolves all disputes between the two companies related to the supply and manufacture of Elast-Eon™. Neither party has admitted any liability in connection with the dispute.

The total consideration to be received by AorTech under the agreement is $3.9 million, of which $3.4 million was paid upon signing and $0.5 million will be paid around the end of March 2013. The agreement accelerates certain existing transitional arrangements relating to the manufacture and supply of Elast-Eon™, reaffirms St. Jude's exclusive, perpetual, non-royalty bearing licence to use Elast-Eon™ for implantable leads for implantable cardiac rhythm management devices or monitoring systems and sets forth the purchase by St. Jude Medical of certain AorTech assets for approximately $0.25 million.  These arrangements will ensure St. Jude Medical's reliable supply of Elast-Eon™ and not interrupt supply of products for AorTech's other customers.

Enquiries:

AorTech International plc

Bill Brown, Chairman

Tel: [phone]

finnCap

Stuart Andrews/Rose Herbert
finnCap as Nominated Adviser
Tel: [phone]

 

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