Medinol Secures Trial Against Boston Scientific in Stent Manufacturing Dispute

Strategic Insights -

Medinol Ltd., an Israeli company, has won the right to take its claims against Boston Scientific Corp. to trial. A federal court in New York has ordered a trial on Medinol's allegations that Boston Scientific secretly set up a factory in Ireland to manufacture Medinol's stents without permission. The court has also ruled that Medinol is entitled to try its claims that Boston Scientific's sale of Express and Taxus stents is a breach of contract and that the company is entitled to royalties on those sales.

Key Takeaways:

  • Medinol Ltd. has secured a trial against Boston Scientific Corp. on claims of secret stent manufacturing in Ireland.
  • The trial will focus on breach of contract and royalties on Express and Taxus stent sales.
  • Boston Scientific's actions in "Project Independence" were deemed to be taken in bad faith by Judge Alvin K. Hellerstein.
  • Medinol's CEO, Judith Richter, expressed satisfaction with the decision, stating that the company now has an opportunity to seek justice at trial.
  • Boston Scientific had built a copy of Medinol's stent-making machinery in Ireland as part of "Project Independence".
  • Judgement shows Boston Scientific CEO James Tobin had revealed the secret project to Medinol in 2000 after the U.S. Justice Department had discovered the copy.

Statistics:

  • Stents are a tubular device implanted in arteries and other vessels to keep them open.
  • Medinol has contracts with Boston Scientific dating back to 1995.
  • Boston Scientific's Chief Executive Officer, James Tobin, revealed the secret project to Medinol in 2000.
  • A status conference is set for January 13, 2005, to discuss a procedure to negotiate settlement and set a date for trial.
  • The court case is kept in the U.S. District Court for the Southern District of New York.

Sources:

  • PRNewswire, Dec. 2.