LATHAM, N.Y. - AngioDynamics , Inc. (NASDAQ: NASDAQ:ANGO), a medical technology company, has announced the resolution of its longstanding patent dispute with C.R. Bard, Inc., a BD affiliate, through a settlement agreement. The terms of the accord see both companies exchanging licenses for their respective port and catheter patents.
As part of the settlement, AngioDynamics will make a one-time payment of $7 million to BD. Of this sum, $3 million is due within five days, with the remainder to be paid in installments over the following year. Additionally, AngioDynamics has agreed to make minimum annual payments of $2.5 million through February 2029, with possible extra payments contingent on sales of its port products.
The agreement also includes a clause for a $3 million payment from AngioDynamics to BD, dependent on the reversal or vacation of the District Court’s invalidity findings by the Federal Circuit in an ongoing appeal. Both parties have agreed to mutual non-suit covenants and releases, and neither has admitted any liability.
Jim Clemmer, President and CEO of AngioDynamics, expressed satisfaction with the settlement, noting that it will reduce the company's legal expenses and remove a distraction that has persisted for over a decade. He emphasized that the agreement allows for the spread of what would have been two years of legal fees over six years, providing the company with greater financial clarity and the ability to focus on innovation, growth, and shareholder value.
This settlement concludes a multi-year legal battle over patent rights, allowing AngioDynamics to continue its mission of improving patient care with its vascular and oncology technologies without the overhang of litigation.
InvestingPro Insights
In light of AngioDynamics' recent settlement with C.R. Bard, Inc., a review of the company's financial health and market performance offers valuable context. According to InvestingPro data, AngioDynamics holds a market capitalization of $232.36 million. Despite a challenging period reflected in a negative price-to-earnings (P/E) ratio of -16.31, the company has experienced a notable return over the last week, with a 1-week price total return of 11.39%. This indicates a positive market reaction, potentially in response to the resolution of the legal dispute and the financial clarity it provides.
An InvestingPro Tip worth considering is that AngioDynamics holds more cash than debt on its balance sheet, which suggests a solid liquidity position. This is particularly relevant as the company navigates its settlement payments and invests in future growth. Additionally, the company's high shareholder yield is a strong signal to investors, underscoring the potential for returns through share price appreciation or other distributions.
For investors seeking a deeper dive into AngioDynamics' performance and additional InvestingPro Tips, including insights on revenue valuation multiples and analysts' profitability expectations, visiting https://www.investing.com/pro/ANGO can provide a comprehensive view. There are a total of 9 InvestingPro Tips available for AngioDynamics, offering a more detailed analysis for informed decision-making. Moreover, to enhance the value of an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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