NuVasive has reached a favorable settlement agreement with Cadwell Laboratories in a lawsuit involving NuVasive's patented neuromonitoring technology.
In December 2012, NuVasive filed the lawsuit asserting that Cadwell infringed on its patented neuromonitoring technology, including the integration of nerve monitoring technology during lateral approach spine surgery.
1. As part of the settlement agreement, Cadwell will exit the lateral spine surgery market, and no longer provide products, services or support for lateral approach spine fusion surgeries. In addition, Cadwell's future products that rely on NuVasive patented technology may be required to openly attribute intellectual property ownership to NuVasive and the company may be required to pay a 5 percent fee to NuVasive.
"Our neuromonitoring technology is best in class and is central to the facilitation of surgical reproducibility and safety in less invasive spine procedures. I am exceptionally pleased that the solid intellectual property that surrounds our neuromonitoring technology has once again been validated," said Alex Lukianov, NuVasive chairman and CEO in a press release.
2. The neuromonitoring technology has been involved in litigation before — in 2011, a jury verdict awarded monetary damages and back royalty payments to NuVasive in favor of its claim that Medtronic's NIM-Eclipse System infringed upon its neuromonitoring technology patent.
3. The global patient monitoring devices market will reach $22.17 billion by 2018, growing at a compound annual growth rate of 5.5 percent from 2013 to 2018, according to a recently released MarketsandMarkets. The neuromonitoring devices segment is projected as the fastest growing segment by 2018.
4. NuVasive reported a net loss of $18.3 million in the first quarter of 2014, down from the same period last year when the company earned a net income of $851,000. The company's total operating expenses were up significantly in the first quarter primarily from the recognition of a litigation liability and a facility abandonment charge in addition to supporting international infrastructure expansion.
5. NuVasive recently announced several executive leadership changes the company hopes will foster a its continued evolution. Most recently, Michael Lambert announced he will retire from his role as CFO. Quentin Blackford, who was promoted to the Executive Leadership Committee as executive vice president of finance and investor relations earlier this year, will succeed Mr. Lambert. Senior Vice President of Global Human Resources Craig Hunsaker resigned, and Executive Vice President of Global Human Resources Mike Paolucci assumed his responsibilities.
More Articles on Devices:
Mazor Robotics 2013 Net Loss Shoots to $20M
Advancement in Lateral Spine Technology: Q&A with Vertebral Technologies, Inc. CEO Dr. Jeffrey Felt
EDGE Orthopaedics Receives FDA 510(k) Clearance for BITE Compression Screws