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NuVasive Ordered to Pay Higher-Than-Expected Royalty Rates to Medronic

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NuVasive had to raise its litigation royalty expense estimate for the year after a U.S. District Court set royalty rates for the company's CoRoent XL implants at 13.75 percent and MaXcess retractors at 8.25 percent.
Royalties must be paid to Medtronic, who is pursuing patent litigation against NuVasive. The court's ruling for phase one of the litigation is significantly less than the rates requested by Medtronic. The companies settled phase two, which involved cervical plates.

NuVasive's initial estimated royalty litigation expense was $11 million for 2013, and the new rates will increase the cost to approximately $16 million. The company plans to "aggressively appeal" the verdict.

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