BSX Entangled in Patent Issues

Medical technology major Boston Scientific Corporation (BSX) was hit by another patent tiff when Germany-based OrbusNeich Medical Inc. and its subsidiary, OrbusNeich Medical GmbH enforced the seizure of more than 190 stent systems from the company.

The latest dispute challenging Boston Scientific is associated with the patent infringement proceedings against the company in the Dusseldorf Regional Court. According to OrbusNeich, Boston Scientific violated the preliminary injunction of the Court which prohibits it from marketing and selling certain line of stents in Germany.

The affected stent lines include Small Vessel, Small Workhorse and Workhorse Stents under the company’s PROMUS Element, PROMUS Element Plus, OMEGA, TAXUS Element, SYNERGY and Promus PREMIER portfolio. According to the Court’s Apr 30, 2013 ruling, the geometric pattern of these affected stent lines infringe OrbusNeich’s patent EP1341482.

The stent systems were found at the premises of Boston Scientific’s German subsidiary Boston Scientific Medizintechnik GmbH in Ratingen on May 15. OrbusNeich has filed parallel patent infringement lawsuits in The Netherlands and Ireland. OrbusNeich is also seeking more definitive action in the form of a permanent injunction and damages.

Last week, Boston Scientific received a patent infringement complaint from Vascular Solutions Inc. (VASC), a provider of medical devices for coronary and peripheral vascular procedures. Vascular Solutions has filed the complaint in the U.S. District Court for the District of Minnesota.

According to Vascular Solutions, Boston Scientific infringed three patents owned by it. The complaint alleges, among other things, that the production and sale of Guidezilla guide extension catheter by Boston Scientific, which gained the 510(k) clearance from the U.S. Food and Drug Administration (:FDA) in Mar 2013, infringes the patent landscape of Vascular Solutions’ GuideLiner catheter.

Amid several patent issues, Boston Scientific carries a Zacks Rank #3 (Hold). Other medical sector stocks that warrant a look are Conceptus Inc. (CPTS) carrying a Zacks Rank #1 (Strong Buy) and Becton Dickinson and Company (BDX), carrying a Zacks Rank #2 (Buy).

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