UTAH MEDICAL PRODUCTS,
Federal Court Issues Infringement Judgment and Permanent Injunction Against
Tyco/Kendall's 4000 Softrans® IUPC
Contact: Paul Richins
Salt Lake City, Utah - Utah Medical Products, Inc. (NASDAQ:UTMD) announces that the United States Federal District Court for the District of Utah issued a formal judgment on September 19 awarding UTMD approximately $23 million in damages and accrued interest as a result of the January 2002 jury verdict that the Tyco International/ Kendall•LTP 4000 Softrans® Intrauterine Pressure Catheter (IUPC) literally infringes UTMD’s United States Letters Patent No. 4,785,822 for inventions relating to a "Disposable Intracompartmental Pressure Transducer." UTMD markets the Intran® Plus IUPC which practices this patent. Additional damages for infringing product sold by Tyco after the January verdict will be determined by the Court at a later date. In addition, the Court issued a permanent injunction against Tyco prohibiting the manufacturing, marketing, selling and/or otherwise distributing of the 4000 Softrans IUPC for the duration of UTMD’s patent.
By bundling its Softrans copy of Intran Plus with unrelated medical supply products, Tyco established an exclusive supply agreement with Premier Purchasing Partners, Premier’s group purchasing organization. Tyco also has an exclusive supply agreement with Novation, LLC, which represents VHA and UHC, for the Softrans IUPC. These two huge group purchasing organizations which represent about 70% of U.S. hospitals have been limiting UTMD’s ability to market its patented Intran Plus IUPC to their member hospitals, even when attending physicians have expressed a keen clinical preference for Intran Plus.
In addition, Tyco distributes its Softrans product through national hospital distributors such as Allegiance, Owens & Minor, and McKesson, as well as other medical device companies such as Corometrics/ Marquette/ GE Medical.
UTMD cautions all Softrans users and distributors that it considers any future distribution or use of the Softrans IUPC as willful infringement, and intends to seek all available legal remedies. UTMD recommends that hospital users immediately cease and desist use of Softrans and return all existing inventory to Tyco/ Kendall.
UTMD’s legal effort to defend its intellectual property has taken more than five years’ time, requiring significant determination in the face of the required cost and effort. This determination will now be focused on gaining compliance of hospital users and distributors with the Federal District Court’s adjudication.
Utah Medical Products, Inc., with particular interest in healthcare for women and their babies, develops, manufactures, assembles and markets a broad range of disposable and reusable specialty medical devices designed for better health outcomes for patients and their care-providers.