Medtronic and Boston Scientific (Axonics) Reach Confidential Settlement, Ending Six-Year Patent Dispute

Feb 14, 2025 10:30 CST Updated 10:30

Medtronic

Medical Device Manufacturer

Medtronic Announces Confidential Settlement with Axonics (Boston Scientific) to End Six-Year Intellectual Property Dispute

Medtronic Statement:

"Medtronic and Boston Scientific Express Satisfaction with Confidential Settlement Agreement, Which Resolves All Pending Litigations Between Medtronic and Axonics (Recently Acquired by Boston Scientific). The Settlement Includes a Confidential Payment from Boston Scientific to Medtronic, Allowing Both Parties to Focus on Serving Patients."

This property rights dispute began in 2019. That year, the FDA approved Axonics' first sacral nerve stimulation product, after whichAxoniCS inThe field of sacral nerve stimulation becomesMedtronic's Interstim Series: The Biggest CompetitionCompetitor. In the fourth quarter of Axonics' fiscal year 2024 alone, revenue reached as high as $92.3 million, with a growth rate of 25%.. Nowadays, Axonics has occupied more thanOver 25% of the market,According to Raymond W. Cohen's previous estimate, within the next five years, AxThe market share of the Onics series will reach over 50%.AxoniCS rapid growth,Continuously eroding Medtronic's original market, this has put immense pressure on Medtronic.。Therefore, Medtronic did not hesitate to...AxoniCS initiated intellectual property litigation, Medtronic believesAxoniCS products infringe upon itsSacral Nerve Stimulation Patent.

The tug-of-war between the two sides continued until February 2024, when Medtronic requested the U.S. International Trade Commission (ITC) to ban the sale of certain products.AxoniCS Products。A month later, Medtronic announced that the US Patent and Trademark Office had upheld multiple claims of its two patents, and requested the Central District of California Federal Court to lift the stay on the litigation, ultimately leading to a jury trial ruling.AxonicsVictory in the lawsuit.

Last September, a California jury found thatAxonicsNone of the three patents involved were infringed. Two months later, Boston Scientific completed theAxonicsAcquisition ($3.7 billion).

A stipulation of dismissal filed earlier this week in the U.S. District Court for the Central District of California shows that all five remaining patent-related claims have been "dismissed with prejudice." The court ruled that each party will bear its own costs related to the dismissal.

As the dispute between Medtronic and Boston Scientific comes to an end, Medtronic and Boston Scientific will jointly explore this market in the future.Sacral Nerve Stimulator for the Treatment of Incontinence Market. DespiteSacral nerve stimulation therapy is highly effective for the treatment of overactive bladder (OAB), but it is not without imperfections, particularly due to the high incidence of related complications and the proportion requiring repeat surgical interventions.Due to the complexity, invasiveness, intricacy, and cost of neuromodulation therapy, very few patients are willing to undergo the treatment. In the United States, only 150,000 patients have received neuromodulation therapy, which accounts for merely 1% of OAB patients.

It can be said that this is an incompletely developed market. If it can be fully developed, even developing just 10% of it would be enough to accommodate the two giants, Medtronic and Boston Scientific. Now is the time for Medtronic and Boston Scientific to join hands and address the current situation.The lack of sacral nerve stimulation therapy allows patients to use it with confidence, thereby enhancing the information for both patients and doctors, so that this treatment can benefit more patients.