On October 15, 2010 Genzyme Corporation filed a complaint in the United States District Court for the District of Massachusetts against Medicis Pharmaceutical Corporation and its affiliate Medicis Aesthetics Inc. (collectively "Medicis"), alleging that Medicis is infringing on a patent held by Genzyme by marketing Restylane®, Perlane®, Restylane®-L and Perlane®-L in the United States.
Pursuant to a license agreement with Medicis, Q-Med elected to assume the defence of Genzyme's claim.
On February 14, 2011 Q-Med, Medicis and Genzyme entered into a written settlement agreement whereby none of the parties admits any liability or wrongdoing relating to the claims in the lawsuit, and pursuant to which Genzyme has agreed to dismiss the case and release Medicis and Q-Med from any liability relating to the lawsuit, and has also agreed to a certain covenant not to sue in exchange for a lump sum payment by Q-Med to Genzyme. Medicis is not required to make any payment to Genzyme or Q-Med under the terms of the settlement agreement.
As previously reported, expenses related to the Genzyme suit have been charged to the fourth quarter, 2010, including the lump sum amount payable to Genzyme. Q-Med will have no further financial commitments to Genzyme. Only non-significant costs related to this matter will remain to be charged to the first quarter of 2011.
Queries should be addressed to:
Alexander Kotsinas, CFO
Tel: +46 73 500 111
Carina Bolin, General Counsel
Tel: +46 70 974 9117
The information in this report is such as that which Q-Med is required to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for disclosure at 7.30 a.m. on February 15, 2011.
Q-Med AB is a medical device company that develops, manufactures, markets, and sells high quality medical implants for esthetic and medical use. The majority of the products are based on the company's patented technology, NASHA(TM), for the production of stabilized non-animal hyaluronic acid. The product portfolio today contains: Restylane® for filling lines and folds, contouring and creating volume in the face, Macrolane(TM) for body contouring, Durolane(TM) for the treatment of osteoarthritis of the hip and knee joints, Deflux® for the treatment of vesicoureteral reflux, VUR, (a malformation of the urinary bladder) in children, and Solesta® for the treatment of fecal incontinence. Sales are made through the company's own subsidiaries or distributors in over 70 countries. Q-Med has about 650 coworkers, with almost 400 at the company's head office and production facility in Uppsala, Sweden. Q-Med AB is listed in the Mid Cap segment of the NASDAQ OMX Nordic.
Q-Med AB (publ), Seminariegatan 21, SE-752 28 Uppsala, Sweden. Corporate identity number 556258-6882.
Tel: +46 18 474 90 00. Fax: +46 18 474 90 01. E-mail: info@q-med.com (mailto:info@q-med.com). Web: www.q-med.com (http://www.q-med.com/)
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Source: Q-Med AB via Thomson Reuters ONE
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