Edwards, Medtronic Ink Patent Deal

Medtronic will pay $37.5 million to Edwards and Australia's Endogad.
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Edwards Lifesciences

(EW) - Get Report

, a seller of heart-valve products, reached an agreement with

Medtronic

(MDT) - Get Report

that will resolve the patent litigation the two have been involved in since August 2003.

Edwards and Endogad Research, the company formed by the inventors of the patents, sued Medtronic, alleging that the company had infringed certain patents related to modular or multipart endovascular grafts especially suited for treating various aneurysms.

To settle the matter, Medtronic will pay $37.5 million to Edwards and Australia's Endogad in return for nonexclusive licenses to the patents involved in the litigation, as well as other patents relating to endovascular abdominal aortic aneurysm grafts and delivery systems.

Medtronic, whose products include defibrillators, catheters and stents, also purchased delivery-system assets meant to be used with abdominal aortic aneurysm grafts.

Edwards expects to record a pretax gain in the first quarter of about $20 million. Edwards and Endogad remain in patent litigation with two other companies.

Shares of Edwards were tacking on 6 cents to $42.26. Medtronic was up 4 cents at $58.86.