Bausch & Lomb, CIBA Vision reach settlement of patent litigation

Daily Record (Rochester, NY), Jul 7, 2004 by Staff

Bausch & Lomb and CIBA Vision Corp., the eye care unit of Novartis AG, have reached a final settlement agreement that resolves disputes between the two companies in patent infringement lawsuits and associated patent proceedings related to breakthrough silicone hydrogel contact lens materials.

Under the terms of the agreement, the companies have agreed to cross-license rights to their silicone hydrogel contact lens technologies. B&L will pay CIBA Vision a royalty on net United States sales of its PureVision(tm) brand contact lenses until 2014 and on net sales outside the United States until 2016. Specific terms of the agreement are confidential.

The agreement, effective immediately, resolves patent lawsuits in the United States in federal district courts in Georgia, Delaware and New York, as well as other lawsuits and patent proceedings in Germany, Ireland, the European Patent Office and Australia.

B&L may resume sale and manufacture of PureVision brand contact lenses in the United States on April 27, 2005, upon expiration of the Harvey patent, which was the subject of a 2002 ruling in the Federal District Court in Delaware. PureVision brand lenses will continue to be available outside the United States. CIBA Vision's Focus NIGHT & DAY contact lenses continue to be available worldwide.

B&L indicated the settlement agreement will have no effect on its previously communicated guidance for 2004.

While the process that led to this settlement was a long one, both CIBA Vision and B&L believe the settlement is in the best interests of eye care professionals and consumers around the world, said Andrea Saia, president of CIBA Vision's global lens business. What's important is that we move forward and utilize the NIGHT & DAY silicone hydrogel technology to bring new and innovative eye care solutions to consumers worldwide.

We look forward to once again providing our PureVision contact lenses to practitioners and patients in the United States, said Angela J. Panzarella, B&L corporate vice president - Global Vision Care. This agreement allows us to focus our efforts on expanding our strong market position and continue development of new advances in silicone hydrogel materials.