Arthrex ponies up $134 to Smith & Nephew, KFx

Smith & Nephew (NYSE:SNN) and KFx Medical reported receiving a collective $134 million from Arthrex, which lost a pair of patent infringement cases against its orthopedics rivals.

Smith & Nephew and KFx each sued Arthrex, alleging infringement of patents covering their respective shoulder repair devices.

The British healthcare giant 1st sued Arthrex way back in 2004, winning a $20.5 million judgment in June 2008. Although that verdict was overturned the next year, a new trial which ended in an $85 million judgment for Smith & Nephew in 2011. After the case bounced from the district level to the U.S. Federal Circuit Appeals Court and back, the appeals court in March upheld the decision.

Yesterday Smith & Nephew said it received $99 million from Arthrex, including $4 million in costs and interest payments. Smith & Nephew said it expects to recognize more than half of the $99 million during the 2nd quarter.

KFx sued Arthrex in August 2011, leading to a $29 million damages award for KFx in 2013. In April the Federal Circuit court also denied Arthrex’s appeal in the KFx case. Today KFx said Arthrex paid it $35 million to satisfy the judgment.

In 2013, Smith & Nephew inked a licensing deal with KFx for the latter’s rotator cuff repair technologies.

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