CarboMedics Sues ATS Medical for Breach of Contract

By : |January 29, 2007 0

CarboMedics, Inc., a company fully-owned by Sorin has filed suit against Minneapolis-based ATS Medical, Inc. The suit alleges that ATS failed to order valve components as required by a long-term supply agreement.

The suit, which seeks enforcement of the supply agreement on a continuing basis in addition to monetary damages, was filed in the United States District Court for the District of Minnesota.

In 1990, CarboMedics gave ATS Medical a license to intellectual property for a bileaflet heart valve designed by CarboMedics. CarboMedics also agreed to develop the manufacturing processes by which ATS Medical could bring that heart valve to market. In exchange, ATS Medical entered into a long-term supply agreement with CarboMedics whereby ATS Medical is required to purchase approximately $20 million worth of valve components from CarboMedics between 2007 and 2011.

‘We have completed a comprehensive review of the commercial agreements at stake and as a result, feel we have to take this action in order to seek enforcement of the contract,’ said Charles Griffin, President, CarboMedics, Inc. ‘We are confident that in this case the court will recognize the serious breach of basic contract rights by ATS.’

CIOL Bureau

No Comments so fars

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.