Published on November 25, 2009 at 7:38 AM
QLT Inc. (NASDAQ: QLTI; TSX: QLT) ("QLT" or the "Company") today announced the settlement of its litigation with the General Hospital Corporation, doing business as Massachusetts General Hospital ("MGH").
Under the terms of the settlement agreement, QLT will pay US$20.0 million to MGH as payment in full for all past and future royalty obligations under the License Agreement between QLT and MGH, in exchange for the dismissal with prejudice of MGH's lawsuit against QLT pending in the Massachusetts District Court for violation of Massachusetts General Law Chapter 93A, sections 2 and 11. As part of the settlement, QLT and MGH have also released each other from any claims in connection with the lawsuit and certain related matters. Under the existing License Agreement, QLT was obligated to pay MGH a 0.5% royalty on Visudyne(R) sales in the U.S. and Canada.
"We are pleased to put this matter behind us and continue to concentrate on our clinical programs and strategic growth initiatives," said Bob Butchofsky, President and Chief Executive Officer of QLT. "We believe that this agreement fairly resolves our dispute and serves to recognize the critically important contributions made by MGH in the development of Visudyne."
Source: QLT INC.