US District Court grants injunction in favor of Smith & Nephew's Endoscopy Division

A US District Court judge in Texas yesterday ruled that it granted an injunction in favor of Smith & Nephew's (NYSE: SNN; LSE: SN) Endoscopy Division.  As expected the Judge also granted Arthrex's motion to stay the injunction pending an appeal of the judgment.

The stay of the injunction places a number of conditions on Arthrex's business activities, including requiring the establishment of an escrow account -- in anticipation of the judgment being affirmed on appeal -- to pay Smith & Nephew for additional sales on their infringing product.

In February, a jury determined that Arthrex's RetroButton Femoral Fixation Device infringed Smith & Nephew's patent that covers the company's ENDOBUTTON™ Fixation Device and similar devices for attaching tissue grafts to bone during arthroscopic surgery in the knee. The jury awarded Smith & Nephew Endoscopy $4.7 million.

"ENDOBUTTON has been routinely used by surgeons around the world to deliver a dependable soft tissue repair that helps patients get back to their active lives," said Michael Frazzette, president, Smith & Nephew Endoscopy.  "We are pleased with this decision which supports our intellectual property rights and the investment that we make in product innovation."