Diomed Wins Patent Infringement Case
March 28 2007 - 3:50PM
Business Wire
Diomed Holdings, Inc. (AMEX: DIO - News), a leading developer and
marketer of minimally invasive medical technologies, including its
patented EndoVenous Laser Treatment (EVLT�) for varicose veins,
today announced that, in its trial to prosecute its U.S. EVLT�
Patent No. 6,398,777, the jury found AngioDynamics and Vascular
Solutions both liable for infringement. The case, which began on
March 12th, concluded on March 28th, with the jury verdict finding
each defendant liable for both inducing infringement and
contributory infringement of Diomed�s patent, and awarding a total
of $12,460,000. �We are obviously extremely pleased with the
outcome of this critical case. We are thrilled that the jury has
recognized the value of Diomed�s pioneering patent,� stated James
A. Wylie, Jr., President and Chief Executive officer of Diomed
Holdings, Inc. "We plan to immediately file for a permanent
injunction against AngioDynamics and Vascular Solutions which, if
granted, will require both companies to cease marketing their
infringing products. We are hopeful for an early ruling from the
court which will allow us to focus our efforts on growing this
exciting market.� In January 2004, Diomed commenced legal action in
the United States Federal District Court for the District of
Massachusetts against AngioDynamics, seeking injunctive relief and
damages for infringement of Diomed's pioneering United States
Patent Number 6,398,777 which covers the endovascular laser
treatment of varicose veins. Diomed acquired exclusive rights to
the patent from the five inventors of the procedure in September
2003. Diomed initiated similar actions against Vascular Solutions,
CoolTouch (New Star Lasers) and Total Vein Solutions later in 2004.
The later two actions are still pending under the jurisdiction of
the same Court and are expected to move to trial later this year.
�This decision radically alters the competitive landscape in the
treatment of venous disease and is expected to have a significant
impact on our financial performance going forward,� added David B.
Swank, Chief Financial Officer of Diomed. �At existing growth
rates, AngioDynamics and Vascular Solutions sales represent
approximately $20 to $25 million in annual customer demand and we
have already initiated plans to maximize our share of that
business. We also expect that the ability to recover royalty
payments and the elimination of the legal burden associated with
the �777 litigation to assist in improving our financial
performance.� �The process of protecting our intellectual property
rights has been lengthy and expensive,� Mr. Wylie concluded. �We
will now be able to focus our resources on accelerating the
development of the laser market for treatment of varicose veins,
particularly in reaching out and educating patients about the
advantages of endovenous laser treatment over alternative
procedures.� Further details regarding the decision will be made
available upon its release by the court for publication. Diomed
will hold a conference call to review the patent litigation
decision on Thursday, March 29, 2007, at 10:00 a.m. (Eastern Time)
and will be hosted by James A. Wylie, Jr., President and Chief
Executive Officer, and David B. Swank, Chief Financial Officer.
Interested parties may access the conference call by dialing
800.901.5247 (domestic) or 617.786.4501 (international),
participant pass code 72321596. The call will also be available via
web cast at www.diomedinc.com. If you are unable to participate, an
audio digital replay of the call will be available from Thursday,
March 29, 2007 12:00 p.m. Eastern Time, until April 3, 2007, 12:00
p.m. Eastern Time. The digital replay can be accessed by dialing
888-286-8010 (domestic) or 617-801-6888 (international), using pass
code 56597417. A web archive will also be available during this
time period at www.diomedinc.com. About Diomed Diomed develops and
commercializes minimal and micro-invasive medical procedures that
use its proprietary laser technologies and disposable products.
Diomed�s EVLT� laser vein ablation procedure is used in varicose
vein treatments. Diomed also provides photodynamic therapy (PDT)
for use in cancer treatments, and dental and general surgical
applications. EVLT� is a registered trademark of Diomed Inc.,
Andover, MA. Safe Harbor Safe Harbor statements under the Private
Securities Litigation Reform Act of 1995: Statements in this news
release looking forward in time involve risks and uncertainties,
including the risks associated with trends in the products markets,
reliance on third party distributors in various countries outside
the United States, reoccurring orders under OEM contracts, market
acceptance risks, technical development risks and other risk
factors. These statements relate to our future plans, objectives,
expectations and intentions. These statements may be identified by
the use of words such as "may," "will," "should," "potential,"
"expects," "anticipates," "intends," "plans," "believes" and
similar expressions. These statements are based on our current
beliefs, expectations and assumptions and are subject to a number
of risks and uncertainties. Our actual results could differ
materially from those discussed in these statements. Our Annual
Report on Form SEC 10-KSB (the "Annual Report") contains a
discussion of certain of the risks and uncertainties that affect
our business. We refer you to the "Risk Factors" on pages 19
through 34 of the Annual Report for a discussion of certain risks,
including those relating to our business as a medical device
company without a significant operating record and with operating
losses, our risks relating to our commercialization of our current
and future products and applications and risks relating to our
common stock and its market value. Diomed disclaims any obligation
or duty to update or correct any of its forward-looking statements.
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