A Medical Device Daily

Smith & Nephew (S&N; London) was awarded $4.7 million after a federal jury in Texas found privately held Arthrex (Naples, Florida) infringed on a U.S. patent; Arthex said it is planning to appeal the verdict.

S&N, a maker of orthopedic implants, sued Arthrex nearly three years ago, alleging one of Arthrex's devices infringed on a patent owned by S&N's endoscopy subsidiary (Medical Device Daily, August 27, 2007). The patent asserted in the claim involves devices for attaching tissue grafts to bone during arthroscopic knee surgery.

S&N plans to seek an injunction that will stop Arthrex from selling the infringing device.

Arthrex said it plans to appeal the jury verdict on the last remaining claim of patent infringement brought against it by S&N. It added the jury's award was for lost profits, and wasn't attributed to reasonable royalty damages, and said the verdict was "significantly less" than what S&N sought.

"Arthrex is confident that the verdict will be overturned on appeal and does not anticipate any interruption in the sales of its patented RetroButton device," the company said.

In other legal news, CCS Medical (Clearwater, Florida) said that it will pursue the Plan of Reorganization, dated as of Feb. 9. A hearing to consider approval of the Plan has been scheduled for March 11 with the U.S, Bankruptcy Court for the District of Delaware.

On Feb. 15, the company concluded the court-approved process whereby it marketed the sale of substantially all of its assets. The company generated significant interest during the process; however none of the offers submitted by the bid deadline satisfied the requirements of the court-approved procedures. CCS believes that the conclusion of the court-approved sales process has also achieved one of the company's goals of identifying the market's valuation range for the business, which was necessary in order to obtain confirmation of the plan. The company intends to pursue confirmation of the plan on terms substantially similar to those previously presented to creditors for their approval, whereby the company's First Lien Lenders will exchange their claims for new equity and new debt.

CCS Medical assists patients that need diabetes test strips, insulin pumps, urological supplies, ostomy supplies, advanced wound care dressings and prescription drugs.