Boston Scientific to pay $600 mn to J&J to resolve Guidant litigation

Boston Scientific Corporation announced the settlement of the breach of merger agreement lawsuit brought by Johnson & Johnson against Guidant Corporation, stemming from Boston Scientific's acquisition of Guidant. In the lawsuit filed in 2006, Johnson & Johnson alleged that Guidant breached the merger agreement it had with Johnson & Johnson, and sought more than $7 billion in damages. Guidant disputed the allegations. As a result of the settlement agreement, Johnson & Johnson has agreed to permanently dismiss its action without acknowledgment of liability by Guidant.

Additionally, Boston Scientific will make aggregate payments totaling $600 million to Johnson & Johnson.  Boston Scientific expects to record a pre-tax litigation-related charge of approximately $600 million within its fourth quarter 2014 results as a recognised subsequent event. This charge will be excluded from Boston Scientific's non-GAAP measures of adjusted income that were previously announced. In connection with the settlement, Boston Scientific has also agreed not to bring patent infringement or other claims related to Johnson & Johnson's S.M.A.R.T., S.M.A.R.T. Control, and S.M.A.R.T. Flex stent products.

"We feel this settlement is in the best interests of the company and its shareholders," said Tim Pratt, executive vice president, chief administrative officer, general counsel and secretary. "We are pleased to end this longstanding litigation between Guidant and Johnson & Johnson, and to continue focussing on delivering innovative products and solutions to physicians and patients."

 

First-of-its-kind paediatric HIV treatment

Janssen, the pharmaceutical companies of Johnson & Johnson, has launched a first-of-its-kind paediatric HIV treatment donation programme to improve access to the company's approved HIV medicines for children and adolescents failing HIV treatment in sub-Saharan Africa.

At a symposium entitled When Children Need HIV Treatment Beyond First-Line: How Can We All Respond? at the 17th International Conference on AIDS and STIs in Africa (ICASA), Ministries of Health (MOHs) in sub-Saharan Africa were invited to submit a formal Expression of Interest to participate in the charitable paediatric HIV treatment donation programme.

Through this programme, Janssen will donate its HIV medicines PREZISTA (darunavir) and INTELENCE (etravirine), including child-friendly formulations, free of charge to eligible countries with the clinical capacity and willingness to address second- and third-line paediatric HIV treatment. Each child enrolled will receive Janssen's donated HIV medicines as needed until they turn 19 at which point they will be transitioned into the adult national HIV programme or other designated by the national HIV programme for continued treatment.

The donation programme is intended to be a first step in a broader collaborative effort to build awareness, incite action, and advance learning around second- and third-line paediatric HIV treatment in sub-Saharan Africa. Janssen is working with the Elizabeth Glaser Paediatric AIDS Foundation, the Partnership for Supply Chain Management (PFSCM), and MAP International to fully maximize the impact and reach of this initiative.

"The donation programme is part of our longstanding commitment to help people living with HIV and enhance access to our medicines for those in need. Only a third of the three million children living with HIV are receiving medicines today, and of those children receiving treatment, a small but growing number are experiencing HIV treatment failures and are in need of new treatment options," said Paul Stoffels, MD, chief scientific officer, Johnson & Johnson and worldwide chairman, Janssen. "We hope this innovative donation programme is the first step in sparking further collaborative action across sub-Saharan Africa for children who are experiencing HIV treatment failure. Our vision is that these children receive the HIV treatment and care they need to stay healthy and grow to become healthy, productive young adults."

J&J completes divestiture of Ortho-Clinical

Johnson & Johnson has completed the divestiture of its Ortho-Clinical Diagnostics business to The Carlyle Group for approximately $4 billion, subject to customary adjustments.

Under the terms of the transaction, The Carlyle Group has acquired the Ortho-Clinical Diagnostics business, a global provider of solutions for screening, diagnosing, monitoring and confirming diseases.  The Ortho-Clinical Diagnostics business generated net sales of approximately $1.9 billion in 2013.

Johnson & Johnson will discuss the financial impact of this divestiture during its scheduled quarterly earnings call on July 15, 2014.