NEW YORK, Oct 23 - Third Wave Technologies said Monday it would pay $4 million in cash and issue $6 million worth of its stock to ID Biomedical in exchange for the company’s commitment to drop a patent infringement lawsuit against Third Wave and its Invader line of products.
Third Wave has also dismissed its action against ID Biomedical and has agreed not to challenge the ownership or validity of ID Biomedical’s patents.
" We are pleased to have settled these matters with ID Biomedical," Lance Fors, president and CEO of Third Wave, said in a statement. " The dismissal of the cases not only frees us from this litigation burden, but also allows our management team to focus on continuing to build our business."
In September, ID Biomedical of Vancouver filed a patent infringement suit against Third Wave Technologies of Madison, Wis., for its use of a patented nucleic acid amplification and detection technology. The Canadian company claimed that Third Wave’s Invader assay products and technology violated elements of a patent that had been exclusively licensed to ID Biomedical.
ID Biomedical, which has developed its Cycling Probe Technology gene identification system using knowledge covered in the patent, said that Third Wave has developed several thousand assay products using the allegedly infringing Invader technology.
Third Wave develops and provides DNA and RNA analysis technologies for use in genome research, pharmacogenomics, and clinical applications.