|GI Dynamics' EndoBarrier is a gastrointestinal liner designed to treat Type 2 diabetes and obesity--courtesy of GI Dynamics.|
GI Dynamics ($GID) has smoothed things over with W.L. Gore, as the two have agreed to settle Gore's patent lawsuit without cash payments or further litigation.
Gore supplies a material used in GI's EndoBarrier, and, in a lawsuit, the company claimed to be a co-owner of some of GI's patents. Under the settlement, GI retains the right to use its patents for gastrointestinal devices--including EndoBarrier--and Gore gets a royalty-free license to employ them for vascular treatments. Thus, no royalties, no cash and no further delay for GI's goals.
"We are delighted with this settlement," GI CEO Stuart Randle said in a statement. "It confirms that GI Dynamics is the sole and exclusive owner of its technology and patent portfolio."
Now, the company can focus on more pressing matters: Running a pivotal trial designed to get EndoBarrier approved by the FDA. The company plans to enroll 500 patients with Type 2 diabetes to test its tube-shaped weight-loss device, which is implanted non-surgically with an endoscope. In earlier trials, the CE-marked device rapidly and dramatically reduces blood sugar levels in patients and spurs 20% weight loss in the first year after implantation.
And GI has attracted some big-name attention with its minimally invasive tech: Last week, the company entered research agreements with Medtronic ($MDT) and GlaxoSmithKline ($GSK), signing on to research the device's other clinical benefits in diabetes.
- read the announcement