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District Court Sides with Smith & Nephew; Rules that It will Issue Injunction that will Prohibit Arthrex Inc. from Selling Infringing Medical Devices
Date:10/29/2008

ANDOVER, Mass., Oct. 29 /PRNewswire-FirstCall/ -- A US District Court judge in Oregon yesterday ruled that it will grant Smith & Nephew (NYSE: SNN; LSE: SN) Endoscopy's request for an injunction that will prohibit privately held Arthrex Inc. of Naples, Fla., from manufacturing or selling medical devices that infringe a patent exclusively licensed to Smith & Nephew by Dr. John O. Hayhurst of Portland, Ore.

A jury determined in June that Arthrex willfully infringed this patent by marketing and selling Bio-SutureTak, PEEK SutureTak, Bio-PushLock and PEEK PushLock suture anchors (see Editors Note) used in various minimally invasive soft tissue repair surgeries, and awarded Smith & Nephew Endoscopy $14.7 million for past infringement through 2005.

The court ruled in our favor, and effective 60 days after the Court enters final judgment -- expected sometime around the end of the year -- Arthrex must stop manufacturing and selling the infringing Bio-SutureTak and PEEK SutureTak anchors.

The injunction will not affect sales of current Arthrex PushLock anchors. During the case Arthrex stopped selling the infringing first generation PushLock anchors and replaced them with modified PushLock Anchors. Smith & Nephew and Dr. Hayhurst have filed a second lawsuit against Arthrex seeking an injunction against the newer versions of PushLock anchors as well as Arthrex's Bio-Composite SutureTak anchors.

"We are pleased that the judge has granted our request for an injunction," said Michael Frazzette, president of Smith & Nephew Endoscopy. "Smith & Nephew remains committed to defending its intellectual property and the hard work of the surgeons who partner with us in developing and commercializing these innovative tools and techniques for the ultimate benefit of the patient."
In addition to granting Smith & Nephew's injunction, the judge:

-- Granted prejudgment interest in the amount of $1.5 million

-- Ruled that the court will a
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SOURCE Smith & Nephew Inc.
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