Dental News - Align Technology and Ormco end patent dispute, plan to collaborate

Align Technology and Danaher Corp. press release

Mon. 17 August 2009

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SANTA CLARA, CA, USA: Align Technology, manufacturer and marketer of Invisalign, has reached a settlement with Ormco Corp., a subsidiary of Danaher Corp., to end all pending litigation between the parties and to begin a new strategic collaboration.

As part of the settlement, Align will make a cash payment of approximately US$13 million to Ormco and issue approximately 7.6 million shares of Align’s common stock to Danaher Corp., that after issuance will be equal to approximately 10 per cent ownership interest in Align. The value of the shares is approximately US$77 million (based on the closing price of Align’s common stock on Friday, 14 August).

Align and Ormco have also agreed upon an exclusive collaboration over the next seven years to develop and market an orthodontic product that combines the trademarked Invisalign system with Ormco’s trademarked Insignia orthodontic brackets and arch wires system to treat the most complex cases. Each party will retain ownership of its pre-existing intellectual property, and each party will be granted intellectual property licenses in their respective field for jointly developed combination products.

“We are pleased to resolve this ongoing litigation with Ormco and to begin a new relationship that meets our shared goals of providing innovative products and excellent service to our orthodontic customers,” said Thomas M. Prescott, president and CEO of Align Technology, in a news release. “This collaboration with Ormco, a fellow innovator in digital orthodontics, gives us the ability to compete for a segment of the market that is difficult to treat with Invisalign alone and accelerates our long-term plan for a combination product.”

(Edited by Fred Michmershuizen, DTA)

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