The UK High Court of Justice recently ruled in favor of Kinetic Concepts Inc.(KCI: 39.35 0.00 0.00%) in a patent case against Smith & Nephew Plc. (SNN: 48.23 0.00 0.00%). The court was of the opinion that Smith & Nephew’s Rnansys EZ and GO products infringe on two KCI patents associated with negative pressure wound therapy (NPWT). The ruling will only affect SNN’s UK sales.
Moreover, the court ruled that Kinetic’s claims in both the cases are valid. An injunction is expected in the coming months.
These patents are exclusively owned by KCI and the favorable court ruling enables the company to establish its strong foothold in the NPWT market and provides motivation to further expand its portfolio.
Kinetic and SNN are also enmeshed in patent disputes throughout the world as well as in the US. These litigation disputes may affect the total revenue from NPWT solutions. KCI offers NPWT solutions through its Active Healing Solutions (AHS) unit. Kinetic Concepts dominates negative-pressure wound therapy.
In the first quarter of 2010, AHS’ worldwide revenue increased 6% over the first quarter of 2009. Kinetic’s long-term goal includes the development and commercialization of new, next-generation products in NPWT for the treatment of chronic wounds and hard tissue defects.
Kinetic engages in the design, manufacture, marketing and service of wound care and therapeutic products in the United States and internationally. Its products are used in wound healing and tissue repair, pulmonary care in the intensive care unit and bariatric care.