The shares of CryoLife, Inc. (CRY: News ) plunged 17.45% in the after-hours trading on Thursday, following the statement by privately held Tenaxis Medical, Inc. regarding the German court nullification of CryoLife 'Kowanko' patent.
Tenaxis Medical noted that the German Federal Patent Court in Munich has indicated their intention to nullify the German Kowanko patent assigned to Kennesaw, Georgia-based CryoLife. The patent is the German part of the European Patent 0 650 512 and is key intellectual property relating to the BioGlue Surgical Adhesive which is marketed worldwide by CryoLife, a processor and distributor of implantable living human tissues for use in cardiac and vascular surgeries.
Ronald Dieck, President and Chief Executive Officer of Tenaxis Medical, said, "We have always believed our intellectual property protection to be strong and we elected to initiate a nullity action in Germany to reinforce our position in this field and maximize the value of our own portfolio. In our review it became clear that the German Kowanko patent was not a valid patent. This assessment will be supported by the upcoming written decision of the Federal Patent Court in Munich, which has indicated that they will nullify the patent."
Dieck added that the company is confident that the Court's decision will lead to the stay of the patent infringement action brought by CryoLife against Tenaxis Medical's product ArterX Vascular Sealant before the Duesseldorf District Court in Germany, pending the outcome of any appeal by CryoLife against the decision of the Federal Patent Court.
