CardiAQ Wins $70 Million in Trade Secrets Suit
A federal jury found in favor of CardiAQ in a lawsuit filed against former service provider, Neovasc. The jury found that Neovasc breached the non-disclosure agreement between the parties, misappropriated CardiAQ’s trade secrets, and breached its duty of honest performance to CardiAQ. The jury awarded $70 million in damages for trade secret misappropriation.
CardiAQ co-founder J. Brent Ratz said in a press release that the company worked for years to develop and create the CardiAQ transcatheter mitral valve, which provides an alternative to open heart surgery. Ratz stated that:
We are proud of this foundational work and grateful that the jury recognized these contributions to the developing field of transcatheter mitral valve replacement.
According to the press release, CardiAQ hired Neovasc in 2009 to provide services for its transcatheter mitral valve replacement (TMVR) program and Neovasc signed a non-disclosure agreement. While working for CardiAQ, Neovasc started its own TMVR program without notifying CardiAQ. After discovering a Neovasc patent publication in late 2011, CardiAQ initiated this litigation in 2014 regarding Neovasc’s transcatheter mitral valve technology, including the Tiara.
According to the press release, the jury also issued advisory findings that Neovasc engaged in unfair or deceptive practices and that CardiAQ’s founders, Ratz and Dr. Arshad Quadri, contributed to the conception of Neovasc’s U.S. Patent No. 8,579,964. The judge is expected to rule later on causes of action under Massachusetts Gen. Law Ch. 93A and patent inventorship.
Edwards Lifesciences Corporation, based in Irvine, Calif., acquired CardiAQ in 2015.
CardiAQ was represented in the litigation by Knobbe Martens LLP, including lead partners John B. Sganga, Jr. and Christy G. Lea.
HeartWare International To Acquire Valtech Cardio
HeartWare International recently announced that it has entered into a definitive agreement to acquire Valtech Cardio, Ltd. Yehuda, Israe-based Valtech Cardio currently provides a transcatheter mitral valve repair product for the treatment of mitral regurgitation, the Cardioband, and is also working on a transcatheter mitral valve replacement product, the Cardiovalve. Traditional treatment options for mitral regurgitation require open heart surgery–however, many patients suffering from mitral regurgitation are too weak to undergo that surgery. As reported, the deal could approach a total value of nearly one billion dollars, but the final number depends heavily on the Valtech Cardio products reaching future milestones such as acquiring CE Mark approval and hitting net sales totals.
Valtech Cardio is the third company developing a transcatheter mitral valve to be acquired in the last two months, following the acquisitions of CardiAQ by Edwards Life Sciences, and of Twelve, Inc. by Medtronic. HeartWare International is a publicly traded medical device company focused on implantable cardiovascular devices. HeartWare International’s corporate headquarters are located in Framingham, Massachusetts.
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