Smiths Group announces that Smiths Medical has entered into a cross-licensing agreement with Medtronic MiniMed Inc. The agreement terminates all pending litigation between the companies relating to the Deltec Cozmo ® insulin pump, and confirms that no changes are required to the design of the pump, which is one of a range of innovative products driving the growth of Smiths Medical.
Under the terms of the agreement Smiths will make an initial payment to Medtronic and will pay a royalty on future sales of the current model.
The costs of the settlement will be treated as an exceptional charge in Smiths Group's 2005 Accounts. Subject to audit, this charge is expected to be no more than £15 million. The impact of this settlement on the future profits of Smiths Medical is unlikely to be material.