Patent Law

The following is excerpted from a March 14, 2008 Diomed press release:

Diomed Holdings, Inc. (AMEX: DIO), a leading developer and marketer of minimally invasive medical technologies, including its patented EVLT® laser treatment for varicose veins, announced that it, together with its wholly owned subsidiary, Diomed, Inc., filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts, Western Division. The petition contemplates that Diomed will sell certain of its operating assets to Biolitec AG, a manufacturer of medical lasers, optical fibers and other products, thereby enabling Biolitec to continue to operate Diomed?s business in the United States.

Diomed and Biolitec have entered into a non-binding letter of intent for the sale of specified assets for a purchase price of between $6 and $7 million. Biolitec reported revenues of ?39 million and profits of ?5.6 for its fiscal year ended June 30, 2007. Its shares are listed on the Prime Standard of the Frankfurt Stock Exchange. Biolitec is headquarted in Jena, Germany, and employs approximately 60 personnel at its U.S. operations based in East Longmeadow, Massachusetts.

?The decision to pursue the sale of the company?s assets and operations through the bankruptcy process was an extremely difficult but appropriate decision for our Board of Directors to make,? commented James A. Wylie, Jr., Diomed?s Chief Executive Officer. ?In spite of our intensive efforts to seek a buyer for the Company outside of bankruptcy and to work with our secured lenders to avoid seeking bankruptcy protection, the impact of infringement of the Company?s products in the marketplace and delays in the judicial process proved impossible to overcome,? Wylie stated.

Diomed expects to complete the asset sale to Biolitec within approximately 60 to 90 days and to sell its remaining assets in due course, under the court?s direction. These other assets include judgments in Diomed?s favor of approximately $14.7 million arising from Diomed?s successful patent infringement litigation in 2007 against defendants AngioDynamics, Inc. and Vascular Solutions, Inc. This litigation is currently on appeal, under bond, with a hearing on the appeal scheduled for April 10, 2008 at the appellate court. 

Read the full press release here.