J&J Sues Hologic Over Tumor-Detection System Patents

Johnson & Johnson sued Hologic Inc., a maker of medical imaging equipment, accusing it of violating four patents on a tumor-detection system. Johnson & Johnson’s Ethicon Endo-Surgery unit claims Hologic’s ATEC surgical devices, used to perform breast biopsies to test for cancer, infringe the patents. The complaint was filed Oct. 5 in federal court in Cincinnati. Hologic is preparing to buy Cytyc Corp. for $6.2 billion in cash and stock to add products that screen for cervical cancer. Hologic makes imaging systems to diagnose women’s diseases. In a regulatory filing today, Bedford, Massachusetts-based Hologic said it “believes that the lawsuit is without merit and intends to vigorously defend its position.” Hologic rose 58 cents to $65.50 at 4:00 p.m. New York time in Nasdaq Stock Market composite trading, and Cytyc rose 38 cents to $50.18. Johnson & Johnson rose 23 cents to $66.25 in New York Stock Exchange composite trading. The New Brunswick, New Jersey-based company, the world’s largest maker of health products, has a market value of $191.8 billion. ATEC Products Johnson & Johnson seeks cash and a court order to block the ATEC products, including the Pearl, Sapphire and Emerald, which it says infringe the four patents. The ATEC devices, made by Hologic’s Suros Surgical Systems Inc., compete with Ethicon’s Mammotome breast biopsy line. Hologic bought Suros last year for $240 million. Johnson & Johnson’s Ethicon said it “will continue to be irreparably harmed” by the infringement unless it is blocked. The case is Ethicon Endo-Surgery Inc. v. Hologic Inc., 07cv834, U.S. District Court for the Southern District of Ohio, Western Division (Cincinnati). SOURCE: Bloomberg News