inverness acquires diagnostics

Inverness Acquires Diagnostics Business to Settle Patent Dispute

To settle a nearly three-year long patent dispute both in the U.S. and

overseas, Inverness Medical Innovations Inc. (Inverness) has agreed to

acquire part of the business of Acon Laboratories Inc. (Acon) for $175

million. Inverness initially sued Acon for infringement of its U.S.

Patent No. 6,485,982 ("Test Device and Method for Colored Particle

Immunoassay"), obtaining a preliminary injunction against Acon in

July, 2004 for Acon's alleged infringement of claims 7 and 19 of the

patent (regarding Acon's "one-step device"). Acon's "lateral flow

immunoassay" business had revenues of $50 million in 2005, with an

operating income of $17 million. This purchase by Inverness of part of

defendant Acon's business was justified, according to Ron Zwanziger,

CEO of Inverness, because "by acquiring the majority of the rapid

diagnostic test business of Acon, who has proven to be an efficient

manufacturer of both consumer and professional diagnostic products, we

are adding significant revenues at attractive margins as well as

manufacturing capabilities that will benefit us companywide."

Inverness Medical Press Release: LINK

U.S. Patent No. 6,485,982: LINK