Neovasc Inc. was granted a stay of judgment pending the completion of its appeal of a lawsuit filed by competitor CardiAQ, now owned by Edwards Lifesciences Corp., relating to Neovasc's Tiara technology.
The company is developing Tiara, a novel transcatheter device, for the treatment of severe mitral regurgitation.
Under the decision by the U.S. District Court for the District of Massachusetts, CardiAQ cannot enforce a prior verdict awarding it $70 million until the outcome of the appeal is decided.
Neovasc will instead deposit the $70 million into a joint escrow account and will enter a general security agreement related to the remaining damages awarded by the court. It will also require court approval for transactions outside the course of normal business until an appeal is decided in Neovasc's favor or it posts the remaining amount of money judgment into the joint escrow account.
The litigation threatened to push Neovasc into insolvency until Boston Scientific Corp. acquired its tissue processing technology and facility for about $67.9 million in early December and took a 15% stake in the company for $7.1 million, according to a Dec. 2 research note by Leerink Partners analyst Danielle Antalffy.
Neovasc also reported that on Dec. 14 a hearing took place in Munich related to an ongoing European litigation with CardiAQ over a patent application of Tiara. The court heard further arguments but has not yet rendered a decision. The company intends to continue to vigorously defend itself in the litigation with CardiAQ.