Mindray Announces Litigation Settlement With Masimo - Quick Facts

(RTTNews) - Mindray Medical International Limited (MR) announced the company and Masimo Corp. have each agreed to settle and dismiss, as applicable, their patent, contract and anti-trust claims and counterclaims in the U.S. and China against each other and entered into a patent-related covenant not to sue.

Mindray has agreed, subject to limited exceptions, that from the settlement date through December 31, 2027 it will purchase all pulse oximetry technology components for Mindray patient monitoring products sold in the U.S. and Canada from Masimo. Mindray has agreed to pay Masimo $25 million and assigned to Masimo certain patents, covering areas not practiced in Mindray's products.

Mindray expects a related fourth quarter 2015 charge of $15.3 million, with $9.7 million previously accrued in 2012. Mindray has determined that these arrangements are immaterial to its operations as a whole.