A U.S. district court awarded CardiAQ $70 million in its suit against former service providers Neovasc, for allegedly stealing the company’s technology.
Originally filed in June 2014, the lawsuit accused Neovasc of using CardiAQ’s technology to develop its Tiara transcatheter mitral valve replacement (TMVR).
CardiAQ hired Neovasc in 2009 to provide tissue processing and valve assembly services for its TMVR program, and Neovasc signed a non-disclosure agreement covering the technology.
During the contract period, Neovasc began developing its own TMVR program without disclosing its actions to CardiAQ, court records from the U.S. District Court for the District of Massachusetts show.
In response, CardiAQ sued the company in late 2011, after it discovered that Neovasc filed a patent for its technology. The suit accused Neovasc of deceitful business practices and theft of proprietary technology.
The jury found Neovasc guilty of breaching the non-disclosure agreement, misappropriating CardiAQ’s trade secrets, intentionally using deceptive trade practices, fraud and breaching its partnership with CardiAQ, according to court documents.
A judge is expected to decide whether CardiAQ founders should be added as inventors to Neovasc’s TMVR patent.
If the founders are added to the patent, Neovasc will have to create a license agreement with Edwards to commercialize the device. This could potentially result in Neovasc paying 25 percent royalties to CardiAQ. Neovasc is seeking an appeal.