Tandem Diabetes, Roche enter patent settlement agreement

In a regulatory filing, Tandem Diabetes Care (TNDM) disclosed that Tandem and Roche (RHHBY) entered into a Settlement, Mutual Release and Cross-License Agreement to resolve all actual or potential patent disputes as of the effective date relating to the company’s t:slim X2 pump and EP Patent No. 2 196 231 B1 and EP Patent No. 1 970 677 B1, including the pending patent infringement actions, revocation actions, counterclaims for revocation and actions for declaration of non-infringement of patents before local court divisions of the Unified Patent Court in France and Germany. Pursuant to the settlement agreement, the parties agreed to terminate the pending actions. The parties also provided each other with releases and waivers of claims relating to the disputes and their respective licensed patents and covenants not to sue, effective upon payment of the initial payment. As consideration for the settlement agreement, Tandem agreed to pay Roche an aggregate of $36M over a five-year period, with an initial payment of $8M, and the remaining balance to be paid in four equal annual installments thereafter. Additionally, effective upon payment of the initial payment,Tandem and the Roche granted to each other, for a period of 10 years from the effective date, non-exclusive, non-sublicensable, non-royalty-bearing, non-transferrable and irrevocable licenses to all their respective patents and patent applications related to insulin delivery systems.