QLT to pay $20 million to settle Visudyne lawsuit

AP News
Posted: Nov 25, 2009 2:51 PM

Canadian biotechnology company QLT Inc. said Wednesday it will pay Massachusetts General Hospital $20 million to settle a lawsuit over product royalties.

The Vancouver company said the payment is for "all past and future royalty obligations" related to Visudyne, a treatment for macular degeneration, a cause of blindness.

In exchange, the hospital's lawsuit against the company was dismissed, QLT said.

The two parties also released each other from claims in connection with the lawsuit and related matters, the company said.

"We are pleased to put this matter behind us and continue to concentrate on our clinical programs and strategic growth initiatives," said Bob Butchofsky, QLT's president and CEO.

A spokeswoman said Massachusetts General Hospital did not immediately have a comment.

QLT agreed with the hospital, which sued in February, saying a license agreement required the company to pay the hospital a 0.5 percent royalty on Visudyne sales in the U.S. and Canada. Massachusetts General Hospital accused QLT of breach of contract and other allegations, the company said.

Shares rose 60 cents, or nearly 16 percent, to $4.37 in afternoon trading.