Ormco and Align Agree to Enter Into Strategic Collaboration and Settle Patent Litigation
Washington, D.C. – Ormco Corporation, a subsidiary of Danaher Corporation (NYSE: DHR) today announced that Ormco and Align Technology, Inc. (Nasdaq: ALGN) have agreed to enter into an exclusive collaboration arrangement to jointly develop and market an orthodontic product offering that will provide orthodontic patients a treatment solution that involves a combination of Align’s Invisalign® system and Ormco’s Insignia® custom orthodontic bracket and arch wire system. Align will also grant to Danaher an equity stake in Align common stock that after issuance will be equal to an approximately 10% ownership interest in Align (valued at approximately $77 million based on Align’s common stock closing price on August 14, 2009). The issuance of a portion of the shares to be issued is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
“We are truly excited about the new treatment alternative that we expect to offer our customers as a result of this collaboration,” said Don Tuttle, President of Ormco Corporation.
The agreement to enter into a collaboration arrangement and issue an equity stake in Align are part of an agreement under which the parties have agreed to settle the patent infringement case brought by Ormco against Align. Under the terms of the settlement, Align has also agreed to make a cash payment of $13 million to Ormco.
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