GenSci, Osteotech Settle Patent Dispute

GenSci Regeneration Sciences Inc., forced into bankruptcy proceedings after a federal jury ordered it to pay $14.5 million to bigger rival Osteotech Inc. for infringing patents for surgical bone repair, agreed to settle the dispute for $7.5 million.

GenSci will pay $1 million upon approval by a federal judge in Santa Ana and the rest in 20 quarterly installments of $325,000 plus interest, Eatontown, N.J.-based Osteotech said.

GenSci, based in Irvine and Toronto, filed for bankruptcy protection in December 2001 after the jury award and replaced its entire line of products for bone- and tissue-replacement treatments.

The agreement ensures that Osteotech gets some of the jury award and lets GenSci sell its newest products without fear of more lawsuits.

Earlier Monday, GenSci reported a fiscal first-quarter loss of $84,410 on sales of $8.4 million.

GenSci shares were up 2 cents to close at 41 cents on the Toronto Stock Exchange, while Osteotech shares rose 14 cents to $14.11 on Nasdaq