NASDAQ: NVCN
TSX: NVC
VANCOUVER, Dec. 23, 2016 /PRNewswire/ - Neovasc Inc.
("Neovasc" or the "Company") (NASDAQ: NVCN) (TSX:
NVC) reported today that the United States District Court for the
District of Massachusetts has granted a stay of judgment
pending the completion of its appeal. The judgment stems from a
jury verdict reached in May 2016 and
subsequent rulings by the court related to a lawsuit filed by
CardiAQ against Neovasc related to its Tiara™ technology. As
a result of the court order imposing a stay, CardiAQ cannot
enforce the money judgment pending the outcome of the
appeal.
"Having this stay in place will allow our team to continue to
advance both our Tiara and Reducer products and help patients in
need," commented Alexei Marko, CEO
of Neovasc. "2017 is shaping up to be an exciting time, with
important clinical and development milestones expected throughout
the year."
Under the terms of the stay, Neovasc will deposit US$70 million into a joint escrow account and
enter into a general security agreement related to the remaining
damages awarded by the court. Neovasc will also require court
approval for transactions outside the course of normal business
until such time that an appeal is decided in Neovasc's favor or the
Company posts the remaining amount of money judgement into the
joint escrow account.
The Company is preparing to appeal the validity of the award, as
well as the ruling on inventorship to the
United States Court of Appeal for the Federal
Circuit. The appellate process may take approximately a year
to complete.
Update on German Litigation
Also, the Company reports
that on December 14, 2016 a hearing
took place in Munich, Germany
regarding the ongoing European litigation with CardiAQ related to
one of Neovasc's patent applications for its Tiara™ technology.
Further arguments were heard in court and no decision was
rendered by the court at this time. Neovasc intends to
continue to vigorously defend itself in the litigation with
CardiAQ.
About Neovasc Inc.
Neovasc is a specialty medical device company that develops,
manufactures and markets products for the rapidly growing
cardiovascular marketplace. Its products include the Neovasc
Reducer™, for the treatment of refractory angina which is not
currently available in the U.S. and has been available in
Europe since 2015 and the Tiara™,
for the transcatheter treatment of mitral valve disease, which is
currently under investigation in the U.S., Canada and Europe. The Company also sells a line of
advanced biological tissue products that are used as key components
in third-party medical products including transcatheter heart
valves. For more information, visit: www.neovasc.com.
This news release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities laws regarding: the
Company's intention to appeal the validity of the damages award, as
well as the Court's ruling on inventorship; the Company's intention
to adhere to the terms of the stay imposed by the Court; the
Company's ability to continue to advance its Tiara and Reducer
products, and its plans and expectations with respect to Tiara and
Reducer in 2017; and the Company's expectations with respect to the
length of the appellate process and the anticipated timing in
connection with the German litigation, and other intentions and
expectations with respect to the litigation. Words and
phrases such as "expected", "will", "continue", "advance", "shaping
up", "may", "intends", and similar words or expressions, are
intended to identify these forward-looking statements.
Forward-looking statements are based on estimates and assumptions
made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future
developments, as well as other factors that the Company believes
are appropriate in the circumstances. Many factors and
assumptions could cause the Company's actual results, performance
or achievements to differ materially from those expressed or
implied by the forward-looking statements, including, without
limitation: the conduct or possible outcomes of any actual or
threatened legal proceedings, including the Company's ability to
successfully appeal the validity of the award as well as the ruling
on inventorship, which is inherently uncertain and which creates
material uncertainty that casts substantial doubt on the Company's
ability to continue as a going concern; the potential impact on the
Company's business of an adverse decision in the appeal on the
question of inventorship even if the Company prevails on its appeal
of the award; potential changes in circumstances relating to the
Company's financing requirements, whether as a result of the
CardiAQ litigation (including as a result of the requirement for
the Company to deposit US$70 million
into a joint escrow account and enter into a general security
agreement related to the remaining damages awarded by the Court),
unforeseen circumstances or otherwise; the Company's ability to
raise additional funding; restrictions on the Company's ability to
enter into transactions outside the course of normal business in
accordance with the terms of the stay, which could impair the
Company's ability to pursue transactions that it believes may be in
the best interests of the Company and its shareholders; the
potential benefits of the Neovasc Reducer™ and Tiara™ as compared
with other products; successful enrollment of patients in studies
and trials for the Neovasc Reducer™ and Tiara™; results of the
trials and studies for the Neovasc Reducer™ and Tiara™ that meet
the Company's expectations; the Company's receipt of any required
local and institutional regulatory approvals and the timing and
costs of obtaining such approvals; European enrollment in our
clinical trials, studies and compassionate use cases and the
success of applications in Europe;
the Company's ability to protect its intellectual property; changes
in business strategy or development plans; existing governmental
regulations and changes in, or the failure to comply with,
governmental regulations and general economic and business
conditions, both nationally and in the regions in which the Company
operates. These risk factors and others relating to the Company are
discussed in greater detail in the "Risk Factors" section of the
Company's Annual Information Form, which is included in its Annual
Report on Form 40-F and Management's Discussion and Analysis of
Financial Condition and Results of Operations (copies of which
filings may be obtained at www.sedar.com or www.sec.gov).
These factors should be considered carefully, and readers should
not place undue reliance on the Company's forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Neovasc Inc.