BioCardia Announces Litigation Financing in the Case Captioned Boston Scientific Corp., et al., v. BioCardia Inc.
April 14 2020 - 8:00AM
BioCardia®, Inc. (Nasdaq: BCDA), a leader in the development
of comprehensive solutions for cardiovascular regenerative
therapies, today reported it has entered into an agreement for
litigation financing which has been filed today with the Securities
and Exchange Commission on Form 8-K.
BioCardia, Inc. entered into a Litigation
Funding Agreement with BSLF, L.L.C., an entity owned and controlled
by Andrew Blank, a member of BioCardia’s board of directors, for
the purpose of funding the Company’s currently pending legal
proceedings and any and all claims, actions and/or proceedings
relating to, or arising from, the case captioned Boston Scientific
Corp., et al., v. BioCardia Inc., Case No. 3:19-05645-VC, U.S.D.C.,
N. D. Cal (the “Litigation”). The Litigation relates to matters the
Company raised in a letter to Ms. Surbhi Sarna, nVision Medical and
Boston Scientific based on BioCardia’s discovery in January 2019
that Ms. Sarna had assigned to a company she founded, nVision
Medical, a patent and patent applications she had filed while a
BioCardia employee. nVision subsequently was acquired by Boston
Scientific.
BioCardia made various claims, including that
the patent and patent application rightfully belonged to BioCardia
pursuant to Ms. Sarna’s invention assignment agreement, that the
proceeds from the sale of nVision to Boston Scientific rightfully
belonged to BioCardia because they were the direct result of Ms.
Sarna’s breach of her obligation to assign to BioCardia the patent
and patent applications and the use of misappropriated BioCardia
trade secrets. On September 6, 2019, Boston Scientific
Corporation, Boston Scientific Scimed Inc., and Fortis Advisors LLC
(the “Boston Scientific Parties”) filed a complaint against
BioCardia in the United States District Court Northern District of
California, Case no. 3:19-05645-VC, seeking declarations that the
claims made in BioCardia’s correspondence were without basis. On
October 31, 2019, BioCardia filed a counterclaim against the Boston
Scientific Parties and Ms. Sarna for breach of contract,
misappropriation of trade secrets and correction of inventorship on
the patents naming Ms. Sarna as an inventor. BioCardia seeks
imposition of constructive trusts both on the patents naming Ms.
Sarna as an inventor and the proceeds received from the sale of
nVision to Boston Scientific, as well as damages, including unjust
enrichment damages measured by the proceeds received from the sale
of nVision to Boston Scientific.
Under the terms of the Funding Agreement, the
Funder agreed to fund the legal fees and costs incurred by the
Company in connection with the Litigation on and after March 1,
2020 on a non-recourse basis in return for a share of the
litigation proceeds. Details of the Funding Agreement are
available in the Form 8-K filed today.
BioCardia CEO Peter Altman, PhD, said, “This
litigation financing gives BioCardia the wherewithal to pursue its
claims in court. This preserves our investment focus on advancing
our important cell therapy product pipeline to treat cardiovascular
diseases, and the commercialization of our FDA-approved enabling
device products.”
About BioCardia®BioCardia, Inc., headquartered
in San Carlos, California, is developing regenerative biologic
therapies to treat cardiovascular disease. CardiAMP™ and CardiALLO™
cell therapies are the Company’s biotherapeutic product candidates
in clinical development. The Company's current products include the
Helix™ transendocardial delivery system, the Morph® steerable guide
and sheath catheter portfolio and the AVANCE™ steerable introducer
family. BioCardia also partners with other biotherapeutic companies
to provide its Helix systems and clinical support to their programs
studying therapies for the treatment of heart failure, chronic
myocardial ischemia and acute myocardial infarction.
Forward Looking Statements This press
release contains forward-looking statements that are subject to
many risks and uncertainties. In particular, the outcome and timing
of litigation are uncertain. These forward-looking statements
are made as of the date of this press release, and BioCardia
assumes no obligation to update the forward-looking statements.
Media Contact: Michelle McAdam, Chronic
Communications, Inc. Email: michelle@chronic-comm.com
Phone: 310-902-1274
Investor Contact: David McClung, Chief
Financial Officer Email: investors@BioCardia.com Phone:
650-226-0120
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