Escalon to Receive $9.6M in Settlement With IntraLase
Escalon Medical Corp. today announced that it has agreed to settle its litigation with IntraLase Corp. regarding a license agreement for laser technology in return for a lump sum payment of $9.6 million. Under terms of the settlement, Escalon will drop its legal dispute and IntraLase will receive full ownership of patents and intellectual property it formerly licensed from Escalon and will no longer have to make any royalty payments. Located in Wayne, Pa., Escalon develops ophthalmic diagnostic, surgical and pharmaceutical products and vascular access devices; IntraLase, based in Irvine, Calif., manufactures ultrafast femtosecond laser technology for use in ophthalmology. Escalon licensed its intellectual laser properties to IntraLase in October 1997 in exchange for an equity interest in IntraLase as well as royalties on future product sales. Escalon later filed a lawsuit against IntraLase saying the company was violating terms of the agreement. Escalon said the settlement is expected to have a material effect on its third quarter financial statements because the entire $9.6 million will be recorded as a gain on sale in the current period.