Church & Dwight settles Abbott, SurModics dispute

Church & Dwight settles patent dispute with Abbott, SurModics, will receive $27 million

• On 4:10 pm EDT, Thursday September 24, 2009

NEW YORK (AP) -- Consumer products maker Church & Dwight Co. said it settled a patent dispute over pregnancy test kits with Abbott Laboratories and SurModics Inc., according to a Securities and Exchange Commission filing Thursday.

Under the deal, which was struck Sept. 17, Abbott will pay $27 million to Church & Dwight within 30 days of the agreement. The companies also exchanged mutual releases on all claims for past damages relating to patents asserted in the lawsuits. Also, both Abbott and SurModics agreed not to sue Church & Dwight on any intellectual property relating to continued manufacture and sale of the products.

Also, the companies agreed jointly to move to dismiss the pending litigation within seven days of the payment to the company.

Shares of Princeton, N.J.-based Church & Dwight rose 38 cents to $56.22 while shares of North Chicago, Ill.-based Abbott rose 80 cents to $46.93 in afternoon trading. Eden Prairie, Minn.-based SurModics shares fell 31 cents to $23.32.