F&P Healthcare says will vigorously defend Resmed lawsuit

By NZPA

Thursday 29th August 2002

Fisher and Paykel Healthcare today said it would vigorously defend a lawsuit bought by rival ResMed which claimed FPH had breached intellectual property laws with its snoring healthcare masks.

"We have taken legal advice on the suit. We believe that Resmed's claim against Fisher and Paykel Healthcare is without merit and, if required, we will vigorously defend this suit," said chief executive Michael Daniell.

"At ResMed's invitation we have contacted them with a view to resolving this dispute without unnecessary litigation."

FPH shares slumped 24 cents on Tuesday after ResMed announced it was taking legal action. The shares recovered nine cents yesterday and were steady on $9.60 today shortly after FPH's statement today.

FPH said it had procedures in place to avoid infringing the intellectual property rights of its competitors and to protect its own intellectual property and would comment further when it had seen the suit.

FPH's products -- including its Aclaim and Aclaim 2 nasal masks which are at the heart of the suit -- compete directly against ResMed's devices, including the Ultra, the mask ResMed is moving to protect.

The global sleep apnoea product market is dominated by ResMed and Respironics which together control about 80 percent of the market.

FPH has between 6 and 8 percent market share. While sleep apnoea products netted the company $79 million in revenue in the year to March, much of this stemmed from the flow generator machines to which the masks are attached.

ResMed is suing FPH, one of this country's top 10 listed companies, in the US federal district court in San Diego, where ResMed is based.

ResMed said the company was acting to enforce its patent rights and explained the current suit was only to determine if the patents had been breached.

If this was successful, a second action seeking remedy would be taken.

FPH shares have been on a wild ride, ranging from $18.75 to $7.80, since the Healthcare division was spun off from Fisher and Paykel Appliances -- which still owns 20 percent of FPH -- last November.

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