UNION CITY, Calif. (AP) — Blood analysis systems developer Abaxis Inc. said Wednesday it will receive $17.25 million from medical test maker Cepheid Inc. as part of a patent litigation settlement.
Abaxis, based in Union City, Calif., said the litigation focused on several of its patents tied to reagent and chemical compositions and processes. All claims against Cepheid will be dismissed as part of the settlement.
The agreement allows both companies to move forward "without the distraction of protracted litigation," Abaxis CEO Clint Severson said in a brief statement.
Cepheid, which is based in Sunnyvale, Calif., said in a Securities and Exchange filing issued Tuesday that the settlement was a compromise and not a concession or admission of liability by either side.
Abaxis shares slipped 9 cents to $36.24 in afternoon trading Wednesday, while Cepheid shares rose 45 cents to $39.40 and broader trading indexes fell slightly.