UNION CITY, Calif., Sept. 26, 2012 /PRNewswire/ — Abaxis, Inc., a medical products company manufacturing point of care instruments and consumables for the medical, research, and veterinary markets, and providing reference lab services to the veterinary and research markets, announced today that a settlement had been reached in its lawsuit with Cepheid, Inc. (NasdaqGS: CPHD), over several Abaxis patents relating to reagent and chemical compositions and processes. As part of the agreement, Cepheid will pay Abaxis $17.25 million, and all claims asserted against Cepheid in the pending litigation have been dismissed.
“This will allow both companies to move forward with ongoing activities in sales, development and manufacturing without the distraction of protracted litigation,” said Clint Severson, CEO and Chairman of Abaxis. “We are pleased with the outcome of this agreement, and pleased that at Abaxis we can now all concentrate our activities in our core business areas: point of care testing and veterinary laboratory services.”
Abaxis develops, manufactures, markets and sells portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of single-use plastic discs, called reagent discs that contain all the chemicals required to perform a panel of up to 13 tests on veterinary patients and 14 tests on human patients. The system can be operated with minimal training and performs multiple routine tests on whole blood, serum or plasma samples. The system provides test results in less than 12 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer. The veterinary business also provides to the animal health and research market a line of hematology instruments for point-of-care complete blood counts (CBC), a specialty instrument to screen for and detect clotting disorders and to measure equine fibrinogen levels, a handheld instrument for the rapid assessment of certain critical care tests and rapid point-of-care tests for Heartworm infections, Parvovirus, Giardia and Lyme disease. Abaxis, through its AVRL division, provides routine laboratory testing as well as specialty testing for veterinarians nationwide.