Ormco and Align Settle Litigation and Become Collaborators

Align Technology Inc and Ormco Corp, a subsidiary of Danaher Corp, have entered an exclusive agreement to jointly develop and market an orthodontic product that will combine Align’s Invisalign system and Ormco’s Insignia custom orthodontic bracket. The agreement is part of the settlement to end the patent infringement case brought by Ormco against Align.

According to a spokesperson from Align, “The goal is to provide an integrated approach to complex malocclusion treatment using technology and expertise from both companies. A combo product will provide orthodontists with a new treatment tool for their challenging cases, one that combines the best that both companies have to offer in digital orthodontics, plus the aesthetic benefits of Invisalign treatment.”

Oliver Gelles, vice president of global marketing and product development for Ormco, added, “We believe this collaboration will arm the orthodontic specialist with a dynamic new treatment option to convince more patients to start treatment. There are millions of untreated adult consumers that are in need of and are eligible for orthodontic treatment.”

The collaborative effort, to take place over the next 7 years, will not affect current users of the products.

Gelles explained, “Aside from this project, both Ormco and Align will continue to pursue their respective core business objectives. AOA and Ormco will continue to commercialize their products, and continue to work to improve their capabilities in the future. Likewise, Align will continue to sell the full complement of Invisalign products on the market today. Our collaboration is limited exclusively to the development of this product.”

Also as part of the law suit settlement, Align has agreed to make a cash payment of $13 million to Ormco and grant Danaher Corp an equity stake equal to approximately 10% ownership interest (after taxes) in Align’s common stock.

In July, a federal jury delivered a verdict against Align, ruling that the company infringed claims of Ormco’s patent #6,616,444. The settlement ends all pending litigation between the parties.