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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): January 6, 1999
CARDIOGENESIS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-228424 77-0352469
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(State of Incorporation (Commission File Number) (I.R.S. Employer
or Organization) Identification No.)
540 Oakmead Parkway, Sunnyvale, California 94086
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(Address of principal executive offices) (Zip Code)
Registrant's telephone no., including area code: (408) 328-8500
NOT APPLICABLE
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Settlement of Patent Litigation
On January 6, 1999, CardioGenesis Corporation (the "Company") issued a
press release announcing the settlement of all patent litigation between the
Company and PLC Medical Systems, Inc. ("PLC"), a subsidiary of PLC Systems Inc.
both in the U.S. and Germany, with respect to PLC's U.S. Patent No. 5,125,926
and related international patents. The press release is attached hereto as
Exhibit 99.1.
The Exhibit hereto is incorporated by reference herein and forms an
integral part hereof.
Item 7. Financial Statements and Exhibits.
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Exhibits.
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99.1 Press Release dated January 6, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CARDIOGENESIS CORPORATION
/s/ Richard P. Powers
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Richard P. Powers,
Executive Vice President of Finance
and Administration and
Chief Financial Officer
Date: January 22, 1999
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EXHIBIT INDEX
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Exhibit
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99.1 Press Release dated January 6, 1999.
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EXHIBIT 99.1
CARDIOGENESIS AND PLC SETTLE PATENT DISPUTE
SUNNYVALE, Calif., Jan. 6 - CardioGenesis Corporation (Nasdaq:CGCP) and PLC
Medical Systems, Inc., a subsidiary of PLC Systems Inc. (Amex:PLC), announced
today that they have settled all patent litigation between the companies, both
in the U.S. and in Germany, with respect to PLC's U.S. Patent No. 5,125,926 and
related international patents (PLC patents) for laser synchronization
technology used in transmyocardial revascularization (TMR) procedures.
Under the Settlement and License Agreement signed by the parties today,
PLC grants CardioGenesis a non-exclusive worldwide license to the PLC patents.
CardioGenesis will pay PLC a license fee, and minimum royalties, totaling $2.5
million over an approximately forty-month period, with a running royalty
credited against the minimums. CardioGenesis will take a charge to earnings of
approximately $2.3 million in the fourth quarter of 1998 as the present value
of the license fee and minimum royalties. Other financial terms were not
disclosed.
The Settlement and License Agreement does not apply to any products or
technology that do not utilize the PLC patents nor does the agreement provide
PLC rights to any CardioGenesis intellectual property. With respect to the
previously announced pending business combination of CardioGenesis with Eclipse
Surgical Technologies, Inc., neither Eclipse nor its products were the subject
of the dispute. Eclipse TMR products do not use synchronization technology.
CardioGenesis Corporation, based in Sunnyvale, Calif., develops,
manufactures and markets proprietary systems including disposable products, to
perform intraoperative transmyocardial revascularization, catheter-based
percutaneous myocardial revascularization, and thoracoscopic transmyocardial
revascularization, to treat patients afflicted with debilitating angina.
CardoGenesis catheter systems and probes deliver laser energy to create
channels in oxygen-deprived (ischemic) regions of the heart muscle
(myocardium). CardioGenesis holds patents for systems and method of
percutaneous myocardial revascularization, and transmyocardial
revascularization, and has a number of patent applications pending worldwide.
For more information on the company and its products, visit the CardioGenesis
website at www.cardiogenesis.com.
CONTACT: Allen W. Hill, President and CEO, or Richard P. Powers, Executive
Vice President and CFO, 408-328-8500, both of CardioGenesis; or general
information, Ann Trunko, or analysts, Kate Rajeck, 415-986-1591, both of The
Financial Relations Board