SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
October 13, 1999 (October 13, 1999)
(Date of Report (Date of earliest event
reported))
ALARIS MEDICAL SYSTEMS, INC.
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(Exact name of registrant as specified in charter)
Delaware
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(State or other jurisdiction of incorporation)
333-18687
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(Commission File Number)
13-3800335
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(IRS Employer Identification No.)
10221 Wateridge Circle
San Diego, CA 92121
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(Address of principal executive officers)
(619) 458-7000
(Registrant's telephone number, including area code)
Exhibit Index is on Page __
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ITEM 5. OTHER EVENTS
On October 13, 1999, ALARIS Medical, Inc. ("ALARIS Medical") issued a
press release regarding its operating company, ALARIS Medical Systems, Inc. (the
"Registrant"), settling a lawsuit filed in April 1998 by Becton Dickinson and
Company ("Becton Dickinson")against the Registrant which alleged infringement of
a patent by reason of certain activities including the sale of the Registrant's
SmartSite needle-free system and in connection therewith, Becton Dickinson and
the Registrant granting between each other paid-up licenses to certain patents.
In connection with the settlement, among other things, the Registrant
will pay a total of $6,700,000, all claims between the parties to the lawsuit
shall be dismissed and the Registrant and its affiliates shall receive a paid-up
license to the patent relating to certain needle-free valve products.
The press release is attached as Exhibit 1 to this Form 8-K filing.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibit 1 - Press Release dated October 13, 1999
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SIGNATURES
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.
ALARIS MEDICAL SYSTEMS, INC.
(Registrant)
Date: October 13, 1999 By: /s/ William C. Bopp
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Name: William C. Bopp
Title: Vice President and Chief
Financial Officer
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EXHIBIT INDEX
Exhibit Material to be Filed Page
Number as Exhibits Number
Exhibit 1 Press Release dated October 13, 1999
AT THE COMPANY: KETCHUM:
Barbara Burkett Roslyn Golden
Director, Corporate Communications Trade Contact
(619) 458-7038 (310) 444-1351
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FOR IMMEDIATE RELEASE
OCTOBER 13, 1999
ALARIS MEDICAL RECEIVES PAID-UP LICENSE AND
SETTLES PATENT LITIGATION
SAN DIEGO, CA, October 13, 1999 - ALARIS Medical, Inc., (AMEX:AMI) today
reported that its wholly owned operating subsidiary, ALARIS Medical Systems,
Inc., has entered into an agreement with Becton, Dickinson and Company which
grants between the two companies paid-up licenses to certain patents. The
agreement also settles patent infringement lawsuits relating to certain
needle-free valve products.
The lawsuits were filed in 1998 by the two companies. Under the terms of the
settlement, which were not disclosed, ALARIS Medical Systems, Inc. will be
making a one-time payment to BD.
ALARIS Medical CEO William J. Mercer said, "We are pleased to have this action
behind us and to have the license to use this technology in the future. Our
needle-free disposable products are an important franchise to ALARIS Medical,
and include our proprietary SmartSite(R) valve. As healthcare providers and
clinicians seek to increase patient and caregiver safety, we expect our
needle-free disposable products to continue to grow as a percent of our global
disposables sales."
ALARIS Medical Systems, Inc. indicated that a portion of the settlement will be
treated as a prepaid license with the remainder being taken to expense in the
third quarter. Under the agreement, ALARIS Medical Systems will not be required
to pay any future royalties on patents covered by the agreement.
ALARIS Medical, Inc., through its operating company, ALARIS Medical Systems,
Inc., is known for its IMED(R) and IVAC(R) brand names of intravenous infusion
therapy systems and Instromedix(R) cardiac event recorders and pacemaker
follow-up systems. The Company's principal line of business is the design,
manufacture and marketing of intravenous infusion therapy products, patient
monitoring instruments and related disposables. The Company's products are
distributed to more than 120 countries worldwide. In addition to its San Diego
world headquarters and manufacturing facility, the Company also operates
manufacturing facilities in Creedmoor, NC; Basingstoke, Hampshire, UK; and
Tijuana, Mexico. Additional information on ALARIS Medical can be found at
www.alarismed.com.
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This news release contains forward-looking statements which are based largely
upon the Company's expectations for demand and acceptance of new and existing
products, technologies and opportunities, regulatory approvals and market and
industry segment growth. Actual results could vary materially from these
expected results due to a variety of factors, including, without limitation,
changes in the market, competition, government regulation and foreign
operations. Such risk factors are detailed in the Securities and Exchange
Commission filings of ALARIS Medical, Inc. including Form 10-K for the year
ended December 31, 1998.
