With the aim of settling over a dozen patent-related lawsuits involving coronary stents and other heart devices, Johnson & Johnson (J&J) is to be paid $716 million by Boston Scientific Corp.

The expectation of J&J is to record the majority of the payment as a special item in the fourth quarter. As per Boston Scientific, the $716 million is within its existing reserve and the payment will be made using cash on hand.

Boston Scientific's new Chief Executive Ray Elliott expressed, "We are pleased we have been able to significantly reduce the amount of outstanding litigation we have with Johnson & Johnson. We continue to work with them to resolve other outstanding matters."

The settlement includes U. S. and Canadian lawsuits, 14 in all, primarily involving older stents and equipment used in angioplasty procedures.

Coronary stents, which are tiny mesh tubes, are used to prop open arteries that have been cleared of blockages via angioplasty, while the drug coatings help in preventing reclogging of the cleared arteries.

Cordis said: "Other intellectual property litigation pending between the two companies involving Boston Scientific's newer drug coated stents are not affected by the settlement."

Boston Scientific sees drug eluting stents as its most important growth drivers.

It should be noted that the first two companies to have drug coated stents on the market were J&J and Boston Scientific and, presently, their products are dealing with competition from rivals from Abbott Laboratories and Medtronic Inc.