UPDATE 1-Kensey Nash says St. Jude to pay lower royalty; withdraws outlook
* St Jude intends to pay 2 pct royalty on Angio-Seal
* Says in discussion with St Jude to resolve dispute
Dec 16 (Reuters) - Medical device maker Kensey Nash Corp withdrew its second-quarter outlook citing the uncertainty surrounding the royalty payment it receives on the sales of Angio-Seal, a vascular closure device, from St. Jude Medical Inc.
St. Jude now intends to pay a reduced royalty rate of 2 percent on Angio-Seal net sales, down from the 6 percent that Kensey Nash used to book earlier.
Kensey Nash said it has agreed to enter into a non-binding mediation with St. Jude to resolve the disputes over the royalty payments.
In March, 1999, St. Jude acquired the license for Angio-Seal, which was originally developed by Kensey Nash.
Kensey Nash shares closed at $26.70 on Thursday on Nasdaq.
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