* St Jude intends to pay 2 pct royalty on Angio-Seal
* Says in discussion with St Jude to resolve dispute
Dec 16 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
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
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.