Baxter Healthcare Wins Patent Infringement Suit

Federal Court in California Orders Competitor Fresenius to Stop
Selling its Infringing Hemodialysis Machine
CHICAGO--(Business Wire)--
Baxter International, Inc. has won a long-running battle in a
patent infringement suit (Fresenius USA, Inc. et al v. Baxter
International Inc. et al.) against Fresenius Medical Care involving
Fresenius' Number One - selling hemodialysis machine in the United
States. The U.S. District Court for the Northern District of
California today issued opinions permanently enjoining Fresenius from
manufacturing its flagship product affirming it infringes on Baxter's
technology and awarding damages to Baxter. Bell, Boyd & Lloyd LLP
represented Baxter in the case.

The Order, written by Judge Saundra B. Armstrong, requires that
Fresenius stop making, using or selling the 2008K hemodialysis machine
effective January 1, 2009. Judge Armstrong also imposed a 10% royalty
on the sales price of each infringing machines sold from now until
January 1, 2009 and further imposed a 7% royalty on all disposable
products used with the infringing 2008K hemodialysis machines. The
2008K is, according to Fresenius, its "cornerstone product" and is the
best selling hemodialysis machine in the marketplace, with over 90
percent market share.

In granting the injunction, Judge Armstrong noted that much of the
hardship that Fresenius will face from the injunction is its own doing
because it did not take any steps to design around the
patents-in-suit: "(i)t is Fresenius's burden, and not Baxter's, to
taste the bitter fruit of its own inaction."

In a February 2007 ruling, Judge Armstrong upheld the validity of
Baxter's patents that had been challenged by Fresenius in a 2003 law
suit, ruling that Fresenius failed to introduce substantial evidence
of invalidity.

Baxter is represented by Bell, Boyd & Lloyd LLP. The trial team
included Michael J. Abernathy, Alan Barry, Kara E.F. Cenar, Sanjay K.
Murthy, Adam L. Marchuk, Brian J. Arnold and Marron Mahoney.

Baxter International is based in Illinois and, through its
subsidiaries, assists healthcare professionals and their patients with
the treatment of complex medical conditions, including hemophilia,
immune disorders, cancer, infectious diseases, kidney disease, trauma
and other conditions.

Bell, Boyd & Lloyd LLP
Michael J. Abernathy
312.807.4257
312.493.3168 (cell)
mabernathy@bellboyd.com
www.bellboyd.com

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