FMC loses key dialysis machine patent suit in U.S.

FRANKFURT, April 5 (Reuters) - Fresenius Medical Care (FMEG.DE: Quote, Profile, Research) has been banned from making, using or selling a key dialysis machine in the United States after losing a patent case to Baxter International (BAX.N: Quote, Profile, Research), Baxter's lawyers said.

"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," law firm Bell, Boyd & Lloyd said in a statement on Friday night.

The order applies to FMC's 2008K haemodialysis machines and takes effect on Jan. 1, 2009. The judge also ordered FMC to pay royalties of 10 percent on each machine sold until then and 7 percent on all disposable products used with the machines.

FMC was not reachable by Reuters on Saturday.

FMC makes about half of all the dialysis machines sold in the world. It made $6.6 billion in revenues in North America last year, more than two-thirds of its total sales.

It sells different haemodialysis machines in Europe, which were not part of the U.S. case, a spokesman for Bell, Boyd & Lloyd said on Saturday. (Reporting by Georgina Prodhan; editing by James Jukwey)