Abbott, DexCom settlement ‘not a complete surprise,’ says Wells Fargo

Wells Fargo notes Abbott (ABT) and DexCom (DXCM) have disclosed that on December 20, they settled and entered into a cross-license agreement to resolve all outstanding patent litigation in the U.S. and Europe for 10 years. Under the agreement, both companies granted each other worldwide royalty-free, nonexclusive, fully paid-up license to certain patents and patent applications relating to analyte sensing, including to all the patents asserted in the litigation. The firm had expected the parties to eventually settle, so the announcement does not come as a complete surprise.