J&J's settlement with Cook sends mixed signals to coronary stent segment. (Johnson and Johnson; Cook Group Inc.)

Early January brought a measure of good news to a U.S. coronary stent segment that is both bursting with dollars and dominated by a single manufacturer. On Jan. 9, Johnson & Johnson announced it had reached an out-of-court settlement with Cook Group Inc., Bloomington, Ind., in a long-running patent dispute over Cook's alleged infringement of the PalmazSchatz[TM] stent. In the case, which was scheduled for trial next month, J&J filed suit against Cook alleging that Cook's Gianturco-Roubin Flex stent infringed on J&J's Palmaz '665 patent for balloon expandable stent devices used in opening blocked arteries.

Cook, which is privately held, agreed to pay J&J royalty payments under terms of the …