Abaxis, Inc., a medical products company, has reached a settlement with Cepheid, Inc. for lawsuit  over several Abaxis patents relating to reagent and chemical compositions and processes. As part of the agreement, Cepheid will pay Abaxis $17.25 million, and all claims asserted against Cepheid in the pending litigation have been dismissed.

"This will allow both companies to move forward with ongoing activities in sales, development and manufacturing without the distraction of protracted litigation," said Clint Severson, CEO and chairman of Abaxis. "We are pleased with the outcome of this agreement, and pleased that at Abaxis we can now all concentrate our activities in our core business areas: point of care testing and veterinary laboratory services."

Abaxis develops, manufactures, markets and sells portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements.