Boston Scientific Corp will pay Johnson & Johnson $716 million to settle more than a dozen patent dispute lawsuits involving coronary stents and other heart devices, the companies said on Tuesday.

J&J expects to record the majority of the payment as a special item in the fourth quarter. Boston Scientific said the $716 million is within its existing reserve and the payment will be made using cash on hand.

We are pleased we have been able to significantly reduce the amount of outstanding litigation we have with Johnson & Johnson, Boston Scientific's new Chief Executive Ray Elliott said in a statement.

We continue to work with them to resolve other outstanding matters, he added.

J&J's Cordis unit said the settlement includes U.S. and Canadian lawsuits -- 14 in all -- primarily involving older stents and equipment used in angioplasty procedures.

Coronary stents are tiny mesh tubes used to prop open arteries that have been cleared of blockages via angioplasty.

Other intellectual property litigation pending between the two companies involving Boston Scientific's newer drug coated stents are not affected by the settlement, Cordis said.

Drug eluting stents are among Boston Scientific's most important growth drivers. The drug coatings are used to help prevent reclogging of the cleared arteries.

J&J and Boston Scientific were the first two companies to have drug coated stents on the market. Their products, which have been enmeshed in patent litigation for years, are now facing competition from rivals from Abbott Laboratories and Medtronic Inc .

(Reporting by Bill Berkrot; editing by Andre Grenon)