Johnson & Johnson MedTech ordered to pay $147M for antitrust violations
Innovative Health has been awarded $147 million in damages after the company sued Johnson & Johnson’s Biosense Webster division for withholding clinical support to healthcare providers using reprocessed catheters.
Innovative Health is an Arizona-based medical device reprocessing company focused exclusively on cardiology. It reprocesses single-use medical devices so that they can be used again instead of being thrown away. Nearly 10 years ago, Biosense Webster—which now goes under the name Johnson & Johnson MedTech—stopped offering free support to customers that use reprocessed Carto 3 catheters; it only provided the service when the catheters were purchased directly from Biosense Webster.
Innovative Health filed a lawsuit at this point, claiming that the policy violated federal and state antitrust laws, and a jury in California ultimately agreed.
“We are disappointed with the outcome and respectfully disagree with the jury’s decision,” a Johnson & Johnson MedTech representative told Cardiovascular Business. “We continue to believe our actions are pro-competitive and meet our responsibility to ensure patient safety and product performance. We are carefully reviewing the verdict and evaluating all legal options, including appeal. Johnson & Johnson MedTech remains committed to upholding the highest standards in how we support customers and deliver critical care solutions.”
Verdict puts spotlight on medical device reprocessing policies
The Association of Medical Device Reprocessors (AMDR) was quick to comment on the verdict, calling it a “victory for America’s hospitals, providers, patients and the environment.”
“We hope this jury’s message will be heard loud and clear: hospitals want to reduce costs and greenhouse gas emissions by using more reprocessed single-use devices without fear of retribution by their original equipment manufacturers,” Daniel J. Vukelich, AMDR president and CEO, said in a statement.
The AMDR noted that Innovative Health’s reprocessed catheters are regulated by the U.S. Food and Drug Administration. The group also pointed to using reprocessed single-use devices as a way to address supply chain issues that could potentially get even worse in the face of unpredictable tariffs.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.