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AMDR Applauds Federal Court Decision to Bar Johnson & Johnson鈥檚 Biosense Webster Unit from Further Violation of Anti-Trust Laws in a Win for Hospitals, Patients, and the Environment

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Yesterday Court Issued Final Injunction After Jury Finds that Biosense Webster鈥檚 Unlawful, Anti-Competitive Practices Forced Hospitals to Purchase More Costly, Wasteful Products

WASHINGTON--(BUSINESS WIRE)-- The Association of Medical Device Reprocessors () announced that Judge James Selna of the U.S. District Court for the Central District of California has issued a permanent injunction against Johnson & Johnson鈥檚 (NYSE: ) Biosense Webster (BSW) medical device unit for unlawful, anti-competitive conduct. The ruling prohibits BSW from blocking hospitals鈥� access to safe, lower-cost, FDA-regulated reprocessed cardiac catheters. The decision follows a jury verdict ordering BSW to pay plaintiff Innovative Health, LLC $147 million in damages鈥攚hich has automatically tripled to $442 million鈥攆or violating federal and state antitrust laws.

The :

  • prohibits BSW from tying clinical support for its cardiac mapping machines to buying compatible devices from BSW instead of a competing reprocessor;
  • prevents BSW from discriminating in how it provides clinical support or cardiac mapping machines based on a care provider鈥檚 use of BSW devices reprocessed by another company;
  • bans new anti-reprocessing 鈥渒ill switches鈥� and other blocking technologies intentionally designed to prevent BSW devices from functioning when reprocessed by another company; and
  • blocks BSW from hoarding used catheters that it does not reprocess to prevent reprocessors from lawfully obtaining source materials.

The injunction will remain in effect for an initial term of five years, though the Court reserved the power to 鈥渟horten or lengthen鈥� it to reflect 鈥渕arket conditions.鈥�

AMDR celebrates the major legal victory for hospitals, patients, the environment, and the medical device reprocessing industry.

鈥淗ospitals and patients have long paid the price for BSW鈥檚 anticompetitive behavior,鈥� said Daniel J. Vukelich, President & CEO of AMDR. 鈥淭his ruling reaffirms that dominant device manufacturers cannot abuse their market power to prevent hospitals from delivering the best possible care at the lowest possible price to the most patients in need at the least cost to the environment. The verdict from the jury and the injunction from the judge both send strong signals to the MedTech industry that the courts are on alert and will not tolerate monopolistic conduct.鈥�

鈥淭he court鈥檚 decision affirms AMDR members鈥� rightful place in the healthcare system as guardians of sustainable practices,鈥� said Vukelich. 鈥淲e thank Innovative Health for its leadership in this six-year process.鈥�

Please to learn more about the verdict, evidence presented at trial, and its impact on hospitals.

David Sheon

VP External Affairs

202 422-6999 / [email protected]

Source: The Association of Medical Device Reprocessors

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