J&J Faces $147M Antitrust Verdict in Catheter Case

A federal jury in Santa Ana, CA, found Friday that Johnson & Johnson, through its Biosense Webster business, violated antitrust laws by withholding clinical support to hospitals using third-party, FDA-regulated reprocessed catheters, awarding the plaintiff, Innovative Health, more than $147M in damages.

"We are disappointed with the outcome and respectfully disagree with the jury’s decision," J&J said in a statement provided to MD+DI. "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."
The Association of Medical Device Reprocessors (AMDR) applauded the verdict, calling it a victory for America's hospitals, providers, patients, and the environment.

“For too long, Johnson & Johnson has used tying arrangements and other tactics to interfere with fair competition from lower-cost, FDA-regulated, reprocessed single-use devices (SUDs),” said Daniel Vukelich, the association's president and CEO. “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 SUDs without fear of retribution by their original equipment manufacturers (OEMs).”

According to the AMDR, FDA-regulated reprocessed SUDs help hospitals reduce costs, waste, and greenhouse gas emissions. The organization also noted that using reprocessed SUDs can help address supply chain issues. Along with Innovative Health, AMDR members include Arjo ReNu Medical, Medline Renewal, Stryker's Sustainability Solutions, Sustainable Technologies (a Cardinal Health business), and Vanguard.

"For decades, AMDR and its member companies have reported potentially anticompetitive market manipulation tactics by some OEMs. This case brings these tactics under closer examination," the organization noted in its statement.