Medical device company Applied Medical has been awarded $381,705,005 in damages after a federal jury in California found
Medtronic
liable for violations of federal and state antitrust laws.
In February 2023, Applied Medical filed a federal antitrust lawsuit in the U.S. District Court for the Central District of California against Medtronic, claiming the company engaged in anticompetitive conduct by stifling competition for advanced bipolar surgical devices, which are tools used by surgeons to cut tissue and seal blood vessels during surgeries.
Applied alleged that Medtronic, which develops, manufactures and sells medical therapy devices, entered into bundling and exclusive-deal arrangements with hospitals and other purchasing groups, providing discounts or rebates for its surgical products only if the organization also purchased Medtronic's LigaSure bipolar devices.
According to the complaint, Applied claimed that the deals made it economically difficult for hospitals to purchase its advanced bipolar device, the Voyant Intelligent Energy System.
On Feb. 5, following a 10-day jury trial, jurors sided with Applied Medical, stating that Medtronic was found to have unlawfully monopolized the bipolar device market. Applied was awarded nearly $382 million in damages.
According to news reports
, Medtronic said it was disappointed with the jury's verdict and plans to appeal.
THE LARGER TREND
In July 2023, the Federal Trade Commission (FTC)
filed an Amicus brief
detailing the legal framework that should apply in exclusive-dealing and bundling antitrust claims, and, although the FTC did not take a position on the merits of the Applied v. Medtronic case, it stated that Medtronic's arguments about how to evaluate the antitrust law were legally incorrect.
The FTC also said that if the arguments were adopted, they could undermine the enforcement of competition laws in healthcare markets and other sectors, and have real effects on competition and patient choice.
Earlier this week, ahead of the verdict, Medtronic also announced plans to acquire medical device company CathWorks in a deal valued at up to $585 million, with additional undisclosed earn-out payments.
"Medtronic is thrilled to move forward with our option to officially acquire CathWorks. Through our co-promotion agreement, we've seen how CathWorks can disrupt the traditional wire-based FFR segment and leverage the power of data and AI to deliver innovative solutions that assist physicians at every step of a patient's journey, from diagnosis to treatment," Jason Weidman, senior vice president and president of the coronary and renal denervation business, which is part of the cardiovascular portfolio at Medtronic, said in a statement.
"This acquisition allows Medtronic to transform the cath lab with a technology that provides real-time data, informs individualized treatment approaches, and drives new standards of care."
Medtronic is a publicly traded company with a
reported market cap
of $131.66 billion. Its
stock
is currently trading on the New York Stock Exchange [NYSE: MDT] at around $102.69 per share.