KEY POINTS
- A U.S. jury ordered Medtronic to pay $382 million to rival Applied Medical for antitrust violations.
- The verdict found Medtronic unlawfully monopolized the market for blood-vessel sealing devices.
- Medtronic said it will appeal, calling its sales and contracting practices lawful.
A federal jury in California on Thursday ruled that Medtronic must pay $382 million in damages to Applied Medical Resources.
The award stems from an antitrust lawsuit alleging unfair competition in surgical device markets.
Applied Medical accused Medtronic of monopolizing the market for advanced blood-vessel sealing devices.
The rival company argued Medtronic’s competitive practices excluded its Voyant device from hospitals.
The lawsuit centred on Medtronic’s LigaSure device, a high-volume surgical tool surgeons use to cut and seal tissue.
Applied claimed LigaSure was sold below cost to undercut competition.
Jurors also heard that Medtronic bundled LigaSure with other products in hospital contracts.
Those arrangements allegedly made it financially harder for hospitals to purchase rival devices.
The jury found these practices violated U.S. federal antitrust laws designed to protect competition.
Under those laws, dominant firms cannot use unfair methods to exclude rivals from key markets.
Medtronic said it disagreed with the verdict and plans to appeal the decision.
It argued its sales and contracting methods are common in the industry and benefit customers.
The company also said surgeons choose its products based on performance, not contractual pressure.
Medtronic noted Applied failed to demonstrate any hospital was prevented from buying competing devices.
Applied’s legal team said evidence showed Medtronic’s bundling and pricing strategies were designed to hinder competition.
They highlighted internal planning documents aimed at maintaining market dominance.
A judge could potentially treble the award to more than $1 billion under antitrust statutes.
This step could occur after a motions hearing later in the case.
Medtronic is one of the world’s largest medical device manufacturers, with products in surgical, cardiac and neuromodulation fields.
The verdict follows a trend of increased legal scrutiny of competitive practices in healthcare markets.
Industry analysts say the decision could influence how medical device companies structure pricing and contracts.
Hospitals and purchasing organizations may reevaluate bundled contracts in light of the ruling.
Medtronic also recently announced plans to acquire CathWorks in a deal worth up to $585 million, subject to regulatory approval.
The acquisition aims to expand its cardiovascular diagnostic capabilities.
Legal experts expect Medtronic’s appeal to focus on whether the jury correctly applied antitrust principles to its business practices.
Future rulings could shape antitrust enforcement across medical technology sectors.
