Johnson & Johnson Ordered to Pay $442 Million in Landmark Antitrust Case Over Carto 3 Catheter Tying Practices

Last Month's Overseas Report: Medical Device Reprocessing Company Innovative HealthSuing Johnson & Johnson's subsidiaryBiosense WebsterJohnson & Johnson MedTech Monopoly Case Wins Support from California Jury, Verdict Reached$147 million in compensationThe core issue in this case is that the defendant ceased providing free technical support to medical institutions using third-party reprocessed electrophysiology catheters approximately ten years ago.Carto 3), services are only available to customers who purchase its original catheters.

RecentlyJudge of the Central District of California Federal CourtJames V. Selna based on "U.S. Federal Law Allows Antitrust Damages to Be Tripled"Clause"Make a new judgment:Johnson & Johnson's Compensation Amount Increases to $442 Million。

The jury supported the company in all disputed issues.Innovative Health's claim, determining that Johnson & Johnson violated the {Sherman Antitrust Act 》and California《California’s Cartwright Act》, suspected of monopolizing the cardiac mapping catheter market and squeezing outInnovative HealthWait for further processing by the company.

Evaluation by the American Association of Medical Device Reprocessors

"This verdict has groundbreaking significance. The court not only supported the jury's findings—that Johnson & Johnson disrupted the reprocessed medical device market through illegal monopoly and tie-in sales—but also legally initiated a triple damages mechanism. This sends a clear signal to all equipment manufacturers: any actions that hinder competition and suppress reprocessing will not be tolerated by the courts or by hospitals focused on cost control, sustainability, and patient care."

---Daniel J. Vukelich  Chairman and Chief Executive Officer of the Association of Medical Device Reprocessors

Background of the Case

Innovative HealthIn the lawsuit filed in 2019, Innovative Health pointed out that Johnson & Johnson illegallyCarto 3The expert technical support is bundled with the purchase of new catheters, allowing Johnson & Johnson to maintain its monopoly地位 in the cardiac mapping catheter market. The complaint states: "Johnson & Johnson inCarto 3The clinical support (tying product market) sector has sufficient economic strength to coerce customers into purchasing its high-density mapping catheters and ultrasound catheters (tied products).

Johnson & Johnson denied the allegations last month.Johnson & Johnson responded by expressing "disappointment with the verdict," emphasizing that its policies are "aimed at ensuring patient safety and product performance," and stated it will evaluate legal options, including an appeal. During the previous trial, the defendant had argued that clinical support systems and proprietary equipment...Technical Indivisibility, analogous to the logic defense of "buying shoes requires laces".

Johnson & Johnson has not yet responded or commented on the ruling to triple the compensation.

The two verdicts also represent a legal endorsement for the interests of medical device reprocessing companies, while the interests of original medical device manufacturers have suffered significant losses. Currently, overseas, especially in the United States,The business of reprocessing disposable medical devices by medical device reprocessing companies is growing larger.Even the配套一次性耗材 for the long technologically monopolized Da Vinci surgical robot have gained FDA support. The FDA has already approved Restore Robotics toDa Vinc Da Vinci XiEnterprises that legally remanufacture surgical instruments (currently monopolar scissors).

In the future, popular overseas products such as surgical robot accessories, electrophysiological ablation/mapping catheters, shock wave balloons, surgical electrocautery devices, and ultrasonic scalpels will increasingly receive FDA approval for reprocessing. Original equipment manufacturers (OEMs) will also face significant losses. Consequently, the conflict between OEMs and reprocessing companies will deepen, with subsequent disputes intensifying.