UTICA, N.Y., Nov. 10 /PRNewswire-FirstCall/ -- CONMED Corporation
(Nasdaq: CNMD) announced today that it commenced litigation against Johnson &
Johnson, Inc. (NYSE: JNJ) and several of its subsidiaries, including Ethicon,
Inc., for violation of federal and state antitrust laws. The lawsuit claims
that Johnson & Johnson engaged in illegal and anticompetitive conduct with
respect to sales of products used in endoscopic surgery, resulting in higher
prices to consumers and the exclusion of competition.
As a leading medical technology company, CONMED develops, designs,
manufactures, and sells medical devices used in a broad range of surgical
procedures, including endoscopic procedures such as laparoscopy. CONMED's
endoscopy products account for approximately ten percent of the Company's
total annual revenue.
The lawsuit specifically alleges that CONMED's ability to sell endoscopic
surgical products has been stymied by Johnson & Johnson's anti-competitive
practices, which include -- among other acts -- entering into exclusive
contracts with hospitals requiring hospitals to purchase endoscopy products
only from Johnson & Johnson and; tying and bundling the price of sutures to a
hospital's agreement to buy a very high percentage of their endoscopy products
from Johnson & Johnson; threatening and imposing financial penalties on
hospitals if they purchased competitive endoscopy products; and giving
hospitals inaccurate and misleading information as to their ability to deal
with CONMED. The Complaint contends that Johnson & Johnson furthered this
anticompetitive conduct through its contracts and other dealings with group
purchasing organizations, such as Novation and Premier.
The Complaint asserts that, in the absence of the aforementioned illegal
conduct by Johnson & Johnson, hospitals would have access to lower priced
endoscopy products and would purchase a substantial portion of such products
from CONMED. The relief sought by CONMED includes an injunction restraining
Johnson & Johnson from continuing its anticompetitive practice as well as
receiving the maximum amount of damages allowed by law.
Joseph J. Corasanti, CONMED's President and Chief Operating Officer, said:
"CONMED is committed to bringing innovative, high quality products to
hospitals at the lowest possible cost. We believe that Johnson & Johnson's
actions have precluded hospitals from dealing with us and have initiated this
lawsuit to ensure that hospitals and patients have access to all of the best
medical products in a fair and competitive pricing environment."
The lawsuit has been filed on behalf of CONMED in the Southern District of
New York by Proskauer Rose LLP, one of the nation's leading law firms
specializing in antitrust matters.
CONMED is a medical technology company specializing in instruments,
implants, and video equipment for a broad range of surgical procedures.
Besides endoscopy products for minimally invasive abdominal surgery, the
Company also offers surgical products for arthroscopic sports medicine, and
powered surgical instruments, such as drills and saws, for orthopedic, ENT,
and neuro-surgery. The Company is also a leading developer, manufacturer and
supplier of RF electrosurgery systems used routinely to cut and cauterize
tissue in nearly all types of surgical procedures worldwide. The Company
offers integrated operating room design and intensive care unit service
managers. The Company also manufactures and sells a full line of ECG
electrodes for heart monitoring and other patient care products.
Headquartered in Utica, New York, the Company's 2,600 employees distribute its
products worldwide from eleven manufacturing locations.
SOURCE CONMED Corporation
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Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html
CONTACT:
Robert Shallish Chief Financial Officer of
CONMED Corporation, +1-315-624-3206; or for investors - Lanie
Fladell, or Tiernan Cavanna, or for media - Sean Leous, all of
Financial Dynamics, +1-212-850-5600
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