Dems move to overturn shield for device makers

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Posted on 5th March 2009 by Gordon Johnson in Uncategorized

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Date: 3/5/2009

By MATTHEW PERRONE
AP Business Writer

WASHINGTON (AP) — A day after the Supreme Court decided that federal rules do not protect drugmakers from state lawsuits, Democrats in Congress moved to overturn a decision that has shielded medical device companies from similar legal action.

On Wednesday the court turned away Wyeth’s claim that it could not be sued in state courts for its drug Phenegran, because it had already been approved by the federal Food and Drug Administration. The ruling upheld a $6.7 million award to a Vermont woman who lost her arm after she was improperly injected with the company’s nausea medication.

Seizing on the decision, Democrats on Thursday reintroduced a bill that would allow similar lawsuits against companies that make heart devices, catheters, hip replacements and other devices.

“Yesterday the Supreme Court rightfully upheld a patient’s right to legal recourse after sustaining an injury from a pharmaceutical product,” said Rep. Frank Pallone, D-N.J. “Today, we introduce legislation that gives patients that same right when injured by a medical device.”

The idea that corporations are shielded from state liability claims by federal rules is relatively new and was pushed aggressively under the Bush administration.

Last year, the Supreme Court agreed with the pre-emption policy in a case involving medical devices, ruling a patient injured by a catheter from Medtronic could not sue under state laws. That case turned on a provision of federal law prohibiting states from imposing their own requirements on the devices. There’s no similar provision for drugs.

Since then thousands of lawsuits against Medtronic and other device companies have been dismissed by lower courts, citing the Supreme Court’s decision.

But Pallone and other Democrats said Thursday that decision ignored decades of precedent, in which lawsuits brought by patients in state courts helped bolster safety regulation at the federal level. The bill to restore liability claims against device makers is co-sponsored by Rep. Henry Waxman, who chairs the Energy and Commerce Committee. He is expected to hold hearings on the issue in coming weeks.

The device industry’s chief lobbying group quickly slammed the effort, saying it will “produce a chilling effect on medical innovation, create more lawsuits and ultimately result in higher health care costs for all Americans.”

The Advanced Medical Technology Association, or AdvaMed, said the legislation would allow state courts to second-guess medical experts at the FDA and create a “patchwork of inconsistent and confusing guidance.”

Despite opposition from industry, the Medical Device Safety Act enjoys support from a broad range of interest groups, including consumer advocates, trial lawyers and AARP. With companion legislation introduced by U.S. Sen. Ted Kennedy, D-Mass., many analysts have already predicted the measure will become law.

Earlier in the day AdvaMed rolled out its first-ever advertising guidelines for companies like Medtronic Inc., Johnson & Johnson and Boston Scientific Corp. Among other things, the guidelines urge companies to state the risks of their implants clearly and concisely when advertising them to consumers.

The device industry has begun attracting new scrutiny from lawmakers as companies increasingly pitch their implants to consumers via TV and magazine advertisements.

Copyright 2009 The Associated Press.

Lawmakers probe Medtronic payments to physicians

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Posted on 2nd October 2008 by Gordon Johnson in Uncategorized

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Date: 10/2/2008 3:33 PM

By MATTHEW PERRONE
AP Business Writer

WASHINGTON (AP) _ Senate lawmakers are pressuring Medtronic to disclose more about its consulting arrangements with physicians, citing prior allegations the company paid kickbacks to surgeons to boost sales of spinal implants.

In separate letters issued Tuesday, Sens. Charles Grassley, R-Iowa, and Herb Kohl, D-Wis., asked the company to provide details about physicians who receive company payments for consulting services.

The two lawmakers have repeatedly criticized the influence pharmaceutical and medical device companies hold over physicians. A bill written by the senators would require companies to disclose all payments to physicians over $500, and last week Eli Lilly became the first drugmaker to volunteer to publish such information.

“I hope that Medtronic will consider making public its payments to physicians in the future and thereby show similar leadership in the device industry,” Grassley wrote in a letter to Medtronic Chief Executive Bill Hawkins. Minneapolis-based Medtronic is the world’s largest device maker.

The company said it is “very supportive of industrywide transparency” in a statement, and pointed out it has supported Grassley and Kohl’s bill.

In 2006 Medtronic reached a $40 million settlement with the U.S. Department of Justice to settle charges that it paid physicians millions in kickbacks to use its spinal repair products. Medtronic denied any wrongdoing. As part of the arrangement, the government agreed to seek dismissal of the two cases brought by former employees in U.S. District Court in Memphis, where the company’s spinal division has offices.

But recent stories by the Wall Street Journal have attracted new scrutiny to the cases against the company, one of which remains sealed. Citing a copy of the sealed lawsuit, the Journal reported Medtronic allegedly entertained surgeons at a strip club, sent them on fully paid trips to Alaska and awarded some royalties on inventions they had no part in developing.

Medtronic said it would not comment on specifics of the case because it is still sealed.

“The Wall Street Journal rehashed allegations of prior conduct that were part of a case that was settled in federal court in July 2006,” the company stated.

In his letter, Grassley also raised questions about more recent allegations. Another lawsuit filed by former employees last year accuses the company of illegally paying doctors exorbitant consulting fees to recommend using its bone graft system for unapproved uses. Doctors are free to use drugs and devices at their discretion, but companies are not allowed to market them for unapproved uses.

Medtronic said it does not pay surgeons to promote Infuse for unapproved uses, but noted “surgeons do have the freedom to practice medicine and use products in an off-label manner.”

The company’s Infuse graft uses a man-made version of a human protein to encourages bone growth. The Food and Drug Administration approved the system to fuse parts of the spine together during lower-back surgery as well as for oral and dental procedures.

However, serious complications have been reported when the graft is used for alternate uses. In July the FDA warned doctors that use of Infuse for neck surgeries has led to problems swallowing, breathing and speaking, which in some cases required additional surgeries.

Copyright 2008 The Associated Press.