Court denies injuction in Medtronic’s non-compete suit against former Medicrea CEO

[Image from Unsplash]A federal court in New York has denied Medtronic a preliminary injunction in its non-compete-agreement lawsuit against former Medicrea CEO Joseph Walland.

Judge Edgardo Ramos of the U.S. District Court of Southern New York, in a Sept. 10 order, ruled that the agreement between Walland and Medtronic was covered by the law in California, where Walland has resided the majority of the time in recent years, and not New York.

Under California law, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void,” Ramos wrote.

“An injunction would impose a hardship on Walland because it would bar him from his current employment, and given Medicrea’s nationwide market, he would likely be barred from working anywhere else in the country that overlaps with his specialty,” Ramos said. “Further, if enjoined, Walland will be deprived of the benefits of C…

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Medicrea to pay $2M in alleged Medicare kickback scheme

French medical device manufacturer Medicrea International and its American affiliate Medicrea USA have agreed to pay $2 million to settle alleged kickbacks to physicians and other Medicare Open Payments program violations.

The company agreed to pay $1 million to the U.S. and participating states to resolve civil whistleblower allegations that the company violated the Anti-Kickback Statute and the False Claims Act and similar state statutes, according to a U.S. Dept. of Justice news release. Medicrea will pay an additional $1 million to the U.S. to resolve allegations that the companies violated the Physician Open Payments Program by “failing to fully report those physician-entertainment expenses to the Centers for Medicare and Medicaid,” the DOJ said.

The Anti-Kickback Statute prohibits medical device companies from directly or indirectly paying anything of value to induce the referral of items or services covered by federal healthcare programs. Med…

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MedTech 100 roundup: Industry hits pandemic peak

After five months since medtech stocks peaked before the COVID-19 pandemic rocked the markets, the industry inched back toward that pre-pandemic high.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 88.9 points at the end of last week (July 17). That total represents just a -3.7% dip from the Feb. 19 high point of 92.32, marking the smallest margin of decline over the past five months.

Medtech stocks saw a 5.1% increase from the 84.39-point total at the same time a week prior (July 10), highlighting a large improvement after last week saw almost no material change in the index.

Meanwhile, the S&P 500 Index saw a 1.2% bump from July 10 to July 17, and the Dow Jones Index fared even better, posting a 2.3% increase over the same period of time. Both indexes mirrored the medtech industry’s changes as far as increases, but didn’t see as drastic a change.

Medtech’s lowest point du…

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Medtronic acquires Medicrea and its spinal surgery tech

Medtronic (NYSE:MDT) today said it acquired France-based spinal surgery technology company Medicrea.

Through the deal, Medtronic is buying for a tender offer price of €7.00 (nearly $7.84) per share for a premium of 22% over the closing price of shares on July 14, 33% over the one-month value-weighted average price and 56% over the three-month volume-weighted average price.

The acquisition will help strengthen Medtronic’s orthopedic spine surgery platforms.

“Combining Medtronic’s innovative portfolio of spine implants, robotics, navigation, and 3D imaging technology with Medicrea’s capabilities and solutions in data analytics, artificial intelligence and personalized implants, would enhance Medtronic’s fully-integrated procedural solution for surgical planning and delivery. This marks another important step in furthering our commitment to improving outcomes in spine care,” said Jacob Paul, SVP of cranial and spinal technologies at Medtronic.

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