Medtronic Probed on Alleged Doctor Payments

- The Wall Street Journal

12/05/2007 - Medtronic Inc. said it is under federal investigation for alleged payments made to doctors.

The Minneapolis medical-device maker said in a Securities and Exchange Commission filing that the Senate Finance Committee has requested information about ties between the medical-device industry and practicing physicians and information about Medtronic's suspended distribution of its Sprint Fidelis family of defibrillation leads, electrical wires that connect patients' hearts to defibrillators implanted in their chests.

Medtronic also said the Justice Department asked the company to send any information provided to the SEC about payments made to foreign doctors in possible violation of the U.S. Foreign Corrupt Practices Act. In September, the SEC began an informal probe of Medtronic, seeking information about possible violations of the act, which is meant to stop bribes to foreign officials.

The U.S. attorney's office for the Eastern District of Pennsylvania asked for information on payments or gifts to physicians or physician's groups related to the purchase of the company's cardiac stents and cardiac-therapy devices, according to Medtronic's quarterly report. The U.S. attorney also asked Medtronic to provide documents related to its relationship with a specific customer. The customer wasn't identified in the SEC filing.

The Senate panel is probing the FDA's oversight of medical-device components. The leads that Medtronic recalled connect a defibrillator to the heart to monitor patients' heartbeats and deliver a shock to correct abnormal heartbeats.

Medtronic issued the recall because some leads could cause defibrillators to function abnormally.

A Medtronic spokeswoman declined to comment.

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