Bard Hit With Antitrust Suit Over Alleged Catheter Tying
By Rachel Graf
Law360, New York (June 1, 2017, 4:24 PM EDT) -- Medical technologies manufacturer C.R. Bard Inc. has unlawfully tied its popular tip location systems to its peripherally inserted central catheters in order to drive sales of its own PICCs at the expense of competitors, according to a suit filed by AngioDynamics Inc. Tuesday in New York federal court.
AngioDynamics said Bard only sells the stylet needed to use its tip location systems preloaded in its PICCs, violating antitrust laws and hurting sales of AngioDynamics’ own BioFlo PICCs that purportedly use superior technology to reduce blood clots. The tip location systems help doctors correctly position PICCs in patients.
“Even though AngioDynamics’ groundbreaking BioFlo PICCs significantly reduce thrombus accumulation and the reflux of blood, and are thus technologically far superior to Bard’s PICCs, Bard’s anti-competitive conduct has allowed it to capture and maintain a dominant position in the PICC market, exceeding 70 percent market share,” AngioDynamics said in the filing.
AngioDynamics’ BioFlo PICCs use Endexo Technology that reduces blood clots and consequently diminishes the likelihood of blood clotting events such as deep vein thrombosis and pulmonary embolism, according to the complaint.
Bard has been unable to create a PICC that can effectively reduce blood clots, but its tip location systems are very popular and make up more than 70 percent of the market, AngioDynamics claims.
Bard has leveraged this dominance in the tip location systems market to block PICC competition by tying the two products together, negatively impacting PICC price competition and making it difficult for AngioDynamics to grow its business, the filing said.
“We strongly deny the allegations raised by AngioDynamics in their complaint,” Scott Lowry, Bard vice president and treasurer, said in an emailed statement. “Clinicians select Bard products based on the clinical and economic benefits they provide to patients and health care providers. We intend to vigorously defend those claims.”
Bard’s decision to tie its tip location systems to its PICCs is motivated by purely competitive rather than technological reasons, the complaint claims. AngioDynamics notes that Bard did in fact receive FDA approval to sell its stylet separately from its PICCs, but has sold the stylet separately only to the Cleveland Clinic, which was then able to pair Bard’s tip location system with AngioDynamics’ BioFlo PICCs.
AngioDynamics is alleging violation of the Sherman Act and is seeking damages, an injunction, and attorneys’ fees and costs.
"This case involves a classic violation of the antitrust laws. Bard has no justification for preventing purchasers from choosing to use its market-leading tip location systems with AngioDynamics' innovative BioFlo PICCs," Philip J. Iovieno of Boies Schiller Flexner, counsel for AngioDynamics, said in a statement.
AngioDynamics is represented by Philip J. Iovieno, Adam R. Shaw, Anne M. Nardacci, Jenna C. Smith and Nicholas A. Gravante Jr. of Boies Schiller Flexner LLP.
Counsel information for Bard was not available Thursday.
The suit is AngioDynamics Inc. vs. C.R. Bard Inc., Bard Access Systems, Inc., case number 1:17-cv-00598 in the U.S. District Court for the Northern District of New York.
--Editing by Philip Shea.
