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MX: Issue Update

June 2006

Carotid Stent Market: Stalled on Several Fronts

When FDA approved the first carotid stent, in August 2004, many industry analysts suggested that the market for such devices could reach $1 billion by 2010. Since that time, however, forecasts have been adjusted downward as U.S. carotid stent manufacturers continue to face a number of hurdles on the approval, reimbursement, and professional practice fronts.

The Centers for Medicare and Medicaid Services (CMS; Baltimore) last reviewed carotid stenting in March 2005. But the expanded Medicare coverage offered by the agency at that time fell far short of what many interventional cardiologists and industry analysts had expected.

More-robust clinical data and comparative studies are expected to provide a boost for market acceptance of carotid stenting over the next several years. Nevertheless, there remains a great deal of resistance to the procedure among vascular surgeons, who cite the established history and success rate of traditional endartarectomy. [ More ]

Lawsuit Could Emerge as Forum on Pricing Transparency

Lerner

ECRI's Lerner:
The right to know.
As if the marketing practices and pricing policies of medical device manufacturers weren't already under enough scrutiny—from hospitals, healthcare economists, regulatory agencies, and federal attorneys—now the field is facing new legal challenges on constitutional grounds.

The battle began last month, when Guidant, now a business unit of Boston Scientific Corp. (Natick, MA), sought to prevent the medical products testing organization ECRI (Plymouth Meeting, PA) from publishing the prices paid by hospitals for the company's cardiac rhythm management devices. In turn, ECRI filed a lawsuit with a federal district court in Pennsylvania, alleging that Guidant's action would violate ECRI's first-amendment rights. Guidant countersued with a court filing in Minnesota.

"No matter where you sit on the political spectrum, you know that the ability to compare products—whether it is cars or lifesaving technologies—is fundamental to an efficient marketplace," said ECRI president and CEO Jeffrey C. Lerner, PhD. "Simply put, ECRI believes that patients, along with their implanting physicians, have the right to know the cost of the pacemakers that are implanted in their chests."

The legal proceedings are in the very early stages with no hint of a settlement and no court date set as of yet. [ More ]

FDA Launches Innovation Initiative

Von Eschenbach

FDA’s von Eschenbach: Fostering development
Citing the need to keep pace with medtech's rapidly advancing product design and development technologies, manufacturing processes, and information systems, FDA recently introduced a new Medical Device Innovation Initiative, which is intended "to make new medical devices available more quickly for patients." According to the agency's announcement, one of the major objectives of the initiative is "to promote early interaction between FDA and industry to optimize review times and foster innovation."

Commenting on the initiative, Andrew C. von Eschenbach, MD, acting FDA commissioner, said, "We must keep up with the rapid developments in science and technology to ensure that patients have access to the most advanced treatments available. By working with industry early in the evaluation process, we hope to foster development and speed up the approval of safe and effective innovative devices."

In implementing the initiative, FDA's Center for Devices and Radiological Health will expand current efforts to promote scientific innovation in product development, focus device research on cutting edge science, modernize the review of innovative devices, and facilitate a least-burdensome approach to clinical trials. The agency says the initiative builds on the device review program provided under the Medical Device User Fee and Modernization Act of 2002. [ More ]

Boston Scientific to Drop Guidant Brand

Tobin

Boston Scientific's
Tobin: Moving forward.
Although the company has not issued an official statement on the issue, Boston Scientific Corp. (Natick, MA) has acknowledged that it plans to phase out the Guidant brand. The move toward eliminating the brand began on April 24, just days after Boston Scientific finalized its $27 billion acquisition of Guidant Corp. Removing all vestiges of the troubled Guidant brand from manufacturing facilities, devices, packaging, advertising, Web sites, and related company literature and materials will reportedly take two to three years.

Boston Scientific's decision was very much in evidence at the recent Boston meeting of the Heart Rhythm Society(HRS; Washington, DC) where more than 6000 cardiac specialists saw Boston Scientific banners displayed throughout the convention hall. Although the banners included a small Guidant logo, even that acknowledgment is expected to be phased out before year's end.

Boston Scientific CEO James Tobin, who was a highly visible presence at the company's HRS booth, spoke openly about the need to move forward. He said that unified branding was just one step in the integration of the two companies, but an important one. He focused on the theme of the company's "We can and we will" campaign, which seeks to emphasize its core strengths for both recovery and continued growth.

Boston Scientific, with a combined workforce of 27,000 and projected annual sales of $10.2 billion, has now eclipsed Medtronic Inc. (Minneapolis) as the world's largest manufacturer of cardiovascular devices. [ More ]

Boston Scientific, Stryker Top Recent IP Litigation Wins

A recent decision in the U.S. District Court in Delaware went in favor of Boston Scientific Corp. (Natick, MA) over rival Cordis Corp. (Miami Lakes, FL), a Johnson & Johnson company—but neither company expects this ruling to be the final word. Instead, the most recent ruling evened the count at two litigation victories apiece for the two companies, which are involved in a long-term battle related to patent infringement in the design of coronary stents. Cordis has already indicated that it intends to appeal the most recent ruling.

The U.S. District Court for Rhode Island offered a more definitive resolution to a 10-year series of patent infringement battles between Davol Inc. (Cranston, RI), a subsidiary of C. R. Bard Inc., and Stryker Corp. (Kalamazoo, MI). The court granted a summary judgment in favor of Stryker, freeing it of infringement claims against its Interpulse medical irrigation device.

In this issue, MX: Issues Update reviews other recent cases of interest to medtech executives. [ More ]

Medtech Companies Focus on Women's Health

Marts

Marts: Welcoming advances in women's health.
In recent months, a handful of medical device companies have announced their intentions to place increased emphasis on women's health issues. From sex-specific product launches to acquisitions designed to increase a company's presence in the women's health market, medtech firms are exploring multiple ways to grow their businesses by better serving the special medical needs of the female population.

"Women today have an array of medical options for female-specific conditions that they didn't have 20 years ago," says Sherry Marts, PhD, vice president of scientific affairs for the Society for Women's Health Research. "It's exciting that we are now starting to see gender-specific devices for conditions that are common in both men and women." [ More ]

Minnesota Initiative Designed to Beef Up State’s Biobusiness

Wahlstrom

Wahlstrom: Reversing trends, promoting growth.
Between 1997 and 2002, Minnesota's strength in biobusiness slipped when compared to key competitor states, according to the BioBusiness Alliance of Minnesota. With this underlying knowledge, the nonprofit group—in conjunction with industry, academic, and governmental partners across the state—is heading up an initiative to ensure the long-term growth and competitiveness of Minnesota's biobusiness sector, which is dominated by medical device operations.

"Minnesota remains a leader in certain biobusiness subsectors," says Dale Wahlstrom, chairman of the BioBusiness Alliance of Minnesota. "The 1997–2002 trends identified in the studies must not only be turned around, but growth must be accelerated in order for Minnesota to remain competitive." [ More ]

AdvaMed Publicity Campaign Promotes Value of
Medical Technology

McGarry

AdvaMed's McGarry: Raising industry’s profile.
Industry association AdvaMed (Washington, DC) is setting out to raise the profile of the medical technology industry. On June 22, the group will formally kick off a $1 million education and advertising campaign designed to convey the value of medical technology to both policymakers and the general public in Washington, DC.

"This campaign is the first of its kind in the medical device industry," says Michael J. McGarry, executive vice president for public affairs at AdvaMed. "There is a broad recognition among our member companies that there is an opportunity for us as an industry to get out there and define ourselves rather than allowing others to define us." [ More ]

Competition Highlights Student Biomedical Innovation

BMEidea winners.

The 2006 BMEidea winners.
The National Collegiate Inventors and Innovators Alliance (Hadley, MA) recognized the outstanding work of four collegiate biomedical engineering teams during the Medical Design Excellence Awards ceremony at the Medical Design & Manufacturing East exposition in New York City this month. The Biomedical Engineering Innovation, Design, and Entrepreneurship Award competition, now in its second year, recognizes excellence in student biomedical innovation.

The first-place prize of $10,000 was awarded to a team from the University of California, Berkeley, that created a tissue-engineering approach to construct vascular grafts from bone-marrow stem cells to be used in coronary artery bypass graft procedures. Other winning inventions included an alternative method of breast-cancer detection; a low-cost, light-reflecting device for the detection of anemia; and a telerobotic biopsy system designed to facilitate earlier, more-accurate diagnoses of cancerous lesions. [ More ]

 


MX: Issues Update is a monthly e-supplement prepared by the editors of MX: Business Strategies for Medical Technology Executives and sent to you as a benefit of your online registration with Canon Communications. To become a regular subscriber to this monthly medtech business update, click here.

The editors welcome your suggestions for future content in MX: Issues Update. Please feel free to contact us with your comments and ideas. - Steve Halasey, Editor in Chief, MX

MX: Issues Update is a monthly e-supplement prepared by the editors of MX: Business Strategies for Medical Technology Executives and sent to you as a benefit of your online registration with Canon Communications. To become a regular subscriber to this monthly medtech business update, click here.
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