Cardiovascular Systems Inc.’s (NSDQ:CSII) catheter-based artery de-clogging systems are officially available through hospital group purchasing organization HealthTrust Purchasing Group this month, according to SEC filings.
The companies signed a deal in May to make CSII’s orbital atherectomy products, which rub away plaque built up in clogged arteries, available to HPG’s member hospitals.
This latest GPO deal continues to obliterate any Wall Street concerns that arose out of the hullabaloo when medical device goliath Medtronic Inc. (NYSE:MDT) canceled $2 billion worth of supply contracts with group purchasing organizations earlier this year.
At the time JP Morgan Chase & Co. analyst Michael Weinstein told the Wall Street Journal that spiking the GPO deals represented "a watershed moment" that could send ripples through the entire industry.
Those ripples have failed to materialize, as evidenced by CSII’s latest deal, St. Jude Medical (NYSE:STJ) joining Boston Scientific Corp. (NYSE:BSX) to replace Medtronic as the CRM providers of choice for Upper Midwest Consolidated Services Center last week, Premier Inc.’s deals with six new companies last month and St. Jude stepping into Medtronic’s vacated contract with Novation in April, to name a few.
CSII’s new deal with HPG became effective July 15, and expires July 31, 2014, according to SEC filings.