Reuters reports that European officials probed Edwards Lifesciences
(NYSE: EW)
over potential antitrust activity because of patent practices.
The outlet cites a person familiar with the matter regarding the European Commission’s scrutiny of the U.S.-based medtech company. Last month, the European Commission said it conducted a surprise inspection at an undisclosed medtech company. It listed that company as active in the cardiovascular space, an area in which Edwards operates.
Edwards is one of the market leaders in replacement heart valves, including transcatheter aortic valve replacement (TAVR) technology. The company later confirmed itself as the unidentified outfit to Reuters.
Reuters now says patent practices and policy against so-called “copycat devices” led to the raid at Edwards. In addition to valve replacement patents, the report says there’s scrutiny over the company’s global unilateral pro-innovation (anti-copycat) policy. That went into effect in November 2019, aiming to end its support to what it considers copycat companies. That includes those who “largely copy, reverse engineer and duplicate innovate devices.”
According to Reuters, Edwards believes its policy is in accordance with applicable laws and not subject to negotiation. The report said it means Edwards declines to fund doctors or researchers taking part in clinical trials of a “copied device.”
The medtech space has seen a recent uptick in activity from regulators seeking to squash antitrust activity. The European Commission recently issued a major fine on Illumina for its merger with cancer detection company Grail.
The commission fined the company approximately $478.9 million (€432 million) for completing the merger before the Commission determined if it was anti-competitive. Within weeks of the deal closing, the European Commission declared it anti-competitive. Illumina also faces scrutiny in the U.S.
