Antitrust Lawyer Blog Commentary on Current Developments

Articles Tagged with natus

On September 27, 2017, the FTC announced that Integra LifeSciences Holdings Corp. (“Integra”) and Johnson & Johnson (“J&J”) agreed to a divestiture of five neurosurgical medical device product lines to settle FTC allegations that Integra’s proposed $1 billion acquisition of J&J’s Codman Neuro division (“Codman”) would negatively impact competition in those markets.

Competitive Issue

Both companies supply a range of devices used in operative neurosurgery, hydrocephalus management and neuro-critical care.  According to the FTC’s complaint, the acquisition as it was proposed would likely harm competition in the U.S. markets for (1) intracranial pressure monitoring systems, where Integra and Codman are the only significant suppliers of these systems, together accounting for 94% of the U.S. market; (2) cerebrospinal fluid collection systems, where Integra and Codman are two of the only three competitively significant suppliers of these collection systems in the United States, together accounting for 71% of the market; (3) non-antimicrobial external ventricular drainage catheters, where Integra and Codman are two of the only three competitively significant suppliers of these catheters in the United States, together accounting for 46% of the market; (4) fixed pressure valve shunt systems, where Integra and Codman are two of the only three competitively significant suppliers of these catheters, accounting for a combined 38% of the U.S. market; and (5) dural grafts, where Integra and Codman together control 75% of the U.S. market.