Stryker will pay about $80M to end investigation
Dec. 08, 2014
NEW YORK (AP) — The medical device maker Stryker will pay about $80 million to end a federal investigation into its acquisition of a company that the U.S. said was marketing a product that hadn't been approved by regulators.
The company said that the U.S. Department of Justice acknowledged that the sales occurred before Stryker bought OtisMed in 2009, and that it was unaware of those sales.
Shares of Stryker Corp., based in Kalamazoo, Michigan, hit an all-time high of $95.37 Monday.
OtisMed's technology is part of Stryker's Shapematch Cutting Guides, which use data from CT scans or MRIs to develop disposable surgical guides used in knee replacement procedures.
Stryker first revealed the federal investigation in 2010 and set aside $80 million to cover any future settlement. It will pay $79.6 million plus interest.