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Zimmer and Biomet last week released updates on the pending antitrust investigation by the U.S. Department of Justice, Antitrust Division.
The investigation also includes DePuy, a Johnson & Johnson company.
DePuy released the following statement Friday: "Several orthopedics companies have made reference to an e-mail solicitation for a 'uniform pricing strategy.' That solicitation did not come from DePuy. However, because DePuy believes it to be inappropriate to engage in selective discussion about elements of any investigation, particularly when it places other competitors in a position where they must respond, we are not going to discuss this ongoing investigation further except to reiterate that we intend to cooperate in responding to the government's requests for documents."
Smith & Nephew and Stryker orthopedic companies also were subpoenaed as part of the investigation.
In the statements released from the three Warsaw-based companies, each stated the e-mail prompting the investigation was from a competitor.
Monday, Smith & Nephew released the following statement: "Following receipt of the U.S. Department of Justice's investigative subpoena previously disclosed by (Smith & Nephew) on June 30, Smith & Nephew instituted an internal investigation in order to cooperate fully with the Justice Department. Through this internal investigation, it has come to our attention that an independent orthopedic sales representative under contract to the company sent an e-mail on Oct. 28, 2005, to competitors. That e-mail appears to have resulted from a hospital's request for proposals from the company and its competitors regarding their orthopedic implant products. The e-mail proposed to the company's competitors that they join in a coordinated response to the hospital's request. That e-mail was in clear contravention of Smith & Nephew's policies and was not authorized by company management. To the best of the company's knowledge, the Oct. 28 e-mail was never acted upon by the company or any of its competitors in responding to the hospital or any customer and resulted in no anti-competitive agreement. The independent sales representative and the company no longer have a business relationship.
"Smith & Nephew is committed to complying with all laws and regulations and to having the highest standards of ethical business practice. Smith & Nephew continues to cooperate fully with the Department of Justice in this investigation.
"The investigation is ongoing, and Smith & Nephew can provide no assurance as to the final outcome. Therefore, it would not be appropriate to comment further. The provision of the information above should not be construed as an intention on the company's part to provide further updates except as legally required."
No further information is currently available on the impact of the admission by Smith & Nephew that a member of its sales team attempted to collude with rivals.
