Healthy Skepticism Library item: 5820

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Garber AM.
The price of growth in the medical-device industry.
N Engl J Med 2006 Jul 27; 355:(4):337-9
http://content.nejm.org/cgi/content/extract/355/4/337

Abstract:

In one of the most dramatic corporate acquisitions in recent memory, Boston Scientific, a large manufacturer of medical devices, outbid industry giant Johnson & Johnson to purchase Guidant Corporation earlier this year. Joining Boston Scientific in this effort was Abbott Laboratories, which paid $5 billion for Guidant’s endovascular-device business. The outcome could hardly have been anticipated when Johnson & Johnson agreed to purchase Guidant for $25 billion in December 2004. In the wake of disclosures of lawsuits over allegedly defective Guidant devices, Guidant agreed to reduce the purchase price to $21.5 billion. Then Boston Scientific stepped in with a higher . . .

Keywords:
Drug Industry/organization & administration Economic Competition Equipment and Supplies/economics* Equipment and Supplies/standards Industry/economics* Industry/organization & administration United States