Stryker Biotech charged with fraudulently marketing bone-healing products
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The AP (10/29) reports, "A medical technology company has been accused by federal prosecutors of fraudulently marketing devices used during spinal and bone surgeries." According to a statement by the Justice Department, "Stryker Biotech, its former president Mark Philip, and three sales managers had been charged with five counts of wire fraud and one count of conspiracy."

Bloomberg News (10/29, Harris, O'Reilly) reports that they "are accused...of promoting the use of" Stryker's "therapeutics in a manner contrary to their FDA-approved use." According to acting US Attorney Michael Loucks, "the men promoted the use of" products intended "to stimulate bone growth" in "'recipes' requiring medical personnel to 'mold the...products into 'cigars,' 'Tootsie Rolls,' or 'Vienna sausages.'"

According to Reuters (10/28), a federal exemption allowed Stryker to sell limited quantities of the products to treat a rare condition. Instead, the company allegedly promoted a combination of products for broader uses than those approved. The indictment also claimed that Stryker made false statements about how many patients were treated annually with the products, Dow Jones Newswire (10/29, Kamp) reports.

The Boston Globe (10/28, Wallack) reported that "prosecutors said some patients who received the combination suffered serous medical problems." Stryker would "face fines of $4 million, double the damages, or double the company's gross profits stemming from the charges -- whichever is greatest," if "convicted on all eight counts."

The company also said that it "could be...barred from participating in federal and state healthcare programs," the Boston Herald (10/28) reported. Meanwhile, "the current and former employees face up to 20 years in prison and fines of at least $250,000." The Boston Business Journal (10/29, Convey) also covers the story.