Medtech in a Minute: Cook Stirs the Pot, and More

Philips China Settles Bribery Probe

Philips has agreed to pay $62 million to resolve charges that it violated the Foreign Corrupt Practices Act over its conduct related to sales of medical equipment in China. The company's subsidiaries in China is accused of using special price discounts with distributors that created a risk that excessive distributor margins could be used to fund improper payments to government employees. An investigation also points to the company's employees engaging in improper conduct to influence hospital officials to draft technical specifications in public tenders to favor Philips’ products in China.

Cook Stirs the Pot

Cook Medical is cutting 500 positions in an effort to refocus efforts on product innovation. The company was quick to note, however, that none of its hourly manufacturing employees or hourly employees at distribution centers will be impacted. Cook said demand for its products continues to grow and the company wants to ensure it has the capacity to meet that demand. 

And in case you missed our last Medtech in a Minute report...

Baxter Bows out of Biopharma

Baxter has agreed to sell its biopharma solutions business to Advent International and Warburg Pincus for $4.25 billion. Net proceeds, which are expected to be about $3.4 billion, will be redeployed for debt repayment, the company said. Last fall, CEO José "Joe" Almeida expressed a desire to optimize the portfolio to focus on connected care, and technologies designed to "connect the dots" for clinicians and institutions.

Siemens Stops Selling Cardiology Robot

Citing disappointing adoption of the CorPath GRX System, Siemens Healthineers is throwing in the towel on the robotic-assisted cardiovascular system. The robot was part of Siemens' $1.1 billion acquisiition of Corindus Vascular Robotics in 2019. The company said it will shift its focus to developing a robotic solution for neurovascular interventions. The news comes as the company's diagnostic revenue fell 39% on a comparable basis due to waning demand for the company's rapid COVID-19 antigen test.

Bioventus Sheds Wound Business

Bioventus is selling its wound business to LifeNet Health for about $85 million. The deal includes the skin substitutes TheraSkin and TheraGenesis. Bioventus has also agreed to give LifeNet exclusive rights to sell the SonicOne ultrasonic wound debridement products in the United States and Canada.

Thermo Fisher Shutters Three Facilities

As demand for COVID-19 testing drops, Thermo Fisher is closing three facilities, which will eliminate 230 jobs. All three facilities are located in the San Diego, CA area.