A Medical Device Daily

Rochester Medical (Stewartville, Minnesota) reported that it has reached a settlement agreement with Novation (Irving, Texas), a group purchasing organization (GPO).

Rochester Medical will dismiss Novation from the litigation, which it filed on March 16, 2004 against C.R. Bard (Murray Hill, New Jersey), Tyco International (Pembroke, Bermuda), Novation, and Premier Purchasing Partners (San Diego) (Medical Device Daily , March 18, 2004).

In return, Novation is awarding Rochester Medical an Innovative Technology Contract for its urological catheter products and related accessories, including the company’s advanced Infection Control catheters.

The suit alleges that the defendants engaged in anti-competitive practices and product disparagement to prevent Rochester Medical’s entry into those markets.

Rochester Medical has previously reported settlements with other defendants in the case, and litigation continues against the remaining defendant Tyco. The case is now scheduled for trial in February 2008.

In November 2006 Rochester Medical reported getting a settlement of $8.82 million from Premier and dismissed it from the litigation (MDD, Nov. 21, 2006).

Novation provides contracting services to more than 2,500 members of VHA, and the University HealthSystem Consortium (Oakbrook, Illinois) and nearly 9,000 members of Provista (formerly HPPI). In 2006, VHA, UHC and Provista members used Novation and alliance contracts to make $31.6 billion in contract purchases. The Innovative Technology Contract being awarded to Rochester Medical has a three-year term from the effective date of Sept. 1, 2007.

“This is very good news. I believe this contract provides significant opportunity for Rochester Medical to present new choices for advanced urological products to hospitals participating on Novation’s contracts. These products offer unique and important benefits to clinicians and patients, particularly in helping to control infections,” said Anthony Conway, president/CEO of Rochester Medical.

“We look forward to building a solid and trusting relationship with Novation and the members it serves. I believe that the relationship is off to a very good start, and we also believe this new contract will bring important benefits to our organizations, hospitals and patients,” Conway said.

Rochester Medical makes disposable medical catheters and devices for urological and continence care applications.