New York Times Article on Failed Ventilator Program Triggers a Response from Medtronic

A New York Times article about a failed attempt to boost the U.S. ventilator stockpile several years ago lacks important information, according to Medtronic. The article, "The U.S. Tried to Build a New Fleet of Ventilators. The Mission Failed," provides a deep dive into a contract between the federal government and a company known at the time as Newport Medical. That company was acquired by Covidien, which in turn was acquired by Medtronic in 2015. Medtronic issued a statement Sunday in response to the article, which outlines the company's "understanding of the facts" regarding the contract in question. The company emphasized that it did not purchase Covidien until nearly three years after the contract dissolved. In 2010, Newport Medical, a small ventilator company located in California, entered into a contract with the U.S. government to develop a new fully featured, mid-level ventilator at a cost of $3,000 (a drastic price reduction compared to the going rate at the time, which was in the ballpark of $10,000). The contract required that the ventilator be capable of use in neonatal through adult populations. The three-year contract was initiated on Sept. 24, 2010 with an expected completion date of Sept. 23, 2013. Covidien was aware of Newport's contract with the government prior to buying the company, and had some concerns from the start, according to Medtronic's account of the situation. "Covidien lear...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news