CADE signs agreement in cartel investigation into public tender for orthoses, prostheses, and high-cost medical devices

On 27 April 2022, the Administrative Council for Economic Defense (CADE) signed a cease and desist agreement with the firm St Jude Medical Brasil (SJM) resulting from an investigation into a cartel operating in public procurements. The case involved the acquisition of orthoses, prostheses, and high-cost medical devices in the Brazilian market of implantable cardiac pacemakers and other devices. CADE launched the probe in November 2015 upon a complaint brought by the Ministry of Justice.

The enquiry resulted in the launch of two different proceedings. One of them reviewed illegal conduct in the market of implantable cardiac pacemaker devices (implantable cardioverter defibrillator, cardiac resynchronization, and pacemakers) and devices used in the diagnosis and treatment of heart diseases (electrodes, tear-away introducers, and catheters).

Upon the agreement, SJM is to pay BRL 56.4 million as a financial contribution. The firm pleaded guilty to the accusations, committing to cease the practice and contributing with further clarifications.

For the rapporteur of the case, Commissioner Luis Braido, the agreement meets legal requirements and the criteria of convenience and opportunity for approval by CADE’s Tribunal.

In his words, “the cease and desist agreement fulfills the required provisions of Law 12.529/2011 and may cease the litigation.”