In a pivotal moment during the ongoing antitrust trial, an economist representing Johnson & Johnson’s (J&J) Biosense Webster unit testified Thursday to challenge a $147 million damages claim filed by rival Innovative Health. The case, unfolding in California federal court, centers on allegations that Biosense enforced anticompetitive practices to dominate the cardiac catheter market.
Innovative Health accuses J&J’s Biosense Webster of violating antitrust laws by withholding clinical support services from hospitals using reprocessed catheters made by third parties. The policy, implemented in 2016, allegedly forced hospitals to exclusively purchase Biosense’s proprietary catheters compatible with its Carto 3 cardiac mapping system.
However, Biosense’s economic expert, Dr. Lawrence Wu, countered the rival’s assertions, stating that Innovative suffered no measurable damages, and instead saved costs it would have otherwise incurred for clinical support services. Dr. Wu, a former economist with the Federal Trade Commission and current president of NERA Economic Consulting, told jurors that Innovative’s damages estimate is flawed and overstated.
“In fact, Innovative would be worse off without the policy,” Wu testified, citing the additional expenses the company would need to shoulder for support services. He also contested the rival expert’s $147 million estimate, stating it inflated reprocessing volumes and ignored essential cost deductions.
Wu emphasized that Biosense’s clinical support structure does not constitute anticompetitive tying, noting that hospitals inherently require a fully integrated system—including mapping software, catheters, and specialist support. Comparing the setup to “buying a pair of shoes,” Wu argued that such components are inseparable in practice and market function.
The testimony concluded the second week of trial before U.S. District Judge James V. Selna. Innovative’s legal team maintains that Biosense’s practices harmed competition, but Biosense stands firm in its position that the market remains competitive with robust players such as Medtronic, Abbott, and Boston Scientific.
Closing arguments are scheduled to begin Friday.
