BD Hit With Antitrust Lawsuit Over Hernia Mesh Market Power

Becton Dickinson (BD) is facing a new legal challenge, this time from a competitor rather than patients. Tela Bio has filed an antitrust lawsuit in federal court in Philadelphia alleging that BD used its dominance in the U.S. hernia mesh market to stifle competition and block adoption of Tela’s OviTex reinforced biologic mesh.

According to the complaint, BD leveraged conditional pricing, long-term bundling contracts and purchasing agreements with group purchasing organisations, integrated delivery networks and hospitals to penalise providers that stocked Tela’s products. Tela argues these tactics effectively excluded OviTex from the market despite its lower price point, about $3,000 per unit compared with roughly $4,500 for BD’s Phasix mesh, and limited its U.S. resorbable mesh share to under 8% in 2024.

OviTex, cleared by the FDA in 2016, combines a sheep-derived extracellular matrix with synthetic fibres and is designed for open, robotic and laparoscopic hernia repairs. Tela claims its performance has been stronger in markets such as the UK, where BD does not hold similar contracting arrangements.

BD’s mesh portfolio accounts for an estimated 65% of spending on permanent hernia mesh and 77% of the resorbable segment, according to the lawsuit. Tela says the alleged conduct has not only harmed its business but also driven up costs for hospitals and patients in a market that sees roughly 1.5 million procedures annually, representing about $12 billion in U.S. healthcare spending.

“BD operates fairly in a complex, highly competitive industry, complying with all laws and regulations governing our commercial activities,” the company said in a statement to Fierce Medtech through a company spokesperson. “The allegations in this matter are without merit and BD will vigorously defend against these claims.”

The case comes against the backdrop of extensive prior litigation over BD’s hernia mesh products. Last year, the company agreed to settle about 38,000 personal injury lawsuits, with Reuters reporting the deal covered a “large majority” of the $1.7 billion BD had set aside for mesh-related liability, without admitting wrongdoing.