Authorities Subpoena Medtronic for Brain Stimulation Device Data

Medtronic Inc. is the target of another federal investigation.

This time, prosecutors have requested information “relating to the company’s sales, marketing and reimbursement support practices” for its neurostimulation devices, according to a Dec. 8 filing with the U.S. Securities and Exchange Commission (SEC). The filing did not specify the type of information investigators requested, but it did say that Medtronic is “fully cooperating” with the probe.

A company spokesman declined to comment on the investigation. The U.S. Attorney’s Office in western New York issued the subpoena to Minneapolis, Minn.-based Medtronic on Oct. 14, though the SEC filing does not state why that office is handling the probe.

Medtronic’s neuromodulation division is the second oldest and fourth largest of the device behemoth’s business units. It was formed as the company transferred its expertise in heart electrical stimulation to treat diseases and conditions involving the nervous system. In fiscal 2010, the neuromodulation division accounted for $1.5 billion, or 10 percent, of Medtronic’s $15.8 billion in revenue. The division manufactures products include neurostimulation systems and implantable drug delivery systems for chronic pain, common movement disorders, and urologic and gastrointestinal disorders.

The investigation by western New York prosecutors is the 15th probe of Medtronic since 2005, according to the SEC filing. Other interrogatives include those from U.S. Sen. Charles Grassley (R-Iowa) and attorneys general in California and New Jersey. The company posted an $11 million charge “related to probable and reasonably estimated damages in connection with these subpoenas” in the second quarter of fiscal 2011.