Guidant Issues Additional Warnings, Raises Questions about J&J Buyout

Indianapolis-based Guidant Corp., following last week’s recall of some of its defibrillators, has warned physicians to stop using additional models after problems were found with the devices. The latest development with Guidant’s products has now raised questions about its proposed acquisition by New Brunswick, NJ-based Johnson & Johnson.

In its latest announcement, Guidant told doctors to stop using its Contak Renewal 3 and 4 and Renewal RF defibrillators after some models were found defective. According to the company, a magnetic switch inside the devices may become stuck in the closed position and cause the device to fail. Four products out of 46,000 have been confirmed to fail and a fifth is suspected to be defective as well. Four were replaced with new implantable models, and Guidant said no injuries have occurred as a result. Patients were alerted to the problems when the device’s internal alarm was triggered.

The news has raised questions whether J&J will try to renegotiate its proposed $25 billion buyout of Guidant or if it even goes ahead with the purchase. The problems could eventually cost the company hundreds of millions of dollars in possible recall actions and litigation. While the company has asked physicians to stop using these devices, it did not immediately classify the action as a recall.