Smith & Nephew Receives Subpoena from Feds Over Exogen

Medical device maker Smith & Nephew has received a subpoena from the U.S. Department of Justice regarding its ultrasound stimulation product Exogen, according to the Memphis, Tenn.-based company.

Government officials have asked for documents relating to Exogen from 1995 onward, according to a statement from Smith & Nephew, adding that similar inquiries likely were sent to its competitors.

Company officials said the firm is facing questions about sales and marketing of bone growth stimulation products.

This is not the first time that the company has been under investigation in the United States.

In September 2007, Zimmer, Johnson & Johnson’s DePuy Orthopaedics unit and Biomet, all based in Warsaw, Ind., and Smith & Nephew agreed to pay civil settlements and avoid criminal prosecution by agreeing to making changes over consulting fees.

Exogen Bone Healing System uses low-intensity ultrasound to accelerate the healing of fresh fracutres up to 38 percent faster than normal healing.