Suture Express Files Antitrust Suit

Overland Park, Ks.-based Suture Express has filed suit against Cardinal Health and Owens & Minor, claiming the medical supply giants have engaged in antitrust activities.

The suit, filed in U.S. District Court in Kansas, seeks a minimum of $200 million in damages, which could be trebled if it is determined the companies violated federal antitrust laws.

The litigation blames the Ohio-based Cardinal and the Virginia-based Owens & Minor of pressuring their clients to purchase sutures and related supplies from them over smaller firms such as Suture Express. According to the suit, sutures make up about 10% of the product offerings of the two firms, but Cardinal and Owens & Minor use their market clout regarding the remaining 90% of products to get providers to purchase their sutures from them exclusively, even though their product offerings in that niche may be limited.

“Cardinal Health and Owens & Minor contracts threaten customers with prohibitive financial penalties andtheir disincentives if they don't agree to include suture and endomechanical products in their orders," said Suture Express Chief Executive Officer Brian Forsythe in a statement. “Imposing these financial penalties would make it financially impossible for customers to buy suture and endomechanical products from another distributor, even if offered significantly better service and prices.”

As a result, Suture Express's sales have suffered significantly over the last four years, according to the lawsuit.