Synthes settles over financial disclosure allegations

The New Jersey attorney general’s office has reached a settlement with devicemaker Synthes, West Chester, Pa., that resolves allegations the company failed to disclose that physicians conducting clinical trials on its ProDisc spinal implants had financial interests in the product, according to a news release.

The voluntary compliance agreement calls for Synthes to no longer use stock or stock options to compensate clinical trial physicians for their work; to disclose any financial interest that researchers have in the company or its products; and to post information about financial arrangements with doctors to the company’s Web site. Synthes has also agreed to reimburse the state of New Jersey legal fees totaling $236,000.

New Jersey Attorney General Anne Milgram has broadened the state's investigation into similar conduct by other medical-device makers. Five additional subpoenas were issued Thursday seeking information from other manufacturers about their physician compensation practices.

Lee Moore, spokesman for the New Jersey attorney general’s office, said the names of those companies are not yet being released.

Launched in February 2008, the Synthes investigation focused on allegations that physicians conducting clinical trials for the company’s ProDisc product line had financial stakes in the outcome.