The Largest Ever Penalty For Unlawful Supply Of Therapeutic Goods Costs Medical Distributor $22 Million

This significant penalty, the largest ever imposed for breaching the Therapeutic Goods Act 1989, highlights the importance of strict compliance within Australia’s therapeutic goods industry.

The Federal Court of Australia has ordered Medtronic Australasia Pty Ltd (Medtronic) to pay an unprecedented $22 million in penalties for unlawfully supplying 16,267 units of the Infuse Bone Graft Kit between September 2015 and January 2020.

The case, initiated by the Therapeutic Goods Administration (TGA) in August 2021, centered around Medtronic’s unauthorised supply of the Infuse Bone Graft Kit without its intended counterpart, the LT Cage. While the Kit was registered in the Australian Register of Therapeutic Goods (ARTG) for supply alongside the spinal cage, Medtronic’s decision to sell the product without this critical component constituted a serious violation of Australian law. Alongside the hefty penalty, the Court has also ordered Medtronic to pay an additional $1 million towards the TGA’s legal costs.

Repercussions beyond the Medtronic case

The ruling sends a strong message to the broader medical and aesthetic sectors about the importance of regulatory adherence. As Professor Anthony Lawler, Deputy Secretary of the Department of Health and Aged Care and head of the TGA, emphasised, “Medicines and medical devices supplied to Australians must be assessed by the TGA for safety, efficacy, and performance in the exact way they will be supplied to patients. This protects Australians by ensuring they have access to the safest products available.”

The issue of unlawfully supplied or unapproved products is not limited to therapeutic goods for medical procedures. The aesthetics industry faces similar challenges, particularly in the distribution of counterfeit or non-TGA approved injectables and medical devices.

With demand for aesthetic treatments like dermal fillers and anti-wrinkle injectables on the rise, there have been increasing reports of non-compliant or fraudulent products entering the market.

A broader call for industry vigilance

This ruling serves as a wake-up call for distributors and suppliers across all sectors of healthcare, including aesthetics, where patient safety should always be the top priority. The TGA’s vigilance, now backed by this landmark court decision, could be the first step in cracking down on the distribution of non-approved products, protecting consumers from substandard or unsafe treatments.

It is a reminder for all stakeholders to take their regulatory responsibilities seriously, ensuring that products meet the stringent standards set by Australian authorities before reaching consumers.

As Professor Lawler aptly stated, “The TGA’s highest priority is to protect the health and safety of the Australian public.” This case underscores that responsibility and reinforces the need for transparency and accountability in every corner of the healthcare industry.

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