The Wall Street Journal-20080201-Medtronic Inc-- Veterans Affairs Department Won-t Renew Exclusive Pact

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Medtronic Inc.: Veterans Affairs Department Won't Renew Exclusive Pact

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The Department of Veterans Affairs decided not to renew a $100 million-a-year contract to buy pacemakers and defibrillators from Medtronic Inc., and instead will buy from a range of manufacturers. Medtronic said it expects to bid to become one of the VA's suppliers when a new contract is issued. The agency said its action wasn't related to a major recall late last year of thousands of Medtronic defibrillator wires that were prone to fracture. Medtronic has been a supplier to the VA since 2003. VA officials said one of their prime considerations is to give its cardiologists choices among heart products, and that they decided to seek multiple suppliers prior to the recall.