Several leading makers of knee, hip and other orthopedic implants revealed Friday that federal regulators are looking into possibly unlawful sales of their products in foreign countries.Stryker Corp., Zimmer Holdings Inc., Smith & Nephew plc and Medtronic Inc. each said the Securities and Exchange Commission is conducting an informal inquiry into possible company violations of the Foreign Corrupt Practices Act, which outlaws bribing foreign officials to obtain or retain business. The SEC has brought civil charges under the act against a number of companies in recent years. All firms said they would cooperate with the probe and do not believe they broke the law.

Stryker and Zimmer both specialize in replacement implants for the knees, hips and other joints. Medtronic makes spinal implants to reduce pain and restore movement of the back and neck.



Last month Biomet Orthopedics Inc., Johnson and Johnson's Depuy Orthopedics, Smith & Nephew Inc. and Zimmer Holdings Inc. agreed to pay $310 million to settle charges that they gave U.S. doctors kickbacks to boost product sales. Stryker was not charged in the case because it cooperated with Department of Justice investigators early in the investigation. All five companies will be monitored by the federal government through early 2009.

Zimmer spokesman Brad Bishop said the company does not believe the investigation into foreign sales practices is connected to the Department of Justice case.

SEC declined to comment on the matter.

Banc of Securities analyst Steven Lichtman said SEC's probe could be related to the prior government action against kickback programs in the U.S., noting that similar payments to foreign public health officials would likely violate the law.

He said in a research note that the government probe would not have much immediate impact on the companies, noting that the Department of Justice investigation took more than two years to conclude.

Shares of Zimmer Holdings Inc. fell $1.73 Friday to close at $82.87. Shares of Stryker Corp. rose 79 cents to close at $73.92. Medtronic Inc. shares fell 11 cents to $56.33. Shares of Smith & Nephew fell 9 cents to close at $62.24.