Becton, Dickinson & Company (NYSE:BDX) is facing allegations that it abused monopoly power in the U.S. hernia mesh market to block competition, raise costs for hospitals, and limit treatment choices for patients, according to a lawsuit brought by small-cap firm TELA Bio, Inc. (NASDAQ:TELA).

The complaint argues that Becton Dickinson used restrictive contracting practices to exclude a lower-cost, physician-preferred product from hospitals nationwide.

Thomson Reuters published a copy of the lawsuit online on Monday.

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Market Structure And Product Segments

The lawsuit centers on two segments of the hernia mesh market: permanent mesh and resorbable mesh.

Permanent mesh, a low-cost plastic product used in most hernia repairs, represents the larger volume market. Resorbable mesh, which integrates into the body over time, is typically used in more complex procedures.

Becton Dickinson is accused of dominating ...