Physician Must Face Hormone Therapy Seller’s Contract Suit

A medical practice may have to pay a hormone replacement therapy seller for using a competitor’s product after ending the parties’ licensing arrangement, a Texas court said.

A “residual benefits” contract requiring the payments wasn’t a covenant not to compete and thus wasn’t necessarily unenforceable under a Texas law that strictly regulates noncompetition agreements, the Texas Court of Appeals, Second District, said Thursday.

JCMD Medical Services, a practice operated by physician John Carrozzella, entered into a series of contracts with BioTE Medical LLC, the licensee of a company that developed a method of inserting a pellet-based bioidentical hormone replacement therapy ...