Newport Medical Instruments had been contracted in 2006 by the U.S. Department of Health and Human Services' Biomedical Advanced Research and Development Authority to design a cheap, portable ventilator.

At the time, Newport Medical Instruments had three working prototypes produced, and was on schedule to file for market approval late 2013.

Covidien then effectively halted the project, subsequently exiting the contract, citing the reason that it was not profitable enough due to significant design faults which had to be corrected with extensive redesign with minimal impact to regulatory requirements.

Government officials and other medical equipment suppliers suspected that the Newport acquisition was largely done to prevent a cheaper product from undermining Covidien's existing ventilator business.

[7] In January 2014, Covidien acquired WEM Electronic Equipment, based in Ribeirão Preto, Brazil.