The Cleveland Clinic removed Dr Jay Yadav following an internal investigation of his conflict of interest disclosures.
Yadav and others sold rights to the device Angioguard, to Cordis Corp, a division of New Brunswick, New Jersey-based Johnson & Johnson in 1999 in a deal worth $40 million, plus royalties.
The 46-year-old doctor failed to properly disclose this to the clinic and the Food and Drug Administration during clinical reviews of Angioguard, 'The Plain Dealer' newspaper reported on Friday.
"Based on a review of disclosures required under prior and current conflict of interest policies of the Clinic, it was determined that Yadav's disclosures did not meet the clinic's standard. As a result, he is no longer at the Clinic and will not be reappointed to the medical staff," the clinic's spokeswoman told the paper.
On Thursday, the clinic's board of governors decided not to renew Yadav's yearlong contract. Yadav is no longer at the hospital, the spokeswoman said.
Yadav said that until he reviewed the sale agreement Thursday, he did not realise it included royalty payments, according to a statement released for him by the clinic. The statement acknowledged he had received money from the deal and "will donate all of these funds to charity."