Saturday, April 18, 2009
Strike 3 for Stryker
So where does it all lead to? On April 14th, Michael Sullivan, the US Attorney for the DOJ announced a guilty plea to felony misbranding of OP-1 by a third Stryker employee. Or should I say former employee? As usual I will spare #3 the press. The felony misbranding of OP-1 is based on off-label promotion with the use of Calstrux, a bone graft extender that is a combination of porous beta tri-calcium phosphate and carboxymethylcellulose. So why is this happening at Stryker? You know that squeaky clean organization with its Brooks Brothers suits and power ties? Could it be that after spending $200MM for the licensing rights from Creative Biomolecules in addition to countless millions to get the product to the market the company is feeling the heat from the board to generate a ROI? In all likelihood, the powers to be will announce on April 20th, that the organization is "cooperating fully" with the government and that they are taking the initiative to "cleanse" the organization of these "renegade salesmen, oops, I forgot territory managers. As usual, we will probably hear the standard "mea culpa" stating that it wasn't managements fault that these salesmen took it incumbent upon themselves to act in a criminal manner. Yet, why is this happening? Who is the Captain of the Ship? Could it be that when all you are concerned with is that 20% growth to appease the analysts and the Street, sometimes you lose your way home and start to stretch the rules? SpineBlogger wants to know what you think?