Even though this company has exhibited nice growth, they are not meeting the Streets and their own expectations. But that happens when you dance with the devil. The primary reason that this company has lost some traction can be attributed to reimbursement issues surrounding their flagship product. Most of our readers understand that when surgeons cannot get reimbursed for using product, they stop using product. Trans1's challenge is to get this device down classified from a Category III CPT Code (aka an experimental device) to a Category I, meaning that insurers will not pre-approve the procedure or pay the code. TSB is sure that this organization is working feverishly to overcome this obstacle. This company has managed their cash flow very well, considering, they have opted to build their business model with a direct sales force.
But there are other concerns, if you track their stock (TSON, NASDAQ) the share price has taken a beating over the past year, affecting the companies market cap and valuation. On October 13, 2008 the stock opened at $8.57 and closed at $9.54, jumping as high as $10.03 on October 17, 2008. As of October 13th, 2009 the stock officially closed at $4.52 per share. The question must be asked, are investors losing interest in Trans1? If this company is projected to finish '09 with an estimated revenue of $30-$35mm are they doing a great job, or, do other factors loom that our readers are unaware of . The Spine Blogger wants to know what our readers think?