Yet, TSB must ask the $200 million dollar quesiton; How does a company grow as quickly as Globus Medical has over the last three years? Let me count the ways.
Do any of our readers believe that this is a "squeaky clean" company? Originally when this company was started, David Paul committed as many mortal sins as an individual can, witnessed by the litigation between Synthes and Globus. In my old neighborhood, this type of behavior would have been handled by breaking some legs. I guess Hansjoerg Wyss is getting old! How many surgeon investors are there? Isn't this company similar in its business model to K2M Spine? How many creative consulting agreements does this company have on the books? 20? 30? 50? How many start-up practices has this company subsidized?
Regardless whether our readers agree with the strategy and tactics employed by the Golden Child, you can't argue with success! As Globus continues to increases revenue, TSB believes that the only strategy left for this company is to take it public. Unfortunately, this is not the year to do it. As the economy continues to exhibit a rebound in 2010, next year may be the time to hop on the Acela and pay a visit to Goldman Sachs. I mean if you are going to continue making a splash who else should underwrite the initial public offering. TSB wants to know what our readers think?
TSB, you can and should argue with success, if it is achieved with methods and practices which are beyond the pale. And you don't believe for one second either that after its start Globus turned itself into a choir of angels. If you don't challenge these kind of practices at every opportunity that presents itself, you in actual fact condone them. And by condoning them you make the work for those in the industry that try to achieve success the honest and hard way infinitely more difficult. There are many parallels one can draw in history. Morally saying "you can't argue with success" to describe this situation is just one step beyond "Ich habe es nicht gewusst". Despicable.
ReplyDeleteM: Just to clear the air, TSB does not condone the tactics that have been utilized by this organization. I can guarantee you that many people in the investment community are fully aware of their practices.
ReplyDeleteSo, if the investment community is fully aware, and they operate ethically, an IPO should not be an option. And neither is a take over as a thorough due diligence process here will be a nightmare. So, in a perfect world Golden Child c.s. would be stuck. If only.... Erst kommt das Fressen, dan kommt die Moral.
ReplyDeleteTurnover at this company, particularly in sales, has been tremendous. Coupled with the Synthes ligitation issues and questionable practices on creative consulting agreements and a predictably weak economny next year, I don't know if a 2010 IPO would yield a maximum return on investment. Perhaps another year of growth as they go neck and neck with K2M and a better market in 2011 after we have all had some time to see what HC reform does to business may be a better move.
ReplyDeleteRegardless, I have heard directly from employees the corporate culture and ethics is better at the chinese buffet down the street...
Spine Search: whomever is your source is absolutely correct! What would one expect when you have someone like Kienzle (a former US Surgical gnome) and Demski (a legend in his own mind) involved in the day to day operations of the company. This organization and K2M need to have a visit from the DOJ. A proctological examination would reveal much of what's wrong with our industry. Thanks for your commentary!
ReplyDeleteSpine Search, are you sure you are referring to the appropriate ethnic cuisine?
ReplyDeletejempye: I am open to suggestions....
ReplyDeleteHuman capital – Not only does Globus appear to have issues with ethics with its surgeon relationships, they also appear to have issues with their own employees. Has anyone in their Synthes acquired sales force reached maturity on their stock options, love them and leave them seems to be the Globus business plan.
ReplyDeleteDid they not make any money on the options?
DeleteI'm an experienced spine rep in a large metropolitan market and I've seen Globus expand their business almost soley on creative surgeon consulting agreements. i.e. - use our product for 10 cases, fill out a form immediately after each case, and we pay you for your "consultation". I'm glad to see I'm not the only one who thinks this company is flying high on bogus tactics.
ReplyDeleteI guess what surprises most of our readers is that the DOJ and FBI have not paid a visit to Globus. This has been going on since the inception of this company..... it's not that difficult to identify where to look and how to squeeze them.
ReplyDeleteHere's a hint: Start the distributors in Pennsylvania and Florida!
ReplyDeleteSpine Search, let's settle for a curry. TSB, with now over 5,000 followers of your blog, it is more than likely that there is at least one laywer and one FDA staff member among the audience. Keep hope alive!
ReplyDeleteAny truth to the rumor that a Globus VIP trip garners a Surgeon $10,000/day for "being away from his practice?" Where do I sign up???
ReplyDeleteHeresaquarter, the amount you mention could very well be right. As they grow twice as fast as anybody else, they probably have to pay twice as much. FYI, the amount you mention is more than double that what most companies consider "Fair market value" as defined in the Advamed Code of Ethics. Here is what Advamed, of which Globus is a card carrying member, says about this: "There are different valuation methods that may be used to establish fair market value. In all instances, a Company should use objective, verifiable criteria. The method or methods used by a Company should be documented." No doubt a loophole can be been found and will be used. At least most people would consider the previously mentioned curry a modest meal.
ReplyDelete$10,000 a day? I am involved in a design team for a new product for Globus and I receive Less than $375/hour (I am intentionally not giving the exact amount) for time spent at meetings, cadaver labs etc.......... Not one blogger has mentioned that this company has some of the most innovative products on the market. Perhaps their incredible growth has been partly based on their amazing ability to create new, and improved products in record time. Some of those sour grapes should have been left in SF at the NASS meeting for wine making.
ReplyDelete“You are known by the company you keep.” That makes the 'Anonymous' moniker here a wise choice. Can you name one truly innovative product of theirs that is on the market and that they actually developed themselves?
ReplyDeleteIf you want a heads up on Globus' next innovative product, just wait for Synthes to launch one and give Globus about a month....
ReplyDeleteA month? Give them some credit! They can poach it in 2 weeks or less..
ReplyDeleteI was reviewing films with a doc and the Globus goons were in his staff lounge with lunch. We had a removal of a synthes plate coming up and he asked them if they could bring removal instruments since they had the same screws and instruments! Priceless. Globus has, indeed, put a lot of products out in a short time, but I dispute any of them being truly innovative.
ReplyDeleteI know for a fact that they started out in my area offering surgeons stock in an attempt to get buy in and subsequent conversions. Current distributors deny that David Paul has any interest in going public since "he has already made his money". I bet all of those investing surgeons want it to go public. Guess what happens when they do, they cash out and look for the next start up to rollover their gains from Globus and POOF, market share evaporates.
....AND, once Globus goes public, all of the "friends and family" that head up each ancillary department will lose their jobs as they are completely unqualified (education and experience) to hold their "granted" positions. The new company will oust them in a NY minute.... or should I say a "Globus clone product" minute!
ReplyDeleteI am a reputable Spinal implant and instrument manufacturer.
ReplyDeleteI often hear about Globus' ability to produce Custom instruments for MD's in short-time.
I have also heard about bad practices (non FDA compliant) going on with Globus' Custom instrument program.
Any inside news on this.
Regards.
I'm not in the business or a rep, but this sounds like a lot of "hater" talk to me. How many of these comments would have been written if the authors where given a chance to have stock in this company?
ReplyDeleteEXACTLY!!!!! Globus is making BIG headway in the spine industry and obviously stirring up the water. I always see this occur when companies begin to grow significantly and do well. People will hate but if given the opportunity for stock or to be an employee, they are all for it.
ReplyDeleteI have not initiated hate talk. I am trying to get a definitive answer to a question from someone who may know. I am not proposing an opinion or asking for an opinion.
ReplyDeleteI was inside and now gone (thank goodness). This is not hater talk from a disgruntled employee. Bad and unethical company. Looking for short cuts to maximize immediate dollars. Not making good business decisions for the long haul. Low pay to inside employees and no mercy to reps or distributors. Have had opportunity to buy stock and would not invest in such a poor and unethical company. Huge rate of attrition there and very unhappy employees remaining. No loyalty to employees who stay on (unless you are a "friend or family"). Believe me as I have LOTS of inside knowledge. Run and do not get involved here.
ReplyDeleteAccidentally came upon this "blog" while doing a web-search. Reminds me of what it's like to listen to a group of kindergarteners discussing procreation on the playground.
ReplyDeleteI've worked with this company for many years, after spending over a decade with 2 other large spine organizations.
All who read, do so knowing that the negative comments are ( as you would expect by the lack of rational sense) the result of GROSS ignorance and/or some professional or egotistical insufficiencies by the authors. Globus is a great, very ethical, company, with great employees, that is performing at an unprecedented pace, with extremely high expectations, that many can not keep up with. I assume that the negative members of this forum fall into this group.
Probably won't come back to this site, as the content appears to be mostly sensationalized and amazingly inaccurate. I'm sure that the biggest instigators will want to make me some kind of a target (while remaining anonymous of course), but I learned long ago, not to get into a "pissing contest with a skunk".
I'll be out doing what I do every day, honestly, and ethically, supporting spine surgeons with the best service and products, in the care of their patients. Hint; that's a better use of your time fellas.
Im proud of the Company & my association with it. Look me up in Central Florida if you ever want some facts & truth. But, I'm guessing some of " you can't handle the truth". Great line, and oh so appropriate here.
My Aunt recently had successful back surgery and I happened upon this site when doing some investigation prior to the procedure. This caused me pause as Globus Medical products were used in the procedure.
ReplyDeleteI am happy to report it was very successful. I guess this is a stock market blog but in the real world Globus was part of a great procedure - at least for this family!
MM:
ReplyDeleteThe only "ethics" practiced there are the quest for the 'Almighty' dollar no matter who you have to step on, the "just make it work, don't tell me how" and the "bait and switch" - not to mention how the whole thing started with the theft of a previous employer's designs and "just use _____ as the fall-guy"
April 19:
I have one question for you- how do they continue to get away with it?!
If the FDA, DOJ and Immigration Dept. investigated this company they would most certainly shut this operation down,(and ship half the family out) for all of the violations.
Gilman: You'll be back to this site, and repeatedly as you are either a company officer, or you have been completely fooled by the deception that the management so keenly portrays OR maybe you're just another one of the greedy, but you are obviously curious and concerned what people are saying about the company.
Maybe you're wondering if you are the only person that suspects there is "something rotten in Denmark"
You would be wise to go work for a 'public' company that knows US law and understands the obligation to follow and is willing to comply with those laws.
Don't be fooled by the stock option lure they hand over so freely, doesn't that require disclosure...NOT going to happen.
Have you ever wondered how many options they have handed out already ? You would be shocked by that number IF they would tell you- but don't count on it.
April 1 (how ironic!)
Would you want a surgical implant inside of yourself,a family member (or even your dog) from a company that alters their product test results to get them pushed through approvals?
Anyone:
Someone should dig deeper here...the rest of us have to play by the rules - why not this company?
Innovation in medical device is an interesting term. Why (and the financial world should be aware of this) because many of the devices are only FDA 510k approved vs a full PMA study. To have a 510k device you must have a predicated device that you can show is equal to in safety and effictivness. That predicated device must must show the same in it safety and effectivneess all the way back to the original device that was used in the original Pma study. There is a great expense in both time and money for the pma study. Once the pma device is down graded it is very simple for a company to copy the technology. The question should be how many pma studies does the company have completed to be truly innovative. It is very simple to see this look at the FDA website and look for the 510k and trace back the predicated device and you will see who the true innivators in the industry are.
ReplyDeleteGilmam: So you're proud of Globus and your affiliation with it? Are you proud that your President/CEO Dave Demski dumped his wife (who has MS and is sometimes wheel-chair bound) , the mother of his 2 young daughters, while he shacked up with the a company employee (sales rep for Delaware, who sells nothing but is paid anyway). Said Delaware rep is now pregnant by Demski, who is still married.
ReplyDeleteGlobus had better dump Demski before he runs the company into the ground. He"s more of a fit for the Jerry Springer show than leading a spine company. Wonder how the female reps at Globus feel about this? Could be a big HR problem for them.
Can anybody help me to find why I was told that the pedicles used in my SI Joint fusion were produced by Danek, only to find upon removal (no fusion occurred, screws had entered neural foramen), that they were Globus products. My e-mail is 729kas@gmail.com. The removal was performed at a different hospital, as the original surgeon would not consider the possibility of any problem. I have been lied to numerous times by the original surgeon, with pretty terrible results, so I am now questioning every aspect of my procedure.
ReplyDelete