Thursday, December 17, 2009

What's The Buzz Tell Me What's a Happening?

It was announced today that Alpha Tec entered into a definite agreement to acquire Scient'X!

"Is that all there is, Is that all there is, If that's all there is my friend, then let's start dancing, we'll break out the booze and have a paaaaarrrty, if that's all there is! "

As the late, late, late Peggy Lee once sang, is that all there is? The spine industry has to be singing that song after today's announcement. More classic "me too" fusion products, and of course, the public will be told that the company was acquired for its innovative dynamic stabilization system, the Isobar. I guess the sucker that TSB wrote about in September is AlphaTec. Another "me too" cervical plate, more "me too" PEEK, cannibalization of the existing portfolio. Who ever heard of subtraction by addition?

Dirk's Quotations, he sounds a bit like the Dali Lama!

"Increasse scale and global presence in all major geographic markets" - Duh?

"Cross selling opportunities across core spine and Aging Spine products' - How long are you going to sell that propaganda?

"Strengthens and expands the company's product portfolio" - Duh?

"Enhances the company's ability to educate and train spine surgeons?" Haven't you been doing that all along?

"Diversifies potential future U.S. healthcare reform and regulatory risks!" What the hell does that mean Dirk?

Who does this deal really benefit? Did you really acquire Scient'X for its marketshare? What marketshare? Did you acquire Scient'X for its IP? What IP? It smells as though this deal was made to create the illusion that AlphaTec is on the rise. You know what the late Lowell George once sang; "Time Loves a Hero!" Go figure? Isn't this disingenuous considering who owns whom? TSB wants to know what our readers think?


  1. This comment has been removed by a blog administrator.

  2. Wow! I mean really, WTF? This is so funny! Perhaps TSB has forgotten that this is the second time that Alpha-Tec has 'acquired' ScientX! Three if you count the time that ATEC entered into an exclusive agreement to sell the dynamic rod.
    So by the numbers:
    1) Health-point owns both of these so-called spine companies
    2) The first 'acquistion' was ...gee when was that probably like in 2003 at NASS all the folks at ScientX showed up to see the mangagement taking all of their products over to their booth. Then ScientX imploded. Then the deal fell through, later. Leaving ScientX dripping blood from it's french anus.
    3) In 2007 ATEC buys into an agreement to co-market the dynamic rod. That was the worse launch and sorry ass planning ever done! The only rod they sold over six months was a complete cluster as the RSM was called into the OR Materials to ask why the were billing thousand more for the same rod they could get from ScientX. They didn't even change the catalog numbers or anything. I mean, REALLY?!

    4) Now, to my amusement, today they are doing it all over again. Do they think the street is full of morons (don't answer that, ha) ?
    They must think we all forget. PLUS, what the hell does ScientX have that's anymore innovative than what they had in 2007, 2003 and before. It's the same old stuff.

    Sell short.

  3. Intersting to say the least! WOW!
    1) Healthpointe buys Alphatec from Roy Y. for about 42 million.
    2) healthpointe then takes the company public for about 85
    3) Healthpointe then takes it's original investment out of the 85 million, then h
    has 100% of it's investment back that it put in. Once they have All of their
    Investment back, they now control by stock ownership and by their
    and day to day oversight of the company
    4) The Scient'x was a forced deal by Healthpointe, Dirk just did what he was
    told to do.
    5) there are other issues that They do not want to become public.
    6) this is the controlling ownership putting two companies that they own for
    financial gain!
    7) whom do you really think is running ATEC? Dirk? Absolutely not!

  4. The spine blogger must be RY!

  5. I know Dirk, and have known him for years. Dirk is executing the wants of the BOD and shareholders--his job as CEO. Dirk has created substantial value at ATEC. He is a cabable CEO and is in indeed running ATEC as a solid CEO should. This was a senseable acquisition. Scientx needed the ATEC pedicle screw, and ATEC needed the dynamic rod. The companies are worth more together than apart.

    We will see other mergers in 2010 based upon synchronicity of technologies or product lines, and to accumulate marketshare. 2010 will be a great year for spine!!

  6. Can we hear some more marketing non-sense regarding the Aging Spine? This is the SCAM of the Year for Spine. Sell Short!!!! Sell Short!!!! Sell Short!!!! Spare us Dirk Kuyper testimony.

  7. "accumulate marketshare?" With what? The Scient'x product line, can you give us a break! Some people really have no shame! How do you spell revenue? Consulting Contracts!

  8. Lets just look at the one thing in this deal that makes it all worthwile - The deal puts Alphatec in over 50 countries and they now have increased their worldwide presence.
    With the conditions in the US healthcare marketplace that alone made the deal worthwhile and at 2.4x sales it was a very good buy for them to get there. Say what you will about Alphatec but they have grown consistently at double the industry for the last three years. Consultancies? Forget it. Hard work and good distributors in a me too environment, definitely. Facts are a stubborn thing John Adams once said.

  9. Isn't this really about positioning this company so that eventually it is sold. We don't see this company being any larger than $175 million in revenue. Does anyone really believe that Foster et al are interested in hanging on to this venture? Just MHO

  10. The merger of these two just gives Medtronic a bigger ass to kick.

  11. This deal had to happen so John Foster could buy his cute little puppy some Christmas presents. She needed a new Puppy Snuggie for those long plane rides.

  12. This wasn't a deal to buy IP, it was a deal to BUY SURGEONS! This industry is MAFIA run and it is getting UGLY! Thank God I know what I know, so when my back hurts or my leg is numb, I will shoot myself to avoid being a statistic...and I'm a Sales rep! UGH!

  13. This deal was about international market share and nothing more. It was a good move and I compete with these guys everyday! They are a good company with some really talented people. Their pipeline seems full and this move will help them I believe.

  14. OK folks, will you please stop picking on Dirk!
    Just because he has the personality of a door knocker with his monotone voice and has to listen to his friends in New York , especially that meddling McCormick, give him some slack!
    It is just a matter of time before the board realizes he really is an operations guy and not a CEO.

  15. where are all the "SHORT SHORT SHORT"ers now???

  16. What about the fact that they're poised to hit $225M in 2010? All those people saying ATEC would only hit $150-$175M clearly were/will be wrong. Of course back then it was before ATEC bought Scient'x and that $50M of extra revenue, thank you Scient'x, wasn't organic, but buying revenue is ok too if you don't know how to build it yourself:)