The challenge that this organization has had is to overcome the reimbursement issues surrounding AxiaLIF. This is the third quarter that there has been a decrease in revenue and performance. A full court press is being employed by Rick Randall, and his team is fervently educating and training their surgeon users. But with that said, the real question is how is the integration with Life Spine's MIS progressing? Supposedly this relationship was fostered to aid the company in securing additional pull-thru business?
A leaner sales force means a greater onus on the those people to ramp up their efforts while the CEO maps out a virtual strategic plan. Sounds a bit like the early stages of the Afghan war. Like any campaign, the burden can only be exercised with the addition of complimentary products/weapons and troops that offset the reimbursement challenges with AxiaLIF. But that is going to take additional capital, and until the reimbursement issue is resolved, TSB just does not see an escalation in troops. Given that the integration with Life Spine was recently announced, Trans 1 will be given the benefit of doubt this time, but the analysts will be closely watching the 2010 QI results.
The company also announced that its CFO, Michael Luetkemeyer will be stepping down on March 31st to pursue other opportunities. The only observation that TSB will make is that it's always interesting as to why someone that has been an integral part in financially building this company is looking to leave? Interestingly enough, it was reported late last year that Trans 1 had scaled back its sales force, and was having difficulty in making decisions about hiring engineers. So as Trans 1 moves into a new fiscal calendar, it will be interesting to see whether there will be a change in strategy in order survive the many challenges this company is facing.
TSB wants to know what our readers have heard on the street? Tick, Tock, Tick, Tock Trans 1 is on the Clock.