The Big O (If only he had moves like Oscar Robertson) went on to commend the job that Synthes Trauma and CMF did. When the bastard step-child of the company (CMF) outperforms spine, you know there's trouble in paradise. Synthes is evolving into the second coming of Medtronic. Too big to move fast. In addition, how lame is the excuse that challenging economic and industry conditions continue to impact growth. Yes fellow bloggers, Synthes just like every other slim bucket organization is moving manufacturing over to China to minimize manufacturing cost. But wait until they find out that the Chinese are adept at copying implants and selling knock-offs in the Asian Markets. Surprise! Suprise! Surprise!
Thursday, July 29, 2010
Synthes Continues to Grow, but, Spine is Sucking Wind!!!!
The Arbeitsgemeinschaft Fur Osteosynthesfragen (whenever TSB says that, I feel like I'm back in the old country yodeling off Jakob Mountain), reported its second quarter 2010 earnings today, and, like many of their counterparts, it seems the spine division offset a strong performance by Synthes Trauma and Cranio-Maxillo Facial. Of course Michael Orsinger in his infinite wisdom told the Street that this performance was offset by pricing pressures in the spine marketplace. TSB believes this has become the "jump on the bandwagon" excuse within the industry for those legacy companies that are "sucking wind." So, why are so many companies choking on the gas pipe? Could it be that there is nothing new in their portfolios? Could it be that many of these companies have kicked the tires on potential acquisitions and realized that there is nothing new?The former investors and management team at N-Spine and Spinal Solutions must be laughing all the way to the bank. Suckerrrrrrrrrrr!