Let me count the ways. A quick analysis revealed that OT wasn't doing as good of a job with sales as predicted. If one looked at the revenue for the first six months in fiscal 2010, it was flat, if not losing a bit of ground compared to 2009. In addition, there were dissident investors building momentum when it came to the overall make-up of the board and the company's management team. One has to wonder if some of them were singing, "how long has this been going on?" In all likelihood, it was an opportunity to cash out while the going was good, or as good as it gets.
So why did MSD buy OT? As the bearer of the torch for BMP's, maybe MSD realized that not all surgeons will drink the BMP kool-aid regardless of the results, or the non-published results when it comes to Infuse. MSD really didn't have a great DBM, unless one considers Progenix a good product. In retrospect, Grafton was a pretty good product. One must admit, it was one of the first products to be widely accepted by orthopaedic surgeons during its heyday. Unfortunately for Osteotech, they really didn't have a defined strategy as to whom or what Osteotech would grow up to be. Remember the Mark Burrell fiasco when he came over from MSD after he lost his distributorship? He was going to bring them into the hardware market. That fizzled like a dud on the Fourth of July. OT also had trouble finding good people.
MSD has added a complimentary portfolio that will allow them to expand into trauma, oncology, joint replacement, and of course enhance its position in spine. With its marketing prowess, and feet on the street, MSD should be able to take advantage of this golden opportunity to increase their already stellar biologic sales by capitalizing on the relationships that OT brings to the table. Could this be a strategic move in anticipation of the FDA panels final approval or disapproval for Amplify. Only time will tell, TSB wants to know what our readers think?