Monday, July 25, 2011

Synthes v. Globus (Round 2)

Sooner than later, our readers are going to witness the most anticipated boxing match in the history of spine, for the heavyweight championship of the world.  Are you ready?  Spineblogger fans are you rrrrrrrrrrrready?  With thousands of spinebloggers and millions of viewers watching in the United States of America, especially in the U.S. District Court of Delaware, "Let's get ready to rumble!" No fellow bloggers it not TSB, it's Philadelphia, Pennsylvania's favorite son, Michael Buffer standing in the ring holding the microphone with Synthes USA standing in one corner, while Globus Medical stands on the opposite side of the ring.

On Friday, July 22nd, 2011 the firm of Young, Conaway, Stargatt and Taylor LLP filed a formal complaint on behalf of Synthes USA in the U.S. District Court of Delaware against Globus Medical for infringing on Patent numbers 7,846,207, 7,862,616 and 7,875,076 also know as the "207," "616," and "076" patents which have been assigned to Synthes.  This action arises under the patent laws of the U.S., 35 U.S.C., Sec 1, et seq.

The "207, 616, and 076" patents were duly and lawfully issued to Synthes by the USPTO.  The Inventors of the "207 and 616" patents were Mssrs. Beat Lechmann, Dominique Burkard, Chris M.J. Cain, and Claude Mathieu, while the "076" patent was invented by Mssrs. Claude Mathier, John Cain, and Christopher Marden.

The Synthes complaints cites that Globus has directly infringed on these patents by making, using and offering for sale products that infringe on these patents.  Included are the ALIF System Coalition, ACDF System and the InterContinental Place Spacer Products.  The complaint states that Globus' infringement on these patents was willful.  Synthes respectfully is asking the Court to enter judgement in its favor and against Globus and grant the following relief;

A judgement that Globus willfully infringed on the patents
Enjoining Globus and all persons in active concert from any further infringement
Award Synthes damages adequate to compensate for Globus' infringement
Award Synthes its attorney fees and costs
An order to recall from distribution and destroy its entire stock.

TSB wants to know who are you placing your bets on the Synthes  "the Bone Crusher" USA or Globus "the Ironman" Medical?  It doesn't get any better than this, these are two companies that will forever be tied to one another whether they really like it or not.  Let's get ready to rumble!

63 comments:

  1. Can't wait for the idiot to ask when Globus will go public on this one!

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  2. Does this mean Globus will be going public?

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  3. Seriously? This is but one punch in a mulit-round fight. How about going out and improving your product Synthes? You seriously have the balls to go after the lateral platform? WHERE IS YOUR LATERAL PLATFORM??? ALIF and ACDF- ok i see that - sort of- how about suing Medtronic too? and K2M? and Nuvasive?? and anyone else with a plated interbody? When will these F'rs ever get over the fact that GMI is making better products and try innovation vs Legal action- wow... lame.

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  4. Yeah, they're going public alright.... ..To the public $#it House!

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  5. this absolutely means Globus will go public! NOT!!

    actually might mean they go out of business. Sales numbers are down, profits are down. Now comes Synthes, you can bet they will get big bucks and perhaps even an injunction. Justice for thieves.

    Ironic how most companies today have very little "TRUE" ip. Most companies design things to sell haphazardly but with no real intent on stealing. Globus HOWEVER deliberately and maliciously set out to steal and copy Sythes properties. This is a house built on sand and I for one hope Sythes gets their pound of flesh and then some!

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  6. 11:59 "Better Products" is an opinion. And if these "better products" infringe, they are open to lawsuit. Synthes isn't the first to sue and they won't be the last.
    http://legaladvantage.net/IPServices/PatentSearch/InfringementSearch/NuVasivevGlobusMedicalpdf.aspx

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  7. GMI making better product??? Don't make me yack son!!! when was the last meeting you were at when someone ran up to you and said "did you see the cool new widget at the Globust booth"? no??? I didn't think so! The only conversations about Globust I hear at meetings, are jokes regarding the rediculous costumes Globust monkeys have to wear-

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  8. Globus has a great track record in lawsuits. Synthes is just rattling the cage and costing everyone some cash in the process. Does anyone truly think that Synthes will win and all this product will be destroyed and pulled from the market place? I think not. Let's ride the Glo "bus" public!!

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  9. 12:52

    " Does anyone truly think that Synthes will win and all this product will be destroyed and pulled from the market place?" Umm... yep. Serious possibility.

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  10. They won the Maverick lawsuit, so yeah this kinda stuff happens Mr. 12:52.

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  11. Oh and by the way boys, its not Synthes it's JNJ! They know a thing or two about suing.

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  12. 11:59, what, are you a complete idiot? You must work for Globus to not realize that ability to innovate and ability to sue are two completely different core competencies. The only question that Synthes needs to ask is: Does likelihood of victory and $ received from victory outweigh the cost of doing battle. Thanks to Globus selling a bunch of potentially infringing stuff, they must think it does.

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  13. What does all this have to do with my POD?

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  14. To all of the NUVA lovers on here,, great earnings announcement earlier today,, NOT.

    WHO CARES what your revenues are when your profitability is shrinking? Profit down 19.7% over the same period last year? They continue to spend, spend, spend, while pumping their chests about "record revenues"??

    The Bear still hasn't figured out that you can't continue to live a champange lifestyle on a beer budget.

    Watch the stock price tumble tomorrow.

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  15. Hello fellow Spine Bloggers. I wanted to reach out and put some feelers out to anyone that may know or have an opening for a seasoned spine rep in the Northern California area (sacramento)???
    Please email me at::
    onespineguy@hotmail.com
    I thank you for your time

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  16. 11:59, here's what you and the rest of your buddies at Globus have never fully understood about the spine industry as we know it. In order to be a part of the industry's "unnofficial patent pool" and to partake in all of its decidedly boring IP goodness, you too must have something desirable to bring to the table. Globus has no IP to speak of so it does not get an invite to the table (facet replacement IP does not count...it is not "desirable").

    So, to answer your question directly, Synthes does not sue Medtronic for its lateral system because Medtronic would just file counter-suit against Synthes for its use of Medtronics' ridiculously broad-based and practically all-encompassing portfolio of MIS patents. Years later and after millions of dollars in legal fees, the result would be a wash, and a complete waste of time. On the other hand, however, Synthes would benefit a great deal from a lawsuit against Globus, and Globus has little to no basis for a counter-suit. I'm afraid to tell ya, but I think this may be disastrous for the infamous Glow-bus. Sorry about your luck.

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  17. In addition to this new headache for Glo-bust, let us not forget that they already are embroiled in an existing patent infringement lawsuit which was filed by Nuvasive last fall.

    Going public & profitability anytime soon for this dog? I think not,,

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  18. Sounds to me that Glow-bus reps need be thinking about bringing some of their biz to some PODS! That stop watch is about to start ticking...just saying.

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  19. Globus deserves everything thats coming. Does anyone know the percentage of Globus users who are paid? They have millions in cash, but this could be quite crippling and should absolutely rule out anyone buying Globus in the forseeable future. Bravo Synthes.

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  20. 1212 your a damn moron! My dog could develop better technology then synthes!!! All you haters....give Globus props for 1. having balls! And 2. making great stuff! You monkeys say these things...have you ever compared the products "Globus copies" to the supposed "original technology"......maybe Ford and THE MODEL T should sue FERRARI!!!!!! No comparison! Synthes zero profiles SUCK! Get a brain!!! And your facts right!! Sales growth is great year in and year out! And I did work for them before....but with another company now to be closer to family...I wish I still had the bag....daily!!!! I'm going to leave spine and be like Synthes and Medtronic---I'll go into professional boxing....get my butt kicked and sue people who train harder, develop more, have more vision and hunger and BEAT me....why not come out with a better product? There's an idea?

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  21. hey Globus you sure do got a pruddy mouf!...I wanna hear you squeal like a pig boy

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  22. Oops...now who is Zimmer going to buy? Or, now Zimmer Spine will not be bought...at least by Globus :)

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  23. Let's change the name of the blog to I hate Globus/nuva...that way all you laddies getting your business taken have a dedicated blog 100 percent of the time....not just 99.9

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  24. 4:23

    very insightful post ... not

    growth companies spend money. This particular one grew revenues above the market rate (they continue to take share). If you exclude the "special items", which were related to the offering a few weeks ago, their would have been higher than Q2 2010.

    I'm not a NUVA apologist, but can't we just applaud the spine companies that disclose their numbers when the continue to grow revenues in the double digit range? It's helluva lot more interesting to read than an RY or OrthoSpine News post about a private company (RSB) growing 150% but with zippo data to substantiate the claim.

    Let's face the facts. As an industry we need the NUVA, OFIX, and Globus type companies to continue to grow in order to maintain pressure on MDT and JNJ/Synthes. I don't think most people realize how big of a market those two (MDT and JNJ/Synthes) will have when you combine their hardware and biologics revenues.

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  25. JnJ knows how to sue? Really? DePuy won over 300 million in the Vertex Max/Mountaineer Case a few years back, but what does that mean to me the DePuy rep??? NOTHING

    ...I can't get any of the Mountaineer/Vertex Max business back. How is that a victory for DePuy?

    Heck, even the Vertex Max tubs are still at my hospital. You'd think a lawsuit that won over 300 million would require you to swap out the proper tubs from Vertex Max to Vertex Select----and maybe the implants :-)

    It's comical when I read about a patent lawsuit...who really loses?

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  26. Globus is a dead man walking. Synthes/JNJ will just bleed them dry. If JNJ/Synthes doesn't win this one, there will be another. I wouldn't be surprised if JNJs commitment to litigate Globus was written into the acquisition deal by Synthes. Good riddance Globus.

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

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  28. just the beginning , the globus cervical disc is the next target. Synthes stopped maverick from making it to market. globus cervical disc will never see the market either. wonder how many ide dollars will be flushed down the toilet there. nice work dp.

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  29. 7:09

    WOW,, you're insightful & brilliant. Since you obviously work for Nuvasive let me ask you this:

    I have a business I'd like you to invest in. It's going to grow, but continue to LOSE money & struggle to turn a profit. I know, I know,, but sales/ revenues will be GREAT!! BUT, we we'll struggle to make a profit.

    How much would you like to invest?

    The point of being in business is to MAKE MONEY. Nuvasive is doing it w/ smoke & mirrors, just check the prior 2 quarters and the "mirages" that were used to "deliver the number".

    Who cares about their products, who cares what their market share is when THEY CAN'T FIGURE OUT HOW TO GROW THE BOTTOM LINE.

    Going to be a great day to have a short posiiton on this stock.

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  30. This lawsuit isn't about money, it isn't about patent infringement, it's about a bunch of past Synthes folks unhappy that they could never get anything accomplished at their company, split with a bunch of start up cash, took advantage of questionable IP, did all the things Synthes wasn't willing to do and made a hell of a business out of it short term. Synthes is pissed and from the beginning has had a hard-on to go after Globus every chance they can. Synthes, whether they win or not, wants Globus to suffer. They are hoping by taking away focus, and making them spend cash it will make it difficult for them to be successful.

    I'm not a fan if either company. Synthes had the power and ability to do better, but decided there way was the only way. They got boring, behind in things "pretty and new" looking. Globus showed them up. Globus did everything Synthes was not willing to do. If Globus would have done something innovative, most would likely have more respect. Even their market approach was copied. They just did it better. Not a bad strategy in a commodity market when others were resting on their past performance and not paying attention to the customer.

    Now and then, you have to give respect where respect is due. Is Globus perfect ... hell no, but then who is. Should Synthes go after them? I would if I had the cash to do so. A win with a smaller company can set a precidence and allow them to go after the bigger fish. You thing J&J might be thinking that? Hmmm.

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  31. alphawreck got issued letter from FDA regarding their 'stem cells'...looks like some regulation is on the way....also heard that they will lose their amniotic tissue supplier....

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  32. 8:38

    You're spot on. JnJ sues to get cash but doesn't do anything to get the competitive product removed from the field. They don't support the reps when it comes to lawsuits. MDT pays JnJ a fee to have the new Vertex in the field too.

    I'm glad I don't work for the Red Dot Stain anymore. Even with the Synthes aquisition, I'll still keep beating them in my local market.

    Cheers

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  33. Alphawreck continues to poorly execute everything. What does their future hold?

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  34. 6:44

    Why was life at DP so poor? I have an offer from them right now.

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  35. If Synthes had had a real lawyer instead of some old FDA left-over JD, they would have put Ali Baba and his thieves out of business with the first lawsuit years ago. Hope they prepared better for round 2.

    Companies have looked at Ali's company with the thought of buying it, but did not like the smell that hit their noses when they came close. Just imagine the stink if they tried to go public.

    By the way, their latest CFO apparently has flown the coop after a relatively short stint. One wonders why....

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  36. Hey Kevin...stop posting notes about your search for a spine job in the SAC area. Aren't you still on the payroll?

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  37. I may be in the minority but the Alphatec letter is this week's hot topic. Is Puragen going to be the example product that brings regulation to stem cells? Osteocel and Trinity stakeholders better be mindful of this. Its hard to believe these things are minimally manipulated.

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  38. 10:40

    Your not the minority; all eyes are on this one. TSB I'm sure has the inside scoop on ATEC'S shenanigans?

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  39. You’re (for the grammar bandits)

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  40. TSB
    What's the status of Mike O'Neil, Paradigm Bio vs. VBros, Centinel Spine, Mike Will?

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  41. 1146...
    Good question as I was wondering that myself a while back. Sounds like Mike got screwed but at end of day who wins these suits are the Attorneys for both sides. Get em Mike but I would stick my neck out there and say there will be a settlement far less than what Mike is suing for.

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  42. What does this recent Puregen slapdown do for NuCel? If alphatec gets a slap then Nutech should get a pummeling!!!
    What really is the FDA's contention here? Is it that the product is marketed as an ELA cellular biologic vs. calling it an allogeneic tissue?

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  43. TSB, to get back to your question...Synthes/DePuy/JNJ wins the lawsuit against Globus, no question. However, DePuy will probably not win the favor of the market in the long run because the corporate good-ole-boys club they run can't seem to get the company turned around. Thus the real winner is...Hansjoerg Wyss! ...SpineSeller

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  44. 9:55am its NOT Kevin.

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  45. 6:04 you can't have it both ways ... you either lose money or you make a profit. NUVA is profitable, albeit not at the level most shareholders (and I'm sure the executive team) want to see. Easy to see you hate these guys, but revenue numbers are pretty hard to fake and their place in the marketshare game is not a mirage.

    I'm eager to see ZMH's numbers tomorrow AM and OFIX on Thursday. ATEC is next week (with this week's news that should be a good one).

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  46. 4:12

    Again,, as in my prior post,, THANK YOU for the insightfulness. Laughing,, another genius comment "you either lose money or you make a profit".

    REALLY? Thanks, I didn't know that,,

    I don't hate them, just tired of people speaking so highly of a company that is run as poorly as this one. Again, as I stated in my prior post,, Did you happen to notice that my sentiment seemed to have been shared by the Street today? NUVA down roughly 6% ($1.88/ share); it was even worse in earlier trading.

    Again, not sure why so many treat this company as a darling and people like you continue to focus simply on revenue & market share, when it continues to bleed cash and has been a below average investment over time.

    Bottom line, and I've said it many, many times before,,, MAKE SOME MONEY. Any company can drive revenue solo w/ out turning a profit; hell, that's what made the early tech boom in the late 90's so great.

    Glad your in sales, and not a financial advisor.

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  47. Blah Blah Blah

    Globu Sux right ?

    That's why I'm putting MSD and Synthes out of work in my area with Crappy, non original IP products.


    Go Eff yourselves.

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  48. There, sadly, we all see another example of the fine caliber of professional person that is hired by the company who's name rhymes with BLo-us.

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  49. 5:55....agreed! Keep punching those arrogant pricks in the mouth. Go Globus!

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  50. 7:42 keep your professionalism. I'll take your business

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  51. BLo hards will be out of work when docs tire of their shtick.

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  52. 8:53

    DP life wasn't awful, I was frustrated how they handled the lawsuits and didn't support the field.

    My reason for leaving was on the local level, poor infrastructure and support in this particular distributorship. Good luck!

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  53. Is this Hanjorg's parting shot at DP?

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  54. Just in. Spineblogger first. Stryker buys Globus. To be announced soon....

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  55. 4:49PM - Curious as to what financial planning company you work for?

    It's amazing how actual company performance is only one portion of why a stock price may fluctuate up or down. Dig into the details and don't just look at the top line numbers. Do you really think that a company's stock price dropping a few dollars means the company is going down the toilet? I would hope if your posting such bravado comments on here that you are more intelligent than that. The company you are speaking of is making a profit and growing in a declining market - you can't argue with that - and the negatives you are speaking to are due to the convertible notes placement. Like any company I'm sure it has it's flaws, but you cant put down a company making a profit, with double digit growth in the spine industry in 2011. It's not perfect, but they are doing well.

    This blog is depressing and sounds like an elementary school playground. I enjoy coming on here to read industry buzz and opinions, not garbage gossip. Would love if everyone would grow up.

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  56. 12:08

    If you were actually a bit more informed, you might be able to see the forest through the trees and appreciate the deeper issues at said company.

    The convertible notes move was as much an act to "restructure" previously exisiting debt, as it was an excuse to mask the deeper issues of a company who can't seem to figure out how to do things right. YES, they are growing revenue & share, but at what cost? PROFIT.

    They "delivered" their number in Q2 by pulling out the "we're able now to account for our loaner inventory in a different fashion which increases our bottom line",, REALLY? After 8 years, you just decided to do this? Why?

    99% of impacts a stock price is what investors feel the potential of a comapny to be. Meaning,, does it make sense to buy it today based on what one thinks can occur down the road? But look closely enough at the performance of Nuvasive's stock since it reached a high in the $50 range nearly 3 years ago, and what you'll see is nothing but a downward trend. Net-net, the invesment community remains unconvinced that the company is worth holding LONG TERM,,

    Take all of this and ask yourself,, Why do those investing in Nuavsive consistantly carry a significant short position within the investment community? Again, because the savy investors see the flaws and are hedging their bets that the company will continue down the same track that's it's been on which is one of reduced profitability & disappointing results.

    I don't need to convince anyone of what their perspectives or positions will be on this play, but what I can tell you is that the last few days riding this stock as a short once again solidified my positiion that having a short position on NUVA is a great place to make money.

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  57. Buy the stock, sell the stock.. whatever makes you happy. Whether the stock is at $29, or peaks at $34 (where it will probably stay around for a few years), the company isn't going anywhere and is #3 domestic and #4 in the world. Like I said, I'm sure it's not perfect, and they have their struggles, but they have had struggles for 10 years and continue to find ways to improve and get better. They won't fix everything overnight, but the bottom line is they have good products, good people, and are not going anywhere for a while from their current position in the market.

    It's pretty obvious that the stock should never have been at $50, so let's not start comparing things to those days. Most things are on a downward trend in the last 3 years. I would ask, what company would you hitch your wagon too?

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  58. It amazes me how these financial blowhards (who probably make up the vast majority of TSB readers since they sit in a cubicle all day) feel they can predict the health of a spine company based on the friggin stock price. What a joke. Wake up. While you get aroused by looking at market trends and short selling stock - companies like NuVasive, Globus and even smaller companies are quietly growing market share. IN A DOWN MARKET. It's not all about the stock price.

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  59. 7:50

    Be a big boy and take charge of your career and stop blaming others for your weaknesses. You're a 1099 so make like a businessman and fix your issues. The squeaky wheel gets the grease so if you don't get what you think you need from your distributor or the company you represent, to grow your business, you are most likely not worth it and just sound like a crybaby.

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  60. 1:24

    NEWSFLASH: In the investment community IT IS ALL ABOUT THE STOCK PRICE. It's called Capitalism and a rising stock price is how money is made. Or, in the case of a company like Nuvasive, you can hedge your bets, roll the dice & go against the majority of the investment community and short a stock. This, in many cases, is a tremendous investment strategy.

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  61. Or a crashing market is how money is lost

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