Thursday, March 29, 2012

Time Has Come Today

As the Chambers Brothers once sang;

Time has come today, Globus is on their way
Can't put off that S-1 filing another day
I don't care what The Spine Blogger has to say
They won't listen anyway, Time has come today

Well Spine Nation, as old blue eyes once sang, .... now the end is near, but is it really near?  Word on the Street is that Globus has filed an S-1 Registration with the Securities and Exchange, the only caveat is that danger may be lurking in the bushes. Could there be an IED awaiting Paul and Demski, even Born Agains eventually meet their Maker.  Who knows?  Could there be another lawsuit, or surprise awaiting Globus at the eleventh hour?  TSB wonders if David Paul actually sleeps at home, or does he change dwelling each night?  In TSB's old neighborhood, he might have been taken to Satriales Pork Store by Johnny Boy Soprano.  Until then, let's party like it's 1999.  TSB wants to know can you spell D-I-L-U-T-I-O-N?

Could this be another Orthovita deal where the CEO, CFO, VP of Sales all cash out while the rest of PIGS are slaughtered?  So let TSB take one last jab at our infamous commentator  "Globus is going Public!"

79 comments:

  1. Really? Post after post. At some point you have to eat your words or "jagged little pill" as I know you like to be poetic. No "secrets" now. Read the S1 and weep!

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  2. Legal Proceedings start on page 100.

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  3. I second that 5:38. Screw the pill. How about a Globus d&ck?

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  4. Financials start on page 15.

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  5. Legal proceedings with Globus?! Lanx is about to put them to shame. Nuvasive has filed on everyone at Lanx, james green and all the other carpetbaggers from nuvasive that just went to Lanx in Texas. Watch the turds fly. Shut your mouth nick cause your honna be on the receiving end!

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  6. As Joni Mitchell once sang

    And the seasons they go round and round and the painted ponies they go up and down the Spine Industry is captive on the carousel of time. You deserve one another, you can't return you can just look behind from where you came. If the Spine Industry spent as much time innovating as they do litigating there would be some emerging technologies. Fools playing a losing game.

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  7. But the lawyers are loving it! Ask nuvasive and Lanx.

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  8. anyone heard about when Lanx are going public...!

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    1. Gee...with over 300 million outstanding options against 80 million is sales, maybe by the end of 3012

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  9. $140 million in S,G and A on $330 million in sales! Wow.

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  10. Anyone know the latest on the Coalition lawsuit? (Synthes v. Globus)

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  11. Here is the link to the S-1. More details could be added later but its pretty complete.
    http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8164494#toc

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  12. 2nd Quarter of 2013-Lanx

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  13. Another bit of interesting reading out this week courtesy of the FDA. You've got to wonder what, if any, controls exist inside Spinal Solutions. From reading over this, I believe my auto body shop has better procedures in place.

    http://www.fda.gov/ICECI/EnforcementActions/WarningLetters/2012/ucm297275.htm

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  14. i notice i-data numbers are listed all over the place. we use those guys too for our intel. actually the guy they list at the bottom is andrew park, who I deal with. wonder if i-data has any relationship with globus...that would be weird.

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    1. Very interesting data from idata but the numbers are way off and have been inflated. Wall Street has better numbers and their numbers are free. When was the last time electrical stimulation was part of the spine market.

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  15. Can anyone say "Hindenburg"?

    Weren't both just full of a lot of hot air?

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    1. I think you'll find that the Hindenburg was full of Hydrogen.

      No matter thou, your point still holds as it still went down in flames!!

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  16. Hindenburg? You are no finance major I'm guessing. #'s are incredible!

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  17. 286,409,881 is that how much stock is already out? If that is the right number, and I am not sure it is, that sure is a lot of Surgeons stock options! I wonder how many of the 7 "exclusive distributors" are looking at the next spine round A stock companies?

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  18. I agree on one hand the company looks diluted (I am no CPA or stockbroker) but on the other hand the sales numbers look very good. About what most people thought in terms of net sales (300 million +) but the top line growth is astronomically above industry standards. I distribute a competitive product but who wouldn't want to work with this, "We have introduced 44 products since 2009, which accounted for 46% of our sales for the year ended December 31, 2011." The legacy company I work with has launched one new product in the last six months and you could probably say that about all of the legacy companies! The real story will be if they can go public without being sued into oblivion for patent infringement or if the legacy companies let them go public only to sue them into oblivion depressing the stock price and allowing someone to pick them off cheap. I have to agree with them that PODs seem to be the single most important threat to their business and medical business in general. If PODs are legal in spine, expect them to pop up in every discipline in medicine and stifle innovation and the largest portion of GDP in the country.

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    1. I would agree PODS are a threat but I think pricing pressure and insurance companies are a bigger threats. As soon as they go public Globus will have a bigger target on their back. This may be the worst time for them to go public. Look at their high priced products and ask if they stand another 25% discount and still maintain their growth pattern. Hospitals are asking for $400 pedicle screws. WOW - How much of Globus' business is in pedicle screws?

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    2. I would hope that everyone is pushing back on $400 screws. If everyone says no, which is a pipe dream I know, what can the hospital do. There is always that one bad apple that will agree and spoil the basket for everyone. With all of the cuts that the hospitals have made on the device companies and insurance companies have made on the the doctors, where is the relief for anyone. The hospitals are still charging the same fees plus more for surgeries and medicare continues to give the hospitals a reimbursement raise every year. I don't know about anyone else, but I do, my cost for insure has gone up every year 15-30%. As we all know, the hospitals and insurance companies are making bank. Often I read on this blog and the doctors and device industry are arguing and picking on each other. We are not the problem and we should be more on each others side because both groups are being taken advantage of. How do we fix it? I don't know, but for the device companies and the doctors to check off on $400 screws will not fix anything except sub-par products to be used in patient. Truly, isn't it about the patient?

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  19. Say what you want about Globus, you have to be impressed by their financials. 60M in net profit and 118M in EBITDA on 331M in sales for a company that isn't even 10 years old. And amazingly, no debt. With their profitability, they should come out with a bigger market cap than NuVasive. Globus should be the new standard bearer for public pure-play spine - which will actually be good for the industry. Analysts have been looking for too long at the non-profitability of NuVasive and Alphatec, and discounting the whole industry in the process.

    Globus goes to prove that there is still real money to be made in the spine industry when a company is well executed - despite PODs and some of the other headwinds.

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    1. The millions upon millions of shares given to surgeons in exchange for business would certainly be considered as "debt" in my book. Wall Street will probably see things differently.

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  20. People accuse TSB of bashing Globus, but David Paul and his Band of Renown have done a tremendous job in getting the company to this stage in its development. Some of the ankle biters in the industry should spend some time in learning how to launch a product. Let's face facts, their instruments are thoughtful, reminds one of Synthes in its heyday. Even Lukianov couldn't develop NuVasive at this speed. But larger questions loom, how much litigation awaits Globus? Time will tell. $330 million in sales is tremendous, $140 million in GSA cost or 42% of revenue leaves much to the imagination. All TSB can say is that the underwriters were singing, "oh happy day, oh happy day, when Jesus walked, when ... who knows when all is said and done David Paul will be able to afford to replace Tatoo his trusted assistant with some long legged beauty.

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  21. When comparing GSA as a percent of sales, Globus is right in line or better than some of the other publicly traded companies in its area of focus. For 2011, Globus has a SGA as a percentage of Sales of 42.4%, Synthes is 41.4%, NuVasive is 64% and Alphatec is 56.4%.
    Also telling is how savy the companies are in acquiring raw materials for calculating their Cost of Goods Sold (COGS).
    For 2011, Globus' COGS as a percent of sales was 21%, Synthes was 18.4%, NuVasive was 21% and Alphatec was 41%.
    This exercise certainly leaves one wondering what the hell Alphatec is doing. No wonder their stock can't climb above the cost for a pack of gum.
    Synthes loyalist may still hate David Paul for all the copy cat products but he also paid attention to controlling cost just as effectively as the big Swiss juggernaught.

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    1. Alphatec probably rolls the amount they pay their surgeons into the COGS. 41%...one has to ask!

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  22. Funny, what I don't see in any posts on here is anyone discussing what % of the $330M in revenue is driven by surgeons who have some type of ownership in the company? How many options/ shares have been issued to faculty, advisors, consultants, etc?

    Once this company actually does go poublic, it will be interesting to see how quickly those who have waited so patiently for this day begin to cash in & move on,, What happens to their revenue then?

    Yeah, yippie, Globus is moving toward going public. The payday for those w/ options does not come the day that David rings the bell on Wall St., it comes a year after and what will be interesting to see is where Globus will be at that point in time?

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  23. It will be worth a lot more than my strike price! I'll be interested to see if they follow through and take it public.

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    1. Don't count too much on it. It could be a penny stock with 280 million shares outstanding.

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  24. I'm not a Globus fan, supporter or rep for them but here is what I see.
    Globus' financials are far better and stronger than expected - not to mention a punch in the mouth to all the haters that have said Globus would go broke or when Stryker was considering purchasing them after looking under the hood they found skeletons and backed out. We now know the only skeletons are the ones in the heads of those who spread that rumor and disinformation.
    The legal liabilities are certainly a question and concern moving forward but the laws of Pennsylvania will help limit their ultimate payout - I refer to the Synthes settlement from 2007 for just over $13 million. The state limits liabilities to not exceed that previous 3 years of profits.
    As far as surgeon investors that will unload their stock options for profit (guarantee this will happen, it's the American way) who can blame them. In response to surgeons that will stop using Globus after they unload their stocks, doubtful. Alphatec, unfortunately, is still around with all their surgeon stockholders. Go figure.
    All you legacy big company bullies out there continue to throw mud, lies and disinformation about the ankle biters (that have damn near amputated your feet) as they continue to take your market share and at least attempt to deliver innovative products. You should look cute in your company supplied Toyota Prius as you all revert back to your pharma days. Hopefully you don't come down with carpal tunnel syndrome from all those daily and weekly reports you will be filling out.
    Chao!

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    1. If you're going to go all Euro on us, at least spell 'ciao' correctly. It's not a Chinese snack.

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  25. 8;37, we all realized you are a globus employee as soon as you used the word "haters".

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  26. You couldn't be further from the truth. I use to work with David Paul at Synthes and can tell you that I was sickened to learn of how David and his gang started Globus. Just read from the court findings in the lawsuit Synthes brought against Globus and settled in 2007.
    My point is how the so called leaders of the legacy companies want to make false claims about the smaller companies. Globus has certainly been at the center of this hail storm over the past several years.
    I don't agree with how Globus got off the ground but their ability to execute a plan and become profitable in a short time should be recognized and not lied about.

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  27. 11:52,
    I'd be a lot richer today too if I was a THIEF! Globus' initial 510k's were identical to Synthes' all the way down to the typographical errors. The lazy thieves can't even spell check their thievery! Please don't regale me with how brilliant these THIEVES are.

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    1. You make my point. About the lack of ethics.
      You don't however, seem to grasp that regardless of the 510K theft, that 510K's don't sell themselves. Nor do they have anything to do with purchases of raw materials an production efficiencies.
      You bore me and others with the continued "they stole our 510Ks" and completely ignore the speed, efficiency and cost containment that Globus has achieved over the years.
      Synthes and others have continued to ignore how effective Globus' customs have affected the market. Leaders identify and implement strategies that are highly effective - to date, Synthes has still not developed a true customs department. Placing a plaque on a door that says Customs Department and taking 9 plus months to produce a single instrument is not exactly responsive. Ask a surgeon what his/her idea of turn around time should be for a customs. Regrettably, Globus has been the only company to come close to expectations.

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    2. 1:35pm, Globus can produce customs so quickly because they skip regulatory/testing bottlenecks by producing customs as if they were "demos". They are using un-tested demo instruments in surgery every single day. Let's see how long that lasts after they go public.

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    3. Globus' customs are also not meant for surgical use. They are demos. Doctor has to sign a waiver of responsibility when they receive them. You cannot pump out a custom in a day and expect it to be used in surgery without any sort of testing. So, the surgeon is ultimatley responsible if the shit hits the fan.

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  28. Anybody see that Medtronic just settled with shareholders over the InFuse debacle? $85 million!! This is just a drop in the bucket compared to the settlements Medtronic will end-up paying to the folks that actually had this stuff implanted into their bodies off-label. Yikes!!

    http://www.bloomberg.com/news/2012-03-31/medtronic-settles-investors-suits-over-bone-growth-device-1-.html

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  29. You expose your ignorance of the industry you work in. A custom doesn't have to go through testing and/or FDA. A surgeon fills out a script and a device is manufactured according to his/her needs and design.
    If demos are being used then that is a different story - but again it is more rumor than fact. If you have specific info why not be a whistle blower and get a piece of the fine. Fact is you are just spreading untruths.

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    1. Check the definition of "custom". Generally, it is a device that is not currently available, cannot be substituted with a currently marketed device, and is to be used once on a specific patient. Hence, the need for a prescription.

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    2. This only applies to implantable devices. Show me a single rod bender, screw holding sleeve or Pedicle probe that goes through anything other than quality manufacturing checks, material safety checks and sterility validation. No instrument goes before FDA for approval. I challenge anyone to find a 510K clearance for a screwdriver or other general instrumentation used in surgery.
      Your definition of "custom" was an attempt by FDA to stop companies from circumventing the appropriate approval process be it a 510K or IDE study for implants. The total joint industry was the worst offender as they would call an implant a custom, but create and sell that custom to another 50 surgeons.

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  30. 3:05 - good try. I used to work for Globus and paperwork comes with each instrument that says it's a demo and not to be used for surgery. Globus has great products, zero ethics and would do anything to make an extra dollar.

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    1. The question is, why did you not do the right thing and turn them in to FDA? Ethics start with individuals. A corporation has no ethics, only an individual or group of individuals can choose to act in an ethical manner and those actions become attributable to the corporation - not the other way around. Corporate Integrity Agreements and AdvaMed membership do not make a corporation ethical. It just means your corporation has agreed to act within a prescribed set of boundaries.

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    2. 3:38...sounds like every spine company
      We all cheat to get business
      Just a matter of who gets caught or not

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  31. To 3:05.

    The error you make is that you assume a thousand surgeons each have a unique design and/or have a unique need. That already was tried in the past by AcroMed and Danek, and FDA did not buy it, as they shoudn't. Looking at the voting rights of the shares Paul clearly went to school with the guy he bucked over, Wyss. And how about folding in the manufacturing company that was run by his brothers and sisters? Wonder how much he paid himself for that. David Paul smart? Absolutely. Ethical? Absolutely not.

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    1. Read 7:12AM response above.
      Agreed. The mistake being made here is applying regulations that pertain to implants to instrumentation as well.

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  32. The "demo" accusation is 100% false. Globus does not do this.

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    1. Yes they do!! I see these "demo" instruments EVERY SINGLE DAY in the small surgery center where I work. The dumbass bimbo rep that covers our hospital brings new "demo" instruments in every week, and they always look identical to the instruments the Medtronic and NuVasive reps had in here the week before. It's pathetic.

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    2. I bet new instruments do come EVERY SINGLE DAY. That is why you are pissed. But they all come by prescription. Never by "demo".

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    3. On the paperwork for EVERY custom instrument sent out it states that said instrument is for DEMO purposes only. Everyone who works for GLOBUS has seen the paperwork that is in the FedEx box in which you receive the instrument. I don't believe Globus hides this fact. Anyone who denies this is either a flat liar or never worked for Globus.

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  33. David Paul and David Davidar, supposedly on behalf of Globus Medical, sent a legal notice threatening "immediate action to protect and enforce their rights" to the husband of David Paul's wife's sister (A.K.) who lives in California.
    Thanks to that legal notice and other apparent machinations, David Paul's sister-in-law's (his wife's sister's) marriage is now on the rocks and a divorce is imminent. David Paul's brother-in-law (his wife's brother, S.K.) was, allegedly, fired from Globus Medical in Chennai, India. Maybe David Paul and his wife can shed some light on his current condition.

    I guess this is what born-again, Bible-verse-spewing Christians do, or am I wrong?
    His apparent "acquisition" of about 2300 designs from Synthes using the "law of least effort" (copying may not be the right word) appears to have been just the beginning.
    Not sure if he has other relatives working for Globus, but David Paul's brother-in-law (sister's husband), who, allegedly, does not have any background in the medical-device industry is also ,apparently, employed by Globus. He was flipping burgers at a fast-food chain (Wendy's??) in Canada before he came to the US on a visa, allegedly, arranged by David Paul.
    Ethics? Self-respect? You be the judge.

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    1. My kids are bible verse spewing Christians. Would you talk to them like this? Making a hasty generalization that all Christians are hypocritical and not leading a life that witnesses to others is ignorant.

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  34. 5:32 - so how is it that they can get a custom pedicle probe to a surgeon with his name on it in 2 days? Also note the custom has no lot or product number on it.

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    1. How is it that you can't? Ignorance!

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    2. Any customer not asking for documentation from the representative, that the new, custom instrument has been fully approved for surgical use is risking alot more than they are gaining with that instrument.

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  35. What company in the top tier is still writing the most consulting agreements? Medtronic, DePuy , Stryker?

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  36. Lanx! Oh, sorry, you said top. The answer is none right now. Most are under a CIA and those agreements are a thing of the past. The smaller companies are still playing in the margins, however.

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    1. So are you stating that DePuy, Medtronic and Stryker are no longer writing any consulting agreements? None ? Zero? okay... But if they are, who is writing more thsn the others. No one asked about Lanx. why the fixation on Lanx
      answer the question or just don't reply

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    2. Actually he did. None was the answer. Very clear and he provided a supporting statement as to why he believed it to be so. You apparently wanted a different answer? Bossy and intolerant with no sense of humor.
      10 to 1 you're a women.

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    3. I guess you haven't read the surgeon disclosures in print at the conventions lately. I see the same companies repeatedly; and Lanx isn't one of them. DePuy, Medtronic, Styker, all involved at some level. Just couldn't figure out who leads the pack.

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    4. NuVasive is the new pack leader.

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  37. This individual who supposedly was flipping burgers in Canada is now the head of HR.. As per the Globus website Davidar used to work for Pizza Hut(now that is some qualification)..its like a family owned business ...lot of heads need to roll here if they're really thinking of going public

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    1. And Dave Demski used to work for Dominos. These guys should start their own chain of knock-off pizza joints!!

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  38. 6:53 a.m. & 1:23 p.m. So true. Salute you for selling spine products the minute you were born. You should write a book.

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  39. Have you heard of Budhwar Peth in Pune? Wives? Really? Shame on you David Paul, David Davidar and your so-called wives (Sxxxxi Paul and Sxxxh D). You probably know what your wives are fit for, instead of the (manufacturing) supplier. You appear to be worse than the Pharisees and Saducees in the Book.
    Apparently, another employee or apparent director of Globus Medical in Chennai is, Pastor J.E., David Davidar's wife's brother.
    Now, what is a good Christian minister, Pastor J.E., doing by being associated with a marquee entity like Globus? He bore false witness against A.K.'s, David Paul's sister-in-law's husband. Apparently, S.K., David Paul's brother-in-law could barely clear tenth grade in competitive India and he sent out pleas like a rash via the Internet, supposedly, begging for $2,000.
    So much for David Paul and his wife. Apparently, the Davidar family is losing it's respect, something that was earned by the likes of Wilfred Davidar, IAS, all, allegedly, because of, allegedly, fraudulent activities of David Davidar and David Paul.
    Manna Farms in Padappai? Anyone?

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  40. 9:42 are you sure you're in the right blog? Keep your eyes open while navigating the Internet, one wrong click and you'll end up in a spine blog like this. You should try to get a life. You should try blogging in the spineless blogger.

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    1. Is that all, you Globus lackey, have for a response? Spineless? Talk to David Paul, David Davidar, and other pizza-and-burger-flipping flip flops.

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    2. Uncle Wilfy and Aunty Shanthi will be proud of your activities in the US, huh, David Davidar, aaaaarrrrhhh?

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    3. 41/2012, 11:29 Try refuting the posts instead of resorting to ad hominem attacks.

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    4. 11:44 I'm shaking in my boots, please don't use big words like ad hominem. You, of all people, can't use that word. Let it be know to all humans that the Spineless blogger is banned from using the word ad hominem.

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    5. You're probably shaking in your boots because of some fake/copycat spinal implants. Get some real/genuine spinal implants and the shivers up your spine and the shaking in your boots will stop.
      Breathe slowly.....and meditate......with genuine implants, not demo/custom ones.

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  41. 2.37 will give you an analogy....Imagine Rush Limbaugh or Bill O Reilly becoming the president of United States ... that's what'll happen if guys like Davidar et al continue...

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  42. All of these negatives and still f'n awesome financials......They must be doing something right!

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

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  43. I drank the Globus koolaid as much as anyone out there and i have come to see some very ugly guts of the company of late.
    it is only a matter of time before some very key products of theirs are shown to be infringing on patents and they end up in court a la Nuvasive v Medtronic. Trust me boys and girls, this hit wont be like the last ones Globus has taken.
    It is a shame the industry has come to such a litigious battlefield but such is the world we live in.

    Every sales rep that has ever been burned by some hot Globus product will get their sweet vindication as they turn to their wives (or whoever they vent to) and let out a big fat 'I told you so!'

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  44. Any word if Lanx is going public Q2 2013?

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