Monday, March 4, 2013

Trans 1 Buys Baxano

Today's news flash pertains to the acquisition of Baxano by Trans 1.  As TSB would ask, where's the synergy, or is there any synergy?  You be the judge.  Could this be a strategic move to bolster their product portfolio.  How much has this deal diluted the stock? Is this a deal made in heaven or made out of desperation.  And who wins?  At least on the surface the people that started Baxano, at least on paper.  TSB wants to know what our readers think?

146 comments:

  1. A pureplay MIS spine company was where Kyphon (+ St. Francis) was headed when acquired en route. Like K/SF, both companies claim disruptive MIS technologies. Consolidation makes only more sense in this environment than at the time of the SF acquisition. Could be interesting.

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    1. I remember when St. Francis acquisition went down, seemed like a piggy back play because at the time there was a lot of buzz around them. Was that a play by Kyphon...the straw that broke the camels back and pushed on the acquisition? On a smaller scale is this TSON's play with the Acquisition/Merger with Boxano? I'm very curious of the groups opinion. But at a 2.25 stock price, what's in it for the board and the shareholders? Realize there are some differing opinions of this technology, but if published fusion and complication rates on T1 are accurate and with a myriad of patents preventing reproduction why wouldn't a big player pony up to take them out, stop diving at their knees and start promoting them as "Just another fusion" and enjoy the fact that they could demand a price premium in the sea of commoditized interbodies????

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  2. Two negatives make a bigger negative.

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  3. 3:25PM Factually speaking your statement is completely incorrect

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    1. http://paynile.com/index.php?share=12068http://paynile.com/index.php?share=12068

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  4. Baxano raised $20 million in 2008 through its Series B financing. In 2010, it raised $30 million through its Series C. Not including its Series A, the company raised more than $50 million. Today Trans1 bought the entire company for $500k in cash and $24 million in TSON stock. In addition, TSON raised $17 million in new capital by issuing / selling new shares. Most of these shares were purchased by Baxano's VC investors. In summary, Baxano's investors invested $50+ million and then paid $17 million to have the company taken off their hands. In exchange, they not have $24-41 million in TSON stock. That's not a great outcome, but let's applaud Baxano, its investors, and its people for taking a swing at a novel technology. They can't all be winners and without risk takers willing to take a chance, we would have nothing but commodity products. I'm glad they found a deal and tip my hat to Baxano's leadership for getting something done.

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    1. Great post. I wish there were more like this on this board. That's insane that the VC's put in an additional $17m. I assume since TSON is publicly traded, the VC's don't even get liquidation preferences or any other special terms?

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    2. In order for the TSON stock to be worth something, TSON needs capital on the balance sheet. They were already underfunded for their core business and could not support the growing Baxano business. By putting the $17 million into a pubic company like TSON, the VCs at least have the ability to sell their position if the combined entity doesn't perform. With the new cash, TSON can invest in their whole portfolio and hopefully generate some momentum. Their base of revenue is so small that the addition of Baxano's $3-4 million per quarter could get investors excited and cause a run on the stock. Usually the acquisitions are expensive and are a drag on cash & earnings. Since TSON was basically paid $17 million to take Baxano, the incremental revenue is all upside. The only drag for TSON investors is the resulting dilution from the shared issued to fund the deal. Given their trajectory and prospects, I'd say it was a net win.

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    3. Let's keep it positive. This was an incredible deal that saved the company and brought two innovative companies together.

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  5. This is not a win for the Baxano team. Overall, strong team with solid faculty and sales growth. They lacked marketing presence but the product is solid and sales were growing. If acquired by a larger or more successful organization, it would've made more sense for them but they will now have to settle for much less with a company like T1. Perhaps in the end, there will be a silver lining for the the Baxano team as there should be but for now it sounds like they will walk with zero as in this deal, zero from zero is still zero.

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    1. This comment has been removed by the author.

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    2. I disagree with your assessment that they have no marketing presence. I have found their marketing to be very good and effective. Their training of reps and surgeons is VERY good.

      Reimbursement is an issue for many patients and payers, and not as much of an issue with other patients and payers, depending on the situation and the type of surgery. I can tell you first hand, the technology is solid and the patient results have been very good so far (anecdotal, but that is most important to the docs using it) but the cost is a challenge. I would want it if my problems were primarily stenosis. No kerrison can do the job as effectively without taking down the facet. I think thats important, but I'm sure there are doubters. It is a beautiful tool for MIS decompressions. This is my opinion, and since I sell this product, I feel my opinion has some basis to it. They are a code away from being disruptive. Until then, this product attracts surgeons with pure motivation to help patients, not the guys looking to bill a fusion for doing a laminectomy.

      I'm proud to represent them, but this Trans1 deal worries me, I have to be honest. In the end, they are 2 companies, each with a unique offering and maybe together their bargaining power will be increased when one of the elephants come calling.

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    3. if Trans 1 is smart they will get rid of the Baxano executive team _ Recupero, Terefenko, (his sidekick) Emily Stegner and all of Prof ed .....they are the reason Baxano imploded.
      Recupero was desperate to sell.

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    4. Seriously, did Recupero have something on someone at Trans 1? How in the hell did he get them to buy his stinking cesspool that is Baxano? Trans 1 was starting to turn it around. Now I fear Baxano is going to pull them down to a place they can never return from. Poor Trans 1.

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    5. The Baxano executive team is nothing short of amazing!. They have accomplished the impossible in dire economic times. Their products are the most innovative in the world of spinal decompression tools. Recupero and his team are the future leaders of the Medtech industry! My hats off to the awesome Baxano execs for making miracles happen!

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    6. I just had a giant glass of Baxano Kool Aid and you've completely won me over to your way of thinking. I see it now. Trans 1 is known for their butt screw and Baxano is known for their executive team who are a bunch of assholes.
      Butt Screws + A Bunch of Assholes = Big Profits for Everyone!!

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    7. Baxano's marketing presence is world class. It doesn't get better than this...with strategy and leadership that is 2nd to none! The funds were well spent on an impressive marketing team and campaign.

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    8. Absolutely. When I think of Pepsi, Nike, Coca-Cola, the very next thing I think of is "Baxano". Okay, Okay, that's not fair. But seriously. Zimmer, Medtronic, DePuy, etc. You don't even rate. No one knows who you are. You're "that expensive flossing thingy". Great Job. Money Well Spent.

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    9. Yes, that "expensive flossing thingy" who's business grew to $9.4M in sales in just under 3 years. How'd Charite fair with all the BIG corporate resources behind it? How about Dynesis? OP-1? Yes, these products worked out GREAT for J&J, Zimmer, & Stryker. Oh wait, don't they all have "limitless resources" and top notch marketing teams? These (3) products are at the top of the list as far as being all-time colossal turds in the spine industry. 5:18, take some time to learn the industy instead of spending your time running trays & zip tying totes all day.

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    10. 3:58 - Nice Tony

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  6. This is a brilliant plan. It's as if the Titanic is heading for the Bermuda triangle and all passenger's aboard have the black plague. Personally, I love everything about it. May the odds be ever in their favor.

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    1. Agreed!! As if a merger will change anything.

      The deal was all in stock at least so no more cash was dumped into worthless Baxano!

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    2. No amount of money could save that piece of crap!

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    3. You are wrong! This was a well crafted strategic move played out by top leaders in the industry. Sure, talk now, but the future will be bright for the new Trans1/Baxano "Dynamic Duo"!

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    4. I believe the future can be very bright for Trans 1, as long as they cut the Baxano fat. Trans 1 has exceptional people and is quite capable of absorbing Baxano's technology without their padded executive,marketing and training staff as well as their regional "managers" who are just territory managers with exorbitant pay and trumped up titles.

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    5. Baxano has always been a lean startup machine. Eliminating Baxano's executive and marketing talent could be a mistake. This is the team that made it all happen and will continue to deliver on their goals. Wishing the best for both executive teams!

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    6. I believe their initial burn rate was in the neighborhood of $6M a quarter. I hear it is still over $4M a quarter, and that's after a round of lay-offs and tightening their belt. That hardly qualifies them as a "lean start-up machine".

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    7. Yes, that is a high burn rate. When you hire the best in the business, you have to be commensurate with compensation.

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    8. Then Baxano should hire the best in the business and get rid of Tony's 3rd rate cronies. If they truly had the best in the business, their revenue would exceed their burn rate by now and they wouldn't have been so desperate to sell to save the company.

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  7. "3/4/2013 7:26 AM ET TranS1, Inc. (TSON: Quote) Monday reported a wider loss for the fourth quarter, hurt mainly by higher costs and operating expenses. The company has also issued an outlook for its first quarter, which is currently below analysts' expectations. Net loss for the quarter widened to $12.0 million or $0.44 per share from $4.9 million or $0.18 per share in the same period last year."

    I guess Trans1 is hoping the Baxano sales team will continue to drive hard, keep posting growth and act as Trans1's life raft!

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    1. TSB called it first:

      Monday, February 8, 2010
      Who Is Baxano?
      So, TSB must ask our readers, Who is Baxano? As per their website, they are a company whose mission statement is to develop "innovative tools" that restore spine function, preserve healthy tissue, and enable a better quality of life for the patients they serve. The only question that TSB must ask how many patients are they serving, and is there a reimbursement issue for this product?

      Could the investors Prospect Venture Partners, Three Arch Partners, and Kearney Venture Partners have rolled the dice on this technology? They call this technique "Precision Lumbar Decompression from the inside out." How precise does the surgeon have to be? What happens if the surgeon doesn't have excellent three dimensional capabilities? I would guess that hand-eye coordination plays an important role in utilizing this system. The question to our readers is, is the IO-Flex System as easy as Baxano claims?

      Remember a company by the name of Hydrocision? They were going to change the way things were done with a product called the Spine Jet. Much to everyone's chagrin, they put the cart before they had the horses. No reimbursement code led to resistance by the hospitals, forget about the surgeons that have advocated this technology or are on their payroll. How much could this technology be priced at? $2,500 - $3,500 per procedure. You know what they say in the world of healthcare, "no reimbursement, no interested in using product." TSB wants to know what our readers know?
      Posted by Musculoskeletal Man at 1:24 PM

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    2. Unfortunately, there are no life rafts. Baxano sold them all to pay for Bottle Service and Strippers over the past two years.

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    3. Don't worry everyone can just jump on board Chad Terefenko's over-inflated ego. There's enough room for every employee at both T1 and Baxano.

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    4. Chad Terefenko is one of the powerhouses in medical sales! The best in the business.

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    5. If by best in the business you mean "didn't accomplish anything at his last company, so he got hired by his crony/friend Tony Recupero so he'd have a job, then you are correct. And if you define power house as a "washed-up has been/never was," then yes, I agree with you. Check with the rest of the industry and his last company. I assure you, they'll agree as well, Dan. Or check the awards from this year's National Sales Meeting.

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    6. Chad Terefenko is NOWHERE near a powerhouse in the industry. FIRED from Kyphon for lack of performance and work ethic, FIRED from NuVasive for same reasons...and let's not get into people development...NONE of those who worked with him liked or respected him...GET REAL....can only be a has been when you were a once was...

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    7. None of the above is relevant. He worked for Kyphon and that is the only requisite.

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    8. Thank you for proving a very good point. They ALL worked for Kyphon (well at least 90%) = CRONIES. The issue is that Baxano is NOT Kyphon. It was swirling the bowl before Trans1 threw them a life line. And if you'd read the post above, you'd know, Terrorfenko was FIRED from Kyphon.

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  8. This move by Trans1 is logical depending on the point of view. Baxano offers Trans1 the opportunity to expand their distribution resources. It offers them an opportunity to work with surgeons who tend to be more interested in and believe in minimalist technologies. And, considering payers are refusing lumbar fusion with startling frequency but do allow just about any decompressive procedure, it keeps Trans1 in the game and deeper in their target market. Yes, Baxano is expensive compared to a Kerrison. But, if the new company can prove a better outcome, third party payers, and particularly ACOs should pay for the surgery. It's a risky strategy, but one worth taking.

    MIS decompression is relatively new in the grand scheme of things, and has not received much attention since fusion pays better. But with payers not allowing fusion, surgeons are being forced to consider decompressive procedures, particularly those who have the heal with steal mentality.

    And B, your negativity is boring. Yes, there is going to be a certain amount of corruption in any business or system with lots of competition and lots of money. But your rants do nothing to help. Quit wasting your energy and our time. Instead of bitching about everything, join the majority of us, and yes it is the majority, who are interested in spine science, technology and positive patient outcomes, and advocate something positive. And yes, make a living along the way.

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    1. Laughing,,, I hardly think I'm ranting, and no one said I don't care about spine science, technology or patient outcomes - quite the contrary. There are plenty of negative remarks on this website, most far worse than mine,(the three below are great examples). But please feel free to use me as your scapegoat if it makes you feel better and helps you sleep at night.

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    2. You just don't know what you're talking about. You don't have an eye for innovation! Trans1 and Baxano will make it work. I'm sure their synergies will impress the doubters! These are two great companies with seasoned executives who know how to develop and bring innovative technologies to the spine market!

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    3. Did someone drop you on your head when you were a child? Wake up Dorothy, you're not in Kansas anymore - or maybe you are. Please, post this again in 12 months when you are out of a job.

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    4. Trans 0.5 is has also teamed up with Lifespine they can't fail....

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  9. They paid off everyone who was a big customer!

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    1. They paid off everyone who wasn't a big customer. They paid off everyone. Period.

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    2. Baxano was found on ethical principles instilled in the company by its two founders. These ethical principles are core to Baxano's executives and their staff!

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    3. It's the spine industry 3:20 LOL , ethics? Now that's pretty funny, you must be watching too much of Trump, don;t be selling us your bs.

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    4. You pegged it 3:16. Distributor here. I've seen these guys (most of them married) at strip clubs, night clubs and even seen one of their holier than thou executives fondle a hooker's ass. I think their moral standing is lying face down in a ditch somewhere right now.

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    5. Its all heresay unless you have pictures! Now if you have pictures, than you got a story! You may make more money with those pictures than the product. On a side note, tread carefully as you were in those places too and they may have pictures!

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  10. Both products are unproven long term. Does an MIS decompression NEED long term data? Probably not. But AGAIN - selling disposables against a Kerrison is not going to work in MOST hospitals. Sure there will be some hospitals that bend over and take it up the butt screw because they are the surgeons' bitch, but that's far and few between. Kerrison wins over expensive floss.

    I've seen the spine floss in action. It's embarrassing. The look on the surgeon's face while pulling the floss is of pure embarrassment. Can it work? Yes. But lots of things work, like kerrisons.

    5:04 - "MIS decompression is relatively new." I guess your use of the word "relatively" prohibits me from telling you that you're wrong, but MIS decompression has been around for a long time. "Received much attention" is also a inaccurate statement. It gets lots of attention.

    You can still do an MIS decompression and heal with steal at the same time.

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  11. Who killed Baxano?

    Was the company facet-sparing or facet-taking? Seems like it was both. I don't think they know themselves.

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    1. Are you kidding? Baxano is now twice as Grrrrreat!

      It took true world class R&D leadership to navigate through the technical challenges and deliver an incredible suite of tools and an access platform.

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    2. Why don't you drink another bottle of wine and pop another vial of Valium Cindy?

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    3. Baxano is just another joke in our scandalous industry. I sent my resume to Kimberly Clarke. 10 years in this industry is too much.

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    4. You too?? I just can't take this disgusting sleazy industry anymore. Baxano broke me. They've done things that can't be undone, and I've seen things I can't forget. I'm getting out too.

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    5. Just in case you two, or anyone else, needs some help, here is a list of medical recruiters and their phone #s:

      Pete Tumminelli 916.353.1548
      Ted Hill 858.875.1050
      Maureen Meier 412.343.5550
      Kevin Fagan 916.635.4800
      David Gretz 800.536.1512
      John Selsor 817.424.3179
      Kay Hall 972.985.1291
      Kylene Swonger 614.825.6215 x 103
      Nick Beaver 716.406.2049 x 10
      Dan Kerr 480.538.7026
      Steve Paster 310.234.9657
      Elysa Pina 425.454.9313
      Bob Moore 214.212.9007
      Brad Bernemann 952.472.2782
      Megan Manzano 805.232.0139
      Andrea Forray 214.995.4848
      Jim Bishop 904.372.4627
      Lisa Burke 619.829.8209
      Jennifer Hoffman 310.869.3869

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    6. Thank you to 10:08am listing recruiters!

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  12. Congratulations dynamic duo! What's your strategy, floss & curette the butt before the screw?

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  13. What do folks know about Trans1 leadership. Can they integrate Baxano and make this all work ?

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    1. Unlike Baxano, Trans1 has great leadership. If you are fortunate enough to be in the West, hopefully you will be working for/with Greg Pellat who is truly one of the finest in the industry, and he has the portfolio, credentials, and the goods to back it up. He worked his way up and into his director level position. It wasn't handed to him like CT or Joe Bo. No Good Ol' Boys Club at Trans 1. You may even have an opportunity for promotion there.

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    2. Really...how do you come to that conclusion. Pellat's ego is over the top...the finest in his and his cronies minds. It'll be interesting to see how this plays out. I have a feeling the Baxano team negotiated their job security for the next year.

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    3. I came to that conclusion from facts. Pellat grew the LA territory into one of the top producing territories in the nation before becoming the Southwest Regional Manager. The rep who took over his territory made $350K+ per year every year and needed 2 support people to manage it until it grew so large they had to split the territory. He then mentored a rookie of the year his first year as Regional Manager. Then when the No. Cal RM was let go he managed both his own region plus No. Cal. And was eventually promoted to a director level position. He is positive, driven, has no ego, and no cronies. I've known he and his wife on a personal level and I've know him on a professional level for years. Evidently I have the facts, and you have the ego/issues.

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    4. Are you his publicist? If so, you're not doing Pellat any favors. I've worked with he and the Baxano team in this region for years and both camps are top notch folks. Pellat doesn't need you or anyone else dragging him into this mess. Further, he knows some of the Baxano guys and as such wouldn't be making these comments. If T1 plays it right, they could build a good team with a mix of talent from both camps.

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    5. I couldn't have said it better! This is a small industry for the most part and at one point of another, we've all worked together or in the least interviewed with each other so T1 needs to concentrate on building a great team from both camps, coast to coast.

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    6. I believe Shakespeare said it best; "There's small choice in rotten apples."

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    7. 6:40 and 6:43, I've withdrawn my positive and factual statements about Pellat. We shouldn't have positive statements in this blog about individuals or factual statements to counteract negative statements made by disgruntled posers who base their posts on grudges. Please sing a verse or two of Kumbaya in smug celebration and enjoy your bromance.

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    8. Oh No! Site won't delete them. Guess they're staying.

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  14. Since Trans1 recently got a new category 1 code for axial lft , why are they not selling more units ? Isn't there enough medicare patients out there to drive a lot of sales independent of private payer coverage, which I know there are working on...?

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  15. Trans1 rode that garbage pony of a sham procedure for too long and now makes a last ditch effort to buy a technology on the uptick. Unfortunate for them, and their investors, that the Baxano's cost as a disposable instrument is completely unsustainable in this healthcare economy. What hospital can swallow a 3k blow to one of their core, and traditionally most profitable, spinal procedures?

    And please spare me the defense of AxiaLIF. I watched surgeons come full circle; a spree of implantations followed by a spree of revisions. Then it was 2L, same song different station.

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  16. I think that TransOne /Baxano should hire Bally.

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  17. I think Trans1 should hire monkeys with whips who are trained to hurl their feces at their underlings to replace the Baxano Management Team. It would be just as toxic and offer exactly the same feel as the current Baxano environment, only far less expensive.

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  18. This is mostly about stock price manipulation that commonly happens in mergers/takeovers and thinning the herd before the hammer falls after the FDA clean out.

    Word has come down from some very high places. 2013 will be bumpy to say the least. Obama, Simpson and Bowels are on a tear.

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    1. Fabulous post 9:21. Informative, well written, and witty all at the same time. Much appreciated - Thank you!

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    2. They got sick of the price gouging. B&T are gonna feast on the carcass. My guess is that the DOJ has some major dirt on one or more of the big guys.

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  19. Funny to see so many people pissed off. It is obvious the posts are coming from those who couldn’t handle working with Baxano’s powerful executive team. The weak were weeded out. That’s just how it is in the animal kingdom! Now grow up and get a life!

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    1. BINGO!

      I love it when monoliths fall and everyone starts freaking out and going into denial.

      Get used to it guys, this is going to be bigger than you can imagine.

      Keep your eyes on foreign sales and then do the math,

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  20. The Baxano Management Team did what it was brought in to do: execute on the technical challenge, refine the platform, launch and sell product. They were successful at every point. No other team could have done such a masterful job. This phenomenal work led to an excellent product that benefits the patient. In the end that is all that matters!

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    1. "Successful at every point" and "masterful job" are not defined as "Desperately needing to sell your company before it goes bankrupt". Try again.

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    2. I got a secret. Baxano is not in trouble and this move is just the first part of it. There is going to be an end to the current status quo so I would suggest that you keep your ears open and your mouths shut.

      Baxano's mission is not just blowing smoke. Connect the dots and punch up your resume.

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    3. Sure it’s possible…one of the big players might buy the double-turd deal. The part that really rips is how the “world class” management team padded themselves with shares on the round C financing, giving little or nothing to the real contributors that had years in the company as opposed to months. Nice work azzholes!

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  21. Baxano is a failure of incredible proportion and everyone involved lost.

    Patients lost because the founders failed to deliver on the promise of a minimally invasive alternative to laminectomy and fusion. Limited Partners lost because the VCs failed to deliver a return on investment. The Board failed to manage the executive team and now the rank and file will lose their jobs. Trans1 failed to adequately diligence the deal and will lose their NASDAQ listing once they realize the pipelines were stuffed, utilization is nil and revenues drop.

    No gentlemen…simply saying you have ethics, world-class engineering talent and sales & marketing muscle…just don’t make it so. Arrogance killed Baxano and to suggest otherwise is futile.

    Shame on all of you.

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  22. Nice to see so many happy & satisfied people in spine these days who have nothing better to do then be filled with envy towards those who have tried to make a mark in an industry that has become incredibly stale & stagnant. What's apparent here is that everyone wants to pile on, but those doing so on this blog are mostly the lazy, incompetent people in this industry who have never taken a risk or taken on the challenge of building something from nothing simply because they are too risk averse to do so. Every day I run into people in the O.R. who have a sense of entitlement, but have done little to nothing in their careers to earn that other than cover cases and manage the business that they were handed. Many have found their way into this industry because typically a very talented person before them built the business and was promoted or has moved into another role in another organization. What's truly pathetic is how once they inherit their business and new role, they often quickly think or feel in their own mind that they are "the best" and "better than everyone else", yet they'll never advance professionally and will be nothing more than a footnote in the spine industry becasue they will NEVER be anything more then the common sales rep. Someone once said that the truest definition of a "pioneer" is "the person with most arrows in their back lying face down in the dirt". Kudos to Tony & his team at Baxano in their efforts to take on the challenge of trying to bring a very solid and clinically relevant product to market in a very, very difficult and unforgiving time in the device industry, the economy & VC community. We should all be so fortunate at some point in our careers to have & truly appreciate the challenge of trying to bring a novel technology to market, as we will struggle to see it happen for the foreseeable future in this industry.

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    1. Actually there are happy people in spine, and pleeeaaazze spare us the entitlement crap. Making a mark with a product that takes the place of a kerrison for $3,000 is definite innovation, isn't it? Everyone cannot be a rain or market maker, then there would be no worker bees, someone needs to get the donuts made. Life is cyclical, nothing lasts forever, eventually you get replaced on someone comes and takes your place. Sadly money only makes you feel that you are better than other people, but at the end of the day, the same destiny awaits us all. Clinically relevant? Is it changing the outcomes? Is it making the patient's quality of life better? Maybe that's the problem with spine, another widget to take the place of something that already works at a cost that only increases the cost of delivering healthcare in America. You actually have it all wrong, the people that hump it everyday, they are the pioneers fighting a system that looks to make it ever more difficult to sell a product while management keeps promising the Street that it will be the next billion dollar baby. Novel? You're shittin' me aren't you. Let me give you some advice, try not pissing on my shoes and tell me its raisin, wadda think we were born yesterday.

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    2. MM, you fit right in with your army of followers. Negative tone posts with a touch of bitterness. And people don't understand why you don't police this blog more? Because you fit right in with your cynical attitude.

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    3. @ AnonymousMarch 6, 2013 at 3:49 PM

      You nailed it! The good news is there are massive reforms coming. The herd will be thinned and spine will be on its way to becoming a respectable industry but thing may get worse before that get better as the jackyls fight over the scraps.

      A lot of the current stuff is about to become obsolete. That's how free enterprise works. Taft and Teddy Roosevelt knew that and finally it seems to be dawning on Obama. Maybe he has a close friend who got one of our products.

      MSM is doing what he does best, throwing stones. He's typical of others this industry in that he has the the answers but none of the solutions. The upside is that he is outing the worst of the worst.



      I get MSM's cynicism because in all honesty there are few segments of this industry of we can be proud. We're dirtier than boxing and Don King so let's stop denying it and work to bring some higher ethical standards before the government does. This industry brought the device tax on itself so let's admit it.

      Our business model is wrong but that will not change until we get rid of the crooks. Maybe we should be screaming for regulation if it will bring some stability for the people who are actually doing the heavy lifting.

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  23. Hey…any truth to the rumor that Mr. T has been driving his Mini Coopero into the marketing department? That sure was one hell of a Christmas party!

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    1. yes the mini coopero fit snugly into the marketing department garage.

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  24. seems like Trans1 got great deal. $26mm with a $13mm run rate at baxano. Thats only 2x multiple on revenue. Hope the Trans1 take advantage of this "steal" of a deal !

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    1. The Dodd-Frank Act was the impetus for the SEC’s whistleblower program for questionable deals such as T1 and Baxano "merger" that only pollute our industry and as such I encourage those of you who question this deal to report it to the SEC. Go to this site for more info, http://www.sec.gov/complaint/tipscomplaint.shtml#

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    2. I love how the deal wiped out round A and B shares, leaving only C shares that were carved out for the executive team. Very slick work. Let's see if anyone competent works with this team again. Shady.

      Delete
    3. All these deals are shady. Somebody in the SEC gave them the green light and sure the usual money got spread around and the usual palms got greased.

      If you want to stir things up go to the press and every member of the congressional oversight committee but then about all will happen is there will be a few more hands in the pie. http://www.contactingthecongress.org/cgi-bin/committee_list.cgi?site=ctc2011

      As to polluting our industry, how much more polluted can it get? It's already a cesspool. It can't be cleaned up. Put a clothes pin on your nose or get used to the stench.

      Seriously, from our industry would you expect anything else?

      Delete
  25. b.s 7:50 ! Unfortunately, no common share holders, including; executive staff, founders, consulting physicians and all reg. employees got a dime on this deal. No carve out for executive team either. Nothing shady except it was too early to exit/sell the company. Sales run rate needed to ramp higher for a larger exit price and common share holders to get converted. The VC syndicate supporting Baxano just ran out of reserved funds. This board is full of paranoid and overpaid sale folks who thinks everyone is conspiring against them.... give me a break. You must have been beaten up a lot in grade school to be so insecure. lame.

    ReplyDelete
    Replies
    1. Wait a minute, according to 3:35 "I got a secret" guy (deplorable grammar by the way), Baxano is FLUSH with cash and is in no way in financial trouble. So did they run out of reserve funds or are they overflowing with a surplus of money? Which is it? It can't be both.

      Delete
    2. I can't believe how naive some people are. Do you guys know how a bookie works?



      Delete
  26. @ 8:45 PM

    First off, you do not know the actually financial status of Baxano.

    Secondly if the board sees a way to make a quick pop with some of the usual insider trading they'll do it.

    Thirdly you have demonstrated a complete lack of understanding of how these deals work, how they are done and who they benefit.

    You don't risk your own capital in these private equity deals. It's rarely about the company and it's always about the deal. That's where the serious money is.

    With some of the shake ups in the top tier (publicly and privately) it's a safe bet that some young lions are positioning themselves to make some big moves. It's the law of the jungle. The smart scavengers are watching and the dumb ones are fighting among themselves.



    ReplyDelete
    Replies
    1. Right... this is just business as usual but it may not be as sinister as you think but with that said it would not hurt to contact these folks. http://www.contactingthecongress.org/cgi-bin/newcommittee.cgi?site=ctc2011&lang=&commcode=hcommerce_oni

      Delete
    2. @ 4:18...you are an idiot. "It's rarely about the company and it's always about the deal". If you focused on building the company and technology and not a facade, then you'd have the real deal. If you are all about the deal, then you end up with what you have here...a piece of shit!

      Delete
    3. In spine it's never about the product it's about the deal. Patients be damned!

      Delete
  27. Didn't TranS1 post a net loss of $12 million for the fourth quarter of 2012?

    ReplyDelete
  28. It's like instaed of two crappy companies..now it's one!!!

    ReplyDelete
  29. Speaking of two crappy companies that are now one, how are things going with the DePuy Synthes team? I've talked to so many Synthes spine reps who are in total denial over the future of their final integration within the JnJ family. You can take this to the bank: your comp plan will change to be reflective of the DePuy spine reps plan, you won't be given credit for your Synthes years to be vested into the JnJ pension plan and you will sign (or leave - your choice) a new 18 month non-compete just like your DePuy spine compatriots.

    ReplyDelete
    Replies
    1. Dude, welcome to last year. Everyone is onboard with those changes and has accepted it, so move on. Were you one of the ones let go?

      And two crappy companies? I guess thats why they are number #1...hmm....

      Delete
    2. #1 in your own mind you pig headed moron. The combined market share of both Synthes spine and DePuy spine is still 5 or 6% behind Medtronic spine. Know what you're talking about before opening your rear end.
      Hee Haw! Hee Haw!

      Delete
    3. Not if you remove BMP, Dummy.

      Delete
    4. "If". The infamous two letter condition that loosers use to try and explain why they lost, came in second or well, just suck.
      Let's see, if you remove the sales of Pedicle screws and IBFD's from DePuy Synthes, then Nuva is bigger. See the idiocy in that conditional statement Buck Owens?

      Delete
    5. Well, if you want to play that game, technically DePuy Synthes is Johnson and Johnson and NuVasive is f'n nothing in comparison to JNJ. Just an amateur, small, struggling company. Suck it, Gill.

      Delete
    6. Seriously broken logic.

      Delete
    7. You must be stupidly arrogant to make the comment of "small, struggling company" as though DePuy, Synthes and other legacy companies are superior. The facts are plainly exhibited in the stagnant And declining market shares of the legacy companies. It doesn't take a genius to figure out that Globus, NUVA, K2M ad Lanx have taken serious market share from the big boys. Add up those 4 smaller companies you look at down your nose and they handily exceed the sales of a Synthes or DePuy before their merger.
      Do you really want to throw out the JnJ card as though it is some gleaming shield to brandish and hoping it scares away your competitors? JnJ is flush with dozens of product recalls and a couple of banks full of money (billions) they will be paying out over the next few years. These legal headaches are only getting worse for the JnJ giant. Which means - FEWER RESOURCES FOR NEW PRODUCTS AND SALES SUPPORT. So yeah, feel smug as you pat yourself on the back and give blind allegiance to JnJ. In the end, you are nothing but a pawn to the JnJ machine that will use you and spit you out like yesterday's garbage. Just ask all the reps that were told they would have a job within the JnJ family after the merger.

      Delete
    8. http://seekingalpha.com/instablog/7908041-prostockresearch/1523671-a-company-in-short-supply-of-leadership-nuvasive

      Although it is just one article with one perspective, it is an interesting thought.

      Sure seems a lot of NUVA's finest have made their way to work at DePuy as specialists and have said that NUVA doesn't care about the reps. Burn and turn.

      Delete
  30. Spine Blogger…

    Well boys and girls, it appears that this blog may be running out of steam…just like our friends at Baxano. While reading your commentary has been amusing (Mini Coopero…what the hell does that even mean?), the sad fact is that 3/6/13 @ 3:46pm hit the nail on the head; this is all about failure and loss. And while we can all throw stones at sales, it’s important to understand that we are mere puppets in this play; albeit coin-operated puppets. And despite the vitriol being slung at random throughout this blog, we all manage to co-exist and even bond over the battles won and wars fought. All it takes is NASS, some great customers, an expense account and vats full of Grey Goose…and yeah, ok, maybe a stripper or two…but only really classy ones.

    So who is to blame for Baxano? The VCs of course. And Baxano’s VCs haven’t delivered a return in f’n ages! Perhaps this is why their LP’s have said ENOUGH. Perhaps this is why Prospect Ventures and others are folding up tent. They are nothing more than slick sales guys who managed to game the company’s comp program. Unfortunately that’s not what they were chartered to do. They were supposed to be savvy investors capable of delivering returns well above the S&P 500. What a f’n joke. Just look at Baxano. They had to pay Trans1 $17M to take the Bax Street Boys off their hands. REALLY?! If the investors believed in Baxano’s technology and management team, why not invest in them? Perhaps they believed in Trans1 more…NFW…Trans1 is a public company and the ONLY way for the VCs to get liquid and have a prayer of some upside. Recup didn’t negotiate this deal. He’s one of us…only a really good looking puppet. This was the VCs deal…and a catastrophically shitty one. Why not just invest their LPs $17M in J&J or SYK…the returns are sure to be better. No, the VCs are the biggest punk-ass bitches of the community…and solely responsible for the demise of Baxano and others…wait and see… CODE RED.

    ReplyDelete
  31. there was nothing in this deal for employees or executives..zero. those who state other wise dont understand that series A, B, and C were preferred rounds. people say a lot of really uninformed slanderous things on this blog

    ReplyDelete
    Replies
    1. a lot of bridges have been burned...that's for sure.

      Delete
  32. 4:39 it's a blog no one is providing specifics, like naming names, chill out for an industry that has so much testosterone don't be so thin skinned, you can get tougher by going to a compounding pharmacy and getting injected with some fungus all for the love of the almighty dollar

    ReplyDelete
  33. Wow, this is all very disturbing to me. Is there someone that can get some information to me on the issues most commonly reported (in the OR, not the bullshit spewed to the pt post-op)? I happen to have had both "bread and butter" surgeries performed on me(2L & IO-Flex), with Baxano being the most recent. Patient info is certainly not abundant, but what is out there is pretty consistant.

    Both have been nothing but problems for me, and am still dealing with the IO-Flex "foraminotomy" - I use this term VERY loosely. I only got a pass with the 5.5mm blade before the guide wire broke, which I just happened to discover by reading the Neuro's notes during surgery. A new one was used again with the 5.5 with great difficulty, then they said screw the 7.5, and stapled me up. Of course the op-report states the constant back and forth movement caused the guide wire to "detach" itself from the handle. Incidentally, the foramen was said to still be "impinged" before closing.

    I have some interesting knowledge on this subject, and honestly I had a pit in my stomach when I came across this news. I have permanent nerve damage from both, and I see by the FDA incident reports that I am not alone.

    ReplyDelete
    Replies
    1. Please specify the part I lied about please.

      Delete
    2. There's no record of this happening. Please provide web link to FDA records showing this specific incident happened.

      Delete
    3. An incident hasn't been filed on this particular instance, as the wording of the surgeon was that the wire "disengaged", not the keyword "broke". I would be happy to show you both the op-report and neuro report stating this. I have no reason whatsoever to lie about it. I don't control what they send into the FDA, but I will be adding it myself as soon as things get settled down.

      I can google as well as you the IRs pertaining to wire breakage. Take a second and look at them, and I will scan the pertinent record info.

      Delete
    4. Provide a link to your patient record.

      Delete
    5. Working on it as we speak. Give me about 15 or so minutes to get it scanned/uploaded. All this even though you are acting like an asshole towards me.

      Delete
    6. http://i661.photobucket.com/albums/uu340/4_DZ_NTZ/med%20report/IMAG0110-1_zps8dbfb654.jpg


      http://i661.photobucket.com/albums/uu340/4_DZ_NTZ/med%20report/IMAG0111-1_zpsa70791b2.jpg

      Delete
    7. Cat got your tongue? I know I'm just another anonymous nobody, but I wouldn't be able to lie about my life sucking beyond words EVERY DAY.

      Sad but true.

      Delete
    8. Where you at Baxano “World-Class” Marketing and R&D teams? Dead silence… Must be busy updating resumes and LinkedIn profiles...

      Delete
  34. Baxano Surgical, to the rescue! Good bye TranS1 name.

    ReplyDelete
  35. I'm assuming that since no incident report was filed, they probably threw the broken/dislodged guidewire out in the medical waste. This probably happened in front of a good amount of people.

    ReplyDelete
  36. If this is a real incident, please send any information regarding this incident to the Baxano complaints department(jballard@baxano.com) with specifics regarding the surgeon and date of surgery and your contact information. You will then be contacted so we can gain additional details regarding the incident. Baxano will thoroughly investigate the complaint and file a MDR to the FDA per their guidelines if appropriate. We take all complaints very seriously and have strong safety record. Thank you.

    ReplyDelete
    Replies
    1. If this is someone from Baxano, Jballard has mail.

      Delete
    2. And please, please quit implying that this isn't a real incident. My life is completely screwed, and nobody seems to give 1/2 of a fu@#

      It is really insulting, even more so that a rep was most likely in the OR as I was having this done. I can't tell you that for sure, I was asleep.

      Delete
  37. Well folks, so far it doesn't seem as if a lot of these opinions on the brass of Baxano are quite accurate. As a result of some of the posts on this article, I had a productive conversation with them today. They addressed every concern and question that I had, and my BS meter wasn't pinging.

    Hopefully if I get my current issues fixed, I can be a great spokesman for the Trans1/Baxano company. I am a young, used to be active, compliant man wanting to get healthy again. Having had appliances used from both companies puts me in a unique position.

    In closing, you certainly cannot say they aren't responsive.

    ReplyDelete
    Replies
    1. That's good news. I hope everything works out for you.

      Delete
    2. Thank you. It's good news for the appliance itself, but unfortunately my situation isn't getting any better.

      Delete
  38. We came, we saw, going to T1 like being told you're going to the minor league farm team and it isn't a good one. If someone isn't investigating this "merger/acquisition" they should be! Yes, there is some talent from both sides but the more I hear from both sides, the more I just don't get it. The upswing, there will be some (not all) excellent talent available.

    ReplyDelete
    Replies
    1. you're a sore loser. what talent???

      Delete
  39. Adrian G. will be next CEO of Trans1/Baxano.

    ReplyDelete
  40. Foraminotomy Spine Surgery in India info on cost Foraminotomy Surgery India, Foraminotomy surgery hospitals India, Foraminotomy surgeons India. If you are thinking to go INDIA for surgery, then you must search for Spine surgery India, Laser spine surgery India, Best spine surgeon India, Spine surgery best hospital India & spine surgery cost india

    ReplyDelete
  41. Deal isn't closed and the ax has started to fall. Heard the new sheriffs from Raleigh left town last Thursday so they could get to their vacation homes for Spring Break and left Recupero the fun job nailing 7 redundant Baxano folks to the cross on Good Friday. Wonder if TranS1 executives Reali (Judas) and Slattery (Pontius Pilate) see the symbolism in their decision in cutting these positions.

    But the biggest surprise I heard was the Baxano Exec VP of Operations also terminated on Good Friday. That is a curious one since he was on the Executive Integration Leadership Team and a key person from what I understand to a smooth integration. Probably has a better opportunity somewhere else lined up. Or did he just get tired of all the fake TranS1 promises and didn't want his legacy to be tainted when the self professed smartest guy in the room TranS1 CFO tells him he needs to move manufacturing to Costa Rica.

    ReplyDelete
    Replies
    1. another sore loser. only seven people were cut??? should be more like 30. baxano failed and they got eaten...get over it.

      i’m sure the vp of ops could care less...he just wanted one thing...to get rich. since it was a dud, there is no legacy...just sore nerve roots (run and hide). WTF…uck were they thinking????

      why they thought they could cost effectively manufacture a device like a giggly saw in silicon valley is beyond reason. they should have moved the manufacturing to costa rica years ago. build out a big org and make yourself look important…nice work!

      Delete
    2. All these entries are hilarious but also quite sad when added together. One complete failure of a company buys another complete failure for a loss, no Baxano common shareholders make a dime from their stock, and very little if anything is added to overall patient welfare. A pitiful example of the general state of the medical device industry. And then people take the time to blog about it.

      Delete
    3. and read it....

      Delete
  42. dont worry Mike your "legacy" is intact

    ReplyDelete
  43. Mike who and what legacy?

    ReplyDelete
  44. well some at TranS1 are taking the money and running....

    http://biz.yahoo.com/e/130405/tson8-k.html

    Form 8-K for TRANS1 INC

    5-Apr-2013

    Change in Directors or Principal Officers


    Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
    Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
    On April 2, 2013, Dwayne Montgomery, Vice President of Commercial Operations of TranS1 Inc. (the "Company"), resigned from his position with the Company, effective as of May 1, 2013, in order to pursue other business opportunities.

    In connection with his resignation, the Company proposed a General Release and Severance Agreement (the "Agreement"), which was approved by the Compensation Committee of the Company's Board of Directors and delivered to Mr. Montgomery on April 2, 2013. The terms of the proposed Agreement provide that Mr. Montgomery may not execute and deliver the Agreement until May 1, 2013.

    Under the proposed Agreement, Mr. Montgomery is entitled to receive severance in the aggregate amount of $170,186, payable in equal installment payments in accordance with the Company's payroll schedule in exchange for a standard release of claims. The compensatory arrangements afforded under the proposed Agreement are in lieu of any other compensation or benefits to which Mr. Montgomery otherwise might be entitled, including without limitation under his Employment Severance Agreement. The proposed Agreement also contains such confidentiality and non-disparagement provisions and other terms and conditions as are usual and customary for agreements of this type. All of Mr. Montgomery's obligations under previously executed agreements and Company policies regarding confidentiality, nondisclosure, non-competition, non-solicitation, intellectual property, and related matters will continue.

    ReplyDelete
  45. saw the io-flex and thought it looked interesting.. got one of my surgeons to try it.. (3 cases) first case 4/5 bilateral took a while but the results were pretty good (on fluoro anyway) second case 4/5, 5/1 .. 4/5 went quick and it looked good 5/1 was a disaster couldn't get the wire past the crest (both sides) btw there was a baxano representative in the rm the whole time and he wasn't helpful at all.. third case 5/1 wire skived off the crest into who knows where after 5 tries the surgeon gave up .. oh and the best part is that after getting it all approved at my hospital/hospital system (and yes it is waaaaay too expensive) and getting my Dr to commit to three cases.. it took them 6 months and some prodding to pay me anything and what they did pay me was way less that what was agreed upon..

    ReplyDelete
    Replies
    1. What is your location? You don't have to be specific, but I am wondering if I was the disaster. Small world.

      Delete