A shut out is a shut out, no matter how you look at it. With Bill Lee heading back to Philadelphia, one team in Texas is looking to find its ace. While others are more interested in belly fat, TSB thought that most of our bloggers would be interested in knowing that Orthofix International, aka The Fix, today announced an internal reorganization to streamline its three Global Business Units, Spine, General Orthopaedics, and Sports Medicine. So why the big shake up?
In the holiday spirit of giving, Milinazzo et al, expect to record a charge related to employee termination benefits of $4.0 million, $2.4 million net of tax, or $0.13 per diluted share. In the best interest of the share holders, this restructuring will result in an annual saving of approximately $6-7 million per year beginning in 2011.
So, Why the Big Deal?
In simple words, The Fix, got its ass kicked in court, announcing today the on behalf of itself and MTF that they executed a comprehensive settlement agreement with NuVasive and Osiris concerning Trinity Evolution tissue allograft. Basically, the court ruled that The Fix infringed upon IP owned by NuVasive and Osiris. As part of the settlement, the parties entered into a licensing agreement covering Trinity Evolution. The Fix will record a charge of $2 million in the fourth quarter of 2010. Additional terms of the settlement were kept confidential. The Fix has also lowered its guidance for the up coming year due to rumors of impending reimbursement issues regarding bone stimulators. Word on the Street has been that it hasn't been a very festive environment down in McKinney. Could it be that with the current state of the economy and pending challenges there will be many changes occurring at The Fix. Maybe, those corporate raiders of summer's past weren't that wrong when they were looking for a change in government at The Fix. So as we enter the holiday season, maybe its time that the Board once again revisit some of the decision making that is going on internally. The spine industry is a post apocalyptic world where gunslingers rule. No more 20%. So in return the plenty shall suffer for the mistakes of a few.
Final Score: Nuvasive 1 Orthofix 0, in a rout!
TSB,
ReplyDeleteI would like to read more on this. Can you provide the link to this announcement? Great post. Thanks
I used to love my life and my job until I found this blog. Makes me feel like I'm part of the problem!
ReplyDeleteBrother, you need help if this blog is making you crazy. What do you think has been going on in this industry for years? Most of us aren't choir boys.
ReplyDeleteUmm, Guess the Blackstone / Orthofix regime hasnt changed a bit, goes from illegal kickbacks to infringing on IP
ReplyDeleteLet's not jump the gun. We all know infringing on IP won't slow down the illegal kickbacks. They have a 2 pronged attack
ReplyDeleteTSB,,, It's Cliff Lee, not Bill Lee, that's heading back to Philly,,
ReplyDeleteOnce a Spaceman, always a Spaceman, I stand corrected. If you ever lose your job we'll hire you as a proof readers. Thnx, you might have more fun than selling implants.
ReplyDeleteTSB,,, Are you showing your age?? Bill "The Spaceman" Lee had a nice career w/ the Red Sox & Expos, but retired in 1982. With his outspoken persona, perhaps you should reach out to him and see if he'd like to offer up a post or two?
ReplyDeleteHe has don't be so smarmy because father time awaits you. PS: Once a baseball fan, always a baseball fan, T'its Americas past time.
ReplyDeleteTSB,, since you posted on Nuvasive today,, I'm surprised you didn't acknowledge Kevin O'Boyle's addition this week to Advanced BioHealing?? Funny, he left Nuvasive just about 1 yr. ago and at the time said this:
ReplyDeleteO'Boyle said in a prepared statement. "Unfortunately, personal obligations make a long-term position as CFO of NuVasive extremely difficult to maintain. I would like to thank all NuVasive shareowners for making my time at NuVasive a remarkable one."
WOW,, all of s sudden a long term position as CFO now seems to be good fit for him?
Funny, I wonder how bad the fall out was between he & the big Russian? Maybe he simply saw trouble on the horizon and left while the getting was good?
What are your thoughts?
I would surmise that Kevin had a non-compete, therefore, the one year paid sabbatical. Everyone deserves a have a job, and maybe he did have personal issues at home. Let's face it, this industry has the ability to burn anyone out. The Bear is all about the Bear, and padding his portfolio, if he was so loving his company wouldn't have the attrition rate that it has. Everyone can't be a loser, and not everyone is that bad..... Beware of the Ides of March
ReplyDelete"T'its America's pastime"....? Freudian slip?
ReplyDeleteTrinity is old technology anyway, Puregen is where it is at.
ReplyDeletePuregen sucks balls bro! You need to try Ultra Puregen. It is fantastic!!
ReplyDeleteFellow Bloggers:
ReplyDeleteI know that this is a blog. I know that those that are offended for being called out attempt to eviscerate the blog, but, if you have criticism of a product based on design and efficacy, spend some time substantiating your position, it makes for a better discussion, and also helps others understand our issues. As usual thanks, and let your voice be heard.
Dunno TSB. I think you missed the mark on this one. 2 million for the license right NUVA paid 85 million for, and that's a loss to Orthofix?
ReplyDeleteBill Lee? lulz...
ReplyDeletestick to music analogies brah
Didn't ofix lose its grip on that product during the whole Ramius mutiny?
ReplyDeleteDon't be so nearsighted what about the part of the settlement that is confidential? A defeat is a defeat regardless of the PR spin
ReplyDeleteOrthofix and MTF both spent good money developing their rip-off version and capacity and now they have to pay an undisclosed ongoing royalty in addition to the settlement.
ReplyDeleteWe don't know the numbers to do the math, but rest assured NUVA didn't give it away. The royalty stream will be more cashflow from their $85M investment. NUVA wins, O-Fix loses.
tsb, how often do you type annonymous responses?
ReplyDeleteC Borsa is now running the show at ATEC. Joe Schmidt is a god!
ReplyDeleteLet"s see Galileo:
ReplyDeleteI use my own moniker why do I need to sign on as annymous, duh?
hows your patient load doing in Milwaukee MM. Too funny!
ReplyDelete11:48 I thought JP ran the show with that inflated head of his? Atec is a strong buy then!
ReplyDeleteHmm that is why they were dangling so much funding to NASS management.. Makes sense.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteC. Borsa at ATEC?? Laughing,,,
ReplyDeleteHe lasted about 3 weeks when he was at Nuvasive,, Yes, ATEC is a STRONG buy at $2.40/ share,,
Dear god,,
I agrees with 5:49. If Nuvasive did indeed "win", why such a little amount. My thoughts are that the '239 patent would have been invalidated had it actually gone to court. You can't patent something in nature. Just look at all the genome sequence patents that are now worthless. This is just a settlement, not a ruling. They never even litigated this in court. It really was a lose-lose situation for Orthofix. Either settle (as 95%+ of infringement suits do) or pay their lawyers to invalidate the patent so now Acme Biologics can come out with their own "generic" version too. It was probably cheaper to settle than to fight it anyways.
ReplyDeleteTSB, I've followed your blog and regard you as always on the mark. BUT this time you blew it.
Can't be right all the time, you win some, you lose some, and some get rained out. Thnx for your opinion.
ReplyDeleteThe same C Borsa that was fired by Orthofix?
ReplyDeleteYes, the same C Borsa that was fired from NuVasive and Orthofix.
ReplyDeleteI heard C Borsa is the best Manager at Alphatec, he has some dirt on the upper management.
ReplyDeleteWhy was he fired from Nuva and Orthofix? Isn't he a rather small man in stature?
ReplyDeleteHey,, Why is everyone throwing me under the bus??
ReplyDeleteRegards,
C. Borsa
12/19/10 @ 6:37 AM
ReplyDeleteYou hit the nail on the head, as it pertains to this whole litigation. It would have served to the detriment of both companies had this thing actually gone to court. Ofix paid NUVA to just go away.
Borsa, As a previous co-worker of yours I will say that you are a very nice guy!, but I will do my best to help sum up for you, why people are throwing you under the bus
ReplyDelete1)You barely ever work
2)In no way do you better the industry, or people’s perception of it
3)Your technical skills are weak and you have very little knowledge about what is going on in the industry
4)You lack morals
Hope this helps!
Thanks for letting me know how others view me,,
ReplyDeleteBut I do still get to work out a lot and pride myself in letting everyone know what great pecks I have,, :)
Regards,
C. Borsa
Joe Schmidt hires surgeons neighbors with zero spine experience to get business, not to mention instructing his minions to call on hospitals outside of his territory. Classy guy.
ReplyDeleteAt least Mr. Borsa has a good tan to go along with his pecs.
Will there be a day where ATEC or someone associated with them will not be the punchline or laughing stock of spine?
ReplyDeleteNO
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