No one can run when it finally comes down
Nobody knows what is stirring under ground
Caruso stumbled
While the city tumbled down
The palace was in splinters
Theodore was leaving town
Livin' on the fault line.................................
No fellow bloggers, unfortunately TSB is not singing about the San Andreas fault line, and I am not talking about the sliding boundary between the Pacific Plate and the North American Plate. Rather than slice the state of California in two, we're talking about slicing Cardo Medical into one piece. On January 25th, 2011 Cardo Medical Incorporated, that bastion of technology and innovation, announced that they had signed an asset purchase agreement with Arthrex to sell its joint arthroplasty division. With the sale of this division and the capital received, Cardo will continue to explore alternatives for its spine division. Who is guiding this company, Lewis and Clark, Henson and Peary, Abbott and Costello? The question must be asked, "what spine division?" In the words of my sidekick Skippy Spine, WTF? If Vertebron couldn't make it with that scrap metal, what does Cardo expect to do? Inexperienced and delusional, this company is being navigated into treacherous waters and they don't hear the tsunami warning. Times must be bad at Cardo sensing that the fault line is ready to go when you expect a "me too" vanilla cervical plate, and a pedicle screw that has had more problems than a long stint at rehab with Charlie Sheen. The funny thing is, Charlie will probably rehabilitate himself faster than Cardo will ever do anything with that pedicle screw, and when that happens the escort industry will experience its first recession. But getting back to Cardo's pedicle screw, that rod reducer was nothing more than BS, and you know what they say, you can't make Beef Wellington out of BS.
So the question must be asked, Is this the next company to fall in spine? But then has this ever been a spine company or is this another surgeon's lame attempt at calling oneself an entrepreneur and innovator? Why would you sell your only valuable asset? Cardo's company slogan must be, "you've gotta believe." Hey, where's Tug McGraw when you need him? If and when this happens, you can chalk it up to another surgeon's champagne wishes and caviar dreams . God, it must be great to have money to piss into the wind, just watch for the recoil. So what's going on at Cardo when you sell your Uni-system, your TKA system and your Press Fit THA System? It's called selling your assets that have value in return for some cash because no one is interested in that dog of a pedicle screw and cervical plate. Mark Twain once said, "the rumors of my death have been greatly exaggerated," well fellow bloggers, this time it may be real.
Pegasus Biologics (RIP)
Vertebron (RIP)
IST (RIP)
Archus (RIP)
Osteotech (Acquired)
Facet Solutions (Acquired)
US Spine (Acquired)
Inion (RIP)
Applied Spine (RIP)
Impliant ?????
DMT???????
Cardo Medical ?????
Yes fellow bloggers we have had a bit of consolidation in the spine , the question is who is next, which one of these one trick ponies awaits their fate? Will some of these companies be euthanized or......
Through early morning fog I see
Visions of the things to be
The pains that are withheld for me
I realize and I can see
That suicide is painless
Where was Vertiflex on that list?
ReplyDeleteThey still have the Superion ISS, but who knows who is going to buy that. At this point its evident that they are positioning that device to be sold to someone, the question is to whom, and for how much?
ReplyDeleteIt breaks my heart that I made 350,000 7 yrs ago and now am fighting like a dog make 250,000 (due to POD's, consulting agreements, start up clinical evaluations, design consultants) and next year it will probably be more like 220,000 tops. My current company is talking about not giving me my bonus - and I don't want to keep flipping business over.
ReplyDeleteYou may wonder, "Why don't you start a distributorship you idiot?"
Well quite simpley, these companies shuffle like a vegas dealer. You can't count on any small company to be there for the long haul and don't get me started on inventory constraints.
The times they are a changing-
Do CEO's get kickbacks from former companies when they buy bogus technology?
Boo Hoo, I only made $250K this year and I may not even get my bonus!
ReplyDeleteWhat a tool. I can tell by your comments you're not worth it. As for opening a distributorship? It takes a little more than you would probably think to run a successful business. Showing up to cover cases won't cut it.
Next company to go under? The one the tool works for.
7:48 sounds like a doc, not a rep. A goober either way, though.
ReplyDeleteStryker isnt going anywhere
ReplyDeleteThe Golden Age
ReplyDeleteConsolidation in Spine, how many will be left when the dust settles?
ReplyDeleteCompanies with merit and marketshare will be snatched up and shelved or incorporated, undesirables will fold. Which spine companies does everyone think will remain?
I think something like this... Im sure there will be some other players but not big ones. What am I missing? After prices have been chopped and we all make substantially less money, who will be left?
Depuy
Medtronic
Stryker
Synthes
Nuvasive
Globus
TBS is correct for once. Superion is for sale.
ReplyDeletehttp://cgi.ebay.com/Vintage-G1-Transformers-Fireflight-Superion-Parts-/220731007569?pt=LH_DefaultDomain_0&hash=item336497e251
I'm batting 1000 go check out June posts from 2009 as to who was going to fold. I'm at least batting 500 at a minimum.
ReplyDeleteSo TSB you are saying the Big boys will survive? So it is better to work for MDT or Depuy over aliphatic, lanx or globus.
ReplyDeleteAlso I just don't believe the DOJ will allow PODS to survive.
What about Zimmer Spine? Do you think Big Z will stay in spine and resurrect itself either by internal product launches or by acquisitions? Or....come 2012 and Dvorak will spin-off that division like a hot brick? And, what was that $204MM goodwill impairment charge in their 2010 results for spine unit? How one should interpret it? They also put similar charge of $70MM or so in 2009...Screwed up on Abbott acquisition?
ReplyDeleteZimmer was obviously writing off worthless goodwill. Goodwill often arises when one company purchases another company. Goodwill is usually an intangible asset on Z's balance sheet it could be IP or proprietary technology. Since I don't work for them I couldn't tell you. It potentially could be the Abbott acquisition. As for who will survive, its obvious that legacy companies or companies with comprehensive portfolios aren't going anywhere. The question is how many so-called ankle biters will be able to survive without making wholesale cuts in manpower?
ReplyDeleteThere's a terrible nothing sweeping the land. Don't worry, Atreyu and Falcor will save it!
ReplyDelete"You're breakin' my heart
You're tearin' it apart
So f&*k you."
the company who's tagline is " Where surgeon's come to innovate" will surely make it.
ReplyDeleteRight?..............
Yes Sireeeeeee 1:52
ReplyDeleteIt is a Neverending Story
Alphatec will survive.
ReplyDeleteMy company will survive won't it? I made $350K and I'm afraid of losing my boner, I mean bonus.
ReplyDeleteWith my GED I deserve to make this kind of money!
MM and 1:52 - Do you mean "Where surgeons innovate"...Spine Frontier?
ReplyDeleteI think that the companies that are in trouble include Alphatec (serious FDA issues, continually loosing money and talent, terrible environment) Life Spine (pure BS products), Eminent Spine, Titan Spine, Atlas Spine, Choice Spine, Phygen, Custom Spine?, blah blah blah. If they don't have something that is clinically relevant/innovative, then you'll be gone.
ReplyDeleteI just went to the Eminent Spine website for the first time....Seriously? Texas Sidewinder? King Cobra? That is what is wrong with this industry.
ReplyDeleteThe worst death is to stay alive long enough to know it.
ReplyDeleteMDT, Strykher, SINthes and DePEW will loose the most! Welcome to pharma my friends!
http://www.youtube.com/watch?v=Z-jj0VMaI24
7:14PM...Eminent Spine's website is not evidence of any industry wide "wrongs". It's simply evidence that lousy marketing is alive and well.
ReplyDelete"Bad to the Bone"? Awful! Nothing like telling your surgeons in a subliminal manner, my product is bad for your patient's bone.
And those product names? Horrible. Go to the upcoming product names, it gets worse.
Eminent Spine makes the whole Vertiflex idea of naming their products after transformers (seriously!) seem cool in comparison.
Engineers must be running marketing over there!
all this an no mention of the prospects for Centinel Spine or Paradigm Spine?
ReplyDeleteIt seems like every time TSB mentions Centinel they are quick to get a press release out saying everything is great. What's even funnier is that Michael Will is back with the VBros. His track record speaks for itself Synthes threw him out on his ass because we were ready to rebel, PEGASUS Biologics went down the tubes. Between JV and MW its the blind leading the blind, I wonder who gets in a word edge wise? Maybe that 41% growth is barbeque sauce. How long are investors going to buy into that BS?
ReplyDelete5:56
ReplyDeleteWhat are the FDA problems Alphatec?
Google Alphatec FDA - Imagine what's not public?
ReplyDeleteI remember the doctor founder of Eminent Spine calling our company asking to use our products because he heard they were good products to use and heard from doctor buddy in another state. When asked who that doc was he was quick to change the subject. It seemed shady from the beginning, so we didnt send him anything and then we found out he had started his own company. Real ethical guy.
ReplyDeleteDr. Courtney (Eminent Spine Co-Founder) lacks any ethical principals. Just look up all his medical malpractice lawsuits. Naming you company products after a serpent should clue you in to the type of integrity!
DeleteIt's actually fairly difficult to kill an established and functioning and spine company. As long as they can maintain a core of loyal business (through various means) with a relatively small number of surgeons they can putter along for a long time.
ReplyDeleteRather than spectacular flameouts like IST, it's more likely that we'll see the weaker companies quietely fade from the scene as they circle the wagons around the core of their business and simply give up on growth.
ATEC has nothing on this group. They ought to have their own reality series. They are borrowing money faster than Uncle Sam.
ReplyDeletehttp://dockets.justia.com/search?query=bacterin&search=Search&stateorcourt=&judge=&lawsuittype=&documentfilter=allcases&after=&after=
What about K2M? They seem to have a different approach by targeting deformity vs. degen. With the infusion of cash from Welsh Carlson, I wouldn't put it past them to start attempting to flip some competitive reps. Anyone else?
ReplyDeleteanyone else find it curious that neither Centinel Spine or Paradigm Spine are listed are exhibitors at AAOS? Are the Vbrothers going to have a booth for the bbq sauce at least? If you can't smoke a cigar smoke a brisket!
ReplyDeleteThe jig is up, if you can't pay your employees how can you afford a booth. Maybe Tony needs a new polo mallet
ReplyDeleteThank god I'm getting out of this industry! See ya!
ReplyDeletei hear that all the vbrother companys are going without a booth this year. No only the spine ones. Knee Creations and Small Bones Inovation too. Anyone able to confirm this rumor?
ReplyDeleteJust because you are a successful investment banker or analyst and know how to raise money does it mean that you are qualified to build a business?Let's get serious, with the attrition rate these fellas have, their lack of operational knowledge, and mercenary attitude it will be only a matter of time until it all catches up to them. Look at SBI. It's raised hundreds of millions of dollars and it generated an estimated 40 million last year, after how many years.
ReplyDeleteAnonymous said...
ReplyDeleteConsolidation in Spine, how many will be left when the dust settles?
Companies with merit and marketshare will be snatched up and shelved or incorporated, undesirables will fold. Which spine companies does everyone think will remain?
I think something like this... Im sure there will be some other players but not big ones. What am I missing? After prices have been chopped and we all make substantially less money, who will be left?
Depuy
Medtronic
Stryker
Synthes
Nuvasive
Globus
January 29, 2011 9:49 AM
______________________________________________
You did not include some of major ones: Alphatec, Pioneer, OrthoFix and Zimmer. Are you saying these are going down? Interesting that you chose to "ignore" Zimmer and OrthoFix...hmmm!
How does anyone think Alphatec can survive, Rumors have been swirling that they are hemorrhaging cash have had difficulty in paying their vendors and have a class action lawsuit hanging over their head. BTW how difficult can it be integrating a company like Scient'x?
ReplyDelete4:41
ReplyDeleteMajor ones? Alphatec, Pioneer, Orthofix and Zimmer? Major?
Major what?
Zimmer is a pretender not a contender. As Jackson Browne once sang;
ReplyDeleteI'm going to be a happy idiot
And struggle for the legal tender
Where the ads take aim and lay their claim
To the heart and soul of the spender
And believe in whatever may lie
In those things that money can buy
Thought true love could have been a contender
Are you there?
Say a prayer for the pretender
Who started out so young and strong
Only to surrender
Pioneer will survive on Biologics, Orthofix will survive on Biologics and slick instruments, Zimmer will survive because they can (even though their portfolio is shameful), and Alphatec will try to get themselve purchased as their Osseoscrew is the only decent product in their pipeline bag (FDA will probably not approve it, though).
ReplyDeleteSeveral of my surgeons are fed up with their reps making 200-700k. I think we are going to see a trend in the next few years in Ortho and Spine where the little companies are going to be spotlighted more.
8:00am, its none of the docs business what reps make just like its none of our business what they make. I hope the greedy docs that are doing the pod get it handed to them. I know they will, its just a matter of time.
ReplyDeleteTotally agree, the only problem with that, though, is it's an idealistic one. Unfortunately, reality speaks otherwise. We make money because few would do it after the first two weeks. The amount of crap we have to deal with, on top of the lack of respect someone who never got a GED dishes, and the continuum of me-too products that all companies produce make it nearly impossible for any rep to be successful. I feel sorry for anyone just getting into this industry.
ReplyDeleteAs long as we are talking about idealism.. Please, explain to be how a group of individuals, with the highest education level of a Master's Degree, can honestly sit together and decipher what a surgeon will use for his cases?!?
ReplyDeleteIf the government wants to take away PODs, then I feel they should slap the moron hospital administrators with a huge civil fine for taking away a surgeon's right to choose the implant he wants to use.
I agree the hospital shouldnt tell the doctor what he can and can not use. The only reason hospitals do that is because they are getting huge kickbacks from the so called hospital purchasing groups. Now should we even discuss how big of a scam those purchasing groups are.
ReplyDeleteThe problemm is the reps--I work for one of those small companies--the story is the same--a rep calls all excited about a doc he can convert--so we send samples, price lists, proof of insurance, 510(k), Tax ID info--then the rep calls back and wants more commission 30% is not enough, how about 40%--when you balk at this since there is still no business he asks if he can buy product outright and resell to the hospital for God knows what price. All this takes time and effort and in the end 90% of the time the rep just disappears into the ether--no call backs, no return of VMs, nothing. I'm amazed that some of them are still in business. Now I'm sure some of the smart reps that read this blog will say that it is just because I'm talking to the wrong reps--I don't agree--it is a pervasive disease in this industry--reps think they are indispensable--soon that will end--more and more of the small companies are considering alternative strategies that don't involve reps. Its just a matter of time--the end of the overpaid deilivery and service rep is fast approaching and it will be no great loss--it will probably be an improvement
ReplyDeleteAll I have to say is, "Holy Ego"! I guaranty any company that decides to emit reps from their force will be bought up or completely fail within 4 years. Please remember that PMs, DMs, Marketing, and LMs have their jobs due to the relationship and trust a rep gains after years and years of providing successful products for their patients (and don't forget help in sticky situations). Get over yourself. Reps working for good, successful companies make anywhere for 8-15%. If you are paying a rep 40%, it is only because your company has no marketshare. We don't make a salary, have any benefits, a retirement or 401k plan, have to pay for our cell phones and cars. The few who are successful have earned the right to call a spade - a spade... Especially when we know more about the market spectrum. PMs know one product in and out... We know all products in and out. So, if your company wants to stay in the market, they need to pay or get out. The reasons why the rep stops initiating contact is usually because it takes so long for the company to get it's shut together. By that time, the surgeon has moved on.
ReplyDeleteAmedicrap will fold next. Bad aquisitions, and paying comm. in certain accounts up to 50% while other distributors make 30%. Certain managers have other product lines they represent showing that no loyalty exists to Amedicrap.
ReplyDeleteI know the manager you are refering to, kind of heavy set. See him in the hospital in southern mo all the time always in purchasing managers office trying to get products approved. Things are adding up now! The funny thing is that I talked to him once in the doctors lounge and was bragging how the doctors fiancee was the rep and she had won a lease of a BMW for being the top producer in the country. Only in MO his old partner used his brother as his rep, and out of the blue shut his practice down and went on a mission???
ReplyDeleteEminent Spine has to be the next to fall. Their screw falls apart while loading them to the driver. Their only customer is their owner Dr. Courtney. The FDA is all over them.
ReplyDeleteAlphatec and Bag of Donuts will go down. The POD business model that alphatec, choice, and asculap push will hurt in the longrun when reps currently selling lines pull heads out and make a change away from the darkside.
ReplyDeleteWho is Genesys Spine? My understanding is they are a surgeon owned company or they have one surgeon Dr. Kaufman that gives them the business. He must be an owner as wel??
ReplyDeleteAnyone seen OrthoDevelopment in their area. Another POD business model.
ReplyDeleteGenesys Spine's 510k says Josh Kaufman - must be Dr. Kaufman's brother. Sounds like a family affair.
ReplyDelete