Looks like there will be a Stay of Execution Party being held around the pool next week in Duck Key, Florida. No fellow bloggers, the Governor of Connecticut did not step up to stay the inevitable execution of Applied Spine Technologies. A holding company by the name of Rachiotek, LLC has stepped in and acquired whatever assets, meaning the intellectual property, for the Stabilimax. Hopefully Oxford BioSciences, BioVentures Investors, Investor Growth Capital, DeNovo, MB Ventures, and InterWest Partners will take their pennies on the dollar and run. Run as fast as you can and don't look back. The unfortunate aspect of this venture was that a great guy like Dr. Panjabi, the preeminent authority on spine biomechanics, was doomed for failure from the get go. If there ever was someone that you would "pull for" it would be Panjabi.
The one aspect about the former management team at Applied Spine was that they did a wonderful job of spending money in addition to the cost of running an IDE. This company never had any internal continuity outside of Terry Brennan. If anything it was a management team of musical chairs. Yet, there must be some inherent value to this IP, but many question remain unanswered. With declining reimbursements due to an uncertain healthcare environment in the the U.S., and additional questions about the clinical efficacy of this technology, will this ever be the market that many expected it to be? The challenge with most of these ventures is that the inventor entrusted their child (the IP) to a group of people that did not understand the magnitude of commitment to this project. A nanny cam would have served the investors well in keeping tabs on the day to day operations at AST. Outside of the few people that remain from the original cast, most of these people were like rats on a ship. Every engineer that TSB spoke with frowned upon the potential success of this product, and those were product development engineers that were being honest about their evaluations. As one designer commented, "there is a distinction between hope and reality." How quickly have we forgotten about other products that were marketed, and destined for success in the dynamic stabilization market? And, how much money went to naught? Up until a few years ago, companies were investing time and money, or had high hopes of introducing a new dynamic stabilization system to the market, only to close the doors on their future?
So TSB must ask our readers, is there any hope for this technology? Did Rachiotek really get a deal, or did they buy some technology that truly is a dead man walking? TSB wants to know what our bloggers think?
They will start to line up in the graveyard Axiomed Lumbar disc,SpinalMotion Lumbar/cervical disc), SpinalKinetics. Hundreds of millions spent with no place to play.
ReplyDeleteKorean Spine! the answer is within this world my friends. Stay thirsty my friends!
ReplyDeleteI think this is delaying the inevitable but who knows. Interesting that there seems to be a buying spree for 'struggling' technologies (e.g. OP-1, Facet Solutions). Would love to know the values being given at these fire sales.
ReplyDeleteTrans1 up big today (50%) based upon a 510k clearance for their L5-S1 fusion system. Didn't they already have that? I wouldn't think this news would change their fundamental situation (reimbursement and one level application), so why the spike?
Go back to Korea! And stay there! This isn't your country stay the hell out!
ReplyDeleteThere is hope as long as you keep J.P. Timm away from destroying it. Just like he's destroying ATEC. Compare ATEC stock vs TSON and sit back and LOL!!!
ReplyDeleteMaybe Bacterin will aquire them in a stock transaction like they will screw the good Dr. from Colorado.
ReplyDeleteThank you 8:38 for having the courage to speak for all native-americans.
ReplyDeleteTSB.....
ReplyDeleteAny thoughts on the following:
Smith & Nephew Files Lawsuit Against Nine Former Employees In Shelby County Chancery Court Over Intellectual Property Rights.
Smith & Nephew Plc. has filed a lawsuit against nine former employees in Shelby County Chancery Court over intellectual property rights. The suit alleges that the team, several engineers, managers, its department supervisor and a director, working on the company’s Visionaire product ‘had been planning to stage a mass resignation and start a new company’
There is room for dynamic stabilization. Maybe not the ASP device as it has not done so well (broken screws a while back and the thing is HUGE!). But, realization of many of these folks dreams is also dependent on the FDA working with dynamic stabilization technology developing companies that received 522 letters, and if manufacturers are willing to spend the time and money to prove the stuff they speak to under their breath (since almost all the current devices are classified and fusion devices)is the real deal. In addition, they need to be prepared to fight 3rd party payers who have difficulty at best of agreeing to recognize use of fusion systems improve back pain (especially if they believe Nachemson who thinks there is a 100% relationship to clinical results and industry involvement). Insurance is going to fight it. DS does not fit into their nice little Milliman Criteria box. And, is will be more expensive than pedical screws. If they can prove it works better than fusion, it will be in the hunt for sure since clinical outcomes of fusion for back pain just ain't working out so good.
ReplyDeleteso, what are the clinical indications ?
ReplyDeleteOh man is JP Timm a fricking disaster!!!!! Supposed to have a cervical plate out a long time ago, not a new one, a refurbished Trestle! He's an organizational nightmare!
ReplyDelete1:49 - back pain, plain ole mechanical back pain, with evidence of instability at the index level (not a spondy, or at least minimal spondy), especially if aggravated by walking or bending, particularly flexion. When facet arthropathy is confirmed as a pain generator in conjunction with back pain as above.
ReplyDeleteFor the price paid for those assets and know-how it will be a steal. When the market dynamics change and restoration or repair of function are not profanity to regulators and investors technology like AST's will have significant value.
ReplyDeleteThe know-how & the science they bought in my opinion is more valuable than the IP. They actually have data to improve or redesign the system, which is much more than others will have when the winds change.
I am waiting for the day the Millman gets a class action patient lawsuit faulting them for denial of coverage claims by insurance companies. They can use all of the disclaimers they want about how that information and data is to be used. Yet, insurance companies scape-goat the situation by blaming Millman. Some patient advocacy lawyer is going to pick up that case and they will get popped.
9:24
ReplyDeleteIf you look at a one year chart, TSON is ahead, if you look at a 2 year chart ATEC is kicking their ass. What is your point?
7:33
ReplyDeleteIf you want to view paradise, simply look around pretty charts and view it.
TSB sure has.
TSB, what's your pulse on the mass exodus away from stryker that recently occured? Are graveline and zimmer the new and improved stryker spine?
ReplyDeleteWhat is up with Stryker? They compete within their own company. They sell bone for Orthovita and Integra, yet they also sell their own bone by Etex. Stryker spine sells kyphoplasty that competes against Stryker Interventional...who is running that company?
ReplyDeleteStryker has always been one of the most silo-oriented ortho companies out there, yet the majority of the other first tier companies do as well. Let's see, DePuy spine sells certain biologics that DePuy recon and trauma don't have access to, Biomet Spine sells certain biologics that Biomet joints don't, Zimmer spine sells a DBM that is different than Zimmer trauma.....and on and on. One of the only companies that has different reps selling the same product is Synthes. DBX is sold by CMF, trauma, spine and MTF reps. It's a bitch to handle commission structure, but at least they aren't competing against each other with different lines in the same hospital.
ReplyDeleteBoth TSON and ATEC stocks suck, it's like comparing a turd to a pile vomit. I don't want either of them.
ReplyDeleteI hope dynamic stabilization is not dead, but making advances. Fusion was not the answer for hips or knees, and it is not the answer for spine.
they should merge and file for expandable ass screw
ReplyDeleteMann and Dercher own the spine market in Missouri and Kansas.
ReplyDeleteGreat idea 10:05, but it's only true to form if it never actually gets launched.
ReplyDeleteZimmer Spine as the new Stryker? Don't believe the hype! They've got a weak product line, inconsistent distribution (at best), GE leadership, and - to add to it - they did layoffs last week.
ReplyDelete