Tuesday, April 5, 2011
Bloggers Poll
There have been many rumors regarding the potential acquisition of NuVasive, TSB wants to know what do our bloggers think. Is this company ripe to be acquired? And, do industry insiders believe that Orthofix is seriously looking at this acquisition. Speculation runs rampant, and, product overlap exists. Yet, in today's competitve environment does it really matter when it comes down to marketshare? So do you believe its time for the Czar to sell this baby, or does he really believe he will still be at the helm when and if NuVa becomes a billion dollar baby?
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Prediction: Nuvasive will be purchased right after Globus goes public. LOL
ReplyDeleteany more rumors out there concerning Seaspine? Did they miss their window of opportunity last year with Integra? Some of the management team has left recently. Good company but is the price too high?
ReplyDeleteTSB,, you have access to "inside" information, you tell us if the rumors are true?
ReplyDeleteWith a stagnant stock price in the mid-20's & teetering on the edge of missing in Q1, the Bear would sell his baby in a heart beat as it's the best way for the Nuvasive "shareowners" to reap anything of value,,
Not to mention most of his, as well as the rest of the Sr. Mgmt team's recently awarded options probably have strike prices in the high 20 to low 30 range,, so the best deal to come to the table may get it done in order to bring any significant value to them.
Sea Spine has the same adequate but generic line as a hundred others. Tough to sell and to whom based on their sales.
ReplyDeleteNuVa's market cap is still to high to fetch serious bidders.
ReplyDelete& SeaSpine is generic. They are trying to get their MIS Scoli going with their "outer/inner" screw cap design, but they dont have the tools to go with the implants. its the only thing they have that is unique. Well, that & the surfing report in So. Cal on their website. That must do a lot of good for their surgeons in the Midwest, Southeast, Northeast, etc.
I only know of one surgeon who uses SeaSpine without a financial agreement in place. At some point, they wont be able to purchase their business anymore and sell or fold.
Does anyone else think it's funny that reps are arguing about torque locking clicks versus in line locking technology? What is going on TSB ?!
ReplyDeletetsb who does number 2 work for !??????
ReplyDeleteIt's hard to imagine anyone big enough to buy them doing real diligence on NUVA and ending up with an acquisition premium to their current valuation.
ReplyDeleteStart with ~$500M in revs with growth evaporating. Subtract out overlap with acquirers products. Subtract out revenues from "consultants." Subtract out some for distribution overlap/migration through the transition. Give the remaining number a healthy haircut for NUVA' longstanding monopoly on lateral approach having ended.
What'll be left, and what would someone be willing to pay for it?
After consulting with a cadre of analysts, the consensus seems to be that if ever Zimmer was going to save face, this could be their moment. TSB sees Graveline bringing a fresh approach to the company, and as long as Dvorak gives him the time and support things could change. The question is does Double D have the 'nads to pull the trigger. Remember what Upton Sinclair once said, "it's difficult to get a man to understand something when his salary depends on him not understanding it.
ReplyDeleteIf Z bought NuVasive why would DD let anyone in Minneapolis run that combined organization? Graveline was passed over at Stryker for a reason.
ReplyDeleteThe more likely scenario is Z exiting the Spine Market and acquiring another Recon company.
Hey MM--is this the same Graveline bringing a fresh approach to Z that you described on December 8 as not being able to "differentiate his ass from his elbow"? just checking.
ReplyDeleteAbsolutely
ReplyDeleteEven TSB exhibits compassion for his fellow man
ReplyDeleteGraveline is clueless. Heck of a nice guy but manages the business like Michael Scott. Zimmer doesn't have the stones or vision to buy NuVasive.
ReplyDeleteCould generate a great new company name:
ReplyDeleteZuVasive.
Probably want to ask an expert. Maybe John Nieradka knows.
ReplyDeleteChuck Reynolds is much more knowledgeable
ReplyDeleteI have a bridge in Brooklyn and an intergalactic spine company in MA for sale. Any takers?
ReplyDelete5:25 Sounds promising,, But I think my offer might be a bit more enticing. I am trying to sell this amazing cervical plate w/ a revolutionary locking mechanism!! Our engineers have also developed an industry leading array of Peek interbody devices; each has a very unique set of radiolucent marker bands so that they can be identified under fluoro!! And finally, we complete our spine offering w/ a truly "1 of a kind" pedicle screw which is a very cool blue color and even offers a modular design allowing the surgeon to "customize" the construct intra-operatively!!
ReplyDeleteOur line is amazing,, Any takers out there??
Orthofix? They barely escaped a mutiny acquiring Blackstone. That whole Ramius debacle was one for the text books. That move alone seemed like it came close to sinking the entire ship. I would be surprised if they even had that situation sorted out, let alone were capable of looking at something as big as a NUVA acquisition.
ReplyDeleteHey TSB....Is this Graveline's fresh approach to Z?
ReplyDeleteStryker Claims Zimmer Stole Employees
By Ryan Davis
Law360, New York (April 1, 2011) -- Medical technology company Stryker Corp. hit rival Zimmer Inc. on Friday with a trade secrets and breach of contract suit in New Jersey, alleging that Zimmer poached entire segments of Stryker's sales force.
The suit, filed in the U.S. District Court for the District of New Jersey, alleges that Stryker and its subsidiary Howmedica Osteonics Corp. stands to lose millions of dollars in sales as a result of Zimmer's recruitment of 14 of its employees.
The ex-employees signed contractual agreements not to solicit Stryker employees or customers after they stopped working for the company, and not to disclose the company's confidential information, according to the suit.
Ten ex-Stryker employees who joined Zimmer are also named as defendants in the suit, including Paul Graveline, who was Stryker's vice president of sales for 13 years until resigning in June to become Zimmer's chief operating officer.
Over the last six months, Zimmer has been "willfully and maliciously targeting" Stryker employees as part of a scheme to establish a spine-related products division without expending any effort to build it, the suit claims.
In addition to causing Stryker significant monetary losses, the employees hired by Zimmer will be able to exploit Stryker's confidential and proprietary information to unfairly compete, the suit claims.
The information can be used to target Stryker customers and give Zimmer information on how to improve its products and customer relationships, according to the suit.
The suit claims that Zimmer has "poured millions of dollars" into the scheme to poach Stryker's sales force and create a spinal products business.
"Zimmer devised a scheme to create an instantly successful spine organization, with all of the hard-earned customer relationships and highly trained sales management and employees enjoyed by Stryker Spine," the suit says.
The suit specifically alleges that the former Stryker employees breached their employment contracts and fiduciary duties to the company. It also accuses Zimmer of actual or threatened misappropriation of trade secrets, tortious interference with contracts and prospective economic advantage, corporate raiding, and unfair competition.
A representative for Zimmer could not immediately be reached for comment on the suit.
I echo the previous post, Graveline is a nice enough guy at times but not sharp enough to control the reigns
ReplyDeleteNUVA will be the one acquiring, not getting acquired. They will buy technology or a product compliment to XLIF (as crazy as this sounds Trans-1?). The stock is the currency and making the first quarter number (or hitting it out of the park) will be the premium they need to make a quality acquisition of a complimentary portfolio of products. Watch for NUVA to continue to invest in the biological space.
ReplyDeleteFrom April 1st:
ReplyDeleteStryker Claims Zimmer Stole Employees
Stryker suing Zimmer for trade secrets and breach of contract. Alleges that Zimmer poached entire segments of Stryker's sales force. Paul Graveline and ten others from Stryker are also named as defendants
Suit was filed in the U.S. District Court for the District of New Jersey
Nuva will need to invest in the biological space since Osteocel doesn't work
ReplyDeleteFROM LAW360:
ReplyDeleteStryker Claims Zimmer Stole Employees /
Law360, New York (April 1, 2011) -- Medical technology company Stryker Corp. hit rival Zimmer Inc. on Friday with a trade secrets and breach of contract suit in New Jersey, alleging that Zimmer poached entire segments of Stryker's sales force.
The suit, filed in the U.S. District Court for the District of New Jersey, alleges that Stryker and its subsidiary Howmedica Osteonics Corp. stands to lose millions of dollars in sales as a result of Zimmer's recruitment of 14 of its employees.
The ex-employees signed contractual agreements not to solicit Stryker employees or customers after they stopped working for the company, and not to disclose the company's confidential information, according to the suit.
Ten ex-Stryker employees who joined Zimmer are also named as defendants in the suit, including Paul Graveline, who was Stryker's vice president of sales for 13 years until resigning in June to become Zimmer's chief operating officer.
Over the last six months, Zimmer has been "willfully and maliciously targeting" Stryker employees as part of a scheme to establish a spine-related products division without expending any effort to build it, the suit claims.
In addition to causing Stryker significant monetary losses, the employees hired by Zimmer will be able to exploit Stryker's confidential and proprietary information to unfairly compete, the suit claims.
The information can be used to target Stryker customers and give Zimmer information on how to improve its products and customer relationships, according to the suit.
The suit claims that Zimmer has "poured millions of dollars" into the scheme to poach Stryker's sales force and create a spinal products business.
"Zimmer devised a scheme to create an instantly successful spine organization, with all of the hard-earned customer relationships and highly trained sales management and employees enjoyed by Stryker Spine," the suit says.
The suit specifically alleges that the former Stryker employees breached their employment contracts and fiduciary duties to the company. It also accuses Zimmer of actual or threatened misappropriation of trade secrets, tortious interference with contracts and prospective economic advantage, corporate raiding, and unfair competition.
A representative for Zimmer could not immediately be reached for comment on the suit.
David M. Monachino, James S. Yu, Michael D. Wexler, Molly M. Joyce and Jeffrey P. Swatzell of Seyfarth Shaw LLP filed the suit on behalf of Howmedica.
Counsel for Zimmer is not yet listed in the court docket.
The case is Howmedica Osteonics Corp. v. Zimmer Inc. et al., case number 2:11-cv-01857, in the U.S. District Court for the District of New Jersey.
Yeah, it looks like it is a couple of guys in Chicago, a guy in Ohio, almost the whole Phoenix branch (Mgr, sales mgr, reps), and others. Should be interesting
ReplyDeleteTSB:
ReplyDeleteI do respect your knowledge and several blogs that you have published...have enjoyed them a lot...for what its worth! However, I want to tell you that you got it absolutely wrong this time.
"TSB sees Graveline bringing a fresh approach to the company..." What are you smoking? What fresh approach? He is no better than previous people who "warmed" that chair (VP-Sales or COO..same thing for Big Z). The fact is Big Z has screwed up big time in Spine...and, the only direction seems to be south or Exit the arena! Ask any Zimmer Spine employee/Sales person and you'll know the truth.
the better new company name would be "Nummer"
ReplyDeleteI worked for Stryker Spine for five years, all under the not-so-steady leadership of Graveline. I can tell after having dealt with him many times over the five years, that he is a complete dingleberry. Typical Stryker guy who stuck around long enough to be prmoted several times to his lofty title. Stryker was FAR better off once he left.
ReplyDeleteAlso, considering SYK has had confirmed deals on the table for both Globus and Synthes over the past couple years that fell through last minute, I would guess they may be a player for NUVA as well. Now, whether MacMillan and the boys will get out of the way and let it ride is another question completely.
Lastly, any Nuva employee who believes that they are immune from a corporate purchase is clueless...
To 6:17 PM,
ReplyDeleteI'm in Vegas and all the syk guys here left for Z also.
Seems to me stryker spine has more to offer than Z so why would these guys leave? Oh, maybe they got a huge guarantee??? Or maybe they lost so much money at the craps tables at the Cosmo that they thought they should roll the dice with their careers? I'm sure surgeons and hospital staff really respect these guys now and can't wait to start using the highly innovative and unique Z Spine offerings. Right. Great move guys!
who are the other defendants in addition to Graveline?
ReplyDeleteLeave it to Jeff Paulsen (another Stryker reject) to bring Graveline over to his camp at Zimmer. Birds of a feather.....
ReplyDeleteI find it fascinating to watch the sales reps glom on to a story like the Wall Street Journel article on Dr. Makker in order to criticize SODs. This represents what looks like a bad apple no matter what else he was doing besides too many spine surgeries. I guess these bloggers would think that because the Nazis celebrated Mother's Day that Mother's Day must be evil. Is it really such a bad thing to cut the sales reps, marketing staff, and illegal consulting agreement departments out of the spine implant food chain. Perhaps if sales reps actually added value instead of just cost they would not be so expendible.
ReplyDeleteZimmer's purchase of Nuva would put them back on the map in spine and show a real commitment to the business moving forward. Would DD let the recon side pay for the deal? I have friends in management at both companies who do not deny hearing rumors, but maybe they are just reading this blog...
ReplyDelete10:34
ReplyDeleteThe thing that will bring down PODs is guys like you shooting your mouth off about how sales reps provide no value. Perhaps keeping a lower profile and a sense of professionalism would suit this discussion better.
If you really push it that service is not needed as reps are just a bunch of box-openers, you will have J&J, Medtronic, etc offering even lower priced contracts to your hospital, with consigned inventory, no rep, and no Compliance Risk to the hospital.
The surgeons have already demonstrated that they "can use anything and make it work." Surely the two largest companies in spine can make a strong argument to your CEO that the surgeons will have no problem switching back to what they used to use, to save the hospital money and keep the CEO out of Compliance Violations.
Who will the PODs sell their implants to then?
OOOh Ouch 9:46!
ReplyDeleteGood points, and good luck Steinmann...