The recent headlines regarding the suit between Synthes and one of its former sales consultants/regional managers by the name of John Marotta leads to the ultimate question, whatever happened to the mighty Arbeitsgemeinschaft Osteosynthesefragen? Could the days of wine and roses, when Synthes owned 80-88% of the trauma market be long gone? As BonJovi once sang: "is it only a memory?" Is the old Swiss vanguard willing to pick a fight with one its former employees based on the threat that maybe Mssr. Marotta has figured out a cheaper way to manufacture and market drill bits, taps, guide wires and screws which will only cut into the Synthes gravy train that has existed for many years. Oh, to long for the good old days. What happens to all these CEO's and Board of Directors when their mere existence is threatened by some small start up company? Could it be that free-market enterprise is only allowed for those that are considered the 1% in the industry? It takes less energy to be nice than it is to continue to try to screw people. But isn't this how some of these companies have been built?
A breach of fiduciary responsibility? A violation of his non-compete? A breach of non-disclosure? But isn't this the road that these large companies love to travel? Whatever happened to competition? Not when it comes to our drill bit and tap business. Think of all the revenue that Synthes and its reps will lose when they can no longer bill for those cannulated drill bits, drill bits for their radiolucent targeting device, taps, k-wires. Aren't these large companies embarrassed when they attempt to brow beat the defendants by litigating against them? And, is this what the so-called market leader in trauma has become? A mere shadow of itself? A big bully? Maybe some companies would be innovative if they got rid of their dead wood, you know the ass grabbing, cigar smoking, holier than thou, while attempting to screw peoples lives. Let's face it, if this suit is being litigated in the Philadelphia courts, Synthes has always had the home court advantage. For some reason judges love to come out of retirement or side with the old man. If TSB was Marotta, a motion for a change in venue would help. Prejudice by the Court? As Aretha Franklin use to say, "who's zooming' whom?"
Who said that you can't mix 316L Stainless Steel from one manufacturer with another? Synthes? 316L is 316L. Who said that you can't drill a screw hole with someone else's 3.2mm drill bit or 4.5mm cannulated drill bit, Rick Gennett? Now there's an authority. And what about those Synthes cabinets that everyone sees and reads about? How much wasted capital is sitting in those drawers because hospitals have been BS'd that they need all that back-up inventory? Now there's a story if someone really would like to write about the ongoings of the medical device industry. If Emerge was able to negotiate a deal with Premier, don't they have a right to place their own order numbers in Synthes cabinets? Aren't those inventory cabinets donated by Synthes to the hospital as part of their plan to get the facility to load up on implants and ancillary products, i.e., drill bits, taps, k-wires and guide wires?
Let's be honest, drill bits, k-wires, guide wires, taps, are big business especially when companies tout them as one time use. But whoever said they are one time use? As for the commentary that trauma reps are making more than surgeons, can we get real? How much is the associated cost for ancillary products when a trauma surgeon implants a tibial or femoral nail? 4-5 screws depending on the nail and fracture profile, if its an unreamed nail, no guide wire to pass the nail thru to the distal segment. If a guide wire is utilized, in all likelihood it is used to make an entry hole to insert the nail, and a drill bit is used for proximal and distal locking. Of course the radiolucent guide drill bits may be a bit more expensive. The most expensive construct would be an external fixator and the hospitals have learned that the clamps can be reused if properly retrieved by the surgeon or residents, unless some biker wants his frame.
All TSB can say is that hopefully, Marotta wins, but then again, if you're in Philly Mood, the deck may be stacked against you.
MM, it’s been 57 days since your post with no replies. Just came across this today literally by accident.
ReplyDeleteWow, 57 days!!
As a long time follower and occasional poster on the ever so popular spineblogger, I am just beside myself this post has not had a single reply. It’s a phenomenal maiden post and lead out on the Trauma Market, well done MM. Hang tight Sister Christian, your motoring activities are about to get some traction if in fact this blogspot is legit and being actively monitored.
It’s an open canvas here so before I lay down some serious Pablo Diego José Francisco de Paula Juan Nepomuceno María de los Remedios Cipriano de la Santísima Trinidad Clito Ruiz y Picasso (aka Picasso) work, I need to know, is this even being monitored or was this set up in response to some turd who fired up one of the spine crusaders over a biologics question a day before this went live?
Either way, I do hope this is legitimate.
In response, we all hope Marotta wins. If you can’t beat ‘em, join ‘em, right? Unfortunately John’s already been there, done that and has the t-shirt so why not take a non-threating shot at these clowns by starting off with a sucker punch to the under marketed, low IP landscape, non glamorous and commoditized product segments like drills, wire, blades, screws? What can be less intrusive than attempting to back door the trauma device market king in the middle of the night to lay claim to some floor scraps? Especially when you know where the king stashes the back door key? It’s not like Marotta came pounding on Hansjorg’s door at 2am demanding Mrs. Synthes march her pretty little lederhosen wear’n ass over for a few rounds of swiss style wienerschnitzel’n *SLAP* *SLAP*. No he did not…but he may as well. You see, the combined US commodities market when you include surgical drill bits, taps, k-wires, s-pins, guide wires, 18-20-gauge wire, saw blades, cannulated screws, universal mini, small and large frag screws starts to add up real quick. Despite Emerge minimal offering of cannulated screws and drill bits, the impact could be more significant than what the average observer comprehends. Have a look at Steve’s data on the ONN or what Millennium Research sells for $6k per report. These folk’s data-sets work more like hand grenades to provide a general idea; spot on figures are very difficult to come by. A few others and myself are probably the only ones on the planet who have attempted to quantify the medical devices disposable and commodities market space. And NO I’m not in any way associated or affiliated with neither Mr. Marotta nor Synthes. But trust me, Synthes knows exactly what their figures are. If the combined commodities/disposables market for orthopedic/trauma medical devices in the US is ball-park $750M, it’s a whole crap load more than what most folks figure, so perhaps it was more substantial than bully tactic by Synthes but rather an attempt at a woodshed extravaganza on Emerge to send a clear message to other hopefuls who want to address this market...like me!
Est.
Drill Bits = $ 125M
Taps = $ 33M
K-Wires/Pins = $ 86M
Saw Blades = $ 188M
Cann Screws = $ 96M
Univ Screws = $ 235M
Word~
DeeBo
Going to generate some movement here.
ReplyDeleteMSM, are you watching over this site?
DeeBo