STT Radio Show - CEO Interview 5-14-2012 (and Notes)
Youtube Link: http://www.youtube.com/watch?v=36zSP8gNtDA CALL NOTES PROVIDED BY SMALLTIMETRADER Business Object:
CEO Regular shopper at COSCO, and is adopting their business model. But trying to take the brand-name out of the cost of products.
Products are American made, though the products are OEM. They strive to discount the OEM price compared to the competitors.
The products are used regularly, there are active surgeons using the products. Expected substantial growth in use of products.
Targeted clients include VA Medical Centers and many other surgeon centers. Business Plan
Company is only 14 months old
As described by the CEO as this is barely the second inning if this was a baseball game.
They are developing a space on the GSA Schedule. Though, admitted it is moving slowly, mostly cause the government moves slowly.
CEO Admitted a part of the challenge is the big name competitors. It's a matter of demonstrating the products are cheaper and compare in qualitity of not higher.
They are not interested in seeking out the newest widget per se. They are looking for the best product vs the costs.
The focus is on orthopedics, though they recognize other sides of the medical business.
Rolling out cost containment ventures, starting in California and will expand upon that. Their concept is to get the private surgeon a vested interest in the company. Personal note: I guess it's like the dentist selling crest as a recommendation.
They will work with surgeons on bringing product idea's to the market. As long as the product doesn't violate patent/copyright laws.
Alliances with distributors such as Bluewater, will help get the product out to the marketplace.
Multiple contracts are in the works which could push the company into the 3rd inning (previous analogy)
He is discussing deploying strategies to provide the lowest cost with the VA. Richard Dutch is involved with that day in and day out. Short Term Goal:
Try and get in front of as many business decision makers as possible
Telling the story, demonstrating the cost and show the difference in savings. Mid Term Goal: (milestones)
Planning is looking at 3 to 5 years out
Though the information is confidential, there are examples where they have saved a hospital system 70% off in spinal equipment.
As a general rule, they feel they can offer 30 to 40% in savings. Share structure per the call
top team returned 1b shares back to the company
additional 6month lock-up on the restricted
They do not want to dilute the shareholders (which include the insiders)
Originally 80%, now about 60% is owned by the insiders. The 1 bil is still in the company and have not been issued, no plans to issue them either. Initiatives to go outside the US is planned and in progress
Committed to long term value for the shareholders. Hints:
Stay Tuned they are close to making announcements for inside and outside the united states. Call Ended
PS: Sorry for the typo's was taking notes the best I could :)