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I still think there was something big that made them change direction quickly on the asset sale. Outside of just the cost basis per unit sold which was putting them in a hole. They divested the part of the company that was hurting them financially. I think something on the Dental front. I would anticipate news on this shortly as they have already been clear on the their venture into Dental. BTW I wouldn't be surprised if this is something someone like Zimmer factored in as well as part of a RTM.
Cool thanks for sharing smoker. Ya I was thinking of something along the same lines. Since it requires magnetized guidance through the body i'm not sure how it would work, but regardless it's impressive tech. Maybe to your point si3n4 could be used as a coating, and for improved detection on MRI.
I've always wondered if it would ever be possible to leverage Si3N4 in nono tech for something like this. I'm curious if they have ever looked looked into it. Not sure how it would work, but seems like utilizing Si3n4 vs. metal would be beneficial if possible.
Magnetic 'metal seed' that destroys brain tumours in ten minutes invented by British scientists
Price action today showing it's hand - looks like conversions are done. I doubt we hang out here in the 20's for much longer. Just my thoughts on what i'm seeing.
3 potential outcomes I see here, sharing my thoughts,
1. Reverse Triangular Merger. Company is setup nicely for this, and another bid (especially at these prices) is very realistic. Competing bids still in play and the lower the stock price goes the more likely this happens.
2. Growth. It may take time to ramp up, but in this scenario they stay status quo and revs, licenses shine. Stock setup for reversal. Stock price may stagger a bit short term, however with Zero debt/COH, current share price reflecting recent offering. Once this is completed, a nice reversal will follow if there is support from sales/deals. Long term this sets up for a BO if growth is there.
3. Reverse Merger. CTL buys Amedica, and goes public with now full control of IP. This is the only scenario i hope doesn't happen, but there is a setup for it if the the CTL deal goes through.
I’d speculate that they may have received more but only for the benefit of the other company to avoid this product from eventually stealing market share. As a company I’d take 10 mill with royalties for the next ten years vs. 20 mill and nothing to show for it. For CTL, they can leverage their strengths and capitalize on selling something superior to like products. Win-win. I would have liked to see more, but been saying for years they should focus on R&D and license. Only 22 employees no way to ramp sales it was clear. They needed to get the product in more hands. The same holds true fore the biomaterial which is their holy grail.. This new avenue will open them up for growth and large deals. Long term I have no doubt, still curious what we see short term as they ramp up.
Likely Dental, but they'll need to ramp up with CTL first per the call. With that said, an announcement on a licensing deal could come anytime.
This thing is going to bottom out and go parabolic, mark it. There is absolutely nothing holding them back from doubling/tripling their growth from where it's been the last two years.
It could happen at anytime since they left the door wide open. They are certainly positioned for it now, but from listening to the call, it sounds like other companies are waiting to see some growth first. Something that could ramp up quite quickly from the sounds of it.
So they basically are turning into a growth stock by monetizing with CTL. Zero debt, more than MC, minimal financing required (and based on very conservative rev estimates) and no more crap financing as a result. I would not be surprised if this becomes a freight train now with CTL. Excited to hear about Dental as well. They retained key IP so they are the world leader now in a biomaterial that is proven and a clear choice. Left the door open as well. I like it.
Why in the world would this have anything to do with if a non compete was enforced? He left the same month that he was hired back at Zimmer while transitioning at the program level. This was well before the CTL arrangement. Not to mention the CTL arrangement would only increase the likelihood of a non-compete. I'd encourage you to look into non-competes and how they are utilized in this industry. Maybe FS can add some thoughts here as well, but this is anything but normal given his position.
Actually in a RTM it would make more sense for the acquiring company to announce the new name since they would reposition them as a subsidiary.
AMDA has not yet announced their new name and will reposition under this new name that is reflective of the breadth of its technology and potential applications as a biomaterials company. This is reflective of a RTM. No better time to announce. Why wouldn't they have announced their name yet? Why so cryptic about it? The whole sell off of spine is indication of something big if you ask me - why else would they do it? They are positioning themselves for growth. They had been cleaning their balance sheet and org for this, and after years of reorganization now finally taking the next step. Zimmer or not, its certainly interesting timing considering what they have said for Q3 and the Alignment of events.
same here man, i'm loading and loving every second. .36 is looking good to me. I'll take lower if it goes.
Absolutely. All points you make are points that have crossed my mind. Also in a RTM, no votes are required, it's easy peasy. Given Amedicas balance sheet and how they have positioned themselves this would be pretty seamless now I would assume.
It's not unusual for the Target company to make concessions to sell assets or parts of its business as part of their closing conditions with the acquiring company in a reverse triangular merger. In our case we have no idea what those conditions really are with the entity that ends up acquiring Amedica, however I found some interesting corrolations with the Bayer-Monsanto merger.
Bayer Monsanto Merger – A Shiny New Example of Today’s Hot New M&A Market
You certainly weren't wrong about them clearing their inventory.
Isn't tomorrow 81 days?
CTL could get access but doesn't sound like exclusivity. Amedica is monetizing the biomaterial. It's only existing inventory and spine products inc (valeo, Taurus, preference) to CTL if I read it correctly.
Looks like a setup for a triangular merger to me. I doubt someone like Zimmer would be utilizing Amedica under their current name as it exists today. Amedica Divesting Current spine portfolio and inventory to CTL as an exclusive OEM of current spine product w/Amedica (as they stand today) the manufacturing, R&D shop for the biomaterial. Amedica retains IP/patents etc. This is going to get very interesting. I'm interested now to hear about Dental .
The loi remains clear:
“The two companies will begin negotiating the definitive agreement once it is satisfied that all necessary and appropriate regulatory approvals can be obtained without significant expense.”
“will lead to faster and more widespread market penetration of silicon nitride, positioning it as the biomaterial of choice for medical applications.”
This is about a paradigm shift in the orthopedic landscape if you ask me that isn’t years away anymore, but imminent. The value here is in the material, science, global market, quality of life, and patents. You have to dig deep to find truly groundbreaking innovation in this space and there is a very high price to pay for that.
Sonny’s loan payoff/Zimmers mitigating the 483 all within the same timeframe? I dunno, but something tells me this roadmap is coming to an end shortly. I am seriously optimistic a triangular merger could be in play here, but regardless whoever’s owns this, has the market presence, and sales force behind them will be difficult to compete against.
There is a very real possibility that this has been the cause of delay. The timing of it all certainly lines up. I'm with OMID on this. I think they could have already been granted PMDA pending the 483. These things are serious, after all It thwarted the Akorn merger due to failure to meet closing conditions - Totally different story here, but could indeed be a part of the closure. I would think they would want the announcement to be clean and free of any communication concerns if it's truly connected.
I think a deal is very close, I think I last mentioned sept - oct. with the reason being because Sonny loan will be paid off by October - however an announcement could happen before thats paid off, and I would expect that to be the case. Folks are showing their hand in spine, which means we are off to the races. Zimmer who prides themselves on innovation - well we'll find out soon enough if they plan to unveil some truly innovative materials!
My thoughts exactly. M&A director looks like they would be working with IT Migrations. So basically after a company is acquired transferring databases, clientele, IT systems, operations etc.
There's not a lot they can do to lock down job reqs in this case so you can put two and two together. In addition they'll often say there's an NDA surrounding the project for those that interview. Keeps things wrapped up without getting leaked. Bottom line there is an M&A coming, and these hirings paint a clear picture, it's just a matter of when.
Old Article but found this quote interesting nonetheless from Amedicas partner Morgan.
"Moreover, Morgan’s Technical Ceramics business is embracing the ‘metal free concept’ for dental implants that is widely acknowledged as the next phase in dental implant technology, where its industry-leading expertise in ceramic materials is enabling the business to meet future demand."
Morgan Advanced Materials Delivers Comprehensive Supply Chain Solution for Medical and Dental Implant Market
"The benefits of this new device include the potential for bone in-growth as well as on-growth, while a central lumen gives the surgeon flexibility to add bone graft, if needed."
Isn't this one of the reasons why Den novo exists? There have been several revisions made to FDASIA over the years to account for products exactly like this.
Not to mention Autograft is optional, and In addition I believe was mentioned as a predicate which was the reason it was rejected to begin with. So they have a clear path to submit. 24month data, plus Europe as well. Initially FDA clearly stated 12mo wasn't good enough, so they required 24month data - this wasn't the issue - it was the predicate If I remember correctly.
Find it interesting that both Paul Sendro (Amedica Area VP) and Dave Bohrer (Amedica Area Sales Director) lock down previous experience but are linkedin to same folks at Zimmer and Dentsply.
Tick tock
Chances this could be a reverse triangular merger?
Was looking at this Patent again. Found this interesting,
"In some embodiments and/or implementations, improved materials may be created that provide for not only osteoconductivity, but osteoinductivity, which heretofore has only been possible with hydroxyapatite, rather than the silicon nitride-based materials disclosed herein. Materials with osteoconductive properties allow for ingrowth of bone-forming cells for mature bone formation. Materials with osteoinductive properties, by contrast, allow for stem cells or undifferentiated cells to differentiate into mature bone cells."
"This allows for a number of applications. For example, in some such applications, treated silicon nitride materials, such as silicon-yttrium-aluminum-oxynitride (SiYAlON) and/or silicon yttrium oxynitride (SiYON) materials, or materials comprising a glaze of SiYAlON and/or SiYON, may be used in place of hydroxyapatite, which is a much weaker material. By providing a stronger material that has the osteoinductive characteristics of hydroxyapatite, various coatings, putties, and/or dental applications may be manufactured that may provide improved performance relative to hydroxyapatite. To be more specific, one or more of the materials disclosed herein may be coated on various implants, such as hip stems or rods, to assist with bone healing. Similarly, gels, putties, or other similar relatively viscous, yet fluid, compositions may be formed using the novel materials disclosed herein provide an additional source of bone to facilitate healing, enhance bone regeneration, provide osteoconduction and osteointegration, all while providing improved strength and toughness characteristics. Thus, the coatings referred to herein may be applied to biomedical implants, such as rods, screws, pins, and the like, or may be applied directly to bone, defects/cracks in bone, or otherwise where bone growth is desired."
US9925295B2
In contrast if you look at Mobi-C "The outside of the metal plates are sprayed with a coating (hydroxyapatite). This coating helps the vertebrae to grow and attach to the metal plates for long term. stability."
Also interesting, Dental applications are all over this patent. Something Amedica clearly says they are developing and already partnering with Dentsply on.
It's likely tied to an NDA in Australia - no NDA in Brazil. Not sure why else they wouldn't disclose. Same reason they haven't elaborated on their Dentsply partnership via PR, however it's obvious there's activity going on behind the scenes.
My guess right now is that Zimmer buys them outright and creates exclusive cross licensing deal with Dentsply. Dentsply in need of new tech, Dentsply’s stock closes at five-year low
Total speculation but I’m all for having some fun with it.. As of right now I’ll guess sometime between Sept-Oct announcement. I like some of the things I’m seeing here.
Regardless of how this shakes out, not one person I've talked to (and i'm not just talking about ihub) has been able to explain the move of a sr.level employee with that knowledge to a direct competitor within the same month (to another sr. level position/sales nonetheless) without a non compete. All this while Amedica sending a clear message/strategy to sell this IP. If i'm another company buying outside of Zimmer, I'm not too happy about this. And even if nobody is buying, this doesn't make sense. In Utah I believe it's one year max to protect the goodwill of the business. Unless of course Sonny just shook hands in good faith and said go about your merry ways and enjoy. haha
To me it makes more sense that either a one way or mutual NDA was signed prohibiting this from getting out beyond the m&a team until there is official announcement.
I definitely see some connections between dentsply, zimmer, and Amedica outside of what we already know. I need to do more digging, no hard evidence, just some things i'm seeing that lends me to believe there's activity going on. If I know more I'll share, but the idea of cross-linking arrangements makes a lot of sense here. BTW, Zimmer isn't just adding a new spine team - look at Dental as well.
It's telling me some 'event' will happen between now and October before that loan is paid off, thus no longer needing this safety net.
This was actually the first thing that stuck out to me in the filing. I have the same questions. Why October specifically? I guess they'll no longer need to worry about it.
You might need to check to make sure your flux capacitor is working correctly Marty, because last I checked were still in the month of August.
May 2015:
Silicon nitride for total hip replacements
July 2015 Loi agreement.
But why would LDR be interested you say? Just read the findings against coated Si3N4 on cobalt, chromium, and molybdenum. What is Mobi-C made out of?
absolutely not, at least not in my experience. These companies protect their IP. Maybe Zimmer and Amedica are just beer buddies.
Let me ask Zimmer, "Hey Zimmer I'm running a study on my own device, will you send me one of your samples so I can dissect it and run some tests? lol.