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I think you are missing the point here.
It’s all about market adoption.
Probably because that was what was available. We oftern have research residents contact us wanting to get our products for free so they can do some sort of white paper for their classes.
We also all need to switch to electric cars to prevent pollution. But, we won’t see that for many years to come! It’s all about the market. Doesn’t matter how good you product is if you don’t have consumer confidence and traction.
That IS the bottom line.
From industry experience. PEEK costs about $200 per cubic inch. You can make 2 PLIF cages from the 1 cubic inch. So plus machining costs of about $80 per cage. All depends on volume of course.
A SiN cage costs about $450 to make. And that is very high in the industry. PEEK PLIF, TLIF cage costs about $180 to manufacture.
Also. Sale Commissions range from 25 to 40%. So even after sales cost you are still going to make way more.
So if AMDA sales for Q-2 were $2 million. That equates to about 500 cages sold at a average price of $4k a cage. At the 25% margins they are now going to receive ~$562.50 per cage sold to CTL. So revenue for 500 cages will be $281,250 for the quarter.
How is the company going to survive on that? Sounds like a recipe for disaster.
Could also stop the spread of AIDS Lol
They can’t.
So since they are now a OEM, I expect that revenues will now drop in the next couple of quarters and may start to come back in 2019 as CTL would start to ramp up.
Before they were selling cages at around $5000 each to the hospitals. Now they are an OEM I imagine that they would probably sell the cages at about $650 a cage CTL. Not much profit margin since it take AMDA about $400 to manufacture each cage.
FYI they wash scrubs in a Cidex solution with detergent after each use. Simple and cheap solution.
Sure Cidex. And it’s a lot cheaper. Lol
Well good luck with that. I’m sure the multi million $ company’s making scrubs would have done this way back if it was feasible.
Really. So you are saying that regular commercial grade silicon nitride in not anti microbial? Amedica has a different formula for Si3N4 that magically makes it anti microbial?
And I highly doubt Amedica would then decide to go into the clothing line. Would cost millions to get up and running.
Sure I agree. But anyone can make those filters with SiN inside. Like I said. You can’t patent something which naturally exists and is already used in multiple industries. If I discover that you can boil water, doesn’t mean nobody can use water!
What patent. A SiN filter?
Ok. So 3M today can make filters impregnated with SIN and can patent it. That’s my point! Anyone can take SiN and do whatever with it. Except for the few patents amda has.
Amedica has a patent on filters?
It’s an exclusive deal. Why would CTL buy their spine line if they can’t be the only supplier.
CTL says they are exclusive. Not too sure how else to explain this !
But ANYONE can do that with SiN.
3M who makes filters can take SiN and put it in their filters! And they know how to make filters.
Makes no sense. Besides I’m sure the agreement specified exclusivity so AMDA can only sell to CTL. in return, CTL would not be allowed to resell to other spine company’s.
How do you know?
You have not been correct with the Zimmer prediction
No it is not for sale. And the Zimmer deal never was!
Correct. They are basically a manufacturer. No different to other OEM companies. Be difficult to grow revenue with this model. Going to take a long time.
CTL has an exclusive deal with AMDA. why would they sign up other company’s as OEM? they will be screwing themselves.
CTL just said they are the ONLY supplies of spine SiN implants.
America is now basically just a manufacturer of spinal implants with some IP. It’s going to take years for anything else to come out of Amedica.
Sorry. The stock is not going to go anywhere for a very long long time.
I’m not too sure what they are actually trying to claim with their patent. So they made a powder. Big deal.
Just because they found anti viral properties, doesn’t mean they now ‘own silicon nitride’. Like saying I discovered that alcohol kills germs, so now I have the exclusive right to sell alcohol for killing germs?
Amedica investigators led by Dr. Giuseppe Pezzotti, a professor at the Kyoto Institute of Technology (Japan) and consultant to Amedica Corporation, have developed micromeritic silicon nitride powders as well as bulk surfaces that are effective against several strains of commonly prevalent viruses - including Influenza A virus (H1N1), the virus responsible for the 2009 flu pandemic. The research has also identified the surface chemical properties of silicon nitride that contribute to the observed virucidal effect.
Anyone can make silicon nitride products that are used in other industries. Been doing so for years before Amedica came along like in the aerospace industry. Ceramtec already makes a lot of SiN products like bearings etc.
So there is no advantage to Amedica. If fact, they are in a disadvantage as they have competition in the commercial field.
I can submit a patent for a car that flies. Doesn’t mean it will work. So, just saying it’s easy to submit and get a patent, but getting FDA approval and doing clinical trials is another story. You are talking about $25-50m for a drug approval or their anti microbial claims.
So the deal smells a lot like desperation to me and I don’t think they had much choice. They were not gaining any traction in sales and no outside deals. Probably better to have someone else see if they can make something or it.
No. No surprise. They have been shopping the company around for a while. They have always wanted to do the OEM model. There is a slide on this on one of their presentations. It does make some sense for them to become a OEM, if they had multiple customers. Some of the sales reps commissions are as high as 50%, so when you run the numbers, it’s not a bad business model
However, they could never land a customer except now. And it’s a exclusive deal! So, don’t see much revenues going forward relying on one company’s distribution.
That Kyocera press release is 5 years old. The only reason AMDA went to Kyocera is that they wanted a second supplier in case their facility had a catastrophic failure. It makes business sense to have a second supplier.
Good point. Zimmer gets its femoral heads from Ceramtec. Why would they want to go ahead and start a highly complex and expensive endeavor of manufacturing SiN heads? Makes no sense.
Obviously they can’t get the spinal implant line now!
There is absolutely no reason why Zimmer would buy Amedica now. They sold their spine line to another company. Wasn’t the whole idea that Zimmer would be the only player in the SiN space!
All the remaining SiN ideas are going to be a clinical trail. So that is still years away! ANDA always wanted to be a OEM, and I guess they finally achieve this.
I believe that they are going to scale down operations and continue to support CTL and dabble in other projects.
Stock won’t be moving for a loooong time. Would not surprise me if they go private again. Makes sense at this point.
Well I guess Amedica left the door open for other opportunities which makes some sense.
Also makes sense to keep manufacturing in SLC. it would be a huge endeavor to move the manufacturing. Way too costly to move all that heavy equipment and furnaces.
As I’ve said in the past. Zimmer was never in the running. Amedica met with them back in 2013. Never went anywhere. Also meant with Medtronic as well. Same result.
Yep. Mentioned this a while back. Sonny met with Daniel Chon a while back. Obviously could not mention company.
Will take a look at the book. Thanks.
So I think we need to look at reality here. Just because Amedica made deals with different company’s, doesn’t mean that they will materialize. Most of these deals never work out. If Amedica was making headway with these other company’s, we would have more press releases, 510k’s would have been submitted, images of supposed prototypes in press releases. But we hear nothing.
All these deals were just Sonny talking points at Amedica’s quarterly reports to make it seem the company was doing great. It’s all bs and smoke and mirrors.
They have 2 people in their engineering department. It’s impossible to make other things happen let alone keep up with the general maintenance of keeping the product line maintained.
5x sales is a bit on the high side. I was generous because of their technology :)
I didn’t say they were getting sold. But I think that Titan and 4web are a very likely potential sale due to their product and sales volume.
Much more likely than Amedica.