SiNtx Technologies Inc (SINT)

[boston745]

Previously i wondered about why Zimmer Biomet stopped innovating Spine in-house and postulated that this was because it was eyeing innovation externally. This was based on a comment from ZimVie CEO and the fact that ZimVie announced it was dumping its Spine business to a hedge fund like the products are obsolete. This deal closed April 1st.

So I think, the underlying concern that we had with our portfolio was we haven't innovated since the acquisition of LDR, and we needed to continue to innovate the portfolio specifically to Mobi-C. So there's a couple of things we're doing there.

ZimVie Inc. (Nasdaq: ZIMV), a global life sciences leader in the dental and spine markets, today announced it has entered into a definitive agreement to sell its spine business to H.I.G. Capital, a leading global alternative investment firm.

Previously I stumbled onto this quote pertaining to how J&J does exactly that, eye innovation externally and acquiring it rather than investing inhouse.

In Figure 1, you can see J&J makes most of its money from pharmaceuticals and medical devices. They have grown these two sectors over the past decade through major capital investments in acquisitions and people development. Instead of investing in developing technology in-house, they use their size to acquire smaller companies who they believe have a promising trajectory in the healthcare space.

Dr. Bal confirmed during a 2021 conference call this very thing when he said that big companies look to small companies to develop/derisk that IP and then acquire it.

These are risk-averse companies that look to smaller companies like us to develop an idea, uh, and, uh, de-risk it, so to speak, and then buy that technology.

Howevever, as shown by Eli Lilly and its collaboration with Amylin, these things do not always have a straight path. Eli didnt acquire Amylin in the end, it "traded" Amylin with Bristol Myers and instead acquired Bristol Myers collaborator ImClone (2008) with Myers acquiring Amylin (2012). What this shows is that these relationships do not always take a straight path. Thus, Zimmer Biomet will utilize Sintx for its strategic benefit, whatever that might be.

Quote Sources:
https://www.fool.com/earnings/call-transcripts/2023/11/02/zimvie-zimv-q3-2023-earnings-call-transcript/
https://investor.zimvie.com/news-releases/news-release-details/zimvie-announces-definitive-agreement-sell-spine-business-hig
https://d3.harvard.edu/platform-rctom/submission/a-family-of-companies-johnson-johnson/
https://web.archive.org/web/20240408152758/https://sintx.com/wp-content/uploads/2021/03/Investor-Call-Transcript-033021.pdf