What do you think will happen to the Carlsbad facility? Novartis doesn't know how to run a hemepath lab.
Genoptix reps are no longer needed. Novartis has their own oncology sales force. They will just combine the pharma rep and lab rep role into one.
I have a friend with Novartis Oncology, they have so many reps in oncology right now their is talk about letting some of their onc reps go, how can they support the added GXDX reps in the field? they have about 4 reps per zip code right now in onc, now they just added a fifth, wow
With all due respect to my friends in pharma, the comparison of what Genoptix reps do on a daily basis vs what pharma reps do is completely ludicrous. The posts on here today regarding the Novartis deal have reaffirmed my belief that the vast majority of people who post on these boards are either stupid, naive or ignorant of reality.
The integration of Genoptix & Novartis should be seemless and unique. Genoptix will fall under the MDx division of Novartis. As an integrated unit within the Novartis Pharmaceuticals Division, Novartis Molecular Diagnostics leverages the company's strengths in pharmaceutical research, development and commercialization. They work with the Pharmaceuticals Division at the earliest stages of drug development to identify opportunities where they can help improve patient care and add value to society as a whole. The synergy between the companies is companion diagnostics. This synergy requires unique sales skills between laboratory sales personnel and pharma sales personnel. The trend currently is for large companies with pharma and clinical trials research (and with large balance sheets of excess cash) seeking CLIA labs to optimize their pharma commercialization. Unlike acquisitions in the past by LabCorp and Quest, Novartis (like GE and Clarient) are changing the paradigm on acquisition implementation. It would be unwise for a competitive laboratory to demonize these acquisitions since Novartis and GE are multi-billion dollars companies with the means to infuse more capital into the labs with the expectation of greater growth. According to industry reports, this trend of acqusitions will continue in 2011. Additionally, executive management is being retained in these acquisitions, unlike the former LCA/Quest of the past. If I was a sales rep at Genoptix or Clarient (which I am not), I would be excited about a new future and the potential of new products to sell via the large acquiring company.
One problem. Do you think Novartis is going to pay the genoptix reps the commissions they are use to getting for top performers. Their is no way in hell. Novartis is going to pay a rep 300 or 400k so If I were a rep I would be looking for an exit in next 6 months. I have seen to many of these ventures and the rep always gets the short end.
They will be getting what they deserve instead stealing from lab and doctors for years. Parasites and whores.
Shows how little you know about the lab industry and sales reps because Novartis is not used to paying its reps the kind of money that Genoptix has paid in the past. Novartis is used to paying their reps 65K to 90K bases plus 20K bonus and they just laid off a ton of reps. They will see no reason to pay lab reps so much more. Expect a pharma influence.
Hey at least the reps will make some dough on their oprions. I think most reps have 10,000 shares at about $15.00 @! Thats a nice amount of dough. And believe me they will not have the pharma reps sell the lab services. However, they will cut the commision programs etc. Also The drug companies are looking for ways to supplement their income since the US Gov't has been attacking them for years. It is going to be interesting if this deal makes it through.
i cant wait to tell my buddies at novartis what most of the genoptix mgrs think about pharma and pharma reps, "Farewell and adieu my fair ladies, farwell and adieu my ladies of Spain"
Nice award of stock Tina....22,500 RSU's when you knew deal would go down. FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 OMB APPROVAL OMB Number: 3235-0287 Expires: February 28, 2011 Estimated average burden hours per response... 0.5 1. Name and Address of Reporting Person * Nova Tina Susan 2. Issuer Name and Ticker or Trading Symbol GENOPTIX INC [ GXDX] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __ X __ Director _____ 10% Owner __ X __ Officer (give title below) _____ Other (specify below) President and CEO (Last) (First) (Middle) C/O GENOPTIX, INC., 1811 ASTON AVENUE 3. Date of Earliest Transaction (MM/DD/YY) 12/16/2010 (Street) CARLSBAD, CA 92008 4. If Amendment, Date Original Filed(MM/DD/YY) 6. Individual or Joint/Group Filing(Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 12/16/2010 A 22,500 ( 1 ) A $ 0 75,498 D Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Nova Tina Susan C/O GENOPTIX, INC. 1811 ASTON AVENUE CARLSBAD, CA 92008 X President and CEO Signatures /s/ Tina S. Nova 12/17/2010 ** Signature of Reporting Person Date
Novartis will keep things status quo for about a year. Unlike GE/Clarient however, they will cut down the commission programs. Remember GE reps make over 200k selling their product lines. Novartis reps make 80-100k with theirs. Thing is Novartis may be a large rich pharma company but they do not have the IT Support and product lines, and Nuclear Medicine as well as imaging technology as Clarient. It will be hard for other labs including Genoptix to compete against GE Clarient once they get moving. I am waiting to see if my company Siemens gets into the fray. I think they are more likely to but a dying technology company that has a good product but ass backwards managers, ie APERIO.
