1. Lawsuit-ridden J&J tumbles in annual listing of best global brands — AstraZeneca gets Q2 2020 PDUFA date for breast cancer ADC — Shionogi's antibiotic clears FDA panel vote — See more on our front page news

    Dismiss Notice
  2. Think you have witnessed fraud?Ask a Whistleblower Attorney -- a chance to discuss whistleblower-related legal issues with practicing whistleblower attorneys.
    Dismiss Notice

Bard buys Medafor at "Bargain Basement" Price

Discussion in 'Medafor' started by Anonymous, Aug 24, 2013 at 9:57 PM.

  1. Anonymous

    Anonymous Guest

    Timothy Ring needs to be congratulated for taking Medafor at $6.37 a share ($200 million) considering Bard bought NeoMend for $165 million earlier this year. NeoMend had $22 million in sales 2012 competing in $100 million market. Medafor on the other hand had $40 million in sales in 1.4 billion market. Arista is a diamond in the ruff and ProGel is a piece of coal in comparison. Nice play Mr Ring!

    Medafor has never been able to realize its full potential because of inept management past and present. Just ask any Medafor Shareholder who has been waiting on a payoff for 10 + years. Thers is no doubt they will approve the sale because some of them are to old to wait any longer. The only ones who will truly benefit from this sale are the ones who got all the free shares i.e. the upper management. Make no doubt about it no matter what they say - they have been on the knees begging for a buyer. They found one in Spain last year. Now all they need to do is wipe their mouths and enjoy their money.

    The best thing that can happen for the Medafor Shareholders is to let Bard run the show and get rid of all the Medafor management. Then perhaps the shareholders will be able to collect an additional $2.87 a share or $80 million. Here are some Big reason they need to be done with this team:
    1. The Cryolife debacle - the current ceo makes a deal that ends up costing millions and steals the momentum the sales force had
    2. European Sales have been dismal even though Arista has been approved since 2001. This was the vp responsibility
    3. The national sales manager did one thing right in the beginning - he got the successful reps to share their winning strategies. After he brought in his 2 cronies dumb and dumber, things went down hill. The nsm and his brain trust had to take control of Medafor business by telling distributors who to hire and fire, taking accounts and potential accounts at will. They decided that 1 price increase in one year was not enough so they had another. They would not or could not get a contract out in timely matter. This alone cost Medafor millions and a lot of momentum. None of the above had any OR sales experience or how to sale to surgeons. Wait, they did have a training program -30 min PowerPoint and a good luck slap on the back. The nsm used his influence to make reps sell his on personal products like surgical glasses and multi level travel services for his own gains. This was definitely a conflict of interest that the upper management turned a blind eye on or more likely did not know about because of their ineptness.

    The 80/20 rule ruled at Medafor. The top 10 distributors accounted for well over 80% of the business. The top five distributors were responsible for 80% of this business. They are holes in Medafor business thru out the US. The Medafor management could not penetrate multi major metro areas because they did not have the talent or ability to train reps to be the successful. They were able to get a Novation contract at a significant discount but could not leverage it to gain any significant business. All it did was erode their existing business. Their price increases were justified by a belief that there would be a upfront savings of 20% because there is no open and unused with Arista. This is true to a degree but what they did not understand is the OR review committees did not look at soft savings no matter how much this was emphasized. The price point was now 10 to 30% above the competitors and was shut down before a trial could get started. The existing customers had so much ill will against Medafor because of their increases and strong arm techniques, they limited the reps ability to sell. The price increases were supposed to induce contracts. If handle properly, this would have happened. It did not. Medafor did not get contracts out in timely matter causing further turmoil and painted a big target on their reps. New accounts were lost before they could bring in revenue because Medafor would not change some wording in their contract. Hospitals refused to sign costing millions in lost revenue. Its is true that sells have increased in the last few years but not at a rate that Medafor enjoyed before Dumb and Dumber and the rest of Medafor middle management came a board. In fact this year growth has only been 12% dismal compared to years past. The writing was on the wall - everyone was on the hot seat. Medafor was able get to where there at by riding the backs of their top Distrubutors. They managed to break them!

    Thus we have the reason for the bargain basement deal. The window was closing and the board knew it. The hopes and dreams of a $400 million sale had dried up. Medafor shareholder will accept $200 million. The only chance for the extra $80 million is to get rid of the current management and reverse some of their market moves. Davol would be wise to bring abroad some of Medafor top Distrubutors who know how to sell Arista.
  2. Anonymous

    Anonymous Guest

    Well said, After they did not renew agreements , and took accounts to the house sales were flat at best. Copier sales mentality .
  3. Anonymous

    Anonymous Guest

    Please don't insult Harry and Lloyd with comparisons to those two. Harry and Lloyd are much smarter and a lot taller
  4. Anonymous

    Anonymous Guest

    Neil , Tried to double dip with another company while you still have your contract . Small world little man
  5. Anonymous

    Anonymous Guest

    When you are as great as me you can do what ever you want. How dare you criticize greatness or the one who thinks he's better then god himself!
  6. Anonymous

    Anonymous Guest

    NOW THAT sounds like him . So little man where did you end up