those in ENT - what's up with Intersect?

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what kind of info is there regarding the sale of intersect ? ive heard most of the major players want to buy them, but are they selling? what is their target valuation? ive heard they are hiring a full direct salesforce.
 


The VC's (KPCB, US VP, Medtronic Ventures, and PTV) that fund this company may be inclined to find a suitor, sooner rather than later, unless the 2.3% med device is repealed. As for a valuation, that is somewhat difficult. Let's say they have a run rate of 7 million in sales with a 10X multiple the company would be acquired for 70 million. That is very low in my opinion, but on the high side of the multiplier for current acquisitions. The technology is worth more than that, as they don't have many sales personnel. When you factor in the additional HC, I think if the company gets sold now, the price would be around 275 million. If their CEO (Lisa) is smart she'll wait two to three years, when the company will be worth 1 billion plus. Once again, it really comes down to the VC's, and if they're determined to sell.
 








Good technology, no competition, easy to use product that docs want. The problem: Price. The propel stent is selling for about $700 per stent. Realistically a doc could use 4 on one case, if they put them in the frontals (off label) and ethmoids. This product is a drug coated resorbable steroid coated sinus stent, being sold as an "implant" so facilities can seek reimbursement. However, reimbursement has been elusive. Medicare will not reimburse for it and private payers are starting to follow suit. The sales team seems to be leading with a reimbursement model that is flawed. The product would have a much better chance of high and fast growth if it were priced MUCH lower. This product is not really an implant and will be classified as such very soon. They have a new stent in the product pipeline for use in the ENT office, coding may be attractive and docs will buy it if they can make money using it.

This company has a great product, but probably will not be acquired because they think they can get wide use of their current stent at the current price (doubtful). Surgery Centers are not going to touch this product at its current "lack of" reimbursement. If the office based product launches with a realistic price and/or reimbursement all of the big suitors will come back with their check books in hand. The science is sound, this product is here to stay. Who will sell it, where will it be used, is it an economic winner or loser for HCP's.??? We should know in a year or so.

Peace
 


Ha ha! This thread makes me laugh. Came up with the idea of developing nasal stents for ENT ten years ago and presented it to Ethicon management. They crapped on the idea and said it would never work. Didn't even bother patenting the idea. Now they will pay $300 million to buy this company, and then screw it up like Acclarent. Typical JNJ. Some things never change.
 




This Company is desperate. Every day is like the end of the year. The reps get calls every day from their managers asking them to call hospitals and BEG for orders. Doesn't matter that they have unused product on the shelf good for the next 3 months. If you are an "expansion territory" don't be surprised if you can't get a hospital to order because they have so much in house already. Utilization going down due to reimbursement and docs being more selective than they were when product first came out. Heard that the "dead pool" of reps increasing. Look at the reputation of the upper management guys b4 you decide to join this co.
 






How does a company like ours that has a great product allow a f'n a-hole like Nick Freeman to stick around? What a douchebag micro-manager. Maybe he has something on Earnhart like hooking up with her on one of her wine drinking drunk binges!
 




Little Birdie told me we might not have to worry about Freeman much longer. Seems DOJ does not like it when people push off-label promotion of Propel and we all know he loves doing that! Wish I had thought about calling them for the whistle-blower money!
 



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