Excellent post mymailbox.
Having had a couple of replacements I would not like 1) extra visits for MRI's 2) trying a new thing.
I assume surgeons are not crazy about being retrained. A disruptive technology would help people like me walk better faster, and I don't see that.
A couple of points based on my technology and financial background; 1) CFMS has 10% of the revenue of ZBH a serious issue for a technology company selling into a crowded market. 2) even if this was a "disruptive technology" this is a market that is slow to convert.
Thanks for the head-ups on CFMS I’m long on Zim (10+ yrs). CFMS is an interesting one.
I scanned the CFMS’ IPO prospectus to gain an understanding of its business, advantages/disadvantages of its products over the competition. Paid attention to factors influencing the likelihood of its products to gain traction in the med device market.
Customized artificial joints vs. off the shelf is appealing, yet scanning the prospectus dampened my initial enthusiasm. Per the prospectus, CFMS’ artificial joints, although customized for the patient, still requires a fair amount of surgery: 1) For the actual implantation of the new joint and 2) removal of bone tissue and other tissue to ensure a good fit/outcome. The need for this 2nd surgery is somewhat disappointing given the customization of the artificial joint. Off the shelf artificial joints also require both types of surgery. The advantage to CFMS’ customization approach is that customization should reduce the extent of bone tissue removal. Also CFMS' medical procedure requires 2+ CAT scans (to drive the customization process). CATS not required by the off the shelf approach.
Some have described CFMS’ approach as “disruptive.” Based on what I gleamed from the prospectus the use of the term is somewhat hyperbolic. CFMS’s customization approach has its advantages and will probably gain traction over time, but it certainly isn’t going to disrupt the industry.
I agree with you that another company might consider buying CFMS if it is able to demonstrate its value in the market place.
On a less important point about 30 million shares of restricted CFMS stock is eligible to hit the market after the 180 day lockout.(From the date of the IPO?) If holders sell this stock the share price might take a temporary hit. Might be a buying opportunity.
I’ve got CFMS on my watch list. Looking forward to the upcoming earnings report. I hope your enthusiasm/investment pays off.
“We are very proud of the progress we have made over the past year and with the tremendous value that ConforMIS’s intellectual property, both its developed technology and the corresponding patent rights, has added to the company,” said Philipp Lang, MD, MBA, CEO and Chairman of the Board of ConforMIS. “Our patent portfolio provides ConforMIS with great opportunities to develop its technology in the market, and we will continue to pursue additional intellectual property rights and further develop our patent portfolio as we move forward.”
Since its founding in 2004, ConforMIS, the fastest growing orthopedic implant company, has built and brought to market the only full line of patient-specific implants and instruments for the treatment of knee osteoarthritis, a $7 billion global market. In 2010, the company launched their second generation personalized partial knee solutions, the iUni G2 and IDuo G2. In 2011, ConforMIS received 510(k) clearance from the United States Food and Drug Administration to market the the iTotal CR Knee Replacement System, the first and only patient-specific total knee implant on the market. L