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CryoLife Inc. Message Board

  • dlhild Nov 15, 2013 8:24 PM Flag

    Risks to CRY's BioGlue Market:

    This is just my thinking. I admit up front that I don’t know much about Texaxis Medical. I suggest though that you go to their website and look at their ArterX product. It looks, walks, and talks like BioGlue, at least that is my takeaway. So far I see no evidence that Tenaxis is marketing this product in the US market, even though they do have FDA approval to sell it in the US. It seems to me that if Tenaxis wants to get top dollar for their company they need to first ‘prove it up’ in the marketplace. If I’m right about this, this means that Tenaxis is going to have to both start selling ArterX in the US marketplace and more importantly demonstrate rapid multi-year US YoY sales growth. This is difficult, but not impossible. I have no idea what the relationship, if any, is between GS and Tenaxis CEO Ronald Dieck (RD). However, GS would be the perfect horse to ramp sales for a company like Tenaxis. He has a proven track record of sales growth at Medafor. If RD put GS in charge or ArterX sales, I think SA would start having heart palpitations. If GS were to do this, I would guess he would put together a group of highly trained and highly incentive driven group of distributors. Then, if Tenaxis could demonstrate rapid YoY sales growth their ArterX product may then take on serious value. Since Bard bought Medafor, they (or another company) may then find that adding ArterX to their product lineup would be a smart thing to do. I doubt GS would be interested in something like this, but if he were to show interest and then take this position, and investment in Tenaxis (if it could be made at a reasonable valuation) would likely be a smart investment. In any event, at some point I would expect more direct completion for CRY’s BioGlue product, and that this competition may slow sales growth and compress margins, at least in the US. Note too that CRY seems to be working hard at growing sales in international markets. Do your own due diligence.

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