J&J Bought my company

[FreeFlyNole]

Interesting times for sure. It's been a hard road to get here, it's good for the technology to get some heavy funding behind it. It really is a procedure that should be the standard of care for the treatment of GERD. They have the muscle to force it into the market a lot quicker than we could with the limited resources of VC funded a start up.

I'll most likely stay through the transition 2/3 years and then go do it again. It's nice when one of these deals goes right.

This is my fourth start up, I've had two pretty good successes, one neutral and one flop.


Article from The Street:

CINCINNATI, Feb. 17, 2017 /PRNewswire/ -- Ethicon, Inc. today announced a definitive agreement to acquire Torax Medical, Inc., a privately held medical device company that manufactures and markets the LINX ® Reflux Management System, a novel minimally invasive device for the surgical treatment of GERD. The acquisition of Torax Medical will enable Ethicon to offer patients a safe and effective alternative to the anatomy-altering laparoscopic Nissen fundoplication surgical procedure. 1

This LINX ® Reflux Management System is a small implant comprised of interlinked titanium beads with magnetic cores which augment the body's natural barrier function to prevent reflux. LINX is currently used by physicians in over 300 hospitals in the United States and Europe. This acquisition is consistent with Ethicon's strategy of advancing innovation and investing in areas of unmet medical needs such as esophageal health. Financial terms of the transaction have not been disclosed. The closing of the transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to close during the first quarter of 2017.

 

[EveryoneBleedsGarnet]

Didn't read, but congratulations. How much did you own and how much did it sell for?

 

[FreeFlyNole]

I have a decent amount of shares, they final price per share won't be announced until the deal closes, but somewhere in the neighborhood of $3.

I sure as hell won't be quitting my day job, but if they end up vesting all my shares it's a couple of years salary.

 

[ericram]

Good luck in your forced retirement.

 

[FreeFlyNole]

Good luck in your forced retirement.

I have no illusions of making a career at J&J, like I said I'll stay through the acquisition and right up until they start crushing comp.

 

[F4Gary]

Well, I personally am glad you got on with Torax. The LINX device is everything you said it would be.
I hope this is a big advancement for you, either with J&J (I do own a little stock) or as a great stepping stone to bigger and better ($$) positions for you.

 

[rhurner]

Happy for you Free!

 

[RangerNole]

Congrats and glad you have a plan for the J&J management. Have heard good and bad about them; but they are a monster company and it is just a matter of time till they figure out some cutting plan that may or may not include you.

 

[goldmom]

I have J&J stock. Congrats Free, hope you got paid!

 

[kj9127]

I had the fundiplication done around 35 years ago. Worked beautifully for about 2 years (no reflux at all, regardless of what I ate), then stopped working at all.

 

[DanC78]

Nice job, Free!

 

[FreeFlyNole]

I had the fundiplication done around 35 years ago. Worked beautifully for about 2 years (no reflux at all, regardless of what I ate), then stopped working at all.

That has been the goal of our product. Fundoplications fail at about 1% per year, ie 10% at 10 years 20% at 20 years. It comes with a suite of side effects so a lot of GI's and PCPs don't want to refer their GERD patients because you have to re-arrange the gastric anatomy and often the side effects are worse than the symptoms of GERD.

Because you wrap the fundus around the esophagus it's a one way valve made of tissue, and with time and pressure tissue will often eventually fail.

Our device is more physiologic, it just reinforces the failing sphincter.

If you are still symptomatic I know every surgeon in Florida, actually the US who focuses on revision Nissan surgery, I'd be happy to put you in touch with someone who is an expert who could re-do yours. They could take it down and put my device in but they would have to follow you in a registry as it hasn't been formally studdied on folks who have had a nissen taken down yet.

 

[FreeFlyNole]

Congrats and glad you have a plan for the J&J management. Have heard good and bad about them; but they are a monster company and it is just a matter of time till they figure out some cutting plan that may or may not include you.

Again this is my 4th start up over all, so I have no illusion that I'll end up at J&J for 20 years and a gold watch. I work with a great group of guys and I have been with some of them for 2 and others for 3 companies. We are the guys you hire early in the commercialization stage when a technology doesn't have insurance coverage, CPT codes or true market access. This product has 2 of those three things now, I'll probably stay through the transition and until they have 100M plus in covered lives and $100M in annual earnings, 2/3 years, by that time I will/we will have found another early one to jump into with both feet.

I learn more at each of these. I manage 1/3 of the US for this company I managed 1/2 for the last company I was with. So each time I get a little better look under the hood of these M&A deals. On this deal I was the liaison between their VP of emerging technologies and our Key Opinion Leaders and put together several key meetings to move that along which is super valuable experience.

When the technology is more established they will hire professional middle managers to do my job at a lower price, and I don't blame them, hopefully by then I've found another shinny new trinket to sell.

Over all I've been happy in Medical Devices and especially in this little niche that I've somehow found myself in.

You'd be surprised, we have a bunch of former military guys here, of the core team of I'd call it 10, 7 are prior service. For the most part you can count on the military guys to all pull in the same direction and work hard without supervision.

 

[FreeFlyNole]

Well, I personally am glad you got on with Torax. The LINX device is everything you said it would be.
I hope this is a big advancement for you, either with J&J (I do own a little stock) or as a great stepping stone to bigger and better ($$) positions for you.

I'm glad it's worked out so good for you Gary. I've had 5 personal friends get the device so far including you and they have all had good success with it.

It makes it easy for me to sell something that I would fully encourage my own friends and family to get.

Again, I won't get rich from this but it's a nice pay off for 3 years of 80 hour work weeks and 75% travel. All the while battling a medical industrial complex that fights hard to keep the status quo.

 

[kj9127]

That has been the goal of our product. Fundoplications fail at about 1% per year, ie 10% at 10 years 20% at 20 years. It comes with a suite of side effects so a lot of GI's and PCPs don't want to refer their GERD patients because you have to re-arrange the gastric anatomy and often the side effects are worse than the symptoms of GERD.

Because you wrap the fundus around the esophagus it's a one way valve made of tissue, and with time and pressure tissue will often eventually fail.

Our device is more physiologic, it just reinforces the failing sphincter.

If you are still symptomatic I know every surgeon in Florida, actually the US who focuses on revision Nissan surgery, I'd be happy to put you in touch with someone who is an expert who could re-do yours. They could take it down and put my device in but they would have to follow you in a registry as it hasn't been formally studdied on folks who have had a nissen taken down yet.

I appreciate that. I have been using omeprazole for a lot of years now. It is effective, but you have to worry about the side effect with that. I live in middle Tn now and use Drs in the Franklin/Nashville area. Any suggestions would be appreciated.

 

[bigmamanole]

I appreciate that. I have been using omeprazole for a lot of years now. It is effective, but you have to worry about the side effect with that. I live in middle Tn now and use Drs in the Franklin/Nashville area. Any suggestions would be appreciated.

Same here, I am in the Dothan, Al. area.

 

[bigmamanole]

Just found Doctor in Albany, GA.

 

[F4Gary]

I appreciate that. I have been using omeprazole for a lot of years now. It is effective, but you have to worry about the side effect with that. I live in middle Tn now and use Drs in the Franklin/Nashville area. Any suggestions would be appreciated.

Same here, I am in the Dothan, Al. area.

I got the LINX, thanks to Free, to get off omeprazole. Fundiplication was not an option because you can't burp or throw up. Blue Cross denied me 3 times. Then Free tried to get me in a trial program. I didn't have it bad enough. Then Free tried to get it for me as a training candidate. Didn't work out, so I just decided to wait for Medicare as they would do it. Then Blue Cross came to their senses and approved the device. I got it last August and haven't taken an omeprazole since. I highly recommend it, and I can't thank Free enough.

 

[FreeFlyNole]

Just found Doctor in Albany, GA.

Chris Smith in Albany GA is great, or Bill Richards in Mobile Alabama. I was with Bill today. Both are well regarded and well published. Chris has done about 150 implants, and Bill at the University of South Alabama has done about 35.

 

[FreeFlyNole]

I appreciate that. I have been using omeprazole for a lot of years now. It is effective, but you have to worry about the side effect with that. I live in middle Tn now and use Drs in the Franklin/Nashville area. Any suggestions would be appreciated.

We have 2 in Nashville Trudie Goers and Tyson Thomas. I don't know either of them personally, TN is outside of my management area. My company has broken up the country oddly.

I run Texas, Oklahoma, Kansas, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Georgia, South Carolina and Florida. I'm not sure what drunk gerrymandering sonovagun got hold of the map and called that the Southeast.

 

[Gonolz]

We have 2 in Nashville Trudie Goers and Tyson Thomas. I don't know either of them personally, TN is outside of my management area. My company has broken up the country oddly.

I run Texas, Oklahoma, Kansas, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Georgia, South Carolina and Florida. I'm not sure what drunk gerrymandering sonovagun got hold of the map and called that the Southeast.

My guess is an SEC fan from Oklahoma with a wife from Kansas.

 

[travnole]

We have 2 in Nashville Trudie Goers and Tyson Thomas. I don't know either of them personally, TN is outside of my management area. My company has broken up the country oddly.

I run Texas, Oklahoma, Kansas, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Georgia, South Carolina and Florida. I'm not sure what drunk gerrymandering sonovagun got hold of the map and called that the Southeast.

You think that is weird. I cover AL , MS, LA, AR, TX, OK, KS, and MO and my company calls it the Southwest.