Comments on: Innovative Spinal Technologies Jilted, Now Bankrupt, Source Says

By: John Nieradka

John Nieradka — Wed, 04 Feb 2009 11:38:34 +0000

During Wall Street's heyday spinal implant companies sprung up because there was excess capital. Industry professionals became intoxicated with "entrepreneurial fever" a by product of the artificial disc deals. New companies immediately aligned themselves with surgeon champions to create leverage with potential investors. Many surgeons even invested in some of these companies. In retrospect, how much of this so-called technology was sold on futures that really do not exist? Questions must be asked not only about the investors, but also about the quality and experience of the management team and the Board of Directors. Contingent upon whom you listen to in the industry, IST had $3-5MM in revenues in '08. Having been involved in this industry for over twenty years my question is; how does one burn through $75M based on their current product portfolio? Outside of Axient, at best IST was a "me too" company competing in a zero-sum market. Where was the accountability with the Board? Before '09 is over many of these companies will either disappear, align themselves with a company that compliments the gaps in their respective portfolios or be sold in a "fire sales."

By: ex-employee

ex-employee — Fri, 30 Jan 2009 16:46:29 +0000

IST has had problems for at least 1 year. I am not suprized the creditors have not been paid in months. They started selling off assets a couple of months ago. It was a great company back a couple of years ago before they tried to expand too quickly!

By: Wade Roush

Wade Roush — Wed, 28 Jan 2009 14:00:42 +0000

@Maria: That’s a logical question. We are keeping an eye on PACER (the U.S. courts’ electronic records system) for IST’s bankruptcy filing. But it’s pretty clear that the company has ceased operations. I spoke yesterday with one creditor who has been unable to reach anyone at the company about licensing payments that were reportedly months overdue.

By: Maria Cuccia

Maria Cuccia — Wed, 28 Jan 2009 04:36:40 +0000

Companies that suddenly close their doors may have legitimate reasons. I do not see any real proof of bankruptcy, other than the assumptions of an unknown source. Couldn’t this be a temporary shutdown during a time of transition?

By: advanced medical technologies - Spine company closes its doors after receiving $75M in VC since 2002

Tue, 27 Jan 2009 23:33:08 +0000

[...] company closes its doors after receiving $75M in VC since 2002 Xconomy Boston reported today that Innovative Spinal Technologies of Mansfield, MA, has closed its doors following an [...]

By: Musculoskeletal Clinical Regulatory Advisers - Orthopedic News

Musculoskeletal Clinical Regulatory Advisers - Orthopedic News — Tue, 27 Jan 2009 22:50:08 +0000

[...] Innovative Spinal Technologies Jilted, Now Bankrupt, Source Says [...]