Brad M and Ray F

[Anonymous]

Only way to grow bone stims is to have a direct sales force who doesn't sell other products on the side.

A 1099 distributor rep sells too many other things that are less hassle.
If this company is serious about bone stims it will go direct like our competitor who has the largest market share.

Especially on the spine stim side. Orthopedic bone stim with all the paperwork hoops and 90 day non union is not going to take OFIX to the promise land. Time better spent in other area's. Now Spine stim being a $160mill business (approx) for Ofix needs total focus on a direct basis. Turning it over to distributors will results in regression and at the very best stagnation. Although with 70% margins it can still be a cash cow. Going distributors was a flawed strategy that will make it very difficult if not impossible to reverse the trend. The bigger issue is trying to get their arms around what is revenue and what is not. I'm amazed the stock is not in the single digits. It is a testament to Brad M and their investment relations.

 

[Anonymous]

Dang! Just think what Spine would do as a direct sales force!! Get rid of distributorship model and go Direct! Put some carrots in front of the team along with focus.

 

[Anonymous]

Dang! Just think what Spine would do as a direct sales force!! Get rid of distributorship model and go Direct! Put some carrots in front of the team along with focus.

Are you speaking of the large distributors Brad N brought over who are selling against Orthofix direct reps and undercutting pricing?

 

[Anonymous]

Only way to control a sales force is to make it Direct. Not sure why we have a partial distributorship/ direct bone stim force.

It would save $$$ to just make it direct and pay all reps 10-15% plus benefits.
We need to work off the same page. Take Stims away from distributors who focus on other products.

 

[Anonymous]

Dang! Just think what Spine would do as a direct sales force!! Get rid of distributorship model and go Direct! Put some carrots in front of the team along with focus.

I think it would be very difficult to get distributors to go direct, if not impossible. Plus, Ray F and Brad M come from a distributor model with Breg. So, they may in fact believe in the distributor model. I think that every division is scrambling to hold it together. I hear on the streets that the implant business is imploding.

Spine Stim is already doing $15-$20 million less than it's glory days. And NO it has nothing to do with what transpired 5 yrs ago, that's just an excuse. It has everything to do with poor management, poor decision making and poor execution. Ortho is Ortho, low margins and a drag. Trinity Evolution is now competing with a zillion other Biologics and appears to have hit the ceiling. Although, it's hard to tell where Ofix stands when you don't report revenues for close to a year. LOL.

 

[Anonymous]

I think it would be very difficult to get distributors to go direct, if not impossible. Plus, Ray F and Brad M come from a distributor model with Breg. So, they may in fact believe in the distributor model. I think that every division is scrambling to hold it together. I hear on the streets that the implant business is imploding.

Spine Stim is already doing $15-$20 million less than it's glory days. And NO it has nothing to do with what transpired 5 yrs ago, that's just an excuse. It has everything to do with poor management, poor decision making and poor execution. Ortho is Ortho, low margins and a drag. Trinity Evolution is now competing with a zillion other Biologics and appears to have hit the ceiling. Although, it's hard to tell where Ofix stands when you don't report revenues for close to a year. LOL.

Problem now, with distributor model, is that sales people are not focused solely on the stim business.

 

[Anonymous]

Thinking about joining Orthofix. When does the CIA expire?

 

[Anonymous]

Problem now, with distributor model, is that sales people are not focused solely on the stim business.

That's why it was a flawed strategy and obviously a decision made by someone incompetent. Distributors are initially used by start up organizations due to cash flow but at some point they move to a direct sales. Well, at least the smart one's do. Most companies who are distributors like a Stryker or a Medtronic Danek will have it in their contracts that the distributors cannot carry any other lines that make up more than 10% of that distributors total sales.So if a distributor does $10mill in sales they cannot carry any other products that make up more than $1 million in business. So it holds the distributors feet to the fire to keep them focused on the companies (Danek/Stryker) products. If they don't, they violate their contract and risk losing the line.

It will then open the door for the company to come in and take over the reps of that distributor for violating the contract. Yea, the distributor can go out and get another line, but it will get the distributors in a major legal battle with a company who has a lot more money than the distributor. It will make the distributor think 3 times before they make that decision. I'm pretty sure the brain child who turned OFIX over to distributors did not do this very important and critical wording in the distributors contracts. A pro and someone with experience would know this. A high bred sales force can be very successful but to turn a direct rep/direct sales force that is very profitable over to distributors is TOTAL INSANITY.

 

[Anonymous]

That's why it was a flawed strategy and obviously a decision made by someone incompetent. Distributors are initially used by start up organizations due to cash flow but at some point they move to a direct sales. Well, at least the smart one's do. Most companies who are distributors like a Stryker or a Medtronic Danek will have it in their contracts that the distributors cannot carry any other lines that make up more than 10% of that distributors total sales.So if a distributor does $10mill in sales they cannot carry any other products that make up more than $1 million in business. So it holds the distributors feet to the fire to keep them focused on the companies (Danek/Stryker) products. If they don't, they violate their contract and risk losing the line.

It will then open the door for the company to come in and take over the reps of that distributor for violating the contract. Yea, the distributor can go out and get another line, but it will get the distributors in a major legal battle with a company who has a lot more money than the distributor. It will make the distributor think 3 times before they make that decision. I'm pretty sure the brain child who turned OFIX over to distributors did not do this very important and critical wording in the distributors contracts. A pro and someone with experience would know this. A high bred sales force can be very successful but to turn a direct rep/direct sales force that is very profitable over to distributors is TOTAL INSANITY.

You sound like someone who works for a distributor and wants to be hired direct. Distributors would not sign contracts where Orthofix could 'take over the reps of that distributor'. The benefit of distributors is accessibility to the physician. Both distributor and direct are 100% commission. If you attend the NSM you will see the distributors are driving most of the sales. There are many other reasons this business is struggling: patient co-pays and deductibles, insurance denials, cervical and physio considered investigational by more insurance companies, loss of reps, excessive paperwork.

 

[Anonymous]

That's why it was a flawed strategy and obviously a decision made by someone incompetent. Distributors are initially used by start up organizations due to cash flow but at some point they move to a direct sales. Well, at least the smart one's do. Most companies who are distributors like a Stryker or a Medtronic Danek will have it in their contracts that the distributors cannot carry any other lines that make up more than 10% of that distributors total sales.So if a distributor does $10mill in sales they cannot carry any other products that make up more than $1 million in business. So it holds the distributors feet to the fire to keep them focused on the companies (Danek/Stryker) products. If they don't, they violate their contract and risk losing the line.

It will then open the door for the company to come in and take over the reps of that distributor for violating the contract. Yea, the distributor can go out and get another line, but it will get the distributors in a major legal battle with a company who has a lot more money than the distributor. It will make the distributor think 3 times before they make that decision. I'm pretty sure the brain child who turned OFIX over to distributors did not do this very important and critical wording in the distributors contracts. A pro and someone with experience would know this. A high bred sales force can be very successful but to turn a direct rep/direct sales force that is very profitable over to distributors is TOTAL INSANITY.

What is a "high bred" sales force? Always thought Stryker and Medtronic were manufacturers. Brilliant post.

 

[Anonymous]

You sound like someone who works for a distributor and wants to be hired direct. Distributors would not sign contracts where Orthofix could 'take over the reps of that distributor'. The benefit of distributors is accessibility to the physician. Both distributor and direct are 100% commission. If you attend the NSM you will see the distributors are driving most of the sales. There are many other reasons this business is struggling: patient co-pays and deductibles, insurance denials, cervical and physio considered investigational by more insurance companies, loss of reps, excessive paperwork.

LMAO. First off, you don't put in a contract that if you violate you're distributor agreement with OFIX that OFIX can take over you're reps. It gives the Mfg the right to go after the distributor reps and bring them on direct if the distributor violates the agreement. The only reason distributors are driving the sales is because OFIX took direct reps and made them distributors or you forced direct reps to be part of a distributor. Daaaaa. The benefit of bringing on a distributor for the relationships they can bring is a valid point. But, it only makes sense when you have a direct rep in the area managing the territory and engaged in co-mktg relationships with distributors.

It's what took OFIX to where it's at today via Sofamor/Danek co-marketing agreement with OFIX. As well as other co-marketing relationships under a direct territory rep. The direct rep still controls the area and works hand in hand with the co-marketing distributor. The direct rep over time develops the relationship with the distributor account bcz the direct rep handles all the patients and paperwork. Once the direct rep establishes the relationship with the distributors surgeon account the direct rep has a solid footing into the account. When Danek opened the door to about $50 mill in sales for OFIX when the relationship severed, Ofix kept 85% of the Danek accounts.

So what you have is everyone moving in the right direction with the direct rep working hand in hand with a co-marketing distributor but you still control the area with a direct rep. That's what took OFIX from $50 mill to it's high of $180 million. The current strategy lacks teamwork, focus and a total loss of control. YOU NEVER WANT TO LOSE CONTROL OF YOU"RE DISTRIBUTION, especially when you had a direct sales force in place producing solid sales. This is something they will be teaching at the Harvard Business School of WHAT NEVER TO DO. A flawed strategy beyond belief, never will you see a well run company with solid sales and profits turn it's direct sales force over to a distributor model and occur higher cost. You will get high quality reps to operate $1million in sales at $130-$140 a yr Vs paying out 20-23% commissions on a million in sales. On $2 mill you will find a ton of reps to manage that kind of sales volume for $230k a yr Vs paying out 20-23% commissions on the same volume. It just cost you more money and you lost control. Like I said before....have you seen the movie dumb and dumber?

 

[Anonymous]

You sound like someone who works for a distributor and wants to be hired direct. Distributors would not sign contracts where Orthofix could 'take over the reps of that distributor'. The benefit of distributors is accessibility to the physician. Both distributor and direct are 100% commission. If you attend the NSM you will see the distributors are driving most of the sales. There are many other reasons this business is struggling: patient co-pays and deductibles, insurance denials, cervical and physio considered investigational by more insurance companies, loss of reps, excessive paperwork.

The above reasons for the stim business struggling highlights some valid points. What we are discussing is reducing collateral damage. That means, you work through issues that are out of you're control (insurance denials, co-pays & deductibles, cervical considered experimental). And control things that are in you're CONTROL. Turning a focused direct sales force over to a distributor sales force who now can take on as many other products as they want too and lose total focus on stimulation is TOTALLY IN YOU"RE CONTROL. YOU LOST 100% FOCUS NOT TO MENTION YOU LOST CONTROL OF YOU'RE DISTRIBUTION.

A LOSE/LOSE.

 

[Anonymous]

That's why it was a flawed strategy and obviously a decision made by someone incompetent. Distributors are initially used by start up organizations due to cash flow but at some point they move to a direct sales. Well, at least the smart one's do. Most companies who are distributors like a Stryker or a Medtronic Danek will have it in their contracts that the distributors cannot carry any other lines that make up more than 10% of that distributors total sales.So if a distributor does $10mill in sales they cannot carry any other products that make up more than $1 million in business. So it holds the distributors feet to the fire to keep them focused on the companies (Danek/Stryker) products. If they don't, they violate their contract and risk losing the line.

It will then open the door for the company to come in and take over the reps of that distributor for violating the contract. Yea, the distributor can go out and get another line, but it will get the distributors in a major legal battle with a company who has a lot more money than the distributor. It will make the distributor think 3 times before they make that decision. I'm pretty sure the brain child who turned OFIX over to distributors did not do this very important and critical wording in the distributors contracts. A pro and someone with experience would know this. A high bred sales force can be very successful but to turn a direct rep/direct sales force that is very profitable over to distributors is TOTAL INSANITY.

I have to agree. Who in the world would take a successful direct sales force and turn the biz over to distributors unless they want less focus. The reps who work for the distributor are selling all kinds of other products and services on the side. Because they are Free Agents and NOT employees!

 

[Anonymous]

You sound like someone who works for a distributor and wants to be hired direct. Distributors would not sign contracts where Orthofix could 'take over the reps of that distributor'. The benefit of distributors is accessibility to the physician. Both distributor and direct are 100% commission. If you attend the NSM you will see the distributors are driving most of the sales. There are many other reasons this business is struggling: patient co-pays and deductibles, insurance denials, cervical and physio considered investigational by more insurance companies, loss of reps, excessive paperwork.

????? If you think the only way to access a surgeon is through a distributor You are full of yourself!!! There are many successful sales reps who have earned access. A sales pro can get access.

 

[Anonymous]

????? If you think the only way to access a surgeon is through a distributor You are full of yourself!!! There are many successful sales reps who have earned access. A sales pro can get access.

Look, Orthofix was extremely successful as a direct sales force getting business on their own. But, it was a fantastic strategy for the company and the direct reps to partner with co-mktg partners (distributors) to get to those accounts that Ofix reps could not get into. The direct rep and co-mktg partners worked together to get the business and both had skin in the game $$$. Even if it was a reduced commission rate for the OFIX rep something was better than nothing and it all added up to some pretty good commission dollars. Orthofix used to be filled with pro's. Some will say it was a corrupt sales force but not one spine stim rep went to the big house.

It was one of the best oiled machine around. The whole issues surrounding OFIX was a joke in comparison to companies like Medtronic, J&J, Blackstone, Styker and all the violations committed by BIG pharma. Big pharma use to pay surgeons $125 plus a steak dinner and $100 bottles of wine to attend dinners to pitch their products. Bottom line: The company was unjustly persecuted and what was once a great organization has been mismanaged and dismantled. Yes, their are many issues with re-imbursement that is causing growth issues, but much of the issues surrounding Ofix is poor management, poor execution and poor decision making.

 

[Anonymous]

Spine reps were not sent to jail because they were granted immunity for telling the truth. Many reps were fired following their depositions. The reps who were sent to jail lied to the DOJ. TG deserved to go to jail for masterminding the fraud.

 

[Anonymous]

Spine reps were not sent to jail because they were granted immunity for telling the truth. Many reps were fired following their depositions. The reps who were sent to jail lied to the DOJ. TG deserved to go to jail for masterminding the fraud.

TG was on the spine side and was the scape goat for OFIX and EB. He was not a decision maker, but a pawn following orders. The reps who got punished were from Ortho, not spine, and according to documentation were fudging paperwork.

 

[Anonymous]

Who cares what happened 5 yrs ago.....Whats going on now is a circus filled with clowns & farm animals. Lots of division, poor policy, poor management, excuses and poor decision making. Can't wait for another exciting NSM filled with spin masters.

 

[Anonymous]

Anyone seen the new Melissaa McCarthy look alike they hired at corporate??

 

[Anonymous]

Look, Orthofix was extremely successful as a direct sales force getting business on their own. But, it was a fantastic strategy for the company and the direct reps to partner with co-mktg partners (distributors) to get to those accounts that Ofix reps could not get into. The direct rep and co-mktg partners worked together to get the business and both had skin in the game $$$. Even if it was a reduced commission rate for the OFIX rep something was better than nothing and it all added up to some pretty good commission dollars. Orthofix used to be filled with pro's. Some will say it was a corrupt sales force but not one spine stim rep went to the big house.

It was one of the best oiled machine around. The whole issues surrounding OFIX was a joke in comparison to companies like Medtronic, J&J, Blackstone, Styker and all the violations committed by BIG pharma. Big pharma use to pay surgeons $125 plus a steak dinner and $100 bottles of wine to attend dinners to pitch their products. Bottom line: The company was unjustly persecuted and what was once a great organization has been mismanaged and dismantled. Yes, their are many issues with re-imbursement that is causing growth issues, but much of the issues surrounding Ofix is poor management, poor execution and poor decision making.

Ofix bone stim division does have a chance at being great again. But it needs to have a direct sales force and some good management behind it. Distributors will not grow the stim market.