According to this lawsuit, Ansons and its related funds go after companies with valuable assets... This explains why SINT is so undervalued as its been after Sintx IP for going on a decade. IP thats destined to take over the ortho industry according to one study linked below. Because of that destiny and Zimmer Biomets long interest in Sintx, is why Zimmer BIomet and those working for it should care. Ansons family of hedge funds is trying to steal the tech from underneath it. Tech Zimmer Biomet planned to use to increase its revenue through licensing.
Their playbook is simple: they find a promising company like Nano that has attracted significant investment, furtively acquire a large position, and then seek to dismantle the company and distribute its cash for Defendants’ own benefit.
EX-99.3
So Lets examine the value of Sintx and its IP here from a few angles. This should show exactly why Anson's family of funds would be trying to take over Sintx through hostile means. It represents alot of potential money for them if they can succeed. A work in progress.
Transitive Property:
In 2003, Zimmer acquired a materials company for $232m with $108m of it upfront and the remaining $124m coming over the next two years based on sales milestones. Before announcing its partnership with Zimmer, Implex had revenue about the same as Sintx should achieve this year. Its material Hydrocel, Trabecular Metal, could be used for multiple orthopedic implants. Spine, dental, hip, shoulder, and i think knee. That said, Trabecular metal cannot be used as a coating or imbued in materials like silicon nitride can to bring those materials its beneficial enhancements. Thus its market potential in the ortho/dental markets was smaller.
Thus Sintx valuation should be at minimum based on what similar companies are worth: $232m
Accumulated Deficit and Tax Write-off
Sintx Accumulated Deficit = $271.6m. For an acquiring company to utilize this for tax write off purposes Sintx IP would have to be valuable enough to bring in sufficient revenue. However as the cost to acquire Sintx would cost millions between accounting audits, lawyers, golden parachutes, etc.. Sintx accumulated Deficit would likely represent about the same value as what Implex was acquired for to an acquiring company. That is only if Sintx IP couldnt generate more revenue than Sintx deficit. The following will show that it can easily.
Also, acquiring Sintx for that amount would increase goodwill which is an asset the acquiring company can depreciate and thus provide additional tax benefit as well as increase its assets.
Potential Market Size
One particular thing about Sintx is its current sales represents a fraction of 1% of its potential revenue because it has not actually transitioned into the commercialization phase yet. The 99% of its products remain in R&D stage. Sort of like a pharma company.
Silicon Nitride increases osteointrgration, improves imaging, and is antimicrobial (antiviral, antibacterial, antifungal) while being bioactive and biodegradable. That means as it corrodes the material breaks down into materials the body can use. For instance in an aqueous solution, Si3N4 turns into orthosilicic acid which the body utilizes for bone growth. Unlike other materials used in orthopeadic implants, Si3N4 shouldnt accumulate in the body as it can be excreted. Meanwhile Titanium, Trabecular Metal, PEEK, ZTA, all accumulate in the tissue, blood and/or organs. Metals seem to spread through the body while other ceramics and plastics mostly accumulate locally. This is all important to understand when you consider that Si3n4 is destined to replace current materials used in the $64 billion ortho implant industry. As Si3n4 can be used as a coating for metal implants and can be imbued in PEEK materials, it could and should capture almost the entire ortho industry but only though partnerships and licensing.
Markets Si3n4 can be used in (not comprehensive)
Otho Market = $64 billion
Personal Protective Equipment market = $79.53 billion
Global Catheter market = $55bn
Antibacterial market = $44.5bn
Wound Care market = $22.25bn
Biosensors Market = $28.9bn
Condom Market = $11.6bn
Dental Implant market = $4.99bn
Armor Materials Market = $13.59bn
Total = $324.36bn
Its honestly overwhelming the size of the markets Sintx material can be used in. Hypothetical scenario using 5% market penetration with a 5% licensing fee equates to $811m in yearly licensing revenue. Thus Si3N4 is worth at least $800m in potential yearly revenue for an acquiring company through licensing revenue according to this scenario. Its ability to penetrate the above markets will vary but Ortho & Catheter markets are markets that Si3N4 should significantly penetrate; with Wound Care & Dental being up there as well. Condom market is more hypothetical based on Si3N4 ability to kill Herpes and possibly other STI. However would need to be studied further to ensure it doesnt impact the delicate microbe balance inside a vaginal canal.
A basic roadmap laid out of Zimmer's intentions for Sintx back in 2011. This quote predates Sintx vast IP portfolio expansion. Any markets Zimmer Biomet does not currently participate in, that Sintx does, represents potential markets Zimmer Biomet can utilize Sintx to bolster its revenue through licensing as well as diversify those revenue sources.
AnonymousMay 24, 2011 at 3:42 PM
Zimmer is looking at purchasing Amedica flat out for their techology to bolster sales in spine through licensing and to purchase the next generation of hip and knee implants. You heard it here on TSB.
Sources:
https://web.archive.org/web/2024040...ogger.blogspot.com/2011/05/whos-next.html?m=1
https://orthospinenews.com/2021/01/...y-2025-as-acquisitions-surge-says-globaldata/
https://www.grandviewresearch.com/industry-analysis/personal-protective-equipment-ppe-market
https://www.grandviewresearch.com/industry-analysis/catheters-market-analysis
https://www.grandviewresearch.com/industry-analysis/wound-care-market
https://www.grandviewresearch.com/industry-analysis/biosensors-market
https://www.grandviewresearch.com/industry-analysis/condom-market
https://www.mordorintelligence.com/industry-reports/armor-materials-market
https://www.grandviewresearch.com/industry-analysis/dental-implants-market