Joint replacements are the #1 expenditure of Medicare. The process of approving these medical devices is flawed according to the Institute of Medicine. It is time for patients' voices to be heard as stakeholders and for public support for increased medical device industry accountability and heightened protections for patients. Post-market registry. Product warranty. Patient/consumer stakeholder equity. Rescind industry pre-emptions/entitlements. All clinical trials must report all data.
Please share what you have learned!
Twitter: @JjrkCh
Showing posts with label Senator Franken. Show all posts
Showing posts with label Senator Franken. Show all posts

Thursday, April 11, 2013

Proprietary Demands and Threats by Mayo Clinic CEO



                Article by: KEVIN DIAZ , Star Tribune Updated: April 9, 2013 - 11:16 PM
He warned legislators on eve of hearing on $500M tax proposal.
WASHINGTON – In blunt words aimed squarely at the Minnesota Legislature, the president and CEO of the Mayo Clinic warned Tuesday that the hallowed medical institution has “49 states” eager to have Mayo’s planned multibillion-dollar expansion if the state is unwilling to pitch in.
“We’re never going to leave Minnesota, and we don’t want to leave Minnesota,” Dr. John Noseworthy said in an interview at the National Press Club, where the CEO made a pitch for federal investment in health care and medical research. “But we’ve got to decide where we’re going to put the next $3 billion.”
That money would be part of a $5 billion, 20-year expansion in Rochester dubbed “Destination Medical Center,” which would require a half-billion dollars from state officials for infrastructure improvements.
“If they say yes, that’s great, we want to stay in Minnesota,” Noseworthy said. But, he cautioned, “If they say no, or you’re going to have to go for a bonding bill every year for the next 30 years, we’ll have to rethink about whether that’s the best use of our money.”
Noseworthy, a neurologist, said Mayo is not threatening to leave Rochester, where the renowned clinic was established 149 years ago.
But in a clear message to the Legislature, where the clinic’s proposal is encountering significant sticker shock, Noseworthy pointed out that “there are 49 states that would like us to invest in them. That’s the truth.”
Noseworthy’s comments came on the eve of a House tax committee hearing, where skeptical legislators have split Mayo’s $500 million plan into separate tax and bonding provisions, a development that has concerned backers.
Mayo, the state’s largest private employer, says the taxpayer funding is needed for infrastructure improvements to keep up with the clinic’s expansion plans in Rochester.
Noseworthy said the clinic plans to pour $3.5 billion of its own money into the project and $2 billion from other potential private investors, fostering the city’s growth as an international destination, creating 40,000 jobs and expanding its tax base.
None of the proposed state money would be earmarked for the clinic, he said. “We just hope they’ll help us build some sidewalks and sewers,” he said.
Noseworthy also flexed some lobbying muscle in Washington, where he met with members of Congress on Tuesday to promote funding for medical research, quality care and payment reform under Medicare. Lagging federal provider rates have cost the clinic $128 million, he said, on top of another $47 million in the first year of the sequester budget cuts.
“This is a big deal,” he told the National Press Club audience. “It’s a very serious thing for all of us.”
The sold-out event, which included U.S. Sen. Amy Klobuchar, D-Minn., is an indicator of the Mayo Clinic’s influence in promoting a Minnesota model that drives down costs by emphasizing quality of care and collaboration among medical providers.
But the health care giant faces a tougher audience in St. Paul, where legislators are raising questions about the amount of the requested taxpayer assistance to a city of little more than 100,000 residents, about a third of them in the health care industry.
Noseworthy said the clinic is responding to legislators’ concerns.
“Yes, we’re listening to that input, and we’re trying to see how are we going to get the right answer,” he said. “It’s being reviewed, amended, revised and rethought as we go through.”
Some legislators have suggested that Rochester could pony up more for the stadium-size price tag by raising local sales tax rates.
But Noseworthy said the town doesn’t have the tax base to support the infrastructure improvements that could justify Mayo’s further expansion.
“I don’t know whether it will happen,” he said. “I hope it happens. We’ve told the state we want to grow, and we want to grow in Minnesota.”
In the meantime, other states beckon for a piece of the Mayo mystique.
Medicine is a growth industry,” Noseworthy said. “We need to decide where to invest for that growth.”

Kevin Diaz • kdiaz@startribune.com

In a recent year Mayo Clinic made $7billion  though it is a 'non-profit' institution and it  paid its' CEO more than $1m.  It is so lawyered up that there has been only one conviction of a doctor in two decades.  Is it possible that these demands are being made by an institution that disguises it's mission as community-focused to derive maximum profit?  How can this be healthy for the majority of Minnesotans?   comment

Friday, November 30, 2012

Astroturf Lobby Group? Where is the Patient Engagement?


Greetings,

The Center for Devices and Radiological Health at the U.S. Food and Drug Administration would like to make you aware of an upcoming event. Next Monday the independent non-profit Medical Device Innovation Consortium (MDIC) will be announcing a new public-private partnership between the MDIC, FDA, other government agencies, non-profits, academia, and the medical device industry designed to address emerging device regulatory science issues.  Additional information on the MDIC can be found at http://www.deviceconsortium.org/

As key health technology stakeholders, we would be pleased for you to join us to hear the Commissioner discuss this important new initiative. The Consortium is designed to improve outcomes for patients by fostering innovation, increasing the tools available to evaluate new medical devices to make sure they are safe and effective, and to ensure these improvements in care get to patients as expeditiously as possibly while safeguarding public health.

Please join us if you can,

Michelle McMurry-Heath
Associate Director for Science, Acting Chief Scientist
Office of the Center Director
Center for Devices and Radiological Health
U.S. Food and Drug Administration


---------------------------------------------------------

You are invited to attend the Senate MedTech Caucus briefing:

Monday, December 3rd, 10:30 am – 12:00 pm
Room 106, Dirksen Senate Office Building
Announcing: “Medical Device Innovation Consortium”
Featuring: FDA Commissioner, Margaret Hamburg, M.D. & FDA’s Center for Devices and Radiological Health (CDRH) Director, Jeffrey Shuren, M.D., J.D.

The program will include a briefing on the creation of the Medical Device Innovation Consortium (MDIC).
The MDIC is a Public-Private Partnership (PPP) whose mission is to improve health through the application of shared knowledge in medical device regulatory science.  It is the first-ever PPP created to focus exclusively on advancing medical device regulatory science.
The MDIC will create a collaborative environment where nationwide representatives from industry, non-profits, and FDA can work together to keep pace with the needs of patients in the United States.
Speakers will include:
Senator Amy Klobuchar
Senator Al Franken
FDA Commissioner, Margaret Hamburg, M.D.
FDA’s Center for Devices and Radiological Health (CDRH) Director, Jeffrey Shuren, M.D., J.D.
Centers for Medicare & Medicaid Services, Deputy Director, Coverage & Analysis Group, Tamara Syrek Jensen, J.D.
Immucor, Inc., CEO, William Hawkins
LifeScience Alley CEO, Dale Wahlstrom



http://www.deviceconsortium.org

The Medical Device Innovation Consortium is a public private partnership whose mission is to improve health through the application of shared knowledge in regulatory science.
Focused on the Medical Device Industry
The MDIC is the only public private partnership focused exclusively on the strategic needs of the medical device industry. The MDIC is designed to create a collaborative environment where the private sector can partner with the FDA’s Center for Devices and Radiological Health to solve technical issues that affect the industry.
Focused on Regulatory Science
Regulatory science refers to the development and evaluation of new tools, methods, standards and applied science that support a better understanding and improved evaluation of product safety, quality, effectiveness, and manufacturing throughout the product life cycle.
Focused on Improving Health
The MDIC has been formed to add value at the intersecting needs of the medical device industry, the FDA, and the related organizations that are together responsible for a vibrant medical device industry that serves the public health needs of the U.S.
Founding Members
FDA
Medtronic
Life Science Alley

About Us
The MDIC is the first ever Public Private Partnership (PPP) created with the sole objective of advancing medical device regulatory science. The intent is to be a national 501c(3) organization that operates in partnership with the FDA.
                The PPP relationship was formalized with the signing of a Memorandum of Understanding between LifeScience Alley, Inc., a Minnesota trade association, and the FDA on December 7, 2011. In August 2012, Articles of Incorporation were filed to formally establish the MDIC.
                Membership and participation in the MDIC will be open to representatives of organizations that are substantially involved in medical and/or medical device research, development, treatment, or education; the promotion of public health; or who have expertise in regulatory science.
Governance Structure
The MDIC will be governed by a Board of Directors that will oversee the MDIC’s subcommittees and assist in identifying sources of funding. Subcommittees will represent industry sectors or technology areas (eg. Modeling, interoperability, orthopedics, neurological devices).
                Each subcommittee will be responsible for establishing working groups chartered with identifying key issues affecting their industry segment.
                The working groups will bring forward project plans for prioritization and funding allocation.
What We Do
Strategies
The MDIC will pursue several strategies in support of its mission:
1.            Create a forum for collaboration and dialogue, working within a flexible governance structure to encourage broad participation from the different industry stakeholders including FDA.
2.            Make strategic investments in regulatory science, utilizing working groups to identify and prioritize key issues and to request, evaluate, and implement project proposals that support the MDIC’s mission.
3.            Provide tools to drive cost effective innovation, emphasizing education and the development of new methods and approaches with well documented data and details to enable implementation.
Value
The activities and output from the MDIC will:
                Ensure innovative technology is readily available to U.S. patients
                Make the medical device regulatory process more expeditious, transparent and effective
                Reduce the risk and expense of clinical research
                Reduce the time and cost of medical device development
Projects
The MDIC will accept project proposals specifically focused on advancing medical device regulatory science.
After the initial meeting of the MDIC Board of Directors (early in CY13), the first sector subcommittees will be commissioned.
                The subcommittees will organize working groups to develop rigorous project plans for prioritized topics.
                Detailed project plans will be used to solicit project specific funding from companies who will benefit from their outcome and foundations interested in supporting the initiative.
The advantages of conducting research within the MDIC include:
                Involvement of the FDA at all stages of the work thereby building awareness of and support for specific product development tools and approaches.
                The ability to share best practices across industry and academia.
                Exposure to a range of perspectives representing multiple constituents which can ensure more robust project development and data interpretation.
                A mechanism for sharing the expense of research in the regulatory science, non-competitive domain.
TOP

Join
The core operations of the MDIC are funded through contributions from members.
                Pricing for annual membership is determined based upon the operating expenses for the MDIC.
                The goal is to keep the membership low enough to encourage broad, cross-industry participation while still meeting the operational needs of the organization.
                It is anticipated that as the membership base is increased, there is the potential that the dues per member will decrease.
Membership will be offered at several levels based on organization type and, if applicable, annual revenue. Project specific funding will be obtained from companies and foundations as a result of working group development of rigorous project plans.
                $150,000 contribution annually: Companies with annual revenue >$10 B
                $100,000 contribution annually: Companies with annual revenue between $5–10 B
                $50,000 contribution annually: Companies with annual revenue between $1–4.9 B
                $10,000 contribution annually: Companies with annual revenue <$1 B
                $5,000 contribution annually: Nonprofit Sector
Benefits of Membership
The MDIC will provide its members with:
                A mechanism through which to influence the future of the medical device industry by virtue of direct, collaborative discussions and projects with FDA.
                A process for identifying, documenting, prioritizing and removing issues affecting the industry.
                Processes, policies, support staff and pooled project funding to enable efficient regulatory science research in areas of strategic importance to the industry.
                Educational forums in which to learn about the evolving regulatory science process, new tools, standards and test methods.
                Searchable databases and links to relevant reports and methods.
                Regular updates on the status of the MDIC’s activities and opportunities for involvement.
TOP

Contact Us
To receive further information and to discuss next steps and membership details, please contact:
Maura Donovan, Ph.D.Interim Executive Director, MDIC763-505-4515maura.donovan@medtronic.com
or
Dale WahlstromCEO of LifeScience Alley952-542-3077dwahlstrom@biobusinessalliance.org
TOP

Press
Minnesota Device-Makers Join Forces with FDA to Advance Regulatory Science
Regulatory Intelligence | Posted: 8 December 2011
Minnesota-based medical device lobbying group, LifeScience Alley, signed a memorandum of understanding with the US Food and Drug Administration (FDA), making official a year-long partnership to continue developing best practices in regulatory science. Center for Devices & Radiological health chief Dr. Jeffrey Shuren signed the memorandum, formalizing more than a year of joint effort toward developing regulatory science — a set of tools and methods for evaluating the safety, effectiveness, quality and performance of medical devices. If the pilot version of the program works in Minnesota, it may serve as a national model for device safety and clearance. (Mass Device)
Join the discussion on Regulatory Exchange








http://www.massbio.org/news/181-sen_brown_co-chairs_medical_technology_caucus/news_detail

Sen. Brown co-chairs Medical Technology Caucus
April 4, 2011

WASHINGTON, DCU.S. Senators Scott Brown (R-MA) and Amy Klobuchar (D-MN) announced today that they will serve as co-chairs for the new Senate Medical Technology Caucus in the 112th Congress. The caucus aims to increase awareness about issues facing the medical technology sector, an industry that creates life-saving and life-enhancing innovations that improve patient care.
In Massachusetts, we have more than 200 medical device companies and hundreds of bio and pharma companies, all of which provide good-paying jobs to thousands of citizens,” Brown said. “It is critical that we provide a business environment for them to innovate, grow and thrive. I’m pleased to be the Republican chair of this bipartisan caucus, and look forward to working with my colleagues on both sides of the aisle to give our medical device and technology companies the tools and resources they need to continue their important work.”
“These businesses not only spark medical breakthroughs, they save lives,” Klobuchar said. “Every day in every state small medical technology companies are driving the innovation agenda we need to compete in a global economy. I will continue to work to make sure that Minnesota remains a leader in health care innovation by developing innovative products while maintaining patient safety.”

The United States is the world’s only net exporter of medical devices, with a $5.4-billion annual trade surplus. Minnesota is home to 400 medical device practices that support over 50,000 jobs in the state. The industry provides good-paying jobs to more than 400,000 Americans, with total direct and indirect employment exceeding two million.
Klobuchar has led the effort to cut red tape that threatens innovation in this industry. After a December report surveyed over 200 medical technology companies and found that confusing and contradictory regulations are stifling innovation, Klobuchar and Brown pushed the Food and Drug Administration (FDA) to reform its slow and inconsistent 510(k) approval process for medical devices to maintain safety, protect patients, and encourage innovation. Klobuchar is the chair of the Senate Commerce Subcommittee on Competitiveness, Innovation, and Export Promotion, and plans to hold a hearing to examine the medical device approval process and to examine ways to improve export options.

Friday, November 16, 2012

Outrageous!




Medical Device CEO Douglas W. Kohrs retires at age 54. 
His salary $2.6M while company (Tornier) did not profit for 3 years.  
Tornier Appoints David H. Mowry as Interim President and Chief Executive Officer
Posted 4:34PM 11/12/12
Posted under: Investing
-
Tornier Appoints David H. Mowry as Interim President and Chief Executive Officer
Medical Device Industry Veteran Kevin C. O'Boyle Named Interim Vice Chairman
AMSTERDAM--(BUSINESS WIRE)-- Tornier N.V. (NAS: TRNX) , a global medical device company focused on providing surgical solutions to orthopaedic extremity specialists, today announced the appointment of David H. Mowry as Interim President and Chief Executive Officer, effective immediately. Mr. Mowry succeeds Douglas W. Kohrs, who has retired as President, Chief Executive Officer and Executive Director. Also effective immediately, Non-Executive Director, Kevin C. O'Boyle was named Interim Vice Chairman to serve as a liaison between Mr. Mowry and the Board.

Mr. Mowry, 50, will work with Mr. O'Boyle and Mr. Kohrs to ensure a smooth and orderly transition as the Board of Directors conducts a search for a permanent CEO.
Sean D. Carney, Chairman of Tornier, commented, "On behalf of the company and the Board of Directors, I would like to express our appreciation to Doug, for his leadership and contribution in building the Tornier business over the past six years. Doug was instrumental in bringing Tornier public, leading the recent acquisition of the OrthoHelix business and expanding our international footprint, core capabilities and the innovation pipeline."
Douglas W. Kohrs commented, "I have greatly enjoyed my tenure with Tornier, and am proud to have had the opportunity to work with a fantastic team in growing the company to be one of the most prominent providers of orthopaedic solutions. I have great confidence in the skills and talent of Dave and rest of the management team and their ability to continue to execute on the strategy we have laid out together."
David H. Mowry, Interim President and Chief Executive Officer of Tornier, commented, "I appreciate the opportunity to accept this expanded role with the company. I look forward to working with the Board and the talented management team in continuing to build the strong brand and reputation we have established at Tornier over the past 70 years."
"As we look ahead to the next phase of Tornier's growth, we are pleased Dave has agreed to take on additional responsibility to lead the company with the rest of the management team," continued Mr. Carney. "Dave's experience in the industry and specifically with Tornier provides confidence that he will continue to drive forward the strategic growth plans we have been executing."
Mr. Mowry joined Tornier N.V. in July 2011 as Chief Operating Officer. He brings to Tornier 23 years of medical device industry experience in various engineering and management assignments. Prior to Tornier, Mr. Mowry served as Senior Vice President and President of the Neurovascular Division of Covidien plc, and in the same position with ev3 Inc., prior to its acquisition by Covidien. Mr. Mowry is a graduate of the United States Military Academy in West Point, New York with a degree in Engineering.
As Interim Vice Chairman, Mr. O'Boyle will serve as a liaison between the Interim President and Chief Executive Officer and the Board. Mr. O'Boyle has served as a director of Tornier since June 2010. Since December 2010, Mr. O'Boyle has served as Senior Vice President and Chief Financial Officer of Advanced BioHealing Inc., a medical device company which was acquired by Shire PLC in May 2011, and since June 2011 has served as Senior Vice President of Business Operations. From January 2003 until December 2009, Mr. O'Boyle served as the Chief Financial Officer of NuVasive, Inc. He currently serves on the Board of GenMark Diagnostics, Inc., a molecular diagnostics company. Mr. O'Boyle is a Certified Public Accountant and received a Bachelor of Science degree in Accounting from the Rochester Institute of Technology and completed the Executive Management Program at the University of California Los Angeles, John E. Anderson Graduate Business School.
Tornier is reiterating its previously issued financial guidance for the remainder of 2012, which is contained in Tornier's earnings release issued on November 5, 2012.
Forward-Looking Statements
Statements contained in this release that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as "expect," "should," "project," "anticipate," "intend," "will," "may," "believe," "could," "would," "continue," "outlook," "guidance," "future," other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Tornier's actual results to be materially different than those expressed in or implied by Tornier's forward-looking statements. For Tornier, such uncertainties and risks include, among others, Tornier's future operating results and financial performance, fluctuations in foreign currency exchange rates, the effect of global economic conditions, the European sovereign debt crisis, and austerity measures, risks associated with Tornier's international operations and expansion, risks associated with Tornier's recent acquisition of OrthoHelix and the new credit facility agreement, the timing of regulatory approvals and introduction of new products, physician acceptance, endorsement, and use of new products; the effect of regulatory actions, changes in and adoption of reimbursement rates, potential product recalls, competitor activities, the effect of changes in Tornier's distribution channels and the costs and effects of litigation, risks associated with Tornier's recent management changes; and changes in tax and other legislation. More detailed information on these and other factors that could affect Tornier's actual results are described in Tornier's filings with the U.S. Securities and Exchange Commission, including its most recent quarterly report on Form 10-Q. Tornier undertakes no obligation to update its forward-looking statements.
About Tornier
Tornier is a global medical device company focused on serving extremities specialists who treat orthopaedic conditions of the shoulder, elbow, wrist, hand, ankle and foot. The Company's broad offering of over 100 product lines includes joint replacement, trauma, sports medicine, and ortho-biologic products through Tornier and OrthoHelix brands to treat the extremities, as well as joint replacement products for the hip and knee in certain international markets. Since its founding approximately 70 years ago, Tornier's "Specialists Serving Specialists" philosophy has fostered a tradition of innovation, intense focus on surgeon education, and commitment to advancement of orthopaedic technology stemming from its close collaboration with orthopaedic surgeons and thought leaders throughout the world. For more information regarding Tornier, visit www.tornier.com, or OrthoHelix, visit www.orthohelix.com.
Tornier N.V.
Shawn McCormick
Chief Financial Officer
(952) 426-7646
shawn.mccormick@tornier.com

http://www.fool.com/investing/general/2012/11/13/why-tornier-shares-tumbled.aspx


November 13, 2012 |
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of medical-device maker Tornier (Nasdaq: TRNX  ) were getting tripped up today, falling as much as 15% after a downgrade from Northland Securities.
So what: The downgrade, from "market perform" to "underperform," came on the heels of yesterday's surprise announcement that 54-year-old CEO Doug Kohrs was leaving the company.
"The sudden nature of the announcement combined with the recent deceleration in sales growth could raise questions 2013 outlook for the company," Northland said.
Tornier has missed EPS estimates in its last two quarters with a $0.29 loss in its most recent quarter.
Now what: Countering Northland's opinion was investment house Piper Jaffray, which reaffirmed its overweight rating on Tornier today. Speculating about Kohrs' departure is unlikely to lead to any sure answers, but investors may want to be reminded that Tornier has yet to turn a profit in its three-year history, and with growth slowing this could be a problem. Analysts are eyeing small losses for the next two quarters as well. I'd wait for new CEO David Mowry to prove himself by getting the company into positive territory before getting on board.

http://www.bizjournals.com/twincities/news/2012/05/18/pay-tornier-kohrs.html

Minneapolis / St. Paul Business Journal by Ed Stych, Web Producer
Date: Friday, May 18, 2012, 2:59pm CDT

Web Producer- Minneapolis / St. Paul Business Journal
Now making more than $2.6 million
Tracking the pay of Minnesota’s business leaders
Douglas Kohrs
CEO
Tornier Inc. (Nasdaq: TRNX)
                         Headquarters: Dutch company with U.S. headquarters in Edina
                         Business: Makes orthopedics devices
Total pay
         2011: $2.61 million, up 59 percent
         2010: $1.64 million
         2009: $1.25 million
Base salary
         2011: $503,000
         2010: $490,000
Bonus

         2011: None
         2010: None
Incentive pay
         2011: $209,000
         2010: $237,000
Stock awards
         2011: $830,000
         2010: None
Option awards
         2011: $1.07 million
         2010: $913,000
Other compensation
         2011: None
         2010: None
Total compensation for other highly-compensated executives:
            Carmen Diersen, chief financial officer: $1.02 million, down 52 percent
         David Mowry, chief operating officer: $1.20 million (first year with company)
            Stéphan Epinette, vice president of International Commercial Operations: $932,000, up 12 percent
            Kevin Klemz, chief legal officer: $739,000, down 27 percent
Notes
Data comes from documents filed with the U.S. Securities and Exchange Commission.
Ed Stych reports on Twin Cities breaking business news for mspbj.com, manages online features and writes the Workshop and Fast 50 Diary features for the print edition


http://ryortho.com/companyNews.php?news=2321_Tornier-CEO-Retires-Abruptly
Tornier CEO Retires Abruptly
Orthopedics This Week / Walter Eisner • Wed, Nov 14th, 2012


It was a surprise retirement.
Tornier N.V. announced on November 12 that the company's President and CEO, Doug Kohrs was retiring. David Mowry, the company's chief operating officer was immediately named interim president and CEO.
Kohrs was clearly the captain of this ship. Sean Carney, the company's board chair noted Kohrs', "leadership and contribution in building the Tornier business over the past six years. Doug was instrumental in bringing Tornier public, leading the recent acquisition of the OrthoHelix business and expanding our international footprint, core capabilities and the innovation pipeline."
Why?
In the world of publicly traded companies, retirements are usually well-orchestrated and telegraphed well ahead of time to keep investors calm. So why didn't this happen with Kohrs and Tornier?
BMO Capital Markets analyst Joanne Wuensch wrote that she was not a fan of this announcement, "particularly on the heels of the departure of CFO Carmen L. Diersen in July 2012. We could speculate that the departure is simply a personal decision (and take it at face value), or take the view that after several missteps since its February 2011 IPO, it was time for new senior leadership. What we do not read into this announcement is anything nefarious (the consulting agreement appears to imply that they are departing on reasonably good terms)."
Bank of America analyst Bob Hopkins said that his conversations with the company suggested that Kohrs did want to retire over the course of the next 12-18 months. However he believes Kohrs departure was probably hastened "due to [Tornier's] recent well-documented issues and the lack of value creation since the IPO. Importantly, we do not believe any new issues have arisen since last week's Q3 call, and Mr. Kohrs has signed a six month consulting agreement with [Tornier] to help with the transition, and remains one of the largest shareholders."
Kohrs, according to a company SEC filing, will receive $2,500 per month for up to eight hours of consulting services per month and will be compensated at a rate of $300 per hour for any additional hours.
Mowry and O’Boyle Assume Leadership
Mowry joined Tornier in July 2011 as chief operating officer. He has 23 years of medical device industry experience in various engineering and management assignments. Prior to Tornier, Mowry served as senior vice president and president of the Neurovascular Division of Covidien plc, and in the same position with ev3 Inc., prior to its acquisition by Covidien. He is a graduate of the United States Military Academy in West Point, New York with a degree in engineering.
Kevin O'Boyle, the former chief financial officer of NuVasive, Inc. and one of Tornier's non-executive board members was named interim vice chairman to serve as a liaison between Mowry and the board.
Wuensch said that while the company clearly has work to do, her thesis is that, with the distribution changes well under way, and the OrthoHelix acquisition filling an important hole in the company's extremity bag, the current strategy should accelerate the top-line growth rate over the coming quarters.
While this "unnecessarily awkward transition" creates as much risk as opportunity for the company, Hopkins said he continues to see real long-term value in the franchise. He notes that Kohrs, "leaves behind a strong bench; the Tornier brand remains strong; their markets are healthy; Warburg [owner of 47% of Tornier] has a best in class track record with management changes in their portfolio companies and Tornier remains comfortable with 2012 guidance and with 2013 guidance that calls for a return to double-digit top-line growth by midyear."
Kohrs' Record
Kohrs was CEO of American Medical Systems Holdings, Inc.from 1995 to 2005 before turning that firm into a publicly-traded company. Prior to that he co-founded Spine-Tech, Inc. which was later acquired by Sulzer Medica A.G.
According to a July 2012 TwinCities Business article, Kohrs left American Medical in 2006 to become entrepreneur-in-residence at Split Rock Partners. That's when he convinced a group of investors to buy the French family-owned Tornier. Tornier's sales have grown from $100 million in revenues in 2006 to $261 million last year. When he took over, Tornier sold 23 products in 15 European countries; today it sells 100 products in 45 countries worldwide, including Japan, China, Australia, and Argentina. Headcount worldwide has jumped from 350 to 800.
Whether Kohrs stays retired or continues his serial entrepreneurial track record is unknown.