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September 08, 2005

One for My MISS LIST - TRANSNEURONIX

As per my previous post, this is my inaugural MISS LIST ( or PASS REGRET) post.  

This deal was a PASS which came back to haunt me with a vengeance this summer.  With this deal, I had some concerns related to the market and the underlying market hypothesis … But rather than risk rationalizing, I think my last notes testify best as to my state of mind at the time I decided to PASS. 

My Notes:

Transneuronix

completing clinical trials on an implantable gastric stimulator for weigh loss

  • IP: TranscendTM Implantable Gastric Stimulator (IGSTM) is a small, battery operated device that is implanted under the skin in the abdomen. The IGS generates electrical pulses that are transmitted to the stomach wall by the Transcend IGS Lead. Operating parameters of the IGS can be checked or changed by an external programmer. 
  • weight loss alternative to surgery, diet, drugs
  • simple procedure for physician (surgeon? GI? Internist?)
  • new drugs in pipeline may decrease potential market size dramatically

capital raised to date: ?

Next Steps:  PASS — but Track

Follow up

Medtronic, a minority investor in Transneuronix that had supplied it with pacemakers and the technology for programming them, said it would pay $260 million for full control. Medtronic said it planned additional payments at various sales milestones.

In the quarter, Medtronic recorded pre-tax, IPR&D charges totaling $363.8 million related to the acquisition of Transneuronix, Inc.; a patent cross-licensing agreement with NeuroPace, Inc.; and the purchase of intellectual property from Gary K. Michelson, M.D. and Karlin Technologies, Inc.

Conclusion

Once again proving that a little knowledge can lead you down the wrong path.

Posted by cmayaud at 02:49 PM | Permalink| Comments (0)
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