{ "docId": "019dd923-622c-750b-8b9a-40e2965928db", "docSlug": "e5bffbaac707", "documentTitle": "TransMedics (TMDX)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-01-10 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 115, "pageCount": 342, "prevPage": 114, "nextPage": 116, "slideType": "ceo_quote", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a Q&A format to highlight a specific industry expert's bearish view on TransMedics.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/115", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-115", "components": [ { "bbox": null, "kind": "callout", "text": "The OPO executive emphasized the exploitation of “Reasonable Cost” as the heart of TransMedics scam – without it, we note that traditional kidney pumps sell for a mere $2,000 – and its game over now that government is about to define what reasonable cost actually is.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a97a-ef3608c3f2dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.28, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The OPO executive emphasized the exploitation of “Reasonable Cost” as the heart of TransMedics scam – without it, we note that traditional kidney pumps sell for a mere $2,000 – and its game over now that government is about to define what reasonable cost actually is: “they’re going to come in because everything in transplant is based on what’s a reasonable cost...the government is working their way down...this stuff is all new...they’ve never established what reasonable costs are...they’re going to come in an establish ‘reasonable cost’...and now, all of a sudden, the Hawker 800 that costs $12 million does not make sense anymore because that’s not reasonable cost.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6cf0c8cc-23b2-43de-aa94-9885758e92e2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.28, "w": 0.86, "x": 0.07, "y": 0.42 }, "kind": "quote", "text": "Q: “So, you think the government is going to wipe out TransMedics’ gravy train?” A: “I think so. I think they’re going to come in because everything in transplant is based on what’s a reasonable cost... I think the government is working their way down... I think they’re going to come in and they’re going to establish “reasonable cost.” And now, all of a sudden, the Hawker 800 that costs $12 million does not make sense because that’s not reasonable cost.” - CEO of a major OPO (Organ Procurement Organization), longtime industry executive", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1097b525-c98a-4fcd-99c5-3d899d3abbb9", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I think they’re going to come in because everything in transplant is based on what’s a reasonable cost. When you look at this stuff, you look at TransMedics and you look at this logistics stuff and things like that, the expense recovery, it’s very transparent what it costs. It doesn’t cost a ton and it’s used a bunch. And then you work your way down to devices and like TransMedics, and it’s like, okay, well on a medical device, it costs a lot, it’s somewhat transparent, and used kind of a lot. And then you go down to logistics, one step further, there’s no transparency, it’s used all the time, and it’s extremely expensive. I think the government is working their way down. Because what CMS does is like, what’s a reasonable cost? Well, this stuff is all new, so they’ve never established what reasonable costs are. I think what they’re going to do is I think they’re going to come in and they’re going to establish ‘reasonable cost.’ And now, all of a sudden, the Hawker 800 that costs $12 million does not make sense because that’s not reasonable cost.” — CEO of a major OPO (Organ Procurement Organization), longtime industry executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a97a-f06005980abd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0996a25e-4a34-4269-8740-0a124d1ac2c4", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "CEO quote contradiction", "slug": "ceo-quote-contradiction", "agent": null, "layer": "slide", "matchId": "ced44070-92d0-4b7c-a0de-6231397fee40", "evidence": "The OPO executive's statement highlights the exploitation of 'Reasonable Cost' by TransMedics, contrasting with traditional kidney pumps.", "confidence": 0.8 } ], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "cd77a495-ac4f-496e-aa8b-bcbb401920aa", "evidence": "Uses an industry expert quote to undermine the company's business model.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }