{ "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": 53, "pageCount": 342, "prevPage": 52, "nextPage": 54, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to highlight alleged anti-competitive practices and coercive business tactics.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/53", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-53", "components": [ { "bbox": null, "kind": "callout", "text": "If I send my own surgeon, it’s going to cost me more money because I have to pay for two transportations...basically, they are forcing you to do it...if I send my own surgeon, it’s going to cost me more money.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f3-714d-84bf-57f2b50b1172", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.86, "x": 0.07, "y": 0.38 }, "kind": "paragraph", "text": "Q: “When you want to use TransMedics, do you have to use their NOP, their procurement service or can the OPO send their own person?”\nA: “The way that they set it up, it is cheaper for me to ask a TransMedics surgeon to go and recover the liver than sending my own surgeon. If I send my own surgeon, it’s going to cost me more money because I have to pay for two transportations. I have to pay the transportation for my surgeon to go to the hospital, and I also have to pay the transportation of the people from TransMedics that they have to go to the hospital and then they have to come back to my hospital. They created a very, very smart business model.”\nQ: “Did you see that letter that the congressman wrote?\nA: “Oh yeah. I did. Right now, the way that the business model is developed, yes. Basically, they are forcing you to do it. If you don’t do it, I mean, they’re going to tell you, oh no, you can send your own surgeon. Yeah, you can, but it’s more expensive. You don’t want to do that, right? You are trying to reduce costs. If I send my own surgeon, it’s going to cost me more money, so I don’t want to do it. So then, I just let them do it.” - Transplant surgeon in a leadership role at Vanderbilt", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "89df0a70-cb15-4a1e-b2ca-a433e2a968f2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.86, "x": 0.07, "y": 0.74 }, "kind": "paragraph", "text": "“Mandated” to use the NOP\nQ: “When you want to use TransMedics, do you have to use their NOP, their procurement service or can the OPO send their own person?”\nA: “My understanding is that it’s mandated. The way our surgeons describe it is that it’s mandated, and in the last 7-8 months, for example, whenever we use the OCS system, it’s always been the TransMedics procurement team.”\nQ: “So, they’re forcing you to use it. They won’t let you use it with your own surgeon, your own air transport?”\nA: “Exactly. Everything relating to surgical procurement, use of the OCS device, aviation, etc., they’re trying to put it on their end to the point where I think in one of their recent quarterly reports they talked about how they purchased x number of new airplanes.” - Transplant cardiologist at one of the top centers in the US/world", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aafb0250-9bc5-4ad7-ab86-166f71474848", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The Vanderbilt transplant cardiologist indicated that “everything related to surgical procurement, use of the OCS device, air transport etc.” was “mandated” and wryly noted the company’s promotion of its brand new jets on quarterly calls. His surgical colleague in the liver program described a key aspect of how the scheme works. If a transplant center refuses to use TransMedics aircraft, they allegedly retaliate by the forcing the center to absorb the cost of two planes – one with the TransMedics device technician, and a second that the center hires for its surgical team: “if I send my own surgeon, it’s going to cost me more money because I have to pay for two transportations…basically, they are forcing you to do it…if I send my own surgeon, it’s going to cost me more money.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "be7eafc2-2936-4be1-b000-ef4428ac7fc6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.86, "x": 0.07, "y": 0.34 }, "kind": "paragraph", "text": "TransMedics forces centers to use the NOP by spiking the cost if they use their own transportation", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cdad1c9f-e442-4187-988e-0d6ac0411eee", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“The way that they set it up, it is cheaper for me to ask a TransMedics surgeon to go and recover the liver than sending my own surgeon. I have to pay for two transportations...basically, they are forcing you to do it...if I send my own surgeon, it’s going to cost me more money.” — Transplant surgeon in a leadership role at Vanderbilt", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-70f3-714d-84bf-5afdd4789d29", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.96 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "64cd9fc4-a179-4858-be4f-c7053a2a98d3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }