{ "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": 65, "pageCount": 342, "prevPage": 64, "nextPage": 66, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 1, "notes": "The slide uses a Q&A format to highlight alleged anti-competitive behavior (tying/bundling).", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/65", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-65", "components": [ { "bbox": { "h": 0.04, "w": 0.86, "x": 0.07, "y": 0.41 }, "kind": "callout", "text": "MGH anecdotes describe TransMedics holding the device “hostage” to force them to use the NOP", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f6b4ab66-a378-47f3-a0a5-050195e9a947", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "It’s primarily related to locking us in in order to use the OCS team, flights, their modules, and everything, versus using our own.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a975-7b664ab0e1da", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.12 }, "kind": "paragraph", "text": "MGH provided anecdotes which we think the FTC and/or DOJ would view as textbook coercion – “they’re holding [the device] hostage” - when its procurement team was “mobilized and everything ready to go” but TransMedics would say “well, we can’t get the module to you in time.” Given the requirement that only TransMedics staff can operate the device, the company would allegedly say the only alternative is to fly a separate TransMedics plane just for the device. MGH would push back and offer to send an Uber to their facility to get the device, only to be told “oh no, that’s not how we do things” – “it’s primarily related to locking us in to use the OCS team, flights, their modules”; “I’m stuck...literally, I’m stuck...I literally don’t have the device and they’re holding it hostage.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "54d3e15f-0602-4318-b289-3bafa0602388", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.46 }, "kind": "paragraph", "text": "Q: “Are saying TransMedics can’t activate and get everybody there in time, or that their surgeons are unskilled and incompetent? Or both?”\n\nA: “It’s both. Let me just separate. The first part wasn’t related to delays based on the skillset and experience of the procuring team. It’s primarily related to locking us in in order to use the OCS team, flights, their modules, and everything, versus using our own. For instance, if we were to work on trying to get our team all mobilized and everything ready to go and they’re saying, well, we can’t get the module to you in time. So, we’re just going to fly the person out from our facility over to wherever the hospital is, but you’re going to have to eat that cost. And I’m like, why would we ever do that? I will literally have one of my surgeons take an Uber over to your facility, bring it back, meet you at Logan, and then they’ll go on the flight. “Oh no, that’s not how we do things.” Well, how about you get your tech to then take the Uber with the module over to either my hospital, where the team is waiting, or to get to the airport? “Yeah, that’s going to cost $7000.” And I’m like that right there is going to cost $7000? “Yes. You have one hour to give us your answer.” That’s how the conversation goes. So, I’m stuck. Literally, I’m stuck. I literally don’t have the device and they’re holding it hostage, so I have to then say I’m going to open it up, $7000, come on over.” – Veteran transplant administrator/executive at Massachusetts General Hospital", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b0921d2e-af46-4c6b-922a-fa170f9273d0", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "I’m stuck...literally, I’m stuck...I literally don’t have the device and they’re holding it hostage. — Veteran transplant administrator/executive at Massachusetts General Hospital", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a975-7c94d8f5bf45", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "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": "ec0bbe25-3f8d-40f2-9e77-31fa3c17c00a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "Case study 1: Massachusetts General Hospital (cont’d)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d2962f74-b209-4ce6-bd2e-f9b692d079bd", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }