Ann: Change in substantial holding, page-30

George’s background and the way he built up the Surgcenter operating model and business through a patient and organic growth approach, suggests to me a methodical business builder, instead of a swashbuckler.

Surgcenter’s latest sale in 2021 marked an exit but not entirely so. Tenet the buyer saw great value in buying more centers from Surgcenter (if I am not wrong there might have already been an earlier transaction, but do fact check this) and at the same time as part of the transaction it is committed to developing new centres with Surgcenter its continuing business partner, and the deal provided great profits to the founding partners. It was a very savvy deal.

I think both George and Tenet via its subsidiary USPI (which bought from Surgcenter) will immediately enhance commercial acumen and create great value for the company. The company’s science which is yielding commercial stage products is being potentially complemented by an alternative “distribution” channel to anything big pharmas can offer by way of sales and marketing resources. Any cooperative arrangements they could enter into, for instance with facilitating the EAP side of the CLBP trial, should then make this value even more obvious to big pharmas which will see the company’s potential/approvable product pipeline as hugely additive to and sorely needed in replenishing their own. The service model of the ambulatory surgical centres should really complement the product focus of big pharmas.

For these reasons, I believe George’s shareholding should open many doors and prove very constructive for the company. I also have a feeling that they could source or supply C-suite managers to take the company to great new commercial heights. I hope SI is warming to this shareholder because of the depth of commercial talent and resources George could help unlock.