Millions of cars go through recalls because of bad parts. Toys go through recalls because of parts, so do tools and countless other consumer products. In many cases, it’s pretty easy to know if a product you own is up for a recall just by looking at it. After all, if you have a 2007 Cadillac Escalade and, say for example, all Cadillacs made from 2006 to 2008 need to go in for a recall on a part, then you better make your way to the dealership. But, sometimes it’s not so easy to tell.
For instance, consider something like the voluntary recall by medical technology company Stryker of its Rejuvenate and ABG II modular-neck stems in July 2012 might be a little harder to discern, although documentation of a surgery should answer any questions. In the same year, President Obama signed into law legislation that requires medical devices to comply with a unique device identification (UDI) system to better monitor implanted, reusable devices (not for the human tracking motives that some conspiracy theorists purport). Permanent implantable devices are not under mandate at this time, although there is a recommendation on the table and some companies are using tracking and identifying technologies on implants.
Delray Beach, Florida-based VeriTeQ Corporation (OTCQB:VTEQ), a provider of implantable medical device identification and radiation dose measurement technologies, is hoping to capitalize on the new legislation and utilization of other tracking methods, specifically with its Radio Frequency Identification (RFID) technology for breast implants, vascular ports, artificial joints and more. Chief Executive Scott Silverman, the former CEO of Digital Angel Corp. and VeriChip Corp., and Randy Geissler founded the then-private company in December 2011.
Incidentally, VeriChip, through the acquisition of Xmark Corp., was bought by tool and security company Stanley Works (now known as Stanley Black & Decker (NYSE:SWK)) for $45 million in 2008. In July 2013, Digital Angel (formerly OTC:DIGA), effectively performed a reverse merger, acquiring the shares of VeriTeQ, doing a one-for-30 reverse split and changing their name and ticker to VeriTeQ and VTEQ.
Silverman and Geisler have been pioneers in the RFID implantable chip sector for years.
Notably, Geisler invented the famous product now known as "HomeAgain" and owned by Schering-Plough that reconnects pets with their owners through an implantable device and a scanner.
In addition to its initiatives to measure and record radiation doses in real time, VeriTeQ is focused on expanding commercialization of its "Q Inside Safety TechnologyTM" for UDI that includes an FDA-cleared, passive RFID microchip, proprietary handheld reader and a database to meet the requirements of the direct part marking requirement of the FDA Final Rule for UDI of a medical device. Q Inside Safety Technology has received CE Mark approval. The tiny microchip contains pertinent information to identify an implanted device, such as serial number, lot number, batch number, etc., which can be read on demand at the point of care when needed, such as in the case of a recall.
VeriTeQ’s largest customer currently is Costa Rica-based Establishment Labs (EL), a company that manufacturers and markets breast implants under the brand name Motiva Implant Matrix®. Establishment Labs primarily sells Motiva in Europe, Latin America and Asia. EL has partnered with VeriTeQ to put the Q Inside Safety Technology (the RFID transponder) installed inside their breast implants. Because of two major recalls in Europe of breast implants over the last few years by other companies, EL is gaining traction by answering the call for better identification and safety measures by using VeriTeQ technology.
On Tuesday, VeriTeQ reported that more than 1,000 women worldwide have now received Motiva breast implants with VeriTeQ’s Q Inside Safety Technology.
"We are very proud of the work we are doing with our partner Establishment Labs to reach this significant milestone for our medical device identification business," said Scott Silverman in a statement today. "EL continues to see increased demand for its best-in-class breast implants as both physicians and patients request enhanced identification and other advanced technology options for their medical devices," he added.
Shares of VTEQ have been on a steep slide since early in June, falling from around 80 cents to beneath a penny. Shares closed Tuesday up by 18.8% at $0.0095.
