Contrarian Corpus
short seller regulatory filing follow up
2024-01-14 · 6 pages

TransMedics TMDX

Scorpion petitions the FDA to suspend TransMedics' OCS Liver approval, citing pervasive off-label use, necrotic-organ device failures, and an alleged systematic cover-up of safety issues from regulators.

Thesis

Scorpion Capital files a Citizen Petition asking the FDA to suspend Pre-Market Approval of TransMedics' Organ Care System, particularly OCS Liver, after a six-month investigation spanning 30+ interviews with transplant surgeons at Mass General, Vanderbilt, UCSF and Chicago plus former TransMedics employees. Scorpion alleges the device is overwhelmingly used off-label on donors over 55, with warm ischemic times exceeding 30 minutes, macrosteatosis above 15%, and abnormal anatomy — all explicitly outside the labeled indications and the PROTECT pivotal trial. Ex-employees estimate roughly one-third of perfused livers are specifically contraindicated and that devices frequently malfunction, leaving necrotic organs that are still transplanted, while TransMedics allegedly under-reports failures to FDA's MAUDE database. Scorpion demands suspension of approval, an Advisory Committee, data production, and a new trial — suggesting the FDA may ultimately need to revoke OCS Liver entirely.

SCQA

Situation

TransMedics markets the FDA-approved Organ Care System (OCS) for normothermic machine perfusion of donor livers, hearts and lungs, with OCS Liver approved under PMA P200031 for narrowly-defined viability criteria.

Complication

Scorpion's investigation finds OCS Liver is overwhelmingly used off-label — older donors, longer ischemic times, fattier and abnormal-anatomy livers — producing necrotic organ failures that TransMedics allegedly conceals from FDA via under-reporting to MAUDE.

Resolution

FDA should suspend Pre-Market Approval of OCS Liver, convene an Advisory Committee, compel per-organ usage data from TransMedics, and require a new clinical trial reflecting actual real-world usage patterns.

Reward

Suspending approval halts ongoing patient harm from contraindicated transplants; because testing safety in high-risk livers may be unethical, Scorpion suggests FDA may have no option but to revoke OCS Liver approval entirely.

The three reasons

  1. 1

    Vast majority of OCS Liver usage is off-label and directly contraindicated by the FDA label

  2. 2

    Device failures cause necrotic 'rotting' livers that get transplanted into patients

  3. 3

    TransMedics allegedly under-reports safety failures to the FDA's MAUDE database

Primary demands

  • Suspend FDA Pre-Market Approval of TransMedics OCS devices, particularly OCS Liver
  • Convene an FDA Advisory Committee to evaluate off-label usage and device failures
  • Require TransMedics to produce per-organ usage data for FDA analysis
  • Mandate a new clinical trial reflecting real-world (off-label) usage, or revoke PMA outright

KPIs cited

Donor age limit (label vs real-world)
Label: ≤55 years; some centers report 100% of donors >55, into 60s and 70s
PROTECT pivotal trial donor age
Average 45.9 years, well below real-world usage
Warm ischemic time (label vs real-world)
Label: ≤30 min; one large user reports ~50% of livers >30 min, often 45 min, up to 2 hours
Macrosteatosis (label vs real-world)
Label: ≤15%; real-world use pushed to 50%, despite literature flagging risk above 5%
Mortality from fatty livers
One study cited shows 2-3x higher death rates in patients receiving fatty livers
Back-to-base off-label use
Surgeons estimate ~1/3 of OCS Liver use is back-to-base, not an approved indication
Contraindicated use
Ex-employees estimate ~1/3 of livers placed on the pump are specifically contraindicated
Organs lost in one OPO region
10% of regional livers reportedly lost due to back-to-base damage
Device technician training
Approximately one week of training before managing organs on the pump

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Precedents cited

  • Scorpion's April 2023 Citizen Petition on Harmony Biosciences pitolisant/Wakix (FDA-2023-P-1273)
  • Congressman Paul Gosar (R-Arizona) Feb 21, 2024 letter to TransMedics CEO

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Notes

This is the formal FDA Citizen Petition (6 pages) that accompanies Scorpion's underlying 342-page short report on TransMedics published Jan 10, 2024 (linked in Appendix A). Treated here as a regulatory_filing rather than a short_deck because the form is a §10.30 Citizen Petition with statutory boilerplate (Statement of Grounds, Environmental/Economic Impact, Certification). Signed by Kir Kahlon, Founder/CIO of Scorpion Capital, c/o Pugsley Wood LLP. No charts, no branding, no stake disclosed in this filing. Campaign phase tagged follow_up because it post-dates the main short report by 4 days and escalates the same thesis via regulatory channels. References Scorpion's prior Wakix petition (FDA-2023-P-1273) as a procedural precedent. CEO referenced but not named in this petition (only Gosar's letter to him is cited).