http://techdirt.com/articles/20070205/015059.shtml
Implantable RFID Chip Company Tries Again To IPO; Despite No Clear Plans To Make Money
from the you-know,-the-important-stuff dept
A little over a year ago, we wrote that Applied Digital Solutions, parent company to implantable RFID chip company, VeriChip, was planning to go public. Apparently, that never happened, as the NY Times has reported that the company is about to file to go public again this week. That article notes much of the criticism the company has faced over the years concerning its products, and also some of the questionable financial situation the company is in, with tremendous losses, not much in the way of demand and no clear plans for profitability. It also mentions the odd structure of the company where it's been kept alive by a series of loans from a subsidiary to the company (which makes implantable RFIDs for pets -- which are common and are quite popular). The article leaves out, however, some of the more questionable behavior from the company in the past, including lying about FDA approval and then ignoring some of the limitations the FDA gave them. Then, of course, any potential investor in the company might also want to read up the time that the company sued IBM after IBM tried to collect on collateral from unpaid loans by Applied Digital (yes, apparently, Applied Digital defaulted on its loans, and when IBM went to collect, Applied Digital sued them). It's hard to believe the company is still in business, let alone has enough people willing to invest money to take it public.
http://www.techdirt.com/articles/20021008/0926257.shtml
Confusion Over Chipping - Is It Regulated?
from the oops dept
Back in February there was the press flurry around the publicity stunt family in Florida that wanted to get chips implanted in their arms for various reasons (not very sensible reasons, but reasons, nonetheless). In April, I was pretty surprised to find out that the FDA said they wouldn't regulate the devices which allowed the family to actually go and get chipped. However, it turns out that the "FDA approval" was a farce. The FDA says they gave no such statement. What, in fact, happened was that the company, Applied Digital Solutions, asked the FDA not to regulate the VeriChip because (they said) it wasn't a medical device. The FDA wrote back and asked for more information about the chip. Somehow, ADS interpreted the request for more information into an official statement from the FDA that the device was not to be regulated, and put out a press release, which everyone ate right up. There were, clearly, some confusing statements out of the FDA, but never an approval for the device. After the family got chipped the FDA announced they were "investigating" the company - so they're not allowed to chip anyone else for a while. I wonder why anyone would trust a company that lies about FDA approval to then stick a chunk of silicon into their bodies?
http://www.techdirt.com/articles/200211 ... 01_F.shtml
FDA Warns Applied Digital on Chip Implant Marketing
from the on-again,-off-again,-on-again,-off-again dept
The makers of the implantible "VeriChip" sure are gutsy. Back in April, they announced that the FDA had approved their chips to be implanted in humans. Of course, there was one major problem: the FDA had not approved the chip, in reality. They had just asked for more information, and ADS put out a press release saying it was approved. Of course, a few weeks later, it was approved, but specifically not if advertised as a medical device. Of course, ADS put out another press release and marketing blitz about the product - including calling it a medical device. So, the FDA is pissed off again, and are warning ADS to cut it out. ADS seems to like putting out marketing material that have no basis in reality. Would you trust this company to stick a hunk of silicon inside your skin?
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