NEW YORK, April 12, 2019 /PRNewswire/ -- The ability of a biopharmaceutical company to successfully develop experimental drug candidates is mostly dependant on the experience of their research and management teams. As such, the hiring of specialists with decades of experience can make or break future drug candidacy projects. Many big players in the biopharma space, such as Pfizer Inc. PFE, Johnson & Johnson JNJ, AbbVie Inc. ABBV, Thermo Fisher Scientific Inc. TMO, and ImmunoPrecise Antibodies Ltd. IPATF IPA have all been competing for some of the brightest minds in the industry.
Stock prices of biotech firms are known to jump and crash on the slightest news. Companies invest significant resources in developing specific compounds and drugs as well as undergoing clinical tests and regulatory approvals. These businesses that don't have sufficient cumulative expertise are much less likely to succeed in the already tricky drug discovery process than those that do. As such, individuals with highly specialized biopharma backgrounds are fought over by major businesses who know full well the importance these experts play in the success of their future drug candidates.
The Role Specialized Experts Play in Management
While experienced management teams are essential for every business, this is especially true in certain highly specialized sectors. The amount of technical knowledge required in industries like biopharma means that professionals not frequently hired as executives (such as doctors, professors, and research experts) often play significant roles in management. Around 80 percent[1] of all CEO's in the biotech industry have direct experience working in the medical or pharmaceutical industry, often at first in non-managerial roles.
Sinclair Dunlop, Managing Partner at Epidarex Capital, said[2] that "a critical success factor in any life science investment is the management team. The sourcing, development, and retention of experienced talent has a direct impact on technology development and investor returns. A significant challenge, particularly in under-ventured markets, is a shortage of serial CEOs with a track record of fundraising at scale."
Success rates for biotech companies are already quite low. In some niche sectors, only one in 200[3] projects produces a viable drug candidate. This issue is further compounded by the struggle to find specialized experts in many of these fields. For smaller biotech companies, having the right person with specialized expertise can make or break future drug development projects. With the growing trend of large companies outsourcing research and development of specific projects to contract research organizations (CROs), there is an ever-growing demand for experts in specific hot fields like gene therapy, biologics, and cancer immunotherapy.
Major Hires in the Industry
Some of the largest companies in the space have already hired a number of these experts. Johnson & Johnson JNJ made news when it appointed Dr. Paul Stoffels, it's Chief Science Officer, to join the executive committee. In the new role, he would cover the pharmaceutical as well as the Health and Wellness businesses of the company.
Professionals with highly specialized Ph.D.'s are also typical in executive teams. On January 1, 2019, Pfizer Inc. PFE saw its longtime CEO step down from the role as it's former COO, Albert Bourla, became the new chief executive of the company. Besides his decades of experience at Pfizer Inc., Mr. Bourla also has an extensive scientific background with a Ph.D. in the biotechnology of reproduction.
Besides hiring from the private sector, academia is another significant recruiting ground for major biotech companies. AbbVie Inc. ABBV ended up recruiting Robert J. Alpern, M.D., Professor of Internal Medicine and Dean of the Yale School of Medicine. Thermo Fisher Scientific Inc. TMO also has an academic serving on its board. Director Martin Harris M.D. has a long history working in hospitals as well as currently working at the Dell Medical School at the University of Texas, Austin.
Another biotech company that's made a major addition to its leadership is ImmunoPrecise Antibodies Ltd. IPATF IPA. The company announced that they had appointed Andy Nixon, Vice President of Biotherapeutics Molecule Discovery at Boehringer Ingelheim as a member of its board of directors. With over 20 years of experience, Dr. Nixon is a leading expert on biologic drug discovery. His efforts leading the research team in developing Dyax's therapeutic drug candidates directly led to a $5.9 billion[4] acquisition of the company back in 2016.
"As IPA advances its strategy for accelerated growth in the custom therapeutic antibody space, and for sustainable shareholder value creation, Dr. Nixon brings a unique depth of experience and expertise that is directly relevant to IPA", said Jennifer Bath, ImmunoPrecise Antibodies's (IPATF) (IPA) CEO and President in a press release. "We are pleased to have Dr. Nixon support IPA through the next phase of our development. He is highly accomplished and has a strong record in successfully navigating today's rapidly changing technological environment."
ImmunoPrecise Antibodies Ltd. (IPATF) (IPA) is one of the leading CROs in the field of biologic drug discovery. Specifically, the company stands out as the first full-service antibody discovery CRO in North America and Europe, a market that's estimated at being worth around US$125 billion by 2020[5]. The addition of Dr. Nixon onto the team cements ImmunoPrecise Antibodies Ltd. IPATF IPA current reputation as the world's leader in this specialized area of the biopharma industry.
Further Biopharmaceutical Developments
Pfizer Inc. PFE announced last month that it was raising a $5 billion debt offering, with the proceeds being used for refinancing of existing debts. The company has invested in several biotech firms over the past few months, making major forays into the exciting gene therapy sector.
Johnson & Johnson JNJ, also announced a significant investment in the biotech market. On April 1st the company finished its acquisition of Auris health for $3.4 billion in cash alongside additional payments of up to $2.35 billion. Auris specializes in robotic technology used in digital surgeries as well as lung cancer intervention.
In an effort to combat the spread of hepatitis C, AbbVie Inc. ABBV announced that residents in Alberta and Saskatchewan wouldn't have to pay for their MAVIRETTM tablets. As the only daily ribavirin-free treatment for adults with hepatitis C, AbbVie's medication was listed by both provincial health authorities as one of many crucial steps to combat the spreading of the disease.
With gene and cell therapy becoming increasingly popular, Thermo Fisher Scientific Inc. TMO made a significant acquisition in this space. Last month, they announced they would purchase Brammer Bio, a leader in viral vector manufacturing. The arrangement would see Thermo Fisher pay $1.7 billion in cash to acquire them in a transaction that's expected to take place sometime in Q2 2019.
For a FREE research report on ImmunoPrecise Antibodies Ltd. (TSX.V:IPA) IPATF, visit www.microsmallcap.com
DISCLAIMER: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of ImmunoPrecise Antibodies Ltd.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
------------------------------------------------------------------------------------------------------------------------------------------
[1] Medium, "A Data-Driven Approach to Uncover the Secrets of Billion Dollar Startups", December 5, 2018
https://medium.com/@alitamaseb/land-of-the-super-founders-a-data-driven-approach-to-uncover-the-secrets-of-billion-dollar-a69ebe3f0f45
[2] Labiotech, February 12, 2019
https://labiotech.eu/features/biotechnology-management-team/
[3] San Francisco Business Times, May 31, 2018
https://www.bizjournals.com/sanfrancisco/news/2018/05/31/biotech-has-an-age-problem-vcs-dubensky-karp.html
[4] IPA Landing Page provided by Farah
https://microsmallcap.com/immunoprecise/ipa-6/discoveries-for-big-pharma/LP1-PH
Original Source – PubMed
https://www.ncbi.nlm.nih.gov/pubmed/25529996
Media Contact:
FN Media Group, LLC
info@financialnews.com
+1(561)325-8757
SOURCE Microsmallcap.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
