Ma­ligned ex-MiMedx chief Pe­tit wants back on the board — wound care com­pa­ny tells share­hold­ers to say no way

Park­er “Pe­te” Pe­tit LinkedIn

Weeks ago, a 15-month long sweep­ing in­ter­nal in­ves­ti­ga­tion en­com­pass­ing more than a mil­lion doc­u­ments, thou­sands of hours of se­cret video sur­veil­lance — in­stalled un­der the aus­pices of for­mer CEO Park­er “Pe­te” Pe­tit — and over 80 wit­ness­es, paint­ed a sor­did pic­ture of the scan­dalous past of wound care com­pa­ny MiMedx. On Mon­day, MiMedx dis­closed that Pe­tit is look­ing to re­turn to the com­pa­ny’s board, along with two of his busi­ness as­so­ciates, at an an­nu­al meet­ing of share­hold­ers planned for mid-June.

William “Bill” Tay­lor LinkedIn

The com­pa­ny, which has long been crit­i­cized for its busi­ness prac­tices, sells in­jectable treat­ments — de­rived from the am­ni­ot­ic tis­sue — to treat burns and soft tis­sue wounds, and counts vet­er­ans and mil­i­tary hos­pi­tals as its cus­tomers. MiMedx has al­so faced the ire of FDA, which has pre­vi­ous­ly ac­cused it of fla­grant man­u­fac­tur­ing vi­o­la­tions and in­di­cat­ed MiMedx’s suite of prod­ucts does not meet its reg­u­la­to­ry stan­dards. An in­ter­nal re­view, which com­menced Feb­ru­ary 2018, prompt­ed the ouster of a num­ber of ex­ec­u­tive de­par­tures, in­clud­ing Pe­tit and COO William “Bill” Tay­lor.

They found that MiMedx’s for­mer se­nior man­age­ment team made ma­te­r­i­al mis­state­ments and omis­sions about its deal­ings with its largest dis­trib­u­tor — and that Pe­tit false­ly tes­ti­fied un­der oath dur­ing a de­po­si­tion when dis­cussing the dis­trib­u­tor. In­ves­ti­ga­tors al­so un­cov­ered oth­er con­duct that ap­peared to have been “de­signed to ma­nip­u­late the tim­ing and recog­ni­tion of rev­enue.” In ad­di­tion, the in­ves­ti­ga­tion re­vealed a sys­tem­at­ic pat­tern of sti­fling con­cern raised by MiMedx’s own em­ploy­ees, un­der the di­rec­tion of Pe­tit and Tay­lor. The two ex­ec­u­tives fo­cused on dis­put­ing al­le­ga­tions and dis­cred­it­ing em­ploy­ees, even­tu­al­ly re­as­sign­ing, dis­ci­plin­ing or ter­mi­nat­ing them.

MiMedx on Mon­day is­sued a press re­lease urg­ing its share­hold­ers to vote for its nom­i­nees — in­clud­ing the com­pa­ny’s new CEO Tim­o­thy Wright — and two oth­ers Kath­leen Behrens Wilsey and Todd New­ton — put for­ward last week by its biggest share­hold­er Pre­science Point Cap­i­tal Man­age­ment.

The re­in­state­ment of Pe­tit on the board will cul­mi­nate in “dire con­se­quences,” MiMedx said in a state­ment.

“(P)etit’s cam­paign for elec­tion to the Board is mo­ti­vat­ed by his de­sire to achieve per­son­al and pro­fes­sion­al re­demp­tion, rather than a de­sire to serve share­hold­ers, and MiMedx strug­gles to un­der­stand what ei­ther of Mr. Pe­tit’s nom­i­nees could pos­si­bly bring to the Board.”


Im­age: Kristof­fer Trip­plaar for SIPA AP

De­vel­op­ment of the Next Gen­er­a­tion NKG2D CAR T-cell Man­u­fac­tur­ing Process

Celyad’s view on developing and delivering a CAR T-cell therapy with multi-tumor specificity combined with cell manufacturing success
Overview
Transitioning potential therapeutic assets from academia into the commercial environment is an exercise that is largely underappreciated by stakeholders, except for drug developers themselves. The promise of preclinical or early clinical results drives enthusiasm, but the pragmatic delivery of a therapy outside of small, local testing is most often a major challenge for drug developers especially, including among other things, the manufacturing challenges that surround the production of just-in-time and personalized autologous cell therapy products.

Paul Hudson, Getty Images

UP­DAT­ED: Sanofi CEO Hud­son lays out new R&D fo­cus — chop­ping di­a­betes, car­dio and slash­ing $2B-plus costs in sur­gi­cal dis­sec­tion

Earlier on Monday, new Sanofi CEO Paul Hudson baited the hook on his upcoming strategy presentation Tuesday with a tell-tale deal to buy Synthorx for $2.5 billion. That fits squarely with hints that he’s pointing the company to a bigger future in oncology, which also squares with a major industry tilt.

In a big reveal later in the day, though, Hudson offered a slate of stunners on his plans to surgically dissect and reassemble the portfoloio, saying that the company is dropping cardio and diabetes research — which covers two of its biggest franchise arenas. Sanofi missed the boat on developing new diabetes drugs, and now it’s pulling out entirely. As part of the pullback, it’s dropping efpeglenatide, their once-weekly GLP-1 injection for diabetes.

“To be out of cardiovascular and diabetes is not easy for a company like ours with an incredibly proud history,” Hudson said on a call with reporters, according to the Wall Street Journal. “As tough a choice as that is, we’re making that choice.”

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 67,300+ biopharma pros reading Endpoints daily — and it's free.

Paul Hudson, Sanofi

Paul Hud­son promis­es a bright new fu­ture at Sanofi, kick­ing loose me-too drugs and fo­cus­ing on land­mark ad­vances. But can he de­liv­er?

Paul Hudson was on a mission Tuesday morning as he stood up to address Sanofi’s new R&D and business strategy.

Still fresh into the job, the new CEO set out to convince his audience — including the legions of nervous staffers inevitably devoting much of their day to listening in — that the pharma giant is shedding the layers of bureaucracy that had held them back from making progress in the past, dropping the duds in the pipeline and reprioritizing a more narrow set of experimental drugs that were promised as first-in-class or best-in-class.  The company, he added, is now positioned to “go after other opportunities” that could offer a transformational approach to treating its core diseases.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 67,300+ biopharma pros reading Endpoints daily — and it's free.

Am­gen puts its foot down in shiny new South San Fran­cis­co hub as it re­or­ga­nizes R&D ops

Amgen has signed up to be AbbVie’s neighbor in South San Francisco as it moves into a nine-story R&D facility in the booming biotech hub.

The arrangement gives Amgen 240,000 square feet of space on the Gateway of Pacific Campus, just a few minutes drive from its current digs at Oyster Point. The new hub will open in 2022 and house the big biotech’s Bay Area employees working on cardiometabolic, inflammation and oncology research.

Roger Perlmutter, Merck

#ASH19: Here’s why Mer­ck is pay­ing $2.7B to­day to grab Ar­Qule and its next-gen BTK drug, lin­ing up Eli Lil­ly ri­val­ry

Just a few months after making a splash at the European Hematology Association scientific confab with an early snapshot of positive data for their BTK inhibitor ARQ 531, ArQule has won a $2.7 billion buyout deal from Merck.

Merck is scooping up a next-gen BTK drug — which is making a splash at ASH today — from ArQule in an M&A pact set at $20 a share $ARQL. That’s more than twice Friday’s $9.66 close. And Merck R&D chief Roger Perlmutter heralded a deal that nets “multiple clinical-stage oral kinase inhibitors.”

This is the second biotech buyout pact today, marking a brisk tempo of M&A deals in the lead-up to the big JP Morgan gathering in mid-January. It’s no surprise the acquisitions are both for cancer drugs, where Sanofi will try to make its mark while Merck beefs up a stellar oncology franchise. And bolt-ons are all the rage at the major pharma players, which you could also see in Novartis’ recent $9.7 billion MedCo buyout.

ArQule — which comes out on top after their original lead drug foundered in Phase III — highlighted early data on ‘531 at EHA from a group of 6 chronic lymphocytic leukemia patients who got the 65 mg dose. Four of them experienced a partial response — a big advance for a company that failed with earlier attempts.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 67,300+ biopharma pros reading Endpoints daily — and it's free.

Ab­b­Vie, Scripps ex­pand part­ner­ship, for­ti­fy fo­cus on can­cer drugs

Scripps and AbbVie go way back. Research conducted in the lab of Scripps scientist Richard Lerner led to the discovery of Humira. The antibody, approved by the FDA in 2002 and sold by AbbVie, went on to become the world’s bestselling treatment. In 2018, the drugmaker and the non-profit organization signed a pact focused on developing cancer treatments — and now, the scope of that partnership has broadened to encompass a range of diseases, including immunological and neurological conditions.

South Ko­rea jails 3 Sam­sung ex­ecs for de­stroy­ing ev­i­dence in Bi­o­Log­ics probe

Three Samsung executives in Korea are going to jail.

The convictions came in what prosecutors had billed as “biggest crime of evidence destruction in the history of South Korea”: a case of alleged corporate intrigue that was thrown open when investigators found what was hidden beneath the floor of a Samsung BioLogics plant. Eight employees in total were found guilty of evidence tampering and the three executives were each sentenced to up to two years in prison.

Nick Plugis, Avak Kahvejian, Cristina Rondinone, Milind Kamkolkar and Chad Nusbaum. (Cellarity)

Cel­lar­i­ty, Flag­ship's $50M bet on net­work bi­ol­o­gy, mar­ries ma­chine learn­ing and sin­gle-cell tech for drug dis­cov­ery

Cellarity started with a simple — but far from easy — idea that Avak Kahvejian and his team were floating around at Flagship Pioneering: to digitally encode a cell.

As he and his senior associate Nick Plugis dug deeper into the concept, they found that most of the models others have developed take a bottom-up approach, where they assemble the molecules inside cells and the connections between them from scratch. What if they opt for a top-down approach, aided by single-cell transcriptomics and machine learning, to gauge the behavior of the entire cellular network?

As­traZeneca teams up with Deep Mat­ter for AI drug de­vel­op­ment; Can­cer biotech Im­munOs rais­es $15M

→ AstraZeneca is aligning itself with the big data company DeepMatter, which is focused on attaining reproducibility in chemistry. The latter is set to help the British drugmaker improve its compound synthesis productivity by using an AI-powered platform to capture real-time data to track factors such as temperature, pressure, ultraviolet light levels and other factors in combination with data on solvents, catalysts, and reagents. “By capturing in-situ chemical data alongside the experimental intent, observations and outcomes, it is expected that machine learning and AI algorithms could yield cost and time savings whilst also providing novel insights into chemistry,” the companies said on Monday.