Aivita Biomedical Inc.’s newest board additions bring star power to the privately held biotech company, which uses stem cells to develop “curative and regenerative” therapies for various ailments.
The Irvine-based company added two members to its board last month: Paul Jenkinson, former chief financial officer of Kite Pharma Inc., and Philippe Schaison, former president of Allergan PLC’s medical aesthetics division.
Kite Pharma, based in Los Angeles, was acquired last year for $12 billion by Gilead Sciences Inc. while Jenkinson worked there.
Schaison was most recently chief executive of global aesthetic device maker Syneron Candela’s North America region. He previously ran Allergan’s medical aesthetics division from the company’s Irvine campus.
Aivita Chief Executive Hans Keirstead said in a statement that Jenkinson and Schaison joining “symbolizes industry recognition of our ‘next-gen’ immunotherapy.”
Aivita uses stem cell therapy for its therapeutic pipeline and its commercial line of skincare products.
It’s started treating patients in its second-phase advanced ovarian cancer trial, and plans to enroll about 100 patients.
The recent board expansion and management team additions—Aivita named Scott Burell chief financial officer and Kevin Green vice president of business development—follow the closing of a $15 million Series B private financing in June.
Burell was previously chief financial officer at Irvine-based genetic information firm CombiMatrix Corp., which was sold to San Francisco-based Invitae Corp. (NYSE: NVTA) last year. Green previously served as senior director of business development at Allergan.
Aivita also has a second-phase study of its cancer immunotherapy in glioblastoma, a malignant tumor that can occur in the brain or spine. It’s pursuing commercialization in Japan for the treatment of melanoma, the most serious type of skin cancer.
Drug Cost
The $69 billion merger of pharmacy and retailer CVS Health and insurer Aetna Inc. (NYSE: AET), approved last month, is an “unusual marriage,” said Erik Wexler. He told the Business Journal in a phone interview that the deal is “disruptive beyond companies like Amazon,” referring to the Amazon.com Inc. (Nasdaq: AMZN), Berkshire Hathaway and JP Morgan Chase & Co. partnership to create a healthcare delivery model.
Wexler is chief executive of Providence St. Joseph Health Southern California, which has 14 hospitals in the region. The Renton, Wash.-based healthcare provider’s Southern California headquarters is in Irvine.
CVS reported revenue of $185 billion last year and provided prescription plans to 94 million shoppers. Aetna, one of the country’s largest insurers, covers 22 million people in its health plans and generated about $60 billion in revenue last year.
The transaction could lead to better drug cost control and more accessible care via CVS retail clinics, according to company findings.
It’s the second recent blockbuster deal of its type. In September, the Justice Department approved the $52 billion merger of health insurer Cigna Corp. (NYSE: CI) and Express Scripts Holding Co. (Nasdaq: ESRX), one of the largest pharmacy benefits-management organizations.
Wexler said that more than ever, providers must be responsive.
“We are doing something similar to ensure our community has easy, economical access to pharmaceuticals,” he said, pointing out Civica Rx.
The new nonprofit generic drugmaker, previously Project Rx, was established to help stabilize the supply of essential generic medications administered in hospitals, “many of which have fallen into chronic shortage situations,” according to a company statement.
It’s identified 14 hospital-administered generic drugs as its initial production focus.
The initiative was announced in January, and more than 120 healthcare providers representing about a third of U.S. hospitals have expressed interest in participating, according to the company.
The Salt Lake City-based company is headed by Chief Executive Martin VanTrieste, former chief quality officer of Thousand Oaks-based biopharmaceutical company Amgen Inc. (Nasdaq: AMGN).
Initial governing members include Catholic Health Initiatives, HCA Healthcare, Intermountain Healthcare, Mayo Clinic and Providence.
“We have created a new vision, a better world for health that’s more patient-centered [and] diversifies outside the traditional hospital setting,” Wexler said.
200th Office
Western Dental & Orthodontics in Orange recently announced the opening of its new office in Vista, its 200th location in California.
The office adds to its presence in northern San Diego County, where it also has locations in San Marcos, Oceanside, Escondido and Rancho Santa Fe.
The dental services provider now has 249 locations, including in Arizona, Nevada and Texas.
Its offerings include general dentistry, orthodontics, oral surgery and pediatric dentistry.
