Auxilio Inc. is pumping new energy into its board of directors—swapping in several new members in recent months, with one more to come—in an effort to get more representation by industry- and expertise-focused people.
The Mission Viejo-based firm provides “document cycle management” services—print workflow and equipment management and electronic information security—to hospitals and hospital systems.
It named Theresa Meadows to its eight-member board last month.
She’s senior vice president and chief information officer of Cook Children’s Health Care System in Fort Worth, which includes hospitals, physicians, home healthcare, a health plan, a foundation and 60 primary, specialty and urgent care locations in Texas. It has more than 450 beds.
She’s one new board member who can give Auxilio both credibility in a primary wheelhouse—IT at major hospitals—as well as tech-industry savvy.
The company in January expanded its board from six members, adding Michael Mathews and Mac McMillan when it bought their health information tech company, CynergisTek Inc. in Austin, Texas, for $34 million in cash, stock, debt and milestone payouts.
McMillan was also named president and chief strategy officer; Mathews became an executive vice president.
Auxilio Chief Executive Joe Flynn said the company plans to swap in one more new board member—likely one with finance chops, and possibly with hedge fund or small-cap hedge fund experience.
The company moved to the New York Stock Exchange this year from over-the-counter trading and traded recently at a $53 million market cap.
Flynn would like the final new board member to be another woman.
“Being totally blunt,” he said, the board has been comprised of “a lot of white men, which don’t add a lot of perspective. … We made a conscious decision to bring new members and new ideas to the board.”
Auxilio has in the last few years begun to remake itself from a print-focused service provider to an electronic one.
The CynergisTek buy was preceded in 2015 by that of risk-assessment provider Redspin Inc. in Carpinteria and security program developer Delphiis Inc. in San Clemente the previous year, each for roughly $3 million, excluding earn-outs and charges, Securities and Exchange Commission filings show.
Allergan License
Allergan PLC and Argentum Pharmaceuticals LLC settled a patent dispute and agreed to a license that lets the latter begin marketing a generic version of Allergan’s eye drop product Restasis before Allergan’s patents on the product expire in 2024.
Terms weren’t disclosed.
Drugmaker Allergan is chartered in Dublin, Ireland, and maintains U.S. headquarters in Parsippany, N.J. Generic drugmaker Argentum is based in New York.
Restasis was approved by the Food and Drug Administration in 2002 and is run from Allergan’s Irvine campus, which is home to its eye care, aesthetic medicine and therapeutics work.
ICU Subpoena
The U.S. Department of Justice subpoenaed ICU Medical Inc. for an antitrust investigation involving intravenous saline solution sales, shortages and pricing. ICU Medical, which makes infusion therapy devices that include pumps, tubes and catheters, entered intravenous saline solutions when it acquired Hospira Infusion Systems’ business for $900 million from Pfizer Inc. in New York this year.
Pfizer was also subpoenaed, as was Baxter International Inc. in Deerfield, Ill.
ICU Medical traded recently at a $3 billion market cap.
In the Pink
Nonprofit Susan G. Komen-Orange County, the local chapter of the breast cancer research and public policy group in Dallas, found a new home in Irvine after 17 years in its Costa Mesa offices.
Its new space is about the same size as its former location—6,155 square feet now compared with a previous 6,000—at the corner of Jamboree Road and McGaw Avenue.
Komen’s digs include conference space, meeting rooms and a wig salon; the additional square footage lets the group bring external storage space in-house.
A spokesperson said via email that the Costa Mesa facility “was no longer efficient for our needs,” and listed leaky roofs and windows among renovation needs.
Pacific Life Foundation, the charitable arm of Pacific Life Insurance Co. in Newport Beach, gave a $30,000 grant. Santa Fe Springs-based Tangram Interiors, which has a location in Newport Beach, provided space planning, furniture and moving services.
The OC group plans a couple of new hires to help with Race for the Cure this summer.
Bits & Pieces
Psychiatric hospital McLean Hospital in Belmont, Mass., a Harvard Medical School affiliate, said Sovereign Health in San Clemente provided higher than national average treatment services for mental health and substance use disorders. McLean Hospital compared treatment outcomes of nearly 30,000 patients from 50 behavioral health treatment centers across the country.
