Puma Biotechnology Inc., a rising star in the Los Angeles life sciences industry, saw its market value fall by nearly a third after its signature breast cancer drug appeared unlikely to be approved in Europe.
The bad news announced by the Westwood-based drug maker on Jan. 23 stunned investors. A sell-off caused its share price to fall to less than $65 from $91 – a loss of close to 30 percent.
Puma’s Nerlynx drug received a negative trend vote from an advisory panel to the European Medicines Agency. Without more data, the panel informed Puma, it was not likely the agency would allow it to sell in Europe.
For Chief Executive Alan Auerbach, whose net worth once exceeded $1 billion, the likely no vote by European regulators was especially punishing. The owner of close to 4.2 million shares saw the value of his Puma portfolio drop by $110 million to $270 million.
But Auerbach and three executives saved a sliver of their investment by selling more than 15,000 shares of Puma stock for $92.75 on Jan. 22, a day before the investor drubbing. Auerbach’s portion of nearly 11,000 shares sold for almost $1 million, according to filings with the U.S. Security and Exchange Commission.
When asked about the timing of the stock sale, a Puma official said the sale was completed by a management company in order to pay the required tax on restricted stock options held by executives. The official said the stock sale, done each July and January, was in lieu of direct tax payments.
Auerbach declined to respond to a request for comment.
Surgical Simulations
Cedars-Sinai Medical Center converted an entire floor at an off-campus building four years ago into a state-of-the-art operating room never meant to see a drop of blood.
The space is named O.R. 360 and funded by $3.8 million from the U.S. Department of Defense. It’s been designed by Yazdani Studio of CannonDesign in Century City as a surgical simulation laboratory to speed up trauma care during the critical first hour of emergency response when every second counts.
Teams of doctors and psychologists from Cedars-Sinai, military hospitals and universities at the Beverly Grove lab at 825 N. San Vicente Blvd. have used O.R. 360 to test and streamline trauma treatment.
Researchers configured the “operating room of the future” with movable walls and equipment so they could tune out any disruptions during surgery. They also created an iPhone app that sends doctors blood pressure and other vital signs before patients arrive at the ER.
Now Cedars-Sinai wants to open it up to private firms. Rental of the OR could directly benefit Cedars-Sinai.
“We’re now reaching out to medical device start-ups and younger companies who want real user feedback for any sort of medical device, from software interface to vitals monitoring to medical devices such as an infusion pump to deliver medications,” said Sarah Francis, its co-director, during a health care simulation conference in Los Angeles last month. “That’s what we really want to focus on. With consulting fees.”
C-Suite Moves
A goodbye and hello at hospitals on the Eastside.
Beth Zachary, president and chief executive of Adventist Health Southern California Region, retired Jan. 31. The 37-year veteran helped oversee regional hospitals from Adventist Health White Memorial in Boyle Heights to sister facilities in Glendale, Simi Valley and Bakersfield.
Zachary helped White Memorial go from a troubled hospital to a seismically safe institution with the latest technology and nationally recognized quality care, hospital officials say.
“I am grateful for all Beth’s contributions, especially her dedication to mission and quality leadership,” said Scott Reiner, chief executive of the Sacramento-based Adventist Health, in a statement. “Her presence will be missed.”
James Uli has been named chief financial officer at Keck Medicine of USC, just across Interstate 10 from White Memorial. Uli starts Feb. 12 and replaces Robert Allen, who left late last year to become chief executive of CHA Hollywood Presbyterian Medical Center in Hollywood. Uli will direct strategic business for Keck, which plans to build a $1.3 billion hospital at its USC Health Sciences Center in Boyle Heights. Uli previously served as chief financial officer for Providence Saint John’s Health Center and John Wayne Cancer Institute in Santa Monica.
Health business reporter Dana Bartholomew can be reached at [email protected]. Follow him on Twitter @_DanaBart.
