Oxford BioMedica unsettled by chief executive’s departure
pharmafile | September 10, 2008 | News story | Sales and Marketing |Â Â Oxford BioMedica, biotechÂ
Confidence has been shaken in Oxford BioMedica following news that its chief executive has stepped down just one month after he was appointed.
Dr Mike McDonald, who took on the lead role in July, is to leave the firm and be replaced by John Dawson, a new board member with a background in mergers and acquisitions.
The reason for McDonald's departure is not clear, but there were reported concerns over his recovery strategy after the company hit a setback with TroVax – its lead vaccine that failed a key trial in kidney cancer this year.
But the board at Oxford BioMedica said it appreciated McDonald's work. Professor Alan Kingsman, the chairman, commented: "We would like to thank Dr McDonald for his major contributions to the TroVax and ProSavin programmes. His expertise in drug development programmes and his clinical leadership have been much valued. We wish him well for the future."
The board also welcomed John Dawson to the role of acting chief executive, and said that a permanent appointment would follow in due course.
Oxford BioMedica has just announced a relatively strong set of half-year figures. Revenue for the period was £13.4 million, up from £2 million in the first six months of 2007, and its losses of £1.1 million represent a substantial cut from the same period in 2007 when they ran at £9.3 million.
But the company's cash position has dwindled to £27 million, compared with £42.5 million at the same time last year, and Kingsman said there was need to prioritise resources.
Meanwhile the board at Oxford BioMedica has just unanimously rejected two takeover offers from GeneThera, saying the US firm was "not a credible bidder".
The company is already in partnership with Sanofi Aventis on TroVax, which after its setback remains in phase III trials, but the smaller company could still stand to receive milestone payments from Sanofi for the drug, depending on its performance.
Oxford BioMedica also has three other products in clinical development, including ProSavin, a novel gene-based treatment for Parkinson's disease, which is in a phase I/II trial.
Last year the company was on its own acquisition trail, and expanded its product pipeline with the £16 million purchase of fellow Oxford-based biotech Oxxon Therapeutics.
New chief executive Dawson is said to be seeking further new acquisitions to boost the company pipeline.
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