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60 posts categorized "Destination Medical Center news"

June 15, 2015

Former Cardio3 launching $99 million IPO in US and worldwide

Celyad, formerly Cardio3 Biosciences, announced the terms for its $99 million stock offering this morning.

The Belgium-based Celyad, which is building a manufacturing facility in downtown Rochester and has close ties with Mayo Clinic, hopes to raise $99 million by offering 1.4 million shares at $70.98 per share.

CelyadWhile Celyad has traded on the European stock markets of NYSE Euronext Brussels and NYSE Euronext Paris for some time, this stock offering would introduce the regenerative medicine firm directly to the U.S. market. It has applied to make the U.S. offering on the Nasdaq stock market under the symbol CYAD.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. It cannot sell or accept offers to buy until the SEC OKs the registration.

This move could benefit Mayo Clinic, which owned 2.69 percent of Celyad as of March 3. Mayo Clinic first acquired equity in Cardio3 in 2007, when it licensed stem-cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. Its cardiopoiesis technology repairs patients' hearts by re-programming their own stem cells to regenerate cardiac tissue.

Earlier this year, the Rochester City Council recently approved a lease for Celyad to take over the entire fifth floor of Rochester's Minnesota BioBusiness Center. Rochester Area Economic Development Inc. and the Minnesota Department of Employment and Economic Development also are involved in the deal.

Celyad is building a prototype manufacturing facility in the 14,963-square-feet of space on the fifth floor of the downtown building. Mayo, which leases the fourth through eighth floors, moved its employees out of the fifth floor earlier this year. The five-year lease calls for it to pay a rent of $18 per square foot, or $22,444.50, per month. The city agreed in the lease to pay for $600,000 in equipment and improvements to the space.

DEED is offering Ceylad a $357,000 Minnesota Job Creation Fund award if it invests $1.5 million in Rochester within a year and hires 33 employees within two years. The average wages of the new jobs will be $21.52 per hour.

May 28, 2015

Mayo hires consultant to map out Discovery Square

To help fire up Discovery Square as "a catalyst" to create jobs in downtown Rochester, Mayo Clinic has contracted a feasibility study, independent of the Destination Medical Center Corp.

Mayo Clinic has hired the DMC development manager, Hammes Co. of Madison, Wis., to analyze the Discovery Square piece of the DMC vision and offer a market plan of how DiscoverySquarethe medical and technology research area might be developed. Mayo is paying Hammes $1.5 million to conduct the study, which is expected to be completed by the end of the year.

One expected tenant is Epic, a Madison-based software system that recently signed a contract to help build an electronic health record system for Mayo Clinic. It's planning on having many employees based in Rochester.

"They've indicated a strong interest in the Discovery Square concept, and we're exploring ways they may participate in that," said Bolton.

Discovery Square is described as "the focal point" for Mayo Clinic's expansion of its science and technology institutes, and it's designed as a place for private companies and others to work with Mayo on research and other projects. It's marked on the DMC map as being central to the Gonda Building and the Mayo Medical School.

"The Square is designed to be playful and artful, similar to the Google Commons in order to, quite simply, attract the best and the brightest, the most creative minds in the world," according to the DMC plan.

Mayo Clinic owns about 35 percent of the property within the proposed Discovery Square area.

The goal of the new study is to map out the area more specifically and identify potential partners and funding streams to make it sustainable.

Jeff Bolton, Mayo's chief administrative officer and the chair of DMC's Economic Development Agency, said Mayo funded the study because it's not part of the DMC EDA's scope.

"The EDA budget is really to provide staffing to support the DMCC board, to work with developers and help market the DMC concept," he said. "Mayo Clinic views this as area where we could serve as an important catalyst to advance the DMC vision. That's why we stepped up and are making this investment."

Mayo Clinic's relationship with Hammes dates back to the very early days of the DMC concept in 2008 before it became public. Mayo Clinic first officially contracted with the company about DMC in 2011. When the EDA signed its own contract with Hammes last year for $2.3 million a year, it had no ongoing Mayo contracts.

Bob Dunn, president of Hammes, explained that this study will be similar to his company's work on the overall DMC plan but will be much more detailed.

This study will include a master plan, a conceptual design, preliminary engineering, financial analysis, financing plan, a market analysis, a review of effective land use and operational aspects for Discovery Square.

"This will be a block-by-block plan," he said. "But we're not starting at ground zero. Mayo, which owns a good portion of the land in Discovery Square, has already thought a lot about this development."

Meanwhile, Mayo is actively working with companies to try to get them to locate there, Bolton said.

"We're out marketing the concept," said Mayo's Bolton. "Obviously, we have an interest in terms of attracting groups to collaborate with us."

The project's success likely will be driven by what partners want to work with Mayo Clinic.

"If I were to forecast, I'd say there will be multiple of owners of facilities in Discovery Square. Many will probably be owned by private developers," predicted Bolton. "There won't be a monolithic owner of the facilities. The free market will play out in this environment."

He added that Mayo Clinic may participate "directly or indirectly" in some of the development.

The multimillion dollar question is when actual development of this new job generator area will begin.

"We'll need a critical mass of corporate engagement in order to have a developer to put that first shovel in the ground," said Bolton.

Dunn said this is a fascinating feature of what is already a unique project.

"DMC and Discovery Square, to me, is one of the most interesting things that I can think of nationally in terms of major economic development," he said. "It's unique because impact Mayo Clinic can bring to something like this in a market that's now beginning to mature and evolve very quickly."

April 30, 2015

Lisa Clarke to officially become leader of DMC's EDA

More than a year after starting a national search for an executive director to lead the Destination Medical Center's Economic Development Agency, Mayo Clinic's Lisa Clarke has been hired to fill that role.

As DMC's board secretary and Mayo Clinic's Community Engagement head, Clarke has filled the interim role of leading the EDA from the organization's start.

The DMC group originally posted advertisements for the position in February 2014, in hopes of hiring someone by April of that year. This hiring is solely the responsibility of the EDA and doesn't involve the DMC Corp. board or the Rochester City Council.

Clarke previously described her role as the first executive director of the EDA as building the organization and creating the processes as well as getting approval of the DMC master plan. The next director has a different job ahead of them.

"The first full time executive director's role will be to execute the plan," she said. "The important thing is to get someone who has the experience in economic development and in development, in general. The most important thing is to get the right person with the right skill set."

While Lisa Clarke will step into the role of EDA director, she will remain connected to Mayo Clinic.

"The technical answer is that she's 100 percent an employee of the EDA," said Jeff Bolton, Mayo Clinic's Chief Administrative Officer and chair of the EDA . "However, we did not want her to lose the benefit of being a Mayo employee."

Bolton explained that all of the personnel costs related to Clarke will be covered by Mayo Clinic from that $585,000 annual contribution to the EDA.

"I'm part of the package," said Clarke with a grin.

When asked about Mayo Clinic's relationship with the EDA, Bolton said, "The EDA is a separate legal entity. It is separate from Mayo."

Clarke plans to set up an office for the EDA staff in the roughly 6,000-square-foot former Red Lobster space at 195 S. Broadway.

The space is on the street level of the 60-year-old Rosa Parks Pavilion building. Mayo bought the building for $2.37 million in 1997, and Red Lobster leased space there from 1987 until it closed in 2011 and opened in a new building by Apache Mall.

With the hiring of Clarke and the EDA moving into Mayo Clinic office, is Mayo Clinic concerned about the possible appearance that it is controlling the EDA?

"I do think the EDA an independent agency is the right approach, the right structure. This is a many part orchestra, if you will. I do see Mayo having one voice in this with the city, county  and the state," Bolton said. "I think there's a good separation without making it independent of the entire process. Everything is really tightly connected, really tightly coordinated."

Clarke echoed Bolton's sentiments about the relationship between Mayo and the EDA.

"It truly has been a very positive thing to have all of these players around the table to represent the diversity of the community and its diverse businesses with Mayo Clinic being the largest," she said.

Lisa Smith, the lieutenant governor of Minnesota and chair of the DMCCorp. board of directors said that Mayo's role is important to the big picture.

"From the perspective of the state, it's great to have a really, really strong anchored tenant in the private sector. We've got four strong partners with very specific ideas about moving this forward," she said. "There are a lot of strong opinions around the table. I think it works very well."

April 10, 2015

FDA gives green light to Rochester medical software start-up

A Rochester medical software start-up with financial ties to Mayo Clinic says getting approval from the U.S. Food and Drug Administration is a major milestone for the company.

"It's tough to get. It's a big deal for us. Historically been rare in the software industry to have these type of devices to fall into that class," said Al Berning, CEO of Ambient Clinical Analytics.

Berning is known in Rochester as a former IBMer, a co-founder of Pemstar and former CEO of Hardcore Computers/LiquidCool Solutions.

Ambient, which was founded in 2013, makes analytical software that helps physicians make decisions about patient treatment in emergency room and intensive care situations. The FDA gave 510(k) clearance for Ambient's AWARE software platform as a Class 2 device this week.

The FDA has three classes with highest level being Class 3, which is typically used for implantable devices like pacemakers and heart valves. Dental floss is categorized as a Class 1 device. An example of a device with a Class 2 ranking is a condom.

Ambient, which licenses the core of the AWARE software from Mayo Clinic, describes it as "a clinical decision support tool."

Berning explained that means it uses algorithms to shift through massive amounts patient data, prescription reports and more to select the most important information for the clinical staff to consider during real-time treatment of patients.

"It takes a lot of administrative and IT drudgery off of the physician to allow them to focus on medical care," he said.

Ambient has 10 employees and it's based in the Mayo Clinic Biobusiness Accelerator in the Minnesota Biobusiness Center. Berning says the firm plans to add more employees within the next several months.

"We could need to double or triple our staff," he said.

Berning plans to announce the commercial availability of AWARE at the top health care software industry conference next week in Chicago.

"That's where we'll let everyone know that we are open for business," he said.

April 09, 2015

Future downtown Rochester eatery starting to hire staff

Rochester's latest Italian restaurant is starting to heat up by opening a hiring office in the empty Paine Furniture building.

The Nova Restaurant Group, led by Chef Scott Foster and Pat Woodring, is crafting its latest downtown Rochester eatery to be calledTerzhiringsign1 Terza on the ground floor of the new H3 Plaza building. They are also cooking up La Vetta, a rooftop lounge and club on seventh floor of the building.

Foster and Woodring are also the creative forces behind the nearby Pescara and Chester’s Kitchen & Bar.
Terzhiringsign2
Terza is not expected to be ready to open until after Memorial Day, though a pre-opening dinner is rumored to scheduled for late May. In preparation, Nova has launched a major hiring campaign in the Paine building across Broadway from the H3 Plaza.

They are interviewing job candidates as sous chefs, line chefs and servers. The office is open from 10 a.m. to 5 p.m. through the week and noon to 4 p.m. on Saturday.

Woodring and Foster are known for their top shelf employees. They say the goal is to hire people with the "hospitality gene" and then train them well. Prior to opening of Chester's, they spent an estimated $50,000 to $60,000 on training.

April 06, 2015

Mayo Clinic's Noseworthy makes top physicians list, though down from 2014

Mayo Clinic CEO Dr. John Noseworthy made Modern Healthcare magazine's 2015 list of most influential physicians, though he dropped down four places from the previous year.

Noseworthy was ranked at 6th in the 11th annual 50 Most  influential Physician Executives and Leaders. That's up from down from his previous ranking of second in the 2014 and 2013 lists. He was listed at 11th in 2011 and 31st in 2010. He was named president and CEO of Mayo Clinic in 2009.

Noseworthy-730The magazine describes the criteria of making the 50 Most Influential Physician Executives and Leaders list as "physicians working in the healthcare industry who are deemed by their peers and an expert panel to be the most influential in terms of demonstrating leadership and impact."

In recent years, Noseworthy has also made the magazine's annual list of 100 most influential people in healthcare. In 2014, he was ranked at No. 16. That list typically comes out in August.

That list also included the salaries of the leaders. The 63-year-old Noseworthy's salary was $1.75 million in 2012. It increased to $1.9 million in 2013.

The leaders of Mayo Clinic's perennial competitors, Cleveland Clinic and John Hopkins, also made the 2015 influential physicians list. However, they were much further down than Noseworthy. Cleveland Clinic's CEO Delos “Toby” Cosgrove was listed at 13th and Johns Hopkins Medicine CEO Paul Rothman came in at number 20.

Modern Healthcare named Dr. Robert Wachter as the most influential physician in 2015. He's the chief of the medical service at University of California San Francisco Medical Center and chief of the division of hospital medicine.

Richard Gilfillan, president and CEO of Trinity Health in Livonia, Mich., was ranked second. The Director of the Centers for Disease Control and Prevention in Atlanta, Thomas Frieden, was third.

April 02, 2015

Cardio3 announces plans for IPO in the U.S.

Cardio3 Biosciences, the Belgium-based biotech firm building a manufacturing facility in downtown Rochester, has announced plans to issue stock in the U.S. Logo cardio 3

Cardio3 BioSciences, which works closely with Mayo Clinic and has its U.S. headquarters in Boston, Mass., confidentially filed  "a draft registration statement" with the U.S. Securities and Exchange Commission this  week about its intention.

The eight-year-old regenerative medicine company  is already publicly listed on the European stock markets of NYSE Euronext Brussels and NYSE Euronext Paris. However, issuing an IPO in the U.S. would significantly boost its finances and garner the firm a lot more attention.

Such a move could benefit Mayo Clinic, which owned 2.69 percent of Cardio3, as of March 3. Mayo Clinic first acquired equity in Cardio3  in 2007, when it licensed stem cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. Its cardiopoiesis technology repairs patients' hearts by re-programming their own stem cell to regenerate cardiac tissue.

This week's  statement stressed that the possibility of a Cardio3 IPO is still in the very early stages.

"The timing, number of shares and price of the proposed offering have not yet been determined," according to the firm.

This filing follows last week's financial report that showed it lost $18.1 million in 2014, up from the $15.9 million it lost in 2013.

That annual report also highlighted "a non-exclusive preferred access agreement" signed with Mayo Clinic in October that cleared the way for Cardio3 to build a facility in the City of Rochester's Minnesota BioBusiness Center building.

"With this agreement, Cardio3 BioSciences agreed to give preferred consideration for Rochester, Minnesota to the U.S. to build a manufacturing facility for the production of C-Cure, at a facility located adjacent to the campus of the Mayo Clinic, and the Mayo Clinic agreed to periodically review with Cardio3 BioSciences its portfolio of regenerative medicine technologies, including in the areas of cardiology and oncology, with a view towards future potential licensing," according to the Cardio3 report.

March 05, 2015

Three local biotech start-ups win funding

A regional economic development fund is giving three local medical technology start-ups a financial boost.

Southern Minnesota Initiative Foundation recently announced it's giving funding to three local companies: Ambient Clinical Analytics, a Mayo Clinic spin-off software firm in Rochester; Xcede Technologies Inc., a Rochester company that makes surgical sealants; and Sonex Health, a Byron-based company that markets a carpal tunnel surgery device device called Stealth Microknife.

G_southern-minnesota-initiative-foundation-1395-1410186849.1865SMIF, which typically doesn't release the amounts of its economic development investments, is tapping its new $3 million Southern Minnesota Equity Fund for the capital for these three companies. The fund was created to to invest up to $600,000 per year for five years. The maximum investment is $100,000, according to SMIF.

The fund provides capital and expertise to early-stage and start-up companies. SMIF partners with organizations and individual investors to leverage capital and expertise to grow these companies to provide economic opportunities for Southern Minnesota.

"We're pleased to invest in these high-tech businesses through our newly-created equity fund program. Our Foundation remains committed to providing resources to grow local businesses," stated SMIF President/CEO Tim Penny in the announcement of the investments.

Ambient Clinic: Ambient Clinical is based in the newly opened expansion of the Mayo Clinic Biobusiness Accelerator in the Minnesota Biobusiness Center. It's CEO is Al Berning, who previously led Pemstar, Hardcore Computing and other Rochester companies. Drew Flaada, a former Rochester IBM executive, serves as chief technology officer.

Ambient raised $1.18 million in funding in early 2014.

Xcede Technologies Inc.: Xcede, subsidiary of Watertown, Mass.-based Dynasil Corp. of America, designs, develops and manufactures innovative hemostatic (bleeding prevention) and sealant products for surgical application.

Xcede is based at 1815 14th St. NW. Ambient's Berning was listed as an executive director in 2014.

Dynasil acquired Mayo Clinic technology initially invented by Dr. Daniel Ericson in 2011.

Sonex Health: Sonex Health is the creator of the Stealth MicroKnife. The Stealth MicroKnife is a medical device that allows clinicians to perform carpal tunnel release surgery under ultrasound guidance in the office

Sonex is listed as being based in Byron as well as having a presence in Mayo Clinic Mayo Clinic Biobusiness Accelerator. 

February 23, 2015

Delta to end Rochester-Detroit flights in April

Despite their popularity, nonstop flights to Detroit will soon end for passengers using the Rochester International Airport, after only a few months.

5403bad42fa22.imageAfter about six months, Delta Air Lines has notified the airport that it will be pulling the plug on the daily nonstop flights to Detroit on April 9, according the new Airport Director John Reed.

Reed says he received notification from Delta on Feb. 17, his second day on the job. Delta launched the Detroit and Atlanta flights in September with great fanfare with many saying it was needed for the anticipated increase in air travel expected due to Mayo Clinic's Destination Medical Center initiative.

While the City of Rochester owns the airport, Mayo Clinic is contracted to manage it via its Rochester Airport Co.

Delta confirmed Monday that the flights will end with a short statement that said it "has made the decision to indefinitely suspend Rochester service to Detroit to ensure we’re matching capacity with demand."

This is not the first time Delta has ended flights from Rochester to Detroit. It killed a similar flight back in 2011.

While the Detroit will come to an end, Delta did stress that its daily flights to Atlanta and Minneapolis will continue. In fact, Delta intends add another Minneapolis flight as the Detroit one ends, according to Reed.

"Essentially, our seat capacity will remain the same," he said.

Numbers from the airport shows that the new flights did bump up its Rochester passenger numbers in 2014 by 20 percent over 2013. Rochester Airport Co. President Steve McNeill, who works for Mayo Clinic, recently reported that Delta had 120,474 passengers here in 2014. From September through December, the months of service to all three of its hubs, the count was 41,854, an 18 percent or 6,500 increase over the similar period in 2013.

"We're certainly happy with the new, expanded service," said McNeill earlier this month, "and I'm sure Delta is, too." Flight payloads, or occupancy levels, were slightly above expectations, with flights to Atlanta averaging at about the mid-80s percent, and to Detroit slightly lower, he added.

Reed says data shows that the Detroit flights ran about 75 percent filled, most of the time.

"It wasn't that the community wasn't supporting us, because they were," he said.

Mayor Ardell Brede hadn't been notified yet about the change on Monday. He said, if true, it would a loss for Rochester.

"I liked that flight," he said. Brede added that it was full when he recently used it.

Reed and Brede both said that they had heard that a shortage of pilots was one reason that Delta ended the flight.

Another possible factor could be a $950,000 "risk mitigation fund set up to guarantee Delta a profit on the new flights during the first year. The rub is that the fund, made up of federal grants, a city match and private donations, doesn't cover the Detroit flight. It only guarantees a profit for Delta's Atlanta fight.

A Delta media representative didn't know about the fund or if it could have played a part in this change.

The ending of the Detroit flights does cast a pall on the airport's future requirement of airlines, to add flights, like ones to Denver.

In May, a national air service consultant said in a Rochester Area Chamber-sponsored forum that, "Adding Atlanta and Detroit is a game changer."

He followed that by saying that many other airlines will be watching how those flights fare.

"This is an important test case to prove that you can fill the larger airplanes. If they (Delta) have to pull it, it would be a big red flag," Joseph Pickering told the crowd of local business leaders.

January 27, 2015

Mayo looks to attract more patients from China

To take advantage of the rapidly growing medical tourism market, Mayo Clinic has deepened its relationship with a Hong Kong firm to bring more Chinese patients to Rochester.

Medisun Holdings Ltd. announced Monday it has signed a collaLogoborative deal to "Ensure efficient referral of patients" to Mayo Clinic. The agreement also calls for Mayo Clinic "to provide health care consulting services to aid Medisun’s work" in Hong Kong and mainland China.

This will allow Mayo Clinic to enlarge its patient pipeline from China. It has added a Web page in Mandarin Chinese and has hired interpreters, the article notes. The Wall Street Journal recently reported increasing numbers of Chinese residents are going overseas "in search of treatment that is either unavailable or ineffective in China."
800px-Gonda_building,_closer_up
Mikel Prieto, medical director of Mayo Clinic's international office, told the Wall Street Journal that "China, probably of all countries, is the one where we see the greatest growth right now."

Melissa Goodwin, Mayo Clinic's manager of global referrals, told China's Caixin Media this summer the number of Chinese people going to Mayo has climbed to 200 in 2013. That's up from just 30 in 2008 and 100 in 2012. She estimated that number would reach 400 by the end of 2014. 

H3-treesDetails of the new Medisun/Mayo Clinic arrangement still are being hammered out, according to Dr. Jason Zhang, of Medisun.

Zhang did confirm that a $1 million office being built in Titan Development and Investments's new H3 Plaza complex on South Broadway will house Medisun's Rochester operations. It's being built under the name Alphaomega Healthcare, though Zhang said he expects it to eventually change to Medisun.

He explained the office will be used to support Chinese patients traveling to Rochester for treatment.

"The medical service will be provided by Mayo, and everything else will be provided by Medisun," Zhang said.

The Medisun office is expected to open in March or April in the west corner of H3 Plaza at 300 S. Broadway, he said. The office will occupy parts of the second and third floors of the seven-story complex, which is being developed by Titan's Andy and Gus Chafoulias.

“Consulting with Mayo Clinic, and leveraging Medisun’s top-quality medical institutions in Hong Kong … Medisun’s experienced medical team will facilitate access to Mayo Clinic’s world-class model of care in order to provide patients in China and Asia with superior medical services,” Medisun's Chairman Danny Wong said in Monday's announcement.
20150126_03A
Wong visited Rochester this summer in connection to his company's investment in Cardio3 Biosciences. Cardio3, a Belgium company with deep business and scientific ties with Mayo Clinic, is negotiating a lease deal with the City of Rochester for the fifth floor of the Minnesota Biobusiness Center.

While in Rochester, Wong had his photo taken at the clinic with local leaders, including Gus Chafoulias and Mayo's Lisa Clarke, who leads the Destination Medical Center initiative.

Wong recently showed his interest in Rochester by buying two large estates here. On Oct. 31, he bought an estate at 2515 Crest Lane SW for $1.4 million. Wong followed that up by buying a Pill Hill house at 615 10 Ave. SW for $1.31 million.