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487 posts categorized "Health business"

August 26, 2016

Mayo Clinic employment numbers are up and down

The number of Mayo Clinic employees has swung dramatically up and down since the passage of the Destination Medical Center legislation. 
 
Mayo-clinic-logoOn Thursday, Mayo Clinic leaders touted Rochester job growth to the Destination Medical Center Corp. board, saying the clinic has added 3,370 new positions in the last 12 months. However, that growth didn't quite carry the clinic's Rochester employee numbers out of the low point they were in last year.

"We are growing," said Jeff Bolton, Mayo Clinic's chief administrative officer and chairman of the Destination Medical Center Economic Development Agency Board. "Mayo is all in and committed." 

Bolton said Mayo Clinic had 34,175 employees in Rochester at the end of July. That is an increase of 3,370 jobs from the low point of 30,805 Rochester employees in August 2015.

While Mayo Clinic is adding local jobs, its employment numbers still are well below the 34,562 employees the Rochester clinic recorded at the end of 2015.

The figures show that 3,390 jobs were lost in 2015 between January to July. Then the numbers rose 3,757 by the end of December.

"It’s difficult to point out any trends in a 12-month cycle," Mayo Clinic spokesman Karl Oestreich said via email. "Mayo Clinic usually experiences about an average 2 percent annual growth. This rate varies each year — some years (like last year) more and other years less. Last year’s growth is ahead of that clip."

During his report to the board, Bolton said the increase in the past 12 months is because of patient demand being "extremely strong." He cited that new jobs are "a broad range of positions."

When asked what the average salaries are for the new jobs and what type of jobs they are, Mayo Clinic did not have that information available.

"We haven't done that analysis as to what job codes comprised most of the new/incremental positions. Good question, but unfortunately we don’t have a quick answer," Oestreich said. 

The DMCC board was impressed by Mayo Clinic's Rochester employment increases.

"We're asked all the time about what is going on in Rochester. We may not be doing too much on the brick and mortar, but you're on track," said board member and former Wells Fargo Minnesota CEO Jim Campbell. "You got about 10 percent in a year, which is pretty incredible job growth in the state. You have to be almost at the top."

After the meeting, State Sen. Dave Senjem proudly shared the employment numbers on his Facebook page.

"Quietly done without boasting or fanfare. Pretty amazing, more to come," he wrote.

At the end of his report, Bolton emphasized that Mayo Clinic is growing in Rochester as part of the DMC pact with the state.

"We're extremely bullish," he said. "We're really enjoying the opportunity to partner with the EDA, the city, the county and state in realizing the vision of DMC."


Mayo Clinic employees

in Rochester


• 34,175 - July 2016

• 34,562 - December 2015

• 30,805 - August 2015

• 34,200 - December 2014

• 33,197 - December 2013

• 34,223 - December 2012

• 33,156 - December 2011

• 31,998 - December 2010

• 31,966 - December 2009

 

August 23, 2016

Mayo's Noseworthy vs Cleveland Clinic's Consgrove

While Mayo Clinic and Cleveland Clinic vie for the top doctors and patients, their respective CEOs are also being compared.

Here's the breakdown of how Mayo Clinic's Dr. John Noseworthy and Cleveland's Dr. Toby Cosgrove have scored in Modern Healthcare's annual "Top 100 Influential People" list plus the salaries they were paid each year.


Rank in 2011
* Noseworthy - 71, earned $2 million
* Cosgrove - 56, earned $2.5 million

Rank in 2012
* Noseworthy - 17, earned $1.7 milion
* Cosgrove - 21, earned $3.1 million

Rank in 2013
* Noseworthy - 15, earned $1.9 million
* Cosgrove - 16, earned $3.2 million

Rank in 2014
* Noseworthy - 16, earned $2.3 million 
* Cosgrove - 72, earned $4.1 million

Rank in 2015
* Noseworthy - 8
* Cosgrove - 12

Rank in 2016
* Noseworthy - 30
* Cosgrove - 29

 

June 29, 2016

Mayo Clinic tech doesn't fare well in Celyad/Cardio3 study

Sometimes lost opportunities are actually positive things. 
 
The City of Rochester really wanted rock star Belgium biotech Celyad/ Cardio3 to build a manufacturing facility here to handle the Mayo Clinic-created C-Cure stem cell cardiac treatment.
 
CelyadThat fell apart, when Celyad/Cardio3 pulled out of its plan to take over the fifth floor of the Minnesota Buiobusiness Center.
 
However, this week that looks like a good thing. Rochester make have ducked being stuck with a half built facility after the results of the latest study of C-Cure.
 
A Chart 1 Phase 3 study found that no difference between patients treated with the C-Cure and those given a placebo.
 
Here's how an article on the Seeking Alpha investment news site described the situation:
 

The failure of a pivotal trial of its heart failure cell therapy C-Cure, erased 38% from the Belgian company’s valuation this afternoon, an outcome that will make its search for a partner considerably harder.

Indeed, without a partner the project is effectively dead, as Celyad confirmed today that it would not conduct further clinical work alone.

------

The Chart-1 phase III study failed to show this: it recruited 271 patients with chronic advanced symptomatic heart failure, and compared C-Cure against sham treatment. The primary endpoint was a composite of mortality, morbidity, quality of life, six-minute-walk test and left ventricular structure and function at 39 weeks, and on this measure C-Cure patients failed to show any difference versus placebo.

 
That must be pretty disappointing after nine years of promising results.
 
 Celyad/Cardio3 licensed stem-cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar in 2007. It was called Cardio3 Biosciences back then. They have collaborated for years on the cardiopoiesis technology the company uses to repair patients' hearts by re-programming their own stem cells to regenerate cardiac tissue. Mayo Clinic owned 2.69 percent of Celyad as of March 3, 2015.
 
However, Celayd bought an NKR-T cell platform from Celdara Medical in 2015. It appeared that the company very quickly turned away from C-Cure to focus on the new area. That is looking like the saving grace for Celyad today.
 

 All of which would have been disastrous if not for the presence of its fledgling immuno-oncology pipeline, which no doubt prevented an even bigger share price collapse.

-----

Further data updates are expected in the coming months, and indeed this afternoon Celyad’s chief executive, Christian Homsy, ended a conference call discussing the C-Cure results by flagging approaching good news in oncology. Given the relatively small amount paid to access this technology and the huge hopes for the adoptive T-cell space, investors could indeed soon forget the C-Cure failure.

June 27, 2016

Mayo Clinic announces Transplant Genomics deal

It looks like Mayo Clinic is joining forces with a Pleasanton, Calif.-based (previously of Massachusetts) firm to bolster its genetic testing to predict the success of organ transplants.

Logo-2-ret1Here's the vague description of the deal announced in a general press release this morning:

 

Transplant Genomics Inc. is collaborating with the Mayo Clinic Center for Individualized Medicine to develop, validate and commercialize diagnostic tests enabling personalized immunosuppression for solid organ transplant recipients. This multiyear collaboration includes an assessment of TGI's TruGraf test for renal transplant monitoring, a Mayo Clinic investment in TGI, and the co-development of new tests and technologies for additional targets, including exploratory studies in heart and liver transplantation.

This seems like this could be an interesting project. I wonder how long Mayo Clinic has been working with Transplant Genomics. 

It also would be fascinating to know how much Mayo Clinic is investing in TGI as well as how long this "multiyear" deal is slated to last.

 

 

 

June 07, 2016

For $300,000 upfront fee, Mayo Clinic licences cancer vaccine technology

May 20, 2016

Mayo Clinic Ventures looks to Israel for collaborations

Looking to help boost a variety of medical start-up businesses, Mayo Clinic Ventures is targeting collaborations and investments in Israel with a new program.

The goal of the Mayo Clinic Israeli Startup Initiative is to work with companies either through sponsored research grants or co-development.  

Flags"Co-development can include licensing of Mayo Clinic know-how or an investment," explained Timmeko Love, of Mayo Clinic Ventures. "It's about matching the right opportunities with Mayo Clinic know-how for collaboration. It's all about finding the right strategic fit."

Candidates for the Israeli Startup Initiative can include very early stage companies to ones that are much further along in development. They can work in any area of health care. 

"We're not limiting our options," Love said.

The project announced this week actually is a new phase of an existing Mayo Clinic initiative.

It has been active in Israel for about a year, partnering with the philanthropic Merage Institute. The California-based Merage Institute awards up to $150,000 in annual research grants for Israeli companies working with Mayo Clinic. The most recent recipient was EyeYon Medical, which makes a noninvasive medical device to treat corneal edema.

Mayo Clinic Ventures recently took on the Israel initiative and that has put co-development on the table. That new approach is being launched next week in Tel Aviv at IATI-Biomed, Israel’s largest life sciences and technology conference. Mayo teams will meet start-ups to study their technology, and then consider making investments or collaborations.

This is first time Mayo Clinic Ventures has focused on one whole country for business opportunities, despite its long history of international projects. Many might not be aware of it, but Israel is a logical candidate for a such a relationship.

"It's a natural next step for us," Love said.

Israel is considered to be the worldwide leader in innovation in medical devices, biopharma, software and other types of health-care businesses. The U.S imported $600 million of Israeli medical devices in 2011. In 2015, Israel housed 725 medical-devices businesses with an overall total of 1,380 life-sciences companies.

While California's Silicon Valley is known as the hottest spot in the world for business start-ups, Israel is recognized as a close second. A 2009 book, "Start-up Nation," documents how Israel, with a population of 7.1 million, generates more tech businesses than many much larger countries.

"It's kind of a national sport in Israel," said Guy David, a professor of health-care management at University of Pennsylvania’s Wharton School. He was born and raised in Israel and tracks its medical businesses closely.

David said Israel's required military service coupled with an environment that encourages questioning and taking risks is a big factor.

"Israel is hugely innovative. The innovative spirit starts at a very young age," he said.

While launching technology companies is a big focus in the country, the entrepreneurs all know the market for their products or services is elsewhere.

"There is no market in Israel. Israel is tiny," said David. "If they invent something, they know it has to be a global product."

Does that mean businesses partnering with Mayo Clinic could open offices or build facilities in Rochester?

"That certainly could be a possibility. We do look at an economic development when considering companies," said Love. "But it has to make sense for that company. There would need to be a business reason for it."

 

May 17, 2016

Mayo Clinic to take over Biobusiness Center floor as Celyad pulls out

Mayo Clinic is returning to the fifth floor of Rochester's Minnesota BioBusiness Center, after a Belgium-based biotech firm left it empty for more than a year. 

In March 2015, the Rochester City Council approved a five-year lease for Mayo Clinic-linked Celyad to take over the fifth floor to create a prototype manufacturing facility that would add 33 jobs to Rochester.

CelyadCelyad's lease meant displacing all the Mayo Clinic workers based on that floor. Mayo Clinic moved its employees out at the start of 2015.

However, the project didn't go as planned. Celyad, formerly known as Cardio3, was unhappy when development costs came in much higher than the estimate provided by the city. 

051509biobusinesscenteratnight"The budgets we got far exceeded initial assumptions on which the project was decided," said Celyad CEO Dr. Christian Homsy in an email from Belgium in November. "Including the city support, the fit-out cost now exceeds the cost to do the same work in other locations where there is no city or state support."

Celyad halted the project before any construction work was done, so the 14,963 square feet of space remained just as Mayo Clinic left it. However, the biotech company did uphold its end of the lease and has been paying rent of $22,444.50 per month, or $269,334 per year. City officials say the company has made all of the required payments.

Since the end of 2015, the city has been looking for a new tenant to take over the fifth floor. Now, the city has approved a new lease with an old tenant.

The new deal adds the fifth floor to Mayo Clinic's lease, which already includes four floors of the seven-year-old building. 

"The lease amendment would provide for a rental rate of $17 per square foot for the 'premises,' which consists of the entire fifth floor. That rate would be in effect for a term consistent with the present term for the other four floors through April 1, 2029," according to the agreement approved by the Rochester City Council on Monday. 

Mayo-clinic-logoThat's $1 less per square foot than the $18 per square foot Celyad has been paying.

Before approving the new Mayo Clinic lease, the city council OKed the termination of the Celyad agreement. It called for Celyad to continue paying its regular rent through Sept. 30, plus "a lease termination fee" of $111,549.18. 

That fee will cover costs for the space from October to Jan. 1. Mayo Clinic will be building out the space starting in October and it will began paying rent in January. Mayo Clinic plans on using the floor to help teams that need more room.

"Planned occupancy will include relocating certain research support teams in need of additional office type space," stated Kelley Luckstein, of Mayo Clinic Media Relation, in an email.

Celyad's relationship with Rochester began in 2007, when it licensed stem-cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. It was called Cardio3 Biosciences back then. They have collaborated for years on the cardiopoiesis technology the company uses to repair patients' hearts by re-programming their own stem cells to regenerate cardiac tissue. Mayo Clinic owned 2.69 percent of Celyad as of March 3, 2015.

Beyond the fifth floor prototype manufacturing facility, the Celyad deal was designed to clear the way for the biobusiness to possibly build a 100,000-square-foot manufacturing facility with 350 employees in Rochester. That's what the company anticipates it will need if the Federal Drug Administration gives it a green light to take its stem-cell treatment to market.

Celyad's Homsy says Rochester now is out of the running for that.

"Celyad has assessed that a manufacturing plant in Rochester at this point of time cannot be justified.  We have opened an office in Boston from where our U.S. management is based, but we have delayed the decision on a manufacturing plant in the U.S. as we are able to manufacture all clinical lots out of our Belgian facility. As we approach commercial launch in the U.S., this situation may be revisited," he responded from Belgium by email.

Though the relationship between Rochester and Celyad has diminished dramatically in recent months, Homsy said it is not completely over.

"We continue to collaborate with Mayo Clinic, as well as with Andre Terzic, in the context of the evaluation of our CHART-1 data that should be disclosed by end of June 2016. If the data is positive, further development in the U.S. in the form of CHART-2, and, potentially, commercialization would follow," he stated.

March 04, 2016

Mayo Clinic to issue $300 million in bond

Mayo Clinic is issuing $300 million of taxable bonds this month raise funds for "general corporate purposes."

A 200-page preliminary offering memorandum was filed March 3. The bonds are being offered in denominations of $1,000 "and integral multiples thereof…." Starting on Nov. 15, 2016, interest on the bonds is payable every May 15 and Nov. 15.

Mayobonds"Mayo will use the proceeds of these bonds for general corporate purposes," according to Mayo Clinic's Susan Barber Lindquist.

Mayo Clinic, which has AA ratings from Moody's and Standard & Poor's, regularly issues taxable bonds and tax-exempt bonds to fund projects. More bonds are scheduled to be issued this spring.

"In early May, Mayo also plans to issue $250 million of tax-exempt variable rate bonds, the proceeds of which will be used to refund $200 million of fixed rate bonds issued in 2006 through municipal authorities in Jacksonville, Florida; and Rochester; and for new projects in Rochester," wrote Barber Lindquist in an email statement.

She added that, "Mayo also plans to retire the $50 million of tax-exempt fixed rate bonds  issued in 2006 through Maricopa County, Ariz. The 2006 bonds are subject to optional redemption on May 15, 2016."

Through refunding and retiring bonds, the end result should be that the "… Total net new debt of Mayo Clinic will not exceed $300 million," she wrote.

The March 3 bond memorandum included an independent audit of Mayo Clinic. That audit spotlighted many aspects of Mayo Clinic's operations.

• $281 million in revenue from "Retail pharmacy sales" in 2015. That is up $30 million from $251 million in 2014.

• $31 million in revenue from "Graduate Medical and Other Education." That is down $10 million from $41 million in 2014.

• $38 million from "Cafeteria Revenue" in both 2015 and 2014. It made $31.8 in 2011.

• $65 million in revenue from "Royalties." That an increase from $52 million in 2014.

• $41 million in revenue from "Retail stores" in 2015. That's sharp increase from the $20 million in retail store revenue reported in 2014.

• $14 million in revenue from "Oil- and gas-producing activities. That's a decrease from $24 million in 2014.

• $73 million of "Charity Care" was provided to patients in 2015. That is down from $76 million in 2014.

• Mayo Clinic reported $6 million in income taxes, "including interest and penalties for uncertain tax positions" for 2015. The filing added, "It is not anticipated that a significant change in the reserve will occur over the next 12 months."

January 20, 2016

New owners, old name at Northgate Health Club

A longtime Rochester health club is getting an upgrade under new owners as it returns to its old name.

When Dan and Ronaele Hoffman took over Northgate Fitness and Wellness Center in November, one of the first things they did was ask employees and clients about the name.

"Employees preferred the old name of Northgate Health Club. That's what people call it in the community, so we decided to change it back to Northgate Health Club," said Dan Hoffman.

12472391_10153879088087292_5822154243486821442_nBesides returning the 47-year-old center to its original name, the Hoffmans plan to update all areas of the club at 1112 Seventh St. NW in the Northgate Plaza.

"We've already made improvements in the free weights room and there's a lot more to come," he said.

Northgate Health Club has a team of 30 employees on staff.

The Hoffmans bought the club from Prow Co., which owns the shopping center. The idea of buying it came up as they were outfitting a health club in their other property, the Grand Meadow Business Center.

"We starting looking at it. Pretty soon we decided the culture was right, so we bought it," explained Dan Hoffman.

December 16, 2015

New Stewartville firm to collaborate with Mayo Clinic

A new medical device company launched by well-known local experts is joining forces with the top health care name in the region - Mayo Clinic.

Minnesota Medical Technologies, recently started by Jim and Philip Conway, announced this week that it will collaborate with Mayo Clinic in the development of new fecal incontinence products. As part of the deal, Mayo Clinic will have some ownership of Minnesota Medical Technologies.

5627967a5e7bd.imageThe Conways have experience working with Mayo Clinic at their former company, Rochester Medical, which made catheters and urinary incontinence products.

"We are pretty expert in fabricating and designing devices, but we can't pretend to experts in the medical field. That's why working with Mayo Clinic makes sense," said Jim Conway. "It's very likely when we get our first patents, a Mayo Clinic name will also be on it."

The Conway brothers, along with partners Lonnie Boe and Sarah Grinde, are building a 6,500-square-foot pilot manufacturing facility in Stewartville's Schumann Business Park. Jim Conway says the goal is to start using the building sometime in April with early prototype production starting soon after.

"We're shooting to get FDA approval by the end of 2016," he said.

Minnesota Medical is already working on the early groundwork to develop a dual U.S.-European market for these new products. Like when they entered the catheter field in 1989, the Conways see a lot of opportunity to develop better products in area where there is a lot of need.

Fecal incontinence affects an estimated 1 percent to 2 percent of the general population and 40 percent to 50 percent people living in long term care facilities. U.S. sales of fecal incontinence products is predicted to hit $1.9 billion by 2018. Minnesota Medical is targeting 10 percent of U.S. and international sales, a goal they hit with Rochester Medical and urinary incontinence.

Rochester Medical grew into a major international manufacturer with hundreds of local employees and more than $60 million in annual sales. In 2013, the Conways sold it to rival C.R. Baird for $262 million. They signed a five-year, non-compete agreement not to make urinary incontinence products.