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828 posts categorized "Mayo Clinic"

April 15, 2014

Doubletree's Rochester Club to stop serving lunch

RochclubletterTitan Development's Doubletree by Hilton hotel sent out a letter to the members of its exclusive Rochester Club to notify them that the club will soon stop serving lunch.

These club members have access to the Doubletree's Executive Lounge, which it accessible only from the two executive level floors. It serves a hot breakfast buffet, a light hot dinner and cocktails with the Doubletree cookies and milk later in the evening.

Rochester clubNot sure how many people are members of the Rochester Club, but I believe a lot of local business leaders use this service.

The letter, which was forwarded to me from multiple members, mentions how much Titan has on its plate right now with its two downtown developments. It didn't explain how those projects connect to the Rochester Club and exactly why the lunch is going away.

I have a call in to the hotel to try to get more details.

April 08, 2014

Mayo Clinic's Nobel Prize work at heart of $5.6B drug deal

So Questcor Pharmaceuticals announced Monday that Ireland-based Mallinckrodt Pharmaceuticals is buying it for a whopping $5.6 BILLION.

A little research into Questcor shows that it has followed an interesting path starting with its $100,000 purchase of rights to H.P. Acthar Gel from Aventis in 2001. The FDA then approved labeling Acthar as "an orphan drug," which opened up the company's options for pricing Acthar.

The New York Times says the price per vial climbed from $40 to an incredible $28,000 within 10 years.

CortisoneA95D4FE2FBE5At the core of Questcor's story is one of Mayo Clinic's most famous research successes.

In 1948, Dr. Philip S. Hench and Dr. Edward C. Kendall were studying the effects of a hormone on inflammination related to rheumatoid arthritis. They had success with cortisone, but it was difficult to synthesize.

Hench then injected adrenocorticotropic hormone, or ACTH to cause the patient's body to produce their own cortisone and other steroid hormones. The ACTH came from pigs from Armour meatpacking.

In 1950, Hench and Kendall won the Nobel Pirze in medicine for their research. Unfortunately, they didn't patent it. The FDA approved H.P. Acthar Gel to treat a variety of diseases and conditions. It was then owned by the meatpacker Armour.

In recent years, Questcor has been criticized for its dramatic price hikes and for vauge allusions to "a secret sauce" in their drug that improves its effectiveness.

Some question if it is effective at all.

Mayo Clinic's Dr. Eric Matteson, the chairman of rheumatology, has been quoted about the use of Achtar in rheumatolgy.

• “Limited to no attractiveness in rheumatology”

• “Enthusiasm is low”

• "Very little if any role for an ACTH product in rheumotatic diseases, I don't see it."

March 21, 2014

DMC origins stem from lunch chat six years ago

For the first part of two DMC sections, I chatted with Dr. Glenn Forbes, Bruce Fairchild, John Wade, Jeff Korsmo and Lisa Clarke about the evolution of the concept of the Destination Medical Center.

DMCMy article tracks the journey of the idea from a casual lunch conversation in March 2008 to DMC's appearance in the 2012 sales tax vote and the unveiling of the full concept in 2013.

Obviously, the idea of the City of Rochester and Mayo Clinic working from the playbook is not a novel idea in the Med City. Some at Mayo dismissed my use of this luncheon chat as a startng point. However, they weren't about to offer any better dates as begin DMC's genesis other than the formation of Mayo Clinic 250 years ago.

Unfortunately, the DMC section wasn't quite large enough to accomodate an article that tracked each milestone since 1889, so I just went with the March 2008 conversation.

Here's a little bit of what turned into a very lengthy article. Check out the rest in this weekend's DMC section.

-------------------------------

Destination Medical Center is such a common topic in Rochester today that it's hard to keep in mind that the concept has only been known publicly for just over a year.

But the concept that grew into the $6 billion DMC initiative appears to have started with a chat at a Virginia conference center about six years ago.

Flag01-bdyjpgThat conversation was in March 2008 at Mayo Clinic's National Symposium on Health Care Reform at Lansdowne Resort in Leesburg, Va. The place was bustling with national leaders in the health care business. Representatives of the presidential candidates were there, promoting their health-care reform plans.

But not everyone at the conference worked directly in health care. Mayo Clinic flew out two local business leaders — John Wade, then-president of the Rochester Area Chamber of Commerce, and Bruce Fairchild, then-regional director of Interstate Hotels in Rochester — as guests.

Since November 2007, Wade and Fairchild had been talking about developing a plan to bring the community and its largest employer into sync to serve more efficiently the thousands of people who stream into Rochester. While it wasn't a new idea, a move to formalize such a plan was gaining momentum. Amid the action at the symposium, the pair decided they should share their ideas with Mayo Clinic.

They asked to meet with Mayo Rochester CEO Dr. Glenn Forbes, without much expectation that he'd have time to meet.

"But true to form, Dr. Forbes took the time, and we had lunch together," Wade said in a recent interview. Forbes was Mayo Rochester CEO from 2006 to 2009, and "his very nature is to be collaborative," Wade said.

The three met in a restaurant at the Lansdowne conference center, and their lunch unexpectedly turned out to be a long one.

It started with the trio "blue sky, brainstorming ideas," said Fairchild, who now manages hotels in Texas. But the talk quickly picked up momentum.

"We were getting increasingly excited about the possibilities," said Forbes, who is now retired from Mayo Clinic. "The lunch went over several cups of coffee for about 2 1/2 hours."

March 18, 2014

Mayo Clinic's new full court press

Mayo Clinic is going beyond the role of sports trainer on the bench and is stepping onto center court with its latest business play.532836c8a1ddb.image

The Mayo Clinic name is now prominently emblazoned across the front of the jerseys of the Minnesota Lynx professional women's basketball team, part of a huge sponsorship deal announced Monday.

Mayo's name will appear above the player's number in the spot where the team name used to be located. Boost Mobile, which sponsors the entire league, has its logo below the number, as it did in previous years. The Lynx logo now appears as a small patch near the collar of the jersey.

No financial terms of the multiyear deal were released.

The Womens National Basketball Association began allowing "branded" or "marquee" jerseys in 2009. The Lynx are the sixth team to lock down such a sponsorship. In 2010, Microsoft’s Bing search engine paid more than $1 million to place its name on the WNBA jerseys of the Seattle Storm. People familiar with WNBA sponsorships estimated the Mayo Clinic deal is at least "seven figures."

TimberwolveLynxMayoLogosThe sponsorship is part of "a strategic collaboration" with the Lynx and the NBA's Minnesota Timberwolves that includes the development of a new training facility and sports medicine center to be called Mayo Clinic Square.

"This is another block in the relationship we're building," said  Dr. John Wald, Mayo Clinic's medical director for marketing and public affairs. "From our perspective, this is one of the key components in this relationship that allows us to move out into the Twin Cities, raise awareness and build more relationships."

The agreement also includes Mayo Clinic's name on the Lynx practice jerseys and signage at the basketball court. In 2015, Mayo Clinic will become the medical provider for the Lynx. TRIA Orthopaedic Center will continue to serve as the team's official medical team until then. TRIA also provides care for the Minnesota Vikings, Minnesota Wild and the Minnesota Twins.

Wald emphasized that the sponsorship displays Mayo Clinic's expertise in sports medicine and training, and the Lynx organization is a good fit with Mayo Clinic's values.

"We believe it was the right thing to do to put Mayo Clinic's name on those jerseys," Wald said.

Mayo Clinic is certainly not the first non-profit medical center to have such an arrangement with a professional sports team. However, none of the top four professional leagues — NFL, NBA, NHL and MLB — allow sponsors' names on game jerseys.

IEG, a leading sponsorship consulting firm, reported in 2013 that of all sponsorship deals made by hospitals, about 72 percent involved sports. About 12 percent were for arts/entertainment, and 8 percent were for "causes."

The Mayo Clinic-Lynx collaboration comes as the WNBA league hit its best game attendance and television ratings in team history at the end of the 2013 season.

The 2014 season begins in May and runs through August. The Lynx are scheduled to play six games to be televised by ESPN2.

March 03, 2014

Mayo Clinic to expand Superior Drive Support Center

Mayo Clinic is planning to expand its Superior Drive Support Center, which houses Mayo Medical Laboratories.

The clinic submitted plans on Feb. 14 to build a proposed 66,000-square-foot, two-story addition on the south side of the complex at 3050 Superior Drive N.W. 

03032014mayomedlabsMML conducts a wide variety of medical tests for hospitals worldwide. According to its website,
it performs nearly 20 million tests for more than 4,000 hospitals annually. The testing division overall has more than 3,200 employees, including more than 160 physicians and scientists. It has 58 laboratories that perform testing with support from Mayo Clinic physicians.

03032014SDSCplansWhile Mayo Clinic spokesperson confirmed the existence of site development application, officials there say it's too early to discuss specifics such as the timeline for the project or estimated cost. However, the plans designed by Flad Architects offer general details.

The expansion will more than double the lab space in the complex. It currently has 30,854 square feet of labs. The plans show that 34,000 square feet of laboratory area in the proposed addition to bring the total lab space to a total of 65,000 square feet.

Office space in the SDSC is slated to grow by 5,472 square feet, for a total of 137,000 square feet of space, following the expansion.

The remainder of the 26,000 square feet in the proposed expansion is described only as "Other." The first floor of the addition will have 28,533 square feet, and the second level will have 27,842.

Mayo Clinic moved into the 13-year-old complex in 2004. By 2011, approximately 800 employees worked at the facility. It was originally built by electronics manufacturer Celestica Inc. in 2001. When that company closed its Rochester operation, the building was left empty.

While Mayo Clinic leased the property for eight years, it purchased it for $18.5 million in August of 2012. Prior to that it was owned by 17 national investors through Triple Net Properties of Santa Ana, Calif. until they defaulted on the mortgage in 2012.  The investors bought the property for $36.8 million in 2006

When the mortgage defaulted, HSBC Bank USA took over the property. HSCB then sold it to Mayo Clinic.

While it was was originally under construction, New York City-based W. P. Carey & Co. LLC bought the complex from Celestica, which leased it back. W.P. Carey later sold it for about 70 percent more than the $21.6 million it paid for it.

February 10, 2014

City Centre plans take shape

Titan Development and Investments officials, led by father-and-son developers Gus and Andy Chafoulias, have finalized plans for a six-story commercial complex with a roof-top lounge on top to be built in downtown Rochester.

CitycentresiteWhen buzz about the project began in May, it was described by Andy Chafoulias as a four-story building. However, Mayo Clinic's Destination Medical Center initiative plus news that the tenants in the nearby seven-story Associated Bank Building are being displaced spurred the developers to change their plans.

The project, now called City Centre One, was earmarked by the Rochester City Council in September to be included in the $2 billion in private investment promised to the state as part of DMC.

A special redevelopment tax-increment-financing district was approved by the city to raise $300,000 to cover the asbestos removal and demolition of the former C.O. Brown building at 300 S. Broadway. Once the prep work is complete, the site will be ready for demolition crews to clear away the old building to make way for the City Centre One.

Titan submitted a development plan to the city last week, which is the first detailed description of the complex since it was first announced.

Plans by Rochester's CRW Architecture + Design Group show a 34,371-square-foot, seven-story complex.

The street level of the building is expected to feature an Italian restaurant, created and run by restaurateurs Pat Woodring and Scott Foster. Woodring and Foster are the minds behind Chester's Kitchen & Bar and Pescara. That floor will be the largest at 5,144 square feet in size.

The second through sixth floors are all expected to house commercial office tenants similar those that now lease space in the Associated Bank Building. Each of those floors are slated to be 5,121 square feet in size.

Topping the structure is a 3,622-square-foot rooftop lounge, which also will be a creation  of Woodring and Foster.

January 30, 2014

Dunkin' Donuts rolling into Roch.

The deal is done and Dunkin' Donuts is rolling into downtown Rochester.

After months of rumors, the famous coffee and pastry chain officially is signed up to open on First Avenue Southwest in the Kahler Grand Hotel complex.

Simpsons_donuts-l1"We want to make sure the tenants we have are viable for Mayo's DMC plans," said Cherylanne Thomas, managing director of marketing for Richfield Hospitality in Rochester, Richfield manages the five Kahler hotel properties here.

"Obviously, Dunkin' is a great brand. They were looking to lease in the area. It seemed like a good fit," she said.

Thomas says a franchisee, Donuts Non Traditional LLC, plans to open a Dunkin' Donuts between Hanny's and Victoria's Italian Restaurant & Wine Bar. The move of Optical Vision with Flair into part of the Hanny's store is opening up the space for the doughnut maker.

Building permits for the project were submitted this week to the city. The rough timeline is for the new Dunkin' Donuts to open by late June or early July, according to Thomas.

This could be the first of an estimated 50 Minnesota locations the company would like to open in the next few years. Dunkin' Donuts hasn't had a presence in Minnesota for almost a decade. The final shop, which was in Austin, closed in 2005. The Canton, Mass.-based Dunkin' Brands announced its plans to return to the state earlier this month. 

At that time, Steve Rafferty, senior director of U.S. franchising, stated that the new locations would be focused around the Twin Cities metro areas as well as Rochester, Mankato and Duluth.

Rafferty said franchisees need to have a minimum of $250,000 in "liquid capital" and $50,000 net worth per location. Each franchisee is responsible for a territory with at least six locations.

Rochester's franchisee, Donuts Non Traditional LLC, incorporated in October. While Thomas describes it as being based in the Twin Cities, state documents list its address as the same as Rochester's Dunlap & Seeger law firm. It's not unusual for some companies to use their attorneys' address for such filings. Dunlap & Seeger also represents Kahler Hotel properties.

This is the latest in a series of tenant changes, some of which have spurred lawsuits from tenants unwilling to move. Javon R. Bea, the chair of the Kahler Hotel Group's board of directors, has been orchestrating the changes.

Thomas said Bea's goal is make the hotels better.

"Obviously, he supports both retail and restaurants in the community," she said.

The expectation at this point is that the new Dunkin' Donut location will be open seven days a week. Thomas added that the franchisee is planning on using the company's latest design concept for this location.

"It'll feel more like a cafe," she said.

January 28, 2014

Mayo Clinic to ramp up link to Dept. of Defense

My colleague Jeff Hansel is writing an article about Mayo Clinic opening an office called Mayo Clinic Department of Defense Medical Research Office to better connect with Dept. of Defense for contracts and research.

Watch for Jeff's article on this soon.

I've touched on this topic in past years, so I dug up some info about recent DOD contracts with Mayo.

MayodefenseSince 2000, Mayo Clinic in Rochester has received about $41 million from the DOD. About $37 million of that $41 million was paid out for "Research and Development - Missile/Space Systems - Advanced Development," according to federal government records.

The majority of that work is done at the Dept. of Defense Medical Research Office, which is in the Mayo Support Center on West Circle Drive. That office has long been spearheaded by Dr. Barry K. Gilbert.

Some of the recent projects, according to federal contract records, include:

• R&D Services for Development and Demonstration of Capabilities of Hybrid Supercomputer

• Development of Ultra-High Linearity X-Band Mixers

• Study of Energy Harvesting Concepts, Evaluation of Quantum Orbital Magnetic Resonance Technologies

•R&D Services for Study of Energy Harvesting System Concepts

• Optical Communications: Monte Carlo Model - Preparation of Full-Scale Optical Communications Test.

I can't pretend to know what much of that means, though I believe the hybrid computer deal has something to do with immunizations and fighting virulent outbreaks. The optical communcations, I think, has something to do with transmitting medical information between hospital sites.

I confess this side of Mayo has always fascinated me. Hopefully, the creation of this new office will mean more of a spotlight will shine on Mayo Clinic's interesting military work.

December 10, 2013

Mayo Clinic wraps up $10 million buy of old courthouse site

Amid the boom in downtown development and the flurry of Destination Medical Center activity, a sale of a historic Rochester property has wrapped up after 20 years.

Mayo Clinic now officially owns the former Olmsted County Courthouse property after making the last payment of a $10.1 million, 20 year Contract for Deed deal.

The final payment was made on Sept. 1 to complete the agreement that was originally signed between the Mayo Foundation and Olmsted County in October 1993, according to Kelley Luckstein of Mayo Clinic.Get_photo

Mayo Clinic spent $7.7 million to renovate the courthouse into what is now the Ozmun office buildings at 515 Second St. The revamped complex was dedicated in 1995. The property also includes the Dan Abraham Healthy Living Center at 565 First St. S.W.

The buildings and property on Second Street Southwest became available after the then-new City-county Government Center at 151 Fourth St. S.E. was dedicated in 1993.

After paying $1 down as earnest money, Mayo Clinic made payments to the county every Sept. 1. The first installment was $1,031,946 and then the payment increased by one dollar for the next four years.

By the fifth year, the payment grew to $1,216,807 for five years. It increased to $1,401,665 on year 11 and the annual remained at that level through the final payment.

The original deal was made by the Mayo Foundation, but that entity has since been converted into the Mayo Clinic legal body, says Luckstein. On Nov. 19, the ownership was transferred from the foundation to Mayo Clinic.

December 05, 2013

Breast cancer scanner maker, once linked to Mayo Clinic, sold to Mexican company

Qg3q4q112233Here's a potentially interesting nugget of news about San Diego-based Naviscan Inc., which was at one pointed linked with Mayo Clinic through intellectual property licenses as well as direct investment by Mayo Medical Ventures.

"… Certain Naviscan Inc. assets including intellectual property and the Naviscan Trademark" have been aquired by a Mexican medical scanner company called Compañía Mexicana de Radiología or CMR.

Not sure what that means exactly, but my guess is that CMR is now behind the steering wheel at Naviscan.

Now I don't know if Mayo Clinic still has any links with Naviscan, but it certainly did at one time. I've got calls into Mayo and Naviscan to check on that.

I wrote the Mayo Clinic-Naviscan relationship back in 2005 through 2007 or so. Sheesh, I've been doing this for a long time.

From back in November 2005:

Naviscan “entered into an agreement with Mayo Foundation for Medical Education and Research (Mayo Clinic) to clinically validate and commercialize a dynamic patented molecular imaging agent for use with Positron Emission Tomography (PET) and other imaging modalities. … Mayo Clinic has licensed the vitamin B-12 molecular imaging agent technology invented by Dr. Douglas A.Collins to Naviscan PET Systems, Inc and will receive royalties from this license. Researchers at the Mayo Clinic have published studies that cancers have high uptake of radioactive B-12, especially in breast tumors."

    --------------------
"The combination of the Mayo Clinic’s patented Vitamin B-12 molecular imaging agent and Naviscan’s high-resolution PET scanner holds great promise for the future in terms of early detection of breast cancers,” said Paul Grayson, newly-appointed CEO of Naviscan PET Systems, Inc. and a Managing Director of Sanderling Ventures. “We sought out Naviscan’s technology to strategically invest in this important imaging technology platform.” Naviscan is planning clinical trial work with Mayo Clinic and other luminary sites in the U.S. to prove the value of the PEM Flex in breast cancer patients, as well as for evaluating PEM’s role with high-risk patients.”

----

From the same date in 2005:

“Naviscan PET Systems has raised a $6.5 million in Series B funding for its high resolution positron emission tomography (PET) products. The firm said that it raised the round from Sanderling Ventures, with participation from Mayo Medical Ventures."

FYI, Sanderling Ventures now leases a space in the Mayo Clinic Business Accelerator.