Article from Winston-Salem Journal
By: RICHARD CRAVER
Published: December 06, 2011
Tengion Inc. has named a private-equity investment official as its top executive.
The struggling clinical-stage biotechnology company has hired John Miclot, a 25-year health-care veteran, as president and chief executive. He will be based in Winston-Salem, where the bulk of Tengion's workforce is situated as the company shifts through a major restructuring announced Nov. 14.
Miclot most recently served as executive in residence at Warburg Pincus, a global private-equity company. He also served for two years as president and chief executive of CCS Medical Inc., a company owned by Warburg Pincus that provides products and services for patients with chronic diseases.
Although it has had research setbacks this year, in the past three months Tengion has appeared to be moving forward on two key research programs involving regenerating muscle cells in the small intestines and its neo-urinary conduit.
"This is an exciting time to join and a pivotal time for the company," Niclot said in a statement. "Tengion's pipeline of programs has shown significant promise and potential.
My goal is to work with and lead the team to achieve the full potential of these programs and Tengion's organ regeneration platform."
It is the latest development at Tengion, which is best known for the research of Dr. Anthony Atala, its founder, who runs the Institute for Regenerative Medicine for Wake Forest Baptist Medical Center.
Tengion had gone more than five months without a top executive after Dr. Steven Nichtberger resigned in late June.
Tengion is cutting its full-time workforce by 30 jobs, or 58 percent, as part of concentrating its research and development operations in Winston-Salem.
The cuts include several executive positions. Once the consolidation is complete, the company said it will have 19 full-time or equivalent jobs in Winston-Salem and three in East Norriton, where it is currently based.
Miclot was president and chief executive of Respironics Inc. from 2003 to 2008, where he implemented a growth strategy that resulted in the company's sale to Royal Philips for $5.1 billion.
"John's proven track record of driving company growth and realizing shareholder value make him an ideal choice to lead Tengion," said David Scheer, chairman of Tengion's board of directors.
"As we continue to pursue strategic partnership and financing discussions, his experience will be invaluable and we look forward to working with him to achieve key Tengion milestones in 2012."
Tengion's share price has been battered since it said Feb. 16 that it was in danger of running out of money and was considering finding a buyer. The company raised $31.4 million in a March public-stock offering.
On Nov. 14, it said it had $20.3 million in cash, cash equivalents and short-term investments, enough to make it to November 2012.
Investors responded to Miclot's hiring by raising the share price 7 cents, or by 17 percent, to 47 cents at 10:45 a.m. today.
Article from Winston-Salem Journal