$BSTG – Anyone interested in taking this very interesting company forward?

October 8, 2017

OK, if you’ve followed the threads on Biostage you’re no doubt aware of the recent bull”crap” on financing the company.
I want to tell the Gummimmune community that this is a VERY interesting technology that includes one patient who has survived in a trial-sponsored implant of their trachea for at least 5 months. It’s my understanding he would have been long-dead. Recall there are ALSO about 6+ patients (most in Europe) who, using an older version of this technology (and a highly controversial Italian surgeon) are still alive today (I think one patient died who was near death before the transplant and not related to the transplant).

With all of the bull shit around Pecos and Goldblatt, Biostage has run out of money. I think Dr. KSS might agree that the science was strong. They simply lacked the financial resources to get to the end point. I believe they currently need about $15M to $20M (million) to complete the current FDA PH 2 study. As I said, the one patient enrolled in the study is STILL ALIVE.

Full disclosure, I know this team personally and have helped recruit several key people to the team at the HIGHEST LEVELS for Biostage (and it’s predecessor, Harvard Apparatus Regenerative Technology). I’ve personally known the CEO (Jim mcgorry) since 1975 and can tell you he is morally and ethically 100% sound. I would give him my last shirt/dollar if he asked (I’m happy to explain this if needed). Bottom line, I have literally trusted McGorry with my life in years past. This is a company we could, as a group, think about funding, especially if Dr. KSS and Cleveland agree the tech is sound. I believe this could be the first regenerative technology play to get a product (trachea) through to approval. Note, I also recruited Tengion’s ENTIRE senior management team and, had they not squandered about $140 million stupidly building a manufacturing plant, they might have had the first regenerated autologous-organ (bladder) the FDA approved (google Tony Atala M.D., former Harvard and now at UNC who’s technology was behind our efforts at Tengion where I owned a lot of founding stock). I also did work at Histogenics and a few other regentech co’s. Sadly, the path through to approval, dependant on the combined branch at the FDA has struggled to develop a process, which cost these pioneering companies too much for them to succeed. While funding remains a challenge for Biostage, at least they have an ongoing clinical trial and initial path forward.

IF we could fund Biostage and IF they can create and succeed in a path forward, this could be a SIGNIFICANT investment with a HUGE MULTIPLE. Of course, it could be a zero.

One added thought is that the company needs to be private. Public status at this stage is ridiculous. I’ve been telling McGorry that since before recruiting him there.

Next step is to find a chief medical officer If Saverio won’t return. I am uncertain whether Saverio LaFrancesca and McGorry are the right combo going forward. Saverio probably has the right background but may have burned too many bridges. With solid funding, we can recruit the right chief medical officer.

I’d welcome everyone’s reactions.

Wanting to remain in the background (for now), my brief self-description is 20+ years as a high level recruiter with several of the world’s top executive search firms (Spencer Stuart, Heidrick & Struggles, Russell Reynolds). I led the global recruiting practices for 2 of these firms, was second in-command for a third and started and ran two of my own boutiques. I’ve done about 700 searches – all in biotech and medtech. I don’t know everyone, but humbly can say my life sciences network is solid. For example, Dr. KSS knows Bill Rice at Aptose – as do I, all the way back to Bill’s first company. Beyond that, I’ve known a good percentage of management at companies Dr. KSS has recommend.

Anyone have any thoughts?

kb

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Cleveland
Member
๐Ÿ‘6007

$BSTG Wow what a tangled mess now. As you know the CFO chose to go the Biostage route and has the largest stock position. To me a great person.

It is a tangled mess because of the legal agreements with Goldblatt.

Why o why did they not sell out when they said they were gong to????

Goldblatt said he would purchase all the rights not exercised !!!

So very sad. When you get in bet with a shark you sometimes get eaten alive !!

Your vantage point is unique !! I have asked before who are the best CEO”S??

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analog68
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analog68

Thanks for the input Cleveland! Keep it up, please!

Bren
Member
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Bren

Yes, this was in my head too.

I’ll bet there are others thinking the same way. So I don’t have huge spare resources, but would definitely put in a FP into this. Not impossible to get this going I’d say. Maybe not VERY likely, but not impossible…

arbrnrngr
Irregular
๐Ÿ‘157

$BSTG Cleveland, I thought I replied re: the best bio CEOs – too complicated for a brief post but happy to initiate a discussion topic on this if there is support for that topic (I promise I would be brief). I made a few comments at the end of this. To be clear, I have several thousand shares of $BSTG (Biostage) stock – not enough to be a huge investor – I invested because I too am a believer. IT ABSOLUTELY WORKS. I was also a believer in Tengion and Histogenics – two companies I also invested in and owned… Read more ยป

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Walsh
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Walsh

$BSTG (np)

Apologies, but I don’t understand what this means:

“Goldblatt is a shady character and was the reason Saverio made that big purchase โ€“ assuming Goldblatt was coming in.”

Why would Greenblatt be the reason that Saverio La Francesca purchased stock?

Also, you said: “IT ABSOLUTELY WORKS.” What makes you so certain? The only human test of Biostage’s esophageal product was conducted on a single cancer patient, and we received zero details on it.

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arbrnrngr
Irregular
๐Ÿ‘157

OK, the Goldblatt/Saverio comment explanation is Saverio made his recent sizeable investment BECAUSE he believed Goldblatt was coming in with the needed money. Remember, Goldblatt was the only ‘game in town’ prepared to invest and First Pecos/Goldblatt’s deal included placing Saverio on the board. If $BSTG was not about to get that money, Saverio would not be naive enough to invest at that time. He/Saverio must have been assured Goldblatt was coming in with the needed capital. Second, my “IT ABSOLUTELY WORKS” comment: Ask the transplant patient who was on his death-bed last May if it worked. He is still… Read more ยป

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Walsh
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Walsh

arbrnrngr, there’s no need to apologize at all! I was genuinely interested in what you were saying. But I was unclear on a couple of your points. Thanks for clarifying. Also, I was probing to see if you had any extra information on the esophageal cancer patient. Thanks for responding to my message.

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JohnM
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JohnM

$best bio CEOs – I would LOVE to have you start a discussion on this topic. I’ve been investing in biotech since the Genentech IPO, and the three crucial things I look at first are the drug/science, where I have never seen a Wall Street analyst as good as DR KSS, the financials, where Cleveland contributes so much, and the management, where your unique background would be invaluable. I may be able to make a small contribution on some management teams I know, but mostly I would be an eager student.

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arbrnrngr
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OK, I will try to get something started JohnM. You and I agree 100% on the 3 ingredients to predict success (I call it the 3-legged stool). It’s the same thing I’ve been telling candidates for 20 years. One challenge is that it is hard to separate the 3 components much of the time. Are the financials good because of management or is management good because of the financial position of the company? Same question with the technology (science as you label it). I tell boards all the time when they want to hire a CEO – they usually get… Read more ยป

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Bren
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Bren

What’s the roadmap to put this together?

I bet there are a few rich Gummies who could stump up the readies. Or lots of us not so rich who could help…