Good To Read

manouli · 09-03-2007, 09:21 AM

MAYBE WE SHOULD SUPPORT THIS COMPANY FINANCIALY.

By Jeffrey Krasner, Globe Staff | September 3, 2007

Call it the extreme corporate makeover.

While some companies embrace their past, others want people to forget what they've done.

It's a strategy that seems to work well for biotechnology companies that have lost too much money, angered too many investors, or gone too long without delivering a product.

For example: Boston Life Sciences Inc.

Over the past 10 years, the biotech firm has turned in the sixth-worst investment performance of any Massachusetts company, losing 94 percent of its share price. The shares closed Friday at $2.39.

So a few months ago, Boston Life Sciences changed its name to Alseres Pharmaceuticals Inc.

It's a better name, said chief executive Peter G. Savas, since it comes from the Latin word "to grow together." Alseres primary mission is to develop a drug, Cethrin, that has shown promising results in repairing spinal cord injuries that cause permanent paralysis.

Savas said the Boston Life Sciences name had become a liability. People who became interested in the firm's experimental spinal cord treatment would lose interest when they heard that the company behind it was Boston Life Sciences, which had lost $153 million since it was founded in 1992.

"I want to distance myself from it," he said.

The name change is only the most visible part of the transformation Savas has overseen since he joined the firm in 2004. He's revamped management, added scientific advisers, narrowed the company's focus, and moved corporate headquarters from Newbury Street, where Boston Life Sciences had, incongruously, set up shop, to Hopkinton, a proper suburban location for a development-stage biotech.

Boston Life Sciences was founded by Dr. Marc E. Lanser, who had a clever idea: Instead of spending millions on labs, clinical trials and employees, he created a virtual company that farmed out most of its scientific work. He predicted the savings would allow the company to pursue more drug candidates and improve its odds of developing a blockbuster treatment.

But the story played out in a way that's all too familiar to many biotech investors. Promising early-stage technology never made it to market. A sharp spike in share prices in early 2000 quickly faded, and the stock languished in the single digits. The company faced delisting of its shares from the Nasdaq Stock Market. Investors ultimately forced Lanser out. That's when Savas arrived.

The new chief executive said Boston Life Sciences had been spread too thin, with programs to develop a diagnostic for a type of Parkinson's disease, a nerve regeneration treatment, and a test for attention-deficit hyperactivity disorder. The goal now is to advance some of those programs to the point where a big pharmaceutical or biotech company will want to collaborate on development and marketing, and eventually take over some or one of the programs.Continued...

http://www.boston.com/business/globe...nges_its_name/

Wise Young · 09-03-2007, 01:51 PM

Manuouli,

Thanks for posting this. I had not heard of this change in name. Alseres, let's grow together... that's an interesting name. It is discouraging, however, to hear of the company's financial problems. It is hard, when one has lost so much money, to get investments from the stock market or investors. It also means that the company may not have the funds necessary to move Cethrin into clinical trial.

Wise.

antiquity · 09-03-2007, 02:10 PM

Good to know what happened. The rest of the article also drives home the funding issue for those who insist that a lack of funding has no relation to a lack of a curative treatment. SCI research is suffering for one reason only, the lack of significant investment from both the public and private sectors. I'm glad they chose not to abandon the field altogether. Here's hoping they make it this time around.

Scott Buxton · 09-05-2007, 04:44 PM

A friend's bank representative just today asked the names of some SCI companies for possible inclusion in a mutual fund they're making! This is a start. Momentum is building. Scott.

09-03-2007, 09:21 AM	#1
manouli Senior Member Join Date: Nov 2004 Location: florida Posts: 9,356	Good To Read MAYBE WE SHOULD SUPPORT THIS COMPANY FINANCIALY. By Jeffrey Krasner, Globe Staff \| September 3, 2007 Call it the extreme corporate makeover. While some companies embrace their past, others want people to forget what they've done. It's a strategy that seems to work well for biotechnology companies that have lost too much money, angered too many investors, or gone too long without delivering a product. For example: Boston Life Sciences Inc. Over the past 10 years, the biotech firm has turned in the sixth-worst investment performance of any Massachusetts company, losing 94 percent of its share price. The shares closed Friday at $2.39. So a few months ago, Boston Life Sciences changed its name to Alseres Pharmaceuticals Inc. It's a better name, said chief executive Peter G. Savas, since it comes from the Latin word "to grow together." Alseres primary mission is to develop a drug, Cethrin, that has shown promising results in repairing spinal cord injuries that cause permanent paralysis. Savas said the Boston Life Sciences name had become a liability. People who became interested in the firm's experimental spinal cord treatment would lose interest when they heard that the company behind it was Boston Life Sciences, which had lost $153 million since it was founded in 1992. "I want to distance myself from it," he said. The name change is only the most visible part of the transformation Savas has overseen since he joined the firm in 2004. He's revamped management, added scientific advisers, narrowed the company's focus, and moved corporate headquarters from Newbury Street, where Boston Life Sciences had, incongruously, set up shop, to Hopkinton, a proper suburban location for a development-stage biotech. Boston Life Sciences was founded by Dr. Marc E. Lanser, who had a clever idea: Instead of spending millions on labs, clinical trials and employees, he created a virtual company that farmed out most of its scientific work. He predicted the savings would allow the company to pursue more drug candidates and improve its odds of developing a blockbuster treatment. But the story played out in a way that's all too familiar to many biotech investors. Promising early-stage technology never made it to market. A sharp spike in share prices in early 2000 quickly faded, and the stock languished in the single digits. The company faced delisting of its shares from the Nasdaq Stock Market. Investors ultimately forced Lanser out. That's when Savas arrived. The new chief executive said Boston Life Sciences had been spread too thin, with programs to develop a diagnostic for a type of Parkinson's disease, a nerve regeneration treatment, and a test for attention-deficit hyperactivity disorder. The goal now is to advance some of those programs to the point where a big pharmaceutical or biotech company will want to collaborate on development and marketing, and eventually take over some or one of the programs.Continued... http://www.boston.com/business/globe...nges_its_name/ Last edited by manouli; 09-03-2007 at 09:32 AM.

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09-03-2007, 01:51 PM	#2
Wise Young Administrator Join Date: Jul 2001 Location: New Brunswick, NJ, USA Posts: 37,988	Manuouli, Thanks for posting this. I had not heard of this change in name. Alseres, let's grow together... that's an interesting name. It is discouraging, however, to hear of the company's financial problems. It is hard, when one has lost so much money, to get investments from the stock market or investors. It also means that the company may not have the funds necessary to move Cethrin into clinical trial. Wise.

09-03-2007, 02:10 PM	#3
antiquity Moderator Join Date: Jul 2001 Posts: 14,540	Good to know what happened. The rest of the article also drives home the funding issue for those who insist that a lack of funding has no relation to a lack of a curative treatment. SCI research is suffering for one reason only, the lack of significant investment from both the public and private sectors. I'm glad they chose not to abandon the field altogether. Here's hoping they make it this time around.

09-05-2007, 04:44 PM	#4
Scott Buxton Senior Member Join Date: May 2006 Location: Spokane, Washington. Posts: 290	A friend's bank representative just today asked the names of some SCI companies for possible inclusion in a mutual fund they're making! This is a start. Momentum is building. Scott.