Category: Health care/biotech (page 1 of 5)

Rockville-based biopharmaceuticals company raises $23.6 million

ROCKVILLE, MD — A clinical-stage biopharmaceuticals company raised $23.6 million by selling 1.1 million shares to an investor, according to a filing with the Securities and Exchange Commission.

MacroGenics Inc. entered the agreement with an investor not affiliated with the company on April 26. The shares were offered at $21.50 per share. The closing of the offering is expected to occur on May 2. No underwriter or agent was used.

Founded in 2000, the company focuses on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, autoimmune disorders and infectious diseases.

On its website, the company has eleven products listed in its pipeline and three platforms. It has several strategic collaborations with global pharmaceutics and biotechnology companies through its technology platforms and protein engineering expertise.

Senior Vice President and General Counsel Atul Saran signed the filing April 26. The filing can be found here.

MacroGenics was trading at $21.94, up 26 cents, on Thursday morning.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Quality Care Properties CEO Ordan paid $14 million in 2016

BETHESDA, MD — Quality Care Properties Chief Executive Officer Mark S. Ordan was paid $14 million in compensation last year, according to a proxy filed Friday with the Securities and Exchange Commission, after he helped orchestrate the REIT’s spin-off from HCP Inc. in late 2016.Quality Care Properties Maryland healthcare REIT

Ordan began consulting for HCP in August 2016 as the company sought to divest the poorly performing HCR ManorCare portfolio, one of HCP’s main tenants, which had also been accused of defrauding Medicare.

HCP successfully spun off the ManorCare portfolio into a new company called Quality Care Properties, which operates as a publicly traded health care REIT focused on post-acute nursing services and assisted living.

 

The spin-off was also motivated by HCP’s desire to exit the “post-acute” space of health care properties, which then made up 26 percent of the company’s portfolio, in order to focus its revenue stream on private-pay sources.

Post-acute care consists of rehabilitation required after a patient’s stay in an acute-care hospital.

Ordan’s total compensation includes $1.2 million for his consulting work, $9.5 million in stock and options awards and a $3 million “completion bonus” in association with the successful spin-off from California-based HCP.

Prior to his consulting work at HCP, Ordan was CEO at Sunrise Senior Living from 2008 to 2013 and led the restructuring effort and eventual sale of the REIT. He has also been a director at VEREIT, WP Glimcher, and Washington Prime, all commercial REITs.

Greg Need, QCP’s president and chief investment officer, received $9.2 million in compensation in 2016, consisting of $6.5 million in stock and option awards and a $2 million completion bonus.

Need worked alongside Ordan at Sunrise Senior Living as chief investment officer from 2008 to 2013.

Chief Financial Officer and Treasurer C. Marc Richards also worked with Ordan previously as CFO at both Washington Prime and Sunrise Senior Living.

Richards was paid $5.1 million in 2016, with a $1 million bonus and $3.8 in stock and option awards.

According to QCP’s updated employment contracts, in 2017 Ordan, Need and Richards will receive base salaries of $800,000, $575,000 and $400,000 respectively, along with possible cash and equity awards grants as multiples of their salaries.

REITs are required by the SEC to distribute 90 percent of their taxable income to shareholders as dividends.

However, the company has also reserved the right to make future dividend payments that are made up of both dividends and stock in the company, which might concern some investors who are attracted to the strong dividend streams associated with REITs.

In May 2017, QCP announced it entered into a forbearance agreement with HCR ManorCare to defer $7.5 million of rent a month for April, May, and June while requiring HCR to make cash rent payments of $32 million each month.

QCP is also in a good-faith discussions with HCR concerning the long-term restructuring of the master lease terms, and has agreed to provide a temporary credit extension of up to $7 million each month for the same time period.

The QCP’s stock closed down slightly Thursday at $18.82 per share.

This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Omega Healthcare’s Insoft sells $3 million in shares

Omega HealthcareHUNTS VALLEY, MD — Omega Healthcare Investors Inc. executive Steven Insoft, the head of corporate development for the Hunts Valley-based health care REIT, sold $2.98 million in shares on Tuesday, according to a filing from the Securities and Exchange Commission

The 87,500 sold shares were equal to 20.6 percent of the common stock shares Insoft owned in 2016, according to the company’s most recent report on executive compensation. He still owns more than 320,000 common stock shares in the firm.

He filed the transactions Thursday, minutes after the stock market closed early in observance of Good Friday.

The last time Insoft sold company shares was mid-March, disposing of roughly $387,000 in shares. The most recent company stock transaction from a company leader came from Edward Lowenthal, a director, who sold 637 shares in March, just 1.5 percent of his common stock stake, worth $19,900.

The transaction occurs weeks within the release of Omega’s financial report for the first quarter ended March 31. Analysts expect quarterly earnings of 51 cents per share, compared to earnings of 29 cents per share during the same quarter last year and 63 cents per share during the most recent quarter.

Also on Thursday, Omega announced a common stock dividend of 63 cents, up 1 cent from last quarter. It is its 19th consecutive dividend increase.

The company’s stock price fell Thursday to $34.06, down 0.1 percent from Wednesday, and up 10.4 percent over the month.

This story is from the Maryland Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism

Medical tech company Vasoptic Medical raises $1.5 million

VasopticBALTIMORE, MD — Vasoptic Medical Inc., a Baltimore-based medical technology company, raised $1.5 million in a private equity offering, according to a filing with the Securities and Exchange Commission.

Vasoptic Medical filed a Form D on April 7. It did not disclose what it intended to do with the proceeds.

The company was founded in 2012 by M. Jason Brooke and Abhishek Rege based on technology developed by Rege while studying at Johns Hopkins University.

The technology is a portable retinal imager that examines retinal microvasculature and is making a significant impact on the prevention of vision loss associated with diabetes.

It has implemented its product in primary care and community clinics. It is  low-cost and easy to use technique that monitors the progression of various metrics that are commonly found in retinal diseases.

The Maryland Technology Development Corp. chose Vasoptic Medical for financial investment from the Life Science Investment Fund in 2016. Companies chosen by TEDCO are given an investment of up to $200,000 in order to advance their products commercialization.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

 

Cerecor losses impact new CEO’s compensation package

CerecorBALTIMORE, MD – The chief executive of Baltimore-based Cerecor Inc. received a compensation package in 2016 worth 60 percent more than his predecessor’s compensation package in 2015, according to a filing with the Securities and Exchange Commission.

Dr. Uli Hacksell’s total compensation package for 2016 was valued at $1.7 million, compared to the $1.1 million package received by Cerecor’s former President and Chief Executive Blake Paterson in 2015.

Hacksell’s package, however, included a stock option award that the company valued at $1.2 million on the first day of Hacksell’s employment with Cerecor, which was Jan. 1, 2016.

The award included the option to purchase 360,459 shares at $3.35 each, but Cerecor’s stock price has since fallen to 68 cents per share – nullifying the option’s original value.

According to the filing, none of the three named executive officers received a bonus relative to their achievement goals for the 2016 fiscal year.

Clinical-stage biopharmaceutical company Cerecor said in its annual report released March 14 that the company will require additional capital to continue to fund its short-term operations and finance the advancement of its product candidates.

As of Dec. 31, 2016, the company had $5.1 million in cash and cash equivalents, compared to $4.3 million in current liabilities.

The company also announced on Nov. 29 that one of its anti-depressive drugs failed to produce statistically significant results as part of its phase 2 clinical trials.

Meanwhile, Hacksell’s base salary in 2016 totaled $500,000, up 26.5 percent from Paterson’s base salary of $395,208 in 2015.

Ronald Marcus, Cerecor’s chief medical officer, received a total compensation package valued at $581,125, an increase of 15.2 percent from 2015. The only other executive named in the filing, Chief Business Officer John Kaiser, saw his compensation package fall 9.6 percent to $450,411 for the year.

Cerecor’s annual shareholder meeting will be held on May 12 at law firm Cooley LLP’s New York City offices. Shareholders will vote on the election of two board members, as well as to ratify the selection of Ernst & Young LLP as Cerecor’s accounting firm for the 2017 fiscal year.

Cerecor reported a net income loss per share of 18 cents in the fourth quarter – for a total net loss of $1.6 million in the quarter.

The proxy filing can be found here.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.

Annapolis-based health care diagnostics company raises $350,000

Screen Shot 2017-04-02 at 9.21.36 PMANNAPOLIS, MD — A diagnostics company raised $350,000 from one investor, according to a filing with the Securities and Exchange Commission.

xMD Diagnostics filled the Form D on March 29. The first sale occurred Jan. 20, and the company plans to raise $175,000 more. The offering is not being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer.

An estimated $35,000 of the proceeds will be used as payments to executive officers, directors or promoters.

xMD Diagnostics develops proprietary automated instruments and kits for microdissection pathology and molecular diagnostics applications.

Ting Pau Oei, founder and board member of xMD Diagnostics, signed the Form D on March 29. He is managing and founding partner at Fox Feather Ventures, a venture capital advisory firm specializing in health care.

Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell securities.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Orgenesis CEO Caplan sees compensation double

GERMANTOWN, MD — Orgenesis Inc. Chief Executive Officer Vered Caplan’s total compensation more than doubled last year due to $300,000 in option awards.

Caplan earned $508,745 in 2016, more than double the $202,006 in 2015, according to the company’s proxy statement. filed March 30. On the same day, the company entered a new employment agreement with Caplan, effective April 1.orgensis_thumbnail

Caplan’s base salary decreased from $154,751 in 2015 to $150,077 in 2016. She earned $308,364 in option awards in 2016 and did not earn any option awards the previous year.

Her base salary did not change under the new employment agreement, but the agreement stipulates she will earn a raise up to $250,000 once the stock gets on a national stock exchange.

Under the new terms of her employment, Caplan is entitled to a cash bonus approximately 25 percent of her base salary. The amended agreement includes social benefits typically provided to Israeli employees.

Caplan became CEO in August 2014 after serving as interim president and CEO since December 2013.

The only other executive to earn option awards in 2016 was Scott Carmer, who resigned from his position as CEO of Orgenesis’ U.S. subsidiary, Orgenesis Maryland Inc., on Nov. 12, 2016. He earned $313,531 in option awards, resulting in $555,198 total compensation.

The annual shareholders meeting for Orgenesis is scheduled for May 11 at 10 a.m. at the Pearl Cohen Zedeck Latzer Baratz LLP offices in New York City.

Shareholders will be asked to elect six members of the board of directors, approve executive compensation and adopt the 2017 Equity Incentive Plan, under which Caplan is entitled to 4 million shares of common stock exercisable over a two year period.

Orgenesis is a regenerative therapy company based in Germantown, Maryland. The stock closed up 2.53% to 87 cents on the OTC Market on Thursday.

The form 14A can be found here.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.

Medifast chief marketing officer Kagen resigns

imgresOWINGS MILLS, MD — Executive Vice President and Chief Marketing Officer Brian Kagen of Medifast, Inc. is resigning, effective on the close of business on April 20.

“The company thanks Mr. Kagen for his service since June 2011 and wishes him well as he leaves to pursue other professional opportunities,” according to a filing with the Securities and Exchange Commission on March 24.

Kagen joined Medifast in June 2011 as executive vice president, marketing, sales and business development.

In August 2012, he was appointed to the position of executive vice president and chief marketing officer. He oversaw all marketing across the organization, driving day-to-day execution and initiating long-term plans to build awareness, drive revenue and profit growth all while working to expand the Medifast brand.

On Jan. 21, Mike MacDonald, chairman and CEO at Medifast, discussed the business of weight loss and what separates his company from the pack on “Bloomberg Surveillance.”

There are at least four main players in the weight loss space, according to Bloomberg.

“We’re trying to make products like macaroni and cheese, spaghetti—things that made you fat that you’d like to continue to eat,” MacDonald said.

He said that users of Medifast’s meal program will lose 2 to 5 pounds the first two weeks and 1 to 2 pounds the next two weeks.

The company’s shares closed Wednesday at $43.75, up 0.41 percent.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.

 

OpGen misses expectations with $4.8 million fourth-quarter loss

OpGenGAITHERSBURG, MD – OpGen Inc. reported a net income loss of $4.8 million in its fourth quarter following a 35 percent drop in revenue from product sales, according to a filing with the Securities and Exchange Commission.

OpGen’s fourth-quarter loss was in line with its performance in the same period a year ago but still greater than analysts expected. It lost 21 cents per share rather than the predicted loss of 20 cents per share.

Overall revenue for the quarter was $1.0 million, down 24.3 percent from $1.3 million in 2015. Revenue from product sales took the largest hit in the quarter, falling to $818,000 from $1.3 million.

“In 2016 our investments in genomics and informatics for infectious disease management issues caused by multi-drug resistant organisms began to pay off,” said OpGen’s Chief Executive Officer Evan Jones.

Jones said the company expects its Acuitas brand of rapid-diagnostic products to move past the development phase within the coming months, aiming to make the products available for external research use in the second half of 2017.

Research and development costs were the firm’s largest expense in the quarter. They totaled $2.3 million, up from $2.1 million a year ago.

OpGen went public in 2015 at $6 per share and raised $17 million. According to the Thursday filing, OpGen raised an additional $4.7 million in the fourth quarter. Its assets as of Dec. 31 totaled $9.0 million.

Shares of OpGen stock closed at $1.07 on Friday – down 8.5 percent since the filing’s release on Thursday.

Gaithersburg-based OpGen announced in November that it had entered into a research collaboration with a subsidiary of New Jersey-based pharmaceutical firm Merck & Co. Inc. to develop rapid diagnostics and information technology products that aim to combat the threat of antimicrobial resistance.

Analysts are expecting OpGen to start moving closer to profitability in the first quarter; current estimates predict a loss of 15 cents per share for the period. The company, however, did not provide 2017 guidance.

The filing can be found here.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Gaithersburg-based medical cannabis company raises $1.6 million

GAITHERSBURG, MD — A medical cannabis company raised $1.6 million from 42 investors, according to a filing Thursday with the Securities and Exchange Commission.

Green Leaf Medical filed the Form D on March 23. The minimum investment accepted from any outside investor is $25,000, with the first sale occurring June 25.

Of the proceeds, $170,000 will be used for payments to executive officers, directors, or promoters of the company.  The offering is not being made in connection with a business combination transaction, and is not intended to last more than one year.

Green Leaf Medical was founded in 2014, when cannabis was legalized in Maryland for medical purposes. The company is currently building its facility to produce flower, trim and whole plants for dispensaries and processors throughout Maryland.

Philip Goldberg, chief executive officer of Green Leaf Medical, signed the Form D, which can be found here. He serves as the president-elect of the Maryland Cannabis Industry Association and is a founding member.

The company claimed a Rule 506 (b) exemption for the filing. Companies relying on the Rule 506 exemption do not have to register their offering of securities with the SEC, but they must file a Form D electronically with the SEC after they first sell their securities.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

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