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Issue 3

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Spencer Green
Chairman, GDS International

Sales and the 'Talent Magnet'

A lot is written about being a ‘Talent Magnet’, either as a company, or as President. It’s all good practice – listen, mentor, reward, provide clear goals and career maps. Good practice for the employer, but what about the employee?
25 May 2011

Virgin birth

By Rebecca Goozee, Deputy Editor

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The king of branding, Sir Richard Branson, is to launch his most controversial business yet. Virgin Health Bank is the latest member of his business empire and a radical departure from previous offerings including Virgin Holidays, Virgin Megastores and Virgin Wines.

Virgin Health Bank is bringing stem cell technology to the mainstream and offering parents the opportunity to freeze their newborn baby’s umbilical cord blood. This blood will hopefully then be able to provide a rich source of stem cells which may help form the basis for treatment should the child develop a life-threatening or degenerative illness.

The Health Bank will provide a dual private and public service – meaning that half of the cord blood collected will be stored for the individual and their family and the other half will go to a public bank. The public bank will contribute to research about stem cells and will also be available to the general public, increasing the number of stem cell units and the likelihood of a matched donor should someone need them. Parents will be asked for €2,250 for the collection kit box, courier transport of the cord blood, processing and testing and storage for 20 years.

When asked why he wants to be involved with this new technology, Virgin Chairman Sir Richard Branson said: “Because Virgin stands for innovation and to me this is all about believing in the benefits that cord blood stem cells could bring for everyone. We know there is a worldwide shortage of matched stem cells for transplantation and I believe that Virgin has an important role to play in making more of these cells available to those who need them for treating blood disorders today and in the future.”

Is it all about branding?

As Kerry Capell notes on businessweek.com: “The business is vintage Virgin. Branson supplies the Virgin Brand while a London-based life sciences venture capital firm, Merlin Biosciences, supplies the bulk of the US$20 million in financing.”

Is it down to branding? It certainly seems that way. When confirming their credentials for this service, Virgin Health Bank states, “While it’s true that Virgin has never been involved in medical healthcare, we are renowned at excelling in improving what’s available for customers [my italics]. We have a laboratory that has attained a Human Tissue Authority license and gained accreditation by the Medicines and Healthcare products Regulatory Agency. We comply with UK and EU regulatory standards, and get on-going advice from independent scientific, medical, ethical and medico-legal experts.”

The Virgin Health Bank is quite a departure from the usual Virgin offerings and has entered a completely new industry. The private storage of stem cells is opposed by the European Commission’s Group on Ethics in Science and New Technologies, however there are already seven private cord blood banks in Britain and it is estimated that in the UK alone more than 11,000 families are currently using such facilities. Why does Branson want to break into this market? He maintains that he is “absolutely passionate about the possibilities of stem cells – which is why I’d like to make sure the future benefits are open to everyone.”

The industry may be controversial, but Virgin Health Bank’s claim that their dual private and public banking system allows further research of stem cells does mean there is potential for development beyond immediate business gain. Maybe this time we’ll all benefit from Branson’s brand.


What are stem cells?

Key characteristics

  • They self renew, allowing them to maintain their own population
  • They are relatively undifferentiated which means they can produce several different types of differentiated cell
  • They continuously divide
  • They rarely replicate but can do so many times
  • They live within a niche that nurtures and controls the cells within it – limiting their number and replication


Who are Merlin Biosciences?

Merlin Biosciences Limited is a specialised venture investor in life sciences companies managing three funds, worth in excess of €450 million of equity capital. Merlin invests in companies that are bringing to market human medicines or medical devices with groundbreaking technology and significant commercial potential.

Merlin is an active investor in and partner to its portfolio companies. It normally has a seat on each company board and likes to play a leading role in financing and other strategic events.

 


Q&A

Stem cell research

NGP spoke to Michael Hunt, CEO of ReNeuron, a leading stem cell research company, to find out more about this emerging development in patient treatment.

Q. How are stem cells revolutionising patient treatment? What innovations are you particularly excited about?

A. The whole field is somewhat early stage, and there are no marketed stem cell therapies available as yet, but there are a number in development, including ours. The excitement is in the ability of stem cells to potentially provide therapies in the future for disease states that currently have no other methods of treatment available for them.

We’re focused on diseases where there are no cures or where existing treatment modalities are poor. The potential of stem cell therapy is very large and that’s why there is much excitement surrounding the field, as well as controversy, of course.

Q. There is wide spread controversy over stem cell research due to the techniques used in the creation and usage of stem cells, particularly embryonic stem cell research. How do you defend your research when facing critics?

A. We are not involved in embryonic stem cell research so we’re able to avoid the controversy that arises in that area. Having said that, what we do is not completely removed from the ethical debate. We take our stem cells from foetal tissue and that is something that certain groups of people would oppose.

Our response to these objections is two-fold. Firstly there is a patient argument; we’re looking to treat patients in large-scale diseases, diseases that have millions of patients worldwide, like stroke, who have no real alternatives available to them. Secondly, there is a technology argument.

The particular technology we use means that we take the minimal amount of starting tissue. With our stroke programme, for example, using a single tissue sample, we have managed to scale up sufficient numbers of stem cells to treat all the eligible patients we believe will require the treatment when it is approved for use in patients. It means we do not have to go back and source new tissue samples. We do therefore believe that we are using our technology in a way that is most efficient and that best minimises those ethical concerns.

Q. What are your hopes for the biotechnology sector over the next 18 months?

A. In the wider biotech scene there is perhaps a feeling that the field is maturing. Large pharmaceutical companies’ pipelines are running short in terms of conventional small molecule approaches and the small biotech companies have a great opportunity to fill those pipelines with biological products. Stem cell therapies, however, are somewhat early stage at this point and there is much to prove in terms of their clinical utility. In the UK, the biotech scene remains some way behind the US but it’s vibrant and there are products coming through the clinic now, and indeed being marketed which shows that the end game is worth the effort. We will see further biological drugs and of course stem cell therapies coming through to the market in due course.

Q. What do ReNeuron have planned for the future? What direction do you hope to take the company in?

A. Our focus is fairly specific right now. It’s all about getting our first cell therapy through to the clinic and driving our other cell therapy programmes as hard as we can, making the best use of the assets we have, which are our excellent platform technology and our excellent people. We’re very small as a company but we do believe we have an opportunity here to really make a difference in the field and hopefully to generate stem cell therapies that can be widely applied to solve some very, very significant unmet medical needs. That remains our prime focus and we are very confident that we will get there in the end.

 


Blinded by branding?

Alcor Life Extension Foundation

People in the US can now sign up for life extension through cryonics. Alcor Life Extension Foundation are the world leader in cryonics and use the science of ultra-cold temperatures to preserve human life, with the intent of restoring good health when technology becomes available to do so. Alcor claim that cryonics “is a speculative life support technology that seeks to preserve human life in a state that will be viable and treatable by future medicine.”

Paracetamol

The first paracetamol went on sale in the US in 1955 under the brand name Tylenol. In 1956, 500mg tablets of paracetamol went on sale in the UK under the name Panadol and in 1958 a children’s formulation, Panadol Elixir, was released. GSK, owner of the Panadol brand, unveiled its first direct-to-consumer campaign for the product in January 2007. The first stage will be to gather data on different types of pain by handling an unbranded survey targeting existing and prospective GSK products, who will then use the data for future communications.

 


Michael Hunt, CEO, ReNeuron

Sir Richard Branson: “Absolutely passionate about the possibilities of stem cells.”

“Although we can’t remove ourselves from the ethical dimension we do believe that we are using our technology in a way that is most efficient and that best minimises those ethical concerns” – Michael Hunt, CEO of ReNeuron

“If I were asked what I value most highly in life, I’d say health and family…storing these stem cells has the potential to benefit both” – Sir Richard Branson


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