20 replies to this topic

[alc]

Astellas to Acquire Ocata Therapeutics

 

http://newsroom.aste...ta-Therapeutics

 

 

... we hope the work of Dr. Robert Lanza will continue ... but as many takeovers have shown, lots of things take different directions afterwards ...

[Lebombo]

Yes, America's most advanced cell technology and intellectual property will soon transfer to Japanese ownership. And the pioneer who discovered and created 95 percent of this work may decide to discontinue advancing this most promising field of medicine due to Ocata's newly hired CEO's deciding to flip the company for a quick buck verses actually continuing to develop the technology to get the therapies into the clinic for patients.

How do you feel about this?

Edited by Lebombo, 14 December 2015 - 05:29 AM.

[alc]

@ Lebombo - "How do you feel about this?"

 

honestly, I doubt that the Japanese mother company will have any real intentions to develop further away this technology. And it is not related with them being Japanese, but this is how large corporations behave. Big fish eat small fish (for no reason, most of the time).

 

I might be too paranoid/skeptical, but in general these take-overs are just meant for profit. The profit either come from direct trade (buy cheap, sell expensive) or just to stop a small company chipping away from a product that larger company is selling for a good profit.

 

They really do not care about saving the world (even though they can make a really-really big profit out of it), or advance science towards human regeneration.

 

Just look at the case of CureDM

 

http://www.curedm.com/

 

http://www.curedm.com/news.php

 

they were bough by Sanofi, that killed the work/project on curing diabetes, and that is because Sanofi makes more profit from selling insulin.

 

Just a small info about them: "Lantus is Sanofi's top product, though sales have been declining. It's the world's third-best-selling medicine, with 2014 sales of $12.4 billion, according to British research firm GlobalData."

 

... so why cure diabetes, when they can make safe profit ...

 

and unfortunately I suspect the same here, Astellas will shelf the work by Ocata/Lanza.

 

In my career I've been through take overs,and never was pretty, regardless how skilled/talented you are. The new CEO will bring his/her team and they will decide who stays/who goes. And that is not related with your skills/ideas that could be way ahead of our time.

 

I hope Lanza will find a new place where he can continue his work, especially that he is interested in reverse aging.

[John Schloendorn]

Well, the problem with the "shut down competitor" theory is that Astellas doesn't have significant macular degeneration exposure.  In wet AMD we have the angiogenesis inhibitors from Genentech and REGN, but not from Astellas.  For Stargardt's and for dry AMD, there aren't really any block busters out there.  It's a very attractive field, seemingly up for grabs for anyone who can get efficacy.

 

So I think it's more likely that this is a positive gamble on ACTC's pipeline.  Maybe someone in the acquisitions department had some leftover change and needed to prove to their boss that they are able to find innovation.  Or something.  

 

By extension, if they do shut it down, I would lean towards believing that it was because it didn't work.  Or maybe just because an overzealous supervisor decided that there is such a thing as too much innovation after all.  This knowledge is not for us mortals.  We'll see what happens, but might never know why. 

 

[Lebombo]

I believe it's more than someone in the aqcuisition department using some leftover change.  There was already a Joint Venture in the works for over a year with an undisclosed partner.  That JV all of a sudden turned into an aqcuisition of a tiny 379 million.   If you look at Lanza's patents carefully, you will see that this is literally a trillion dollar company.  Every large pharma company is aware of Robert Lanza and Ocata's work.  Ocata has treatments ready for IND in over 200 retinal diseases.  But that's just the eye.  Ocata has treatments in the works for Lupus, Crones, Sepsis, uveitis, multiple sclerosis, and so many more devastating diseases.  Why is all this work being ripped from Robert Lanza's hands.  He built this company and it's property (with Mike West) and now a CEO who was hired by the BOD just about 1.5 years ago is going to take this hard work and sell it to a foreign entity without any idea what how they plan to manage this in-progress intellectual property?  Even Lanza himself admits that he needs more information before he can even consider continuing in the CEO's direction.  How can the CEO of 1.5 years undermine 20 years of consistent commitment by some of the world's most determined scientists working on the Ocata/Advanced Cell Technology portfolio. 

 

There is quite the proof that it works very well.  And to sit back and see what happens may set us the Unitied States back 20 years in cell therapy.  My apologies, but I am not happy about this situation.

 

[Antonio2014]

I found an interesting PDF explaining Astellas' plans: http://www.astellas....ellas-to-a.html

[John Schloendorn]

Haha nice find.  Yep it's right there under "strategic plan" -- this acquisition proves Astellas is still "innovative".  But it's actually the CEO proving it to the shareholder, not some lowly employee in the acquisitions department, my bad ;-P

[Lebombo]

And those shareholders happen to be all types of people.  From science novice to academic professional.  And NOBODY is convinced by the CEO.  Before even convincing the shareholders, the CEO should have been able to convince the CSO, Robert Lanza.  If Robert Lanza is not convinced, then how can shareholders be?

Edited by Lebombo, 18 December 2015 - 11:34 PM.

[Lebombo]

P.S.

Even before Lanza expressed his feelings about the deal, the shareholders were already 100% against this deal because all of the shareholders know how terrible this situation is. The shareholders know what this company has. First of all, it already has multiple hundred billion dollar potential. Have you ever wondered why Minger has so much interest in Ocata and Lanza's work? Why is GE moving down the block from Ocata in Massachusetts? The answers are not so vague. It's not about the RPE cells..

John, thank you for taking some interest in this. There is a lot to this story.

Edited by Lebombo, 19 December 2015 - 07:01 AM.

[Antonio2014]

Lebombo, I think the document is addressed to Astellas' shareholders, not Ocata's.

Edited by Antonio2014, 19 December 2015 - 11:09 AM.

[Lebombo]

Hi Antonio,

 

This is an attempt by Astellas to convince Ocata Shareholders that a terrible "deal" is a good deal.  This is truly an insult to Ocata and Ocata Shareholders.  The shareholders will not let this technology be ripped away from Robert Lanza and his science team. 

 

This deal was made between Astellas and Ocata's CEO, Paul Wotton.   Antonio, Ocata's CEO, Paul Wotton, does not have the science in his best interest.  He does not appreciate how hard Robert Lanza and his team have worked these past 8 years to create the most advanced cellular therapies in the WORLD.

 

This is a matter of national interest.  National Security Interest? Check out Ocata's potiential and judge for yourself.

 

Unfortunately, the Ocata Shareholders are the only ones who can defend Ocata at this point in time by not tendering shares.  You see, Ocata Shareholders can vote yes or no to this acquisition.  But it is not 1 shareholder = 1 vote.  It is 1 share = 1 vote.   Whoever owns the most shares, gets the most say.  Wealth wins.  If the Japanese can purchase more shares than Ocata Shareholders own, then the company goes to Astellas. 

 

Please see this article published two days ago 12/18/15 in reference to Ocata Shareholders not allowing Astellas to come in and steal this intellectual property. http://www.bizjourna...s-it-needs.html

 

Shareholders have won round one for Ocata, Science, and Patients.

 

 

Oh and P.S.  The Astellas presentation only covers Ocata's ophthalmology programs as if that is all Ocata is working on.  Antonio, don't be fooled by Astellas.

 

 

 

Edited by Lebombo, 19 December 2015 - 01:14 PM.

[Antonio2014]

Again, I think it's addressed to Astellas shareholders. It only talks about the advantages of the purchase for Astellas, not for Ocata.

 

Anyway, I don't care about national interests. I'm not American nor Japanese. I only want that these treatments and technology become available as soon as possible. If embryonic stem cells are easier to use in Japan, I'm happy that they go for it.

Edited by Antonio2014, 19 December 2015 - 02:48 PM.

[alc]

@ Lebombo -

 

there is already a class lawsuit against Ocata/Astellas board related to the acquisition:

 

http://www.sec.gov/A...297dex99a5a.htm

 

The above comments by John and Antonio are within the "politically correct" approach, as they interpret ad litteram the PR announcements.

 

Of course if you read the official releases from any acquisition, you see just praises from both sides, but after a while big fish will stay in,

while the small fish will disappear from the tank.

 

Unfortunately Bob Lanza is just the innovator with great ideas, while the other guys control the money and decisions. Once you go public, the board will take over, regardless if you gave birth to the company. Myself I have several ideas that I want to patent, but I have no money to do it. Each patent will cost you +15k, and still while you apply for patent, large companies can read the brief description of your idea and bypass you, by coming with a parallel solution. The reason why I want to patent them by myself, is exactly that I want to avoid going public and lose the control over my ideas. In the case of Bob Lanza (and a lot of other similar cases) he needed money to implement the ideas, but at the same time he lost control of what happen next with the company.

 

If you are interested, you can follow up Prof. Paul Knopfler's blog on Stem Cell, he has quite few posts on Ocata for past several years.

 

Here is a search on his blog for Ocata:

 

http://www.ipscell.c...A&submit=Search

 

I read his posts a lot, as he is a moderate (sometimes too skeptic, but that is not that bad as this field is just starting up and there are a lots of claims without scientific backup).

 

 

 

 

 

[Antonio2014]

The reason why I want to patent them by myself, is exactly that I want to avoid going public and lose the control over my ideas.

 

Patents were created to encourage the publication of how an invention works. If you want your invention to remain secret, simply don't patent it nor publish anything about it.
 

[alc]

"If you want your invention to remain secret, simply don't patent it nor publish anything about it." 

 

No it is not that, I did not say I want them to remain secret.

 

Where you got that idea from?

 

You did not understood.

 

There are people that have financial resources, patent their stuff and CONTROL the outcome - meaning they care about the product and do not want to end up a "just for profit" thing

 

It is about controlling the outcome, if you care about mankind

 

If you do not understand something well, please do not  make assumptions.

 

I have a good friend that struggled more than a decade to manufacture his inventions, while large companies tried to bypass his ideas.

 

This is going off topic, so please let's focus back on Ocata/Asteallas.

 

Thanks.

[Lebombo]

@ Lebombo -

there is already a class lawsuit against Ocata/Astellas board related to the acquisition:

http://www.sec.gov/A...297dex99a5a.htm

The above comments by John and Antonio are within the "politically correct" approach, as they interpret ad litteram the PR announcements.

Of course if you read the official releases from any acquisition, you see just praises from both sides, but after a while big fish will stay in,
while the small fish will disappear from the tank.

Unfortunately Bob Lanza is just the innovator with great ideas, while the other guys control the money and decisions. Once you go public, the board will take over, regardless if you gave birth to the company. Myself I have several ideas that I want to patent, but I have no money to do it. Each patent will cost you +15k, and still while you apply for patent, large companies can read the brief description of your idea and bypass you, by coming with a parallel solution. The reason why I want to patent them by myself, is exactly that I want to avoid going public and lose the control over my ideas. In the case of Bob Lanza (and a lot of other similar cases) he needed money to implement the ideas, but at the same time he lost control of what happen next with the company.

If you are interested, you can follow up Prof. Paul Knopfler's blog on Stem Cell, he has quite few posts on Ocata for past several years.

Here is a search on his blog for Ocata:

http://www.ipscell.c...A&submit=Search

I read his posts a lot, as he is a moderate (sometimes too skeptic, but that is not that bad as this field is just starting up and there are a lots of claims without scientific backup).

Hi alc,


The class action lawsuit you are referring to was dropped last month on November 20th, 2015.

The Plaintiff (the person suing) was Scott Nadle of Blackrock. Blackrock is a multinational investment corp with many billions of dollars. Blackrock is also Ocata's largest institutional investor. Scott Nadle was not representing Blckrock in this lawsuit, he filed on behalf of himself and investors.

Why was this class action dropped? Perhaps only Scott Nadle and Blackrock know, or perhaps not.

Perhaps there is a better strategy than a class action at this point in time, and that strategy may be simply to continue buying as many Ocata shares and refuse to tender those shares to Astellas.

...

Regarding the presentation by Astellas. Thank you. This presentation is by Astellas. What I mean is since the announcement of this acquisition, Paul Wotton, CEO of Ocata, has cut off all communication with shareholders and the press. He knows this deal is a shame. He knows he can not say anything to convince anyone that this is a good move for the company. Astellas shareholders hardly need convincing. They know what Ocata has already. That's why the Atellas PowerPoint you posted describes 5% of Ocata's science and potential. Astellas does not want to create a true Ocata presentation and really fan the flame. I'm sure Paul Wotton made sure the presentation was as low key as possible. But Astellas and Paul Wotton attempting to downplay Ocata's value is not convincing anyone.

I am not upset that one company with vast resources wants to purchase another company, but this purchase is not good in so many ways. Too much science leaving the country and leaving the original creators without providing the fair value of the property so that the original innovators can at least begin a new journey in the field.

This science and property are worth 100's of billions, absolutely no less.

Edited by Lebombo, 20 December 2015 - 07:09 AM.

[John Schloendorn]

Hah, looks like quite some drama, for those who believe that ACTC is saving the world (after all these decades, really?).  How about this:  If it becomes known that embryonic stem cells can be successfully sold to big pharma, you'd see a boom of venture capital investing in embryonic stem cell research.  So instead of one company, and their specific "science beliefs", you'd have a whole variety of random kids in garages who suddenly have access to Silicon Valley's venture dollars.  We'd get a skunk works, a wide diversity of ideas to be tried, rather than just one guys favorite story.  Is this any consolidation ?? 

 

[John Schloendorn]

Looks like the market toyed the idea that said "shareholders" can actually win, for all of 5 hours.  And then reversed its opinion.  Impressive, nonetheless.  I would've love this whole drama for day trading when I was 10 years younger :-P

[corb]

I don't understand what the problem is at all.

Companies get bought and sold all the time.
 

[Lebombo]

Looks like the market toyed the idea that said "shareholders" can actually win, for all of 5 hours.  And then reversed its opinion.  Impressive, nonetheless.  I would've love this whole drama for day trading when I was 10 years younger :-P

 

 

Hi John,

 

5 hours?

 

According to the record, 

 

Ocata investors opposed to takeover win a round

 

"Investors opposed to a $379 million takeover offer for Ocata Therapeutics Inc. of Marlborough won a round in their fight Friday when the deal failed to get enough support from Ocata shareholders."

 

https://www.bostongl...W10L/story.html

Edited by Lebombo, 20 December 2015 - 04:53 PM.

[Lebombo]

Hah, looks like quite some drama, for those who believe that ACTC is saving the world (after all these decades, really?).  How about this:  If it becomes known that embryonic stem cells can be successfully sold to big pharma, you'd see a boom of venture capital investing in embryonic stem cell research.  So instead of one company, and their specific "science beliefs", you'd have a whole variety of random kids in garages who suddenly have access to Silicon Valley's venture dollars.  We'd get a skunk works, a wide diversity of ideas to be tried, rather than just one guys favorite story.  Is this any consolidation ?? 

 

 

"Is this any consolidation ??" you ask?

 

Well..

 

 

Fact:  

................

17-Dec-2015

Gary A. Aronson,  Ocata Investor

 

"We are continuing to contact potential investors into Ocata. I had one glimmer of hope today, hopefully not too late. I spoke again with my friend, Mike West, PhD, CEO of BioTime (BTX). He said that I could relate that he has already gone on the public record as believing that the stem cell therapeutics industry is in need of consolidation. He said he could not offer me any more than that, at this time. I have requested, on several occasions, that Mike propose a merger of Ocata with BioTime."

................

 

 

 

John,

Mike West, PhD, CEO of BioTime (BTX) is on the SENS Research Foundation Research Advisory Board, as you may already know.  He founded Ocata as you also may recall and worked on paper after paper with Robert Lanza, who is Chief Scientific Officer of Ocata.  I have faith in the Sens Foundation and Aubrey de Grey's strategy and therefore I have faith in the SENS Foundation Research Advisors.  Please don't judge so quickly.

 

Thank you for the work you do, John, it really is appreciated.

Edited by Lebombo, 20 December 2015 - 04:56 PM.