Donald Brown
About this Executive:
Name:
Donald Brown
Company:
Arteriocyte, Inc.
Interview Topics:
Biotechnology
Region:
Region 8 - Northeast Ohio
Don Brown is chief executive officer of Arteriocyte, Inc., a fully integrated stem cell-based research and development company located in Cleveland, Ohio. Founded in 2004, Arteriocyte uses its research to develop cellular therapies and commercial medical devices that ultimately help improve surgical outcomes. Most notable, in 2006 Arteriocyte became just the third company to earn the Food and Drug Administration’s (FDA) investigational new drug (IND) approval for human evaluation of marrow-derived stem cells for chronic cardiovascular ischemia.
Arteriocyte’s development program is focused on triggering repair of both acute and chronically damaged tissues in four distinct therapeutic areas: cardiovascular, musculoskeletal, surgical hemostasis and blood pharming. In October 2007, Arteriocyte partnered with DW Healthcare Partners and Comerica to create Arteriocyte Medical Systems, Inc., which acquired the Magellan Rapid Bedside Platelet, Stem Cell Blood and Marrow Fractionation device from Medtronic. The Magellan acquisition created a broad strategic partnership with Medtronic and generated over $20 million in revenue for Arteriocyte’s Medical Systems business unit in 2008 and 2009.
Prior to joining Arteriocyte, Don worked for nearly 20 years in the health care industry, spending more than half this time at Schering Plough, which recently merged with pharmaceutical giant Merck. At Schering, Don was responsible for one of the first billion-dollar pharmaceutical franchises in the U.S., Claritin. After Schering, Don spent two years at Viacell, a Boston-based R&D company focused on developing umbilical cord blood stem cells as a marrow replacement for transplants in leukemia. In 2004, Don joined Arteriocyte as CEO.
Recently, Arteriocyte received support from Ohio Third Frontier, an unprecedented and bipartisan commitment to expand Ohio's technological strengths and promote commercialization that leads to economic prosperity throughout Ohio. We recently spoke with Don about what Ohio Third Frontier means to him and about his experience working in the biotechnology industry in Ohio.
Q. What has Arteriocyte been able to accomplish with funding from Ohio Third Frontier?
A. Funding from Ohio Third Frontier has enabled Arteriocyte to grow from a small, three-person start-up to a commercial-stage research and development organization. We’ve generated a 23-to-1 return on our previous Ohio Third Frontier funding, while growing to 57 employees. Our most recent award will let us substantially broaden our product offerings in new target markets.
Q. When did your company receive the funding?
A. Arteriocyte received two separate project funding awards in 2006 and 2007 as a participant in two different Northeast Ohio research consortiums. In April 2009, Arteriocyte was the lead participant in an Ohio Research and Commercialization Program award to drive forward the company’s clinical research programs and to help import our most promising “out-of-state” technology development programs into Ohio.
Q. What was the funding program source?
A. Arteriocyte (in collaboration with the Center for Stem Cell and Regenerative Medicine in Cleveland, Ohio) has participated in Ohio Third Frontier’s Biomedical Research Commercialization Program, through the Wright Mega Center of Innovation Program (via Cleveland Clinic’s Global Cardiovascular Innovation Center), and most recently from Ohio Third Frontier’s Research Commercialization Program.
Q. How does Arteriocyte’s research improve the industry overall?
A. Arteriocyte’s goal is to develop commercially available cell-based therapies that can be created “at bedside” using multiple sources of adult-derived stem cells (marrow, peripheral blood, and cartilage). We work to provide innovative solutions to patients and medical professionals to address serious unmet medical needs particularly in cardiac, orthopedic and vascular surgeries.
Q. What employment opportunities will be created in the state as a result of Arteriocyte receiving funding from Ohio Third Frontier?
A. Since receiving Ohio Third Frontier support, we’ve created over 50 new technical, manufacturing and administrative jobs. Twelve of our first fourteen hires were advanced degreed candidates from Case Western Reserve University into our Cleveland-based R&D center. Our most recent additions supported by OTF funding have brought veteran out-of-state medical device experts and R&D staff from world-class biomedical research programs to Ohio. We anticipate adding 100 Ohio-based jobs over the next 6 years.
Q. What partnerships have you created with Ohio academic institutions that have served Arteriocyte well?
A. We’ve been fortunate to form partnerships with a number of Ohio’s leading universities and research centers. Arteriocyte was founded with initial support from Case Western Reserve University and University Hospitals of Cleveland. Today, we have active collaborations with The Ohio State University, The University of Toledo, Wright State University and the Cleveland Clinic.
Q. What is Arteriocyte working on right now?
A. With support from Ohio Third Frontier, Arteriocyte is initiating three clinical trials for stem cell therapies for cardiovascular and peripheral vascular disease. Additionally, we are pursuing further development of our proprietary NANEX stem cell expansion technology platform. Our other research and development programs include Cellular Therapies for Battlefield Injuries for the U.S. Army, NANEX-based cellular therapies for Critical Limb Ischemia, Blood Pharming, and advanced cell-based platforms for Malaria Vaccine Development.
Q. Overall, what does Ohio Third Frontier mean to Arteriocyte?
A. We often get asked, “Why Ohio?” While the state has great people, great research partners, and a great cost of living, ultimately what brought us here, and keeps us here, is the state’s focus on helping businesses through programs like Ohio Third Frontier. Ohio Third Frontier is the only state program we’ve found that focuses on the three most critical aspects for building a successful life science company: investing in commercially relevant research, growing the pool of skilled research and entrepreneurial talent, and providing investment capital to catalyze company growth. Much of our success can be tied to the support we’ve received from Ohio Third Frontier.
Q. What are the top three things that Ohio uniquely offers that you feel have helped make your business successful?
A. Ohio is home to some of the nation’s leading research universities and medical institutions, many of which have helped us achieve great success. For instance, Arteriocyte licensed its first Intellectual Property from Case Western Reserve University, hired 12 of its first 14 employees from Ohio universities, and conducted its first FDA-approved stem cell therapy clinical trial at University Hospitals Case Medical Center in Cleveland, Ohio. In addition, as mentioned before, Ohio offers tremendous support to biotechnology companies. With the help of Ohio Third Frontier, in less than five years Arteriocyte has grown from one employee to 57, and has evolved from a startup to a fully integrated commercial medical device cellular therapy company. Arteriocyte has operations in three states and a clinical specialist team throughout the country, yet continues to call Ohio home for three reasons: great people, great research institutions, and the nation’s most forward-looking state-run investment program: Ohio Third Frontier.