Source - Leonardo Zangani

Thank you for agreeing to be interviewed by me for the Zangani Investor Community website. I have had the opportunity to meet with each of you on several occasions after Robert Beckman participated in Pharma Finance 2009 in Rome this year. As I understand your business you have built upon the venture investment and development activities of The Channel Group to form an affiliate called BioMed Transition Partners. Would you tell me more about BioMed?

Allan Goldberg, Ph.D.
Thank you, Leonardo, for inviting us to meet with you today. The Channel Group was formed in early 2002 to develop new biotechnology companies and to assist companies outside of the United States to accelerate growth by accessing the significant experience and assets available here. It is based in New York City. The Managing Partners of The Channel Group have raised hundreds of millions of dollars of capital for biomedical companies through many different types of investment vehicles and we have successfully conducted business and operated companies in many different parts of the world. Early on we were engaged by the New Zealand government to work with them in defining a strategic approach toward building a biotechnology industry there. Our work led to the government funding a seed capital program through which they match investment funds raised for early stage companies through a program called the New Zealand Venture Investment Fund. The Channel Group’s affiliate in Auckland, Pacific Channel Limited, formed a NZ$8 million to NZ$12 million venture fund in which we are partners, supported by the New Zealand Venture Investment Fund.

Philip Sussman
Brent Ogilvie, the founder of Pacific Channel, spent a number of years in New York as a government official focused on the life sciences industry. He has used his experience and our collaboration to provide approximately NZ$20 million to biomedical and life science companies in New Zealand over the past two to three years. We have also been developing the concept of licensing technologies and products from U.S. companies to be further developed in New Zealand in exchange for the Australasian commercialization rights (primarily, Australia, New Zealand and Southeast Asia).
Robert Beckman

The Channel Group evolved with Philip Sussman joining our team in 2004 to focus more on the creation, investment, development, and management of new life science companies. We have been very active in the venture development end of our business. An example is a company we formed, Lesanne Life Sciences, LLC, in partnership with a former Howard Hughes investigator at Yale University and a former research head at Bristol Meyers Squibb Company. Lesanne is developing a clinical diagnostic that will identify the occurrence of ischemic stroke through a rapid blood-based test.

Philip Sussman

Each of our team has deep experience in the successful development of life science companies. We have been founders and served as executive management in roles including chairman, chief executive officer, chief financial officer, chief scientific officer, and head of business development. We have served as board members of both public and private companies and executive management in the pharmaceutical industry. Each of our partners has a scientific background; Allan had a distinguished career at The Rockefeller University as a Professor of Virology.
Allan Goldberg Ph.D.

It is critical to have a good understanding of science and medicine to effectively build companies in the biomedical field. It is also important to have a significant business acumen and perspective. Phil and Bob have built upon their years in Big Pharma and have effectively translated their experiences to an ability to build successful companies.
Robert Beckman

This year we formed BioMed Transition Partners to help boards of distressed biomedical companies determine a path toward survivability, sustainability, and investor value. We are able to work with boards and/or management to effectively implement the strategy that we develop through our diagnostic workup evaluation of the company. Our distinction is that we are available to serve as interim management of the company. We are able to do this because of our significant operational experience and large collegial network of industry experts. We are results oriented and can effect change. We have experience in dealing with companies that are in or are threatened by bankruptcy.
Leonardo Zangani

I understand that BioMed Transition Partners also has a unit called BioMed Transition Advisors – how does that differ from what you have been speaking about?

Philip Sussman
Our advisory business is targeted solely toward supporting management’s ability to effect change and achieve measurable results. The companies that engage us as advisors may or may not be distressed in a classic sense, but in most cases the business is not growing as aggressively as needed and in some cases the business may be in a stressed situation. We work side-by-side with management and the board to understand the dynamics of the issues and their objectives and build a strategy from there. We then provide the tools necessary to achieve results and when possible we work with management to drive change and achieve objectives.

Robert Beckman
Leonardo, thank you for posting the article on the Zangani Investor Community website that I recently wrote entitled “De-stressing Distressed Companies.” It speaks to a process we employ to identify points of distress and help companies achieve better results for their investors. Organizations such as the Zangani Investor Community provide a new approach toward helping to build investor knowledge and support of companies. We are delighted to work with you, and we hope to announce a new initiative with you shortly. Thank you very much for your support of this industry and for inviting us here today.

Leonardo Zangani
Thank you for coming and for your interest in Pharma Finance and my other activities.
Information on The Channel Group, LLC can be found at www.TheChannelGroup.com. Information on BioMed Transition Partners and BioMed Transition Advisors can be found at www.BioMedTransitionPartners.com. Robert Beckman can be reached at RBeckman@TheChannelGroup.com or at 877-602-6960.