Mesoblast has $200 million in the bank. Most biotechnology companies do not. This means that Mesoblast is in control of its own destiny, and not reliant on negotiating partnerships for at least some of its products. Itescu says: “We have enough cash to take one or more of those [therapies] to the end.”
Blake says: “They have a lot of money, but they are spending a lot too. You have to judge it by what the company can achieve with the money.”
Blake says he would “softly criticise” Itescu for not raising capital from investors this year. “I would softly criticise the company for not raising money this year. While you have sustained share price, the confidence is there. He could introduce a new product in the portfolio. Also, you want to also say in the absence of other partnering income, we will call on our investors.”
Itescu is aware of the issue, saying that it would be a “smart move” to find partners for the company’s other products, which would “strengthen our execution capabilities”.
Itescu has about 70 staff – 30 in Australia and 40 in New York – and takes an interest in every part of the company. Blake says: “I get the impression that Silviu is very hands-on and very detailed.”
Itescu says leadership is about close interpersonal communication. Providing a common strategy and vision, everyone is part of a team to build our products, which takes time and focus and there is risk. The sort of people who work in a biotech company by definition have the fortitude. It is not about short-term returns and rewards.
“I am involved in the detail, all the way. Of course, I am involved in investors relations, but I am involved in driving clinical trials, the product strategy, the target marketing, the clinical trial design, the corporate strategy with our business partners, the pre-clinical data sets that need to be generated and the R&D. I interact with the leadership folks across all those areas.”
Itescu says he is enjoying himself. “I love it. I am very excited. The results are great, the technology is working. It is tough building a company in the midst of multiple financial crises. The results will speak for themselves over time. We will succeed or fail on the basis of whether the technology works.”
Itescu looks for professionalism, maturity and a shared vision of understanding and mitigating risks, managing people and time lines.
“Never sit back on your laurels and assume you have reached the end,” Itescu says.
“There is always a risk around the corner. Unless you constantly mitigating risks and creating options you are bound to fail. The more successful you are as a company, to more risks are out there. You have to predict those risks and create risk mitigation strategies. Why we have been successful is because from day one, we have anticipated the next set of risks.”
Kath Walters is the editor of LeadingCompany and an award-winning journalist of 15 years’ experience. Kath was previously a senior writer and editor at BRW magazine covering management, strategy, finance, entrepreneurship and venture capital across all industry sectors. In 2006, Kath won the Citibank Award for Excellence in Journalism (General Business). Follow her on Twitter.
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