The MX Q&A: Timothy Still, Accumetrics

Timothy Still says the allure of joining Accumetrics as COO early in 2008 is easy to pinpoint. The pluses included a highly promising IVD product and an executive track that drew on his nearly two decades of work with in vitro diagnostics. Still joined the company with the promise of becoming CEO a few months later, a promotion that took place in October of that year.

Now Still and the company’s management team are ready to take the San Diego-based device company to the next level during what the CEO calls “a big year for us.” The CEO was brought on board to complete the company’s transition to a more market-oriented business. It’s a task he managed successfully as executive vice president and chief commercial officer of HemoSense, the San Jose-based manufacturer of a monitor for oral anticoagulant therapy. Still oversaw the device manufacturer’s development into a public traded company that was acquired by Inverness Medical in November 2007 just before he joined Accumetrics.

Still has aggressive plans for Accumetrics and its VerifyNow System, described by the company as a suite of automated tests for assessing the response of platelets to antiplatelet therapy. The device is designed to help doctors accurately monitor and optimize the effectiveness of antiplatelet therapy for patients at risk of thrombosis. VerifyNow could play a lifesaving role for that one-third of the population that doesn’t respond to the use of Plavix, the anticoagulant medication that is the world’s second biggest-selling drug, Stills notes.

In April 2010 Accumetrics completed the enrollment phase for a landmark clinical trial called Gravitas that is designed to show the value of “providing clinicians with actionable information for patients who are poor responders to clopidogrel [sulfate],” or Plavix. The placebo-controlled trial involves approximately 2800 patients at some 80 sites in the United States and Canada. On the business front Still and his team have been pursuing international sales partnerships. Accumetrics signed agreements in September 2009 with Grifols S.A. for exclusive distribution of the VerifyNow System in Spain, Portugal, and Chile and in May 2010 with Medico’s Hirata for Japanese distribution.

Despite the economic headwinds, investors have shown their faith in the company’s promise, Still points out, noting that Accumetrics continues to attract VC attention because of its products’ market potential. In this interview with MX, the chief executive discusses topics that include the investment climate as well as the importance of his company’s “accountable culture,” the challenges facing small device firms following healthcare reform, and regulatory issues.

MX: What attracted you to Accumetrics before you became president and CEO back in October 2008?

Timothy Still: I had known about the opportunity at the start of 2008 and joined them in the spring as COO and then officially became CEO in the fall. I’ve been involved with in vitro diagnostics for over 20 years. As far as being attracted to the company, it would be a number of things. Obviously, they have market-leading technology. It’s in the area of cardiodiagnostics; it’s point-of-care testing. And it also involves monitoring therapy, which is a big opportunity in in vitro diagnostics.

How did you approach taking the reins, given the fact that the Accumetrics’ founder, Robert Hillman, was still with the company when you came on board?

I was brought into the company with the notion that I would be running it within a matter of months. I was fortunate in that I brought in a very seasoned management team. It’s a team that has a lot of experience growing companies and taking them from an R&D type of culture to more of a commercial culture. Obviously, the first quarter or two quarters are key. You definitely need to establish credibility with the investors. I was also in touch with the founder. I knew the founder from my years in in vitro diagnostics, and I think I came in with a lot of credibility, which helped.

As a new CEO, what steps do you want to take to ensure continuity, maintain morale, and also put your stamp on a company’s direction?

We have a goal of building one of the very best small or medium-size diagnostic companies in the industry. We’ve built companies before. For us, an accountable culture is key. That means having a variety of milestones that we’re looking to achieve. We are very open throughout the company with our objectives. All employees directly feel involved with the outcome of the company.

How so?

Everyone knows what our common objectives are, whether they be revenue, whether they be profit, or project delivery dates. Whether you’re the CEO or in the warehouse, people know what our objectives are.

How do you promulgate this approach?
All employee receive updates at least once a quarter or more often than that. Our senior management team is extremely visible throughout the company. We have senior management dealing with customer issues. It’s a very team-focused culture.

You joined Accumetrics after four rounds of funding in 2007 raised a total of about $52 million in venture capital. How would you describe the investment climate today, especially now that healthcare reform bill has been signed into law?

We’re fortunate in that we’ve raised an additional $20 million since then. Overall for the industry, I think it’s a difficult environment for small and unprofitable companies. Venture capital groups are now being extremely diligent with their investments. We’re fortunate in that we have a committed, enthusiastic group of investors.

The positive aspect of healthcare reform is that it’ll bring more patients as customers—some 32 million to 33 million more customers, which is good for a company like Accumetrics. The negative aspect is that with some healthcare legislation the additional taxes that’ll come in future years will make it difficult for smaller companies to stay innovative.

How does a company deal with that challenge?

They’re going to [require] a technology that’s just really a breakthrough or a game-changer versus having a copycat-type of product. It’s really going to need to be novel, it’s going to need to save money, and it’s going to have to be cost effective.

Would you describe Accumetrics’ product as occupying a hot market segment that will attract investors as opposed to some other device segment?

For our situation I think our investors are excited, one, because they know they have a seasoned management team in place to build the company, but, two, we are in a very hot market segment. Plavix is the number two–selling drug in the world, and one out of three people don’t respond to Plavix, so we’re in an extremely hot market. I think that’s one of the reasons our investors are excited. Physicians and patients need to know how to respond to therapy. And we can help them.

On May 18, Accumetrics announced a partnership with Medico’s Hirata for distribution of the VerifyNow System in Japan. How does that deal fit into the company’s overall strategy?

We’re looking to establish distribution relationships with seasoned partners in all major markets. In 2009 we focused primarily on Europe, and in 2010 we’re expanding into the Far East. We still need to get through product registration in Japan, but we’re very excited about working with Medico.

In April 2010 Accumetrics finished enrolling 2800 patients for a clinical trial to gauge the responsiveness of the VerifyNow assay on thrombosis and safety issues. When will the trial be completed, and how would you assess the status of the trials at this point?

Our Gravitas trial is on track, and we expect to present data at the AHA [meeting] in November.