Billionaire Patrick Xinxiang
By the end of 2015 Patrick Xinxiang was the highest paid Manager in the world of a public company. His remuneration package at the head of the company NantKwest Inc., specializing in Oncology research, $a 147.6 million and a half times more than the CEO of Google Sandora Pichai ($100.5 million). Signsan often called the most wealthy doctor in the world. According to Forbes, his fortune is $11.9 billion (81-e a place in world list of billionaires). NantKwest is only one of the nine divisions of the conglomerate he founded NantWorks. They all work in the health sector. Xinxiang began with years of medical practice in South Africa, and now aims to recover from the cancer.
Future billionaire Patrick Xinxiang was born in 1952 in South Africa in a family of Chinese immigrants who were forced to leave their homeland during the Second world war. New homeland was not the most hospitable in South Africa in those years, operated a regime of apartheid (segregation by race), which extended not only to blacks but to all the “colored” population. In an interview with Larry king Xinxiang remembered that the buses he had to sit on the special rear seat. He couldn’t vote and faced a number of restrictions on owning property.
Future profession Xinxiang chose largely under the influence of his father. In an interview with the Los Angeles Business Journal, the businessman recalled that his father was a country doctor and practiced traditional Chinese medicine. In 1968, Xinxiang, graduated from school and entered the medical faculty of the prestigious University of Witwaterstrand. Xinxiang internship took place in one of the best hospitals of Johannesburg. He later recalled that was the first in South Africa Chinese who practiced in the clinic, “white”, and the patients initially did not want to go to see him. Specialization a young doctor chooses cancer of the pancreas. In an interview with Huffington Post, he told me that chose this specialization because “the pancreas is the most complex human organ.
After graduating from the University, Xinxiang decided to continue his education — he enrolled in the graduate of the University of British Columbia, and after graduation, in 1983, went to USA for an internship at the University of California in Los Angeles. This city will eventually become his permanent residence.
The doctor goes to the business
In 1987, Xinxiang acquired prominence in American medical circles. Working at the University of California, he proposed a new method for transplanting insulin cells to patients with diabetes. Attempt these transfers have been made since the 1970-ies, but the transplant’s immune system was rejecting the insulin cells. Xinxiang placed cells in capsules of gel made on the basis of marine algae. But the medical community reacted to the proposal skeptically. “He told the whole world that can cure diabetes. But in science the results have to be reproduced, must get a multiple confirmation. His results were contradictory,” recalled in an interview with Forbes, Dr. Michael Zinner, who was then head Signsan.
In 1991, Xinxiang decided to leave academic medicine and translate their research into commercial production. He left the University and founded the company VivoRx, which continued the research of the methods of treating diabetes. Data about what tools Xinxiang founded the company, differ. His older brother Terrence, a London-based investor, later claimed to have invested in a startup of $2.5 million, but, according to Cenicana, he received from his brother a dime.
Two years after the Foundation of the VivoRx Xinxiang has obtained permission from the American Management on control of quality of foodstuff and medicines (FDA) to conduct clinical trials of his treatment method of diabetes. The tests were successful — the patient who was transplanted insulin cells began to walk without assistance and to go without insulin injections for a long time. But the President of the American diabetes Association James Glavin criticized the “inappropriate buzz” around a new method and underlined that “it is too early to consider it appropriate for treatment and even for therapeutic purposes.”
However Xinxiang became a celebrity. He was invited to show at the conference dedicated to the fight against diabetes. It helped a budding entrepreneur to attract investments for their new projects. In 1995 Milan Pushkar, the head of a major pharmaceutical company Mylan Laboratories, agreed to invest $5 million in VivoRx in exchange for 10% of the company and on a monthly basis to allocate research $200 thousand With the same Mylan Laboratories Xinxiang discussed the research program of transplantation of internal organs of the pig man, but then abandoned these plans as “unsafe”.
The inflow of investment has allowed Cinsano to acccess the second company VivoRx Pharmaceuticals (later renamed American Bioscience), which focused on cancer research. Gradually Signsan interest has shifted to Oncology, and he began to give his first company less time. The consequences were unexpected: on Signsan sued the elder brother. In 1998, Terrence Xinxiang together with Milan Pushkar filed for a businessman to court, accusing him that he had used consultants who were paid by VivoRx to work at American Bioscience, as well as spent on cancer research the money that Pushkar has allocated for the study of diabetes. The litigation lasted a year, but in the end, Xinxiang was acquitted.
In the same year occurred another event that caused the reputational damage owner: Steven Craig, the patient, in which five years ago were tested method of treatment Signsan from diabetes, has committed suicide. In recognition of the widow Craig, the reason for the suicide was the despair of the patient because of his condition.
A new method
The courts and the scandals did not prevent Cinsano to expand the business. In 1997, he has partnered with a large wholesale drug company Premier Inc., supplied drugs to the American hospital. Premier Inc. became a co-investor in the new company Sansana, American Pharmaceutical Partners (APP), a provider of generics (analogues of certified products). Cooperation with the Premier gave the APP access to drugs for 1.5 thousand clinics. In 1998, Xinxiang acquired drug manufacturer Fujisawa USA, which allowed him to produce 193 names of medicines. In 2001, APP completed an IPO, raising $144 million.
Raising funds on the stock exchange took Sensano for implementation in the production of an experimental drug for the treatment of cancer “Abraxas” (the tool was developed by American BioScience). The principle of “Abraxane” was similar to the method Signsan for the treatment of diabetes. The action is based “Abraxane” lay well-known and previously a chemotherapy drug “Taxol”, Packed in a shell of albumin. In this way “Taxol” was delivered to a cancer cell. A new way of delivering drugs to the affected cell eliminates the need for a toxic solvent that was previously used with Taxol”, which allowed to significantly reduce the side effects of treatment.
$11.9 billion — as Signsan for may 2016
$A 147.6 million — the amount of remuneration batch Signsan on the post of CEO NantKwest
$593,5 million — capitalization NantKwest on the NASDAQ
$30.6 million — losses NantKwest in the first quarter of 2016
800 people in 14 cities work in the structures of NantWorks
$970 million sales of Abraxane” around the world in the third quarter of 2015
Permission from the FDA to manufacture “Abraxane” was received in 2005. In 2007, the APP has become the sole manufacturer of blood-thinning drug heparin. Waiting, when the company’s capitalization will increase substantially, Xinxiang divided the APP into two parts: the APP itself has continued to produce generics, and the new company, Abraxis, became the producer of the original products — “Abraxane” and several others. In 2008-2010, Xinxiang sold packages in both companies (in which he owned shares at 80%) and became a billionaire. APP for $4.6 billion has acquired a German medical equipment manufacturer Fresenius and Abraxis — American biotech Celgene Corporation for $4.5 billion Now Xinxiang — the richest resident of Los Angeles after the Creator of PayPal and Tesla Motors Elon musk.
Currently, the core business Signsan is the NantWorks group of companies, which unites nine companies operating in various areas of health — information technologies in medicine to cancer research. NantKwest company that develops cancer treatments, the first of them in July last year held an IPO on NASDAQ, which raised $207 million
One of the major initiatives Signsan recently was the establishment in January 2016 2020 Cancer Moonshot — a coalition of pharmaceutical, biotechnology companies and scientists-oncologists, which brings together pharmaceutical companies Celgene Corp., Amgen Inc., the insurer Independence Blue Cross, and Bank of America. The project proposes to 2020 to conduct clinical trials of drugs for 20 types of tumors among 20 thousand patients.
Sport and media
Interests Signsan are not limited to medicine. One of the richest of Los angelesnew invested in two major city of the brand basketball club Los Angeles Lakers and the Los Angeles Times.
A 4.5% stake in the Lakers, one of the most popular basketball teams in America, Xinxiang acquired in 2010 from a former player of the team and the American basketball legend magic Johnson (the transaction amount was not disclosed). Now Xinxiang, cheerleader Lakers with 30 years of experience, is present in important games team on VIP-places.
12.9% of the shares of the publishing house Tribune Publishing, which publishes the LA Times, Xinxiang bought a few days ago: the deal was announced may 23. The amount of the transaction amounted to $70.5 million, and Xinxiang has become the second largest shareholder of the package to Tribune Publishing. The head of the publishing house Michael ferro hopes that investment Signsan will be able to save the Tribune from a hostile takeover of the publisher of USA Today, Gannett company.