Archive for the ‘Tech’ category

You Must Remember This, cont’d

January 22, 2017

In December 2013, I wrote about a Madison biotech company facing an investigation from the Food and Drug Administration over a dietary supplement that supposedly bolsters memory recall. Three years later, Quincy Bioscience has been sued by the Federal Trade Commission and the New York attorney  general on a related complaint.

My Isthmus story begins:

Quincy Bioscience, a Madison biotech company that has struck gold in the dietary supplement business, is facing a potentially ruinous lawsuit filed by government regulators.

The Federal Trade Commission in conjunction with the New York state attorney general is seeking to shut down sales of Prevagen, which is a costly over-the-counter supplement the company says improves brain function, including memory.

The supplement’s key ingredient is a synthetic version of a jellyfish protein called aequorin. Quincy has patented it and promoted aequorin as supporting a sharper mind and clearer thinking.

“A clear-cut fraud” is how New York Attorney General Eric Schneiderman described the supplement in a press release. Through its advertising and TV infomercials, Quincy was preying on vulnerable senior citizens, he said, adding: Prevagen is a product “that costs more than a week’s groceries, but provides none of the health benefits that it claims.”

The FTC and Schneiderman want the court to issue a permanent injunction against the sale of Prevagen — which is Quincy’s core product — and to order the company to refund more than $165 million in Prevagen sales to consumers.

To read more, please go here.

UW Tech Transfer: Challenge and Promise

October 15, 2015

Few things are as important for energizing the listless Wisconsin economy than capitalizing on the great research conducted at UW-Madison. I write in this Isthmus cover story:

A game-changer is what UW-Madison sorely needs. Historically one of the nation’s leading research schools, the campus secures more than $1 billion a year in research grants. Yet between 2009 and 2014, Wisconsin ranked 42nd among the states in patents issued, according to federal data. And we were dead last in a survey of entrepreneurial activity taken by the Ewing Marion Kauffman Foundation.

Reality is that despite Dane County’s tech-led boom, the Wisconsin economy is in parlous condition. The state suffered the largest percentage decline of middle-class households in the nation between 2000 and 2013, according to a Pew Charitable Trusts study. Median Wisconsin household income in this period dropped from $60,344 to $51,467 in inflation-adjusted dollars.

Obvious questions follow: Why isn’t all this UW research igniting a wave of business and tech startups across the state? Why hasn’t the UW dynamo reversed the state’s economic decline?

UW-Madison, it’s fair to say, is feeling the heat.

The hostility of the ruling Republicans at the Capitol is as plain to see as the UW System’s $250 million budget cut and Gov. Scott Walker’s initial plan to gut the Wisconsin Idea, the university’s once sacrosanct pledge that its “beneficent influence” would extend statewide.

But that notion of “the boundaries of campus are the boundaries of the state” draws a sharp retort from skeptics who think UW-Madison’s reach seems to abruptly end at the Dane County line. Local folks may be proud that Dane County claims 73% of the new jobs created in Wisconsin over the last 10 years, but outstate observers see this as evidence of how UW-Madison beneficence is highly parochial.

Enter UW-Madison’s Discovery To Product program. I write how this bootcamp for campus entrepreneurs has nurtured a potential breakout campus discovery. Researchers Mark Cook and Jordan Sand have come up with a technique that could dramatically reduce the pervasive  use of human antibiotics in animal feed. That farm industry practice is blamed for producing deadly drug-resistant superbugs.

To read more about their discovery and the complaints that insiders make about UW-Madison’s hostility towards commercializing research, please go here.

Advice For Democrats

April 6, 2015

David Haynes’ column in the Milwaukee Journal Sentinel got me thinking about the need for political realignment in Wisconsin. The paper’s editorial page editor recounted the dismal electoral standing of the Wisconsin Democratic Party and argued the faltering Dems need to rethink and rebuild their party.

I offer my two cents in a guest column in the Journal Sentinel:

First, dial back the vitriol. The hatred and contempt [the Democrats] show for Gov. Scott Walker has been repudiated by the voters. Instead, they should stick to the issues. Look to the future. Embrace the millennials. Champion the tech sector. Celebrate start-ups and entrepreneurs. Support the Ubers of the sharing economy. Get real about unions. Give tough love (and financial support) to public education. Welcome immigrants. Offer a helping hand to the poor.

Most of all, accept the necessity of change. Wisconsin hasn’t. Too often, our political and economic leaders act as if they’re historical re-enactors at Old World Wisconsin. They refight the old battles when the world — and the economy — has moved on.

I made many of these points in a story (see below) that appeared earlier in Isthmus. To read more of my Journal Sentinel piece, please go here.

Old School Politics And The New Economy

March 19, 2015

The disconnection between Wisconsin’s growing tech sector and the state’s governing political dynamic has never been greater. This Isthmus story discusses how the Legislature’s decision to enact union-breaking “right to work” legislation left Madison area tech leaders puzzled and dismayed.

“As an employer, I can tell you this has zero bearing on my decision to stay in Wisconsin or to hire more people,” Dan Wilson, a founder of Moxe Health, told me. Other leaders had similar comments.

I write:.

It’s tempting to dismiss the comments of the techie execs as inconsequential because they represent startups and boutique businesses with small workforces. They are midgets compared to the titans of Wisconsin industry who have promoted right-to-work through their powerful lobbying arm, Wisconsin Manufacturers & Commerce.

But ignoring the new kids is a big mistake.

“In every single state, in every single metro area, young firms create the most jobs. That’s true everywhere,” says Dane Stangler, vice president of research and policy at the Ewing Marion Kauffman Foundation, which advocates for startup businesses.

The tech component has certainly paid off in Dane County.

It’s fueled, of course, by homegrown Epic and its rise as the dominant electronic health records vendor in the country. The workforce tops 8,000. Revenue in 2014 reportedly hit $1.8 billion. And because founder Judith Faulkner insists on running the entire operation through its fairyland campus in Verona, the region has boomed economically. Epic alone accounted for 27% of all the new jobs created here from 2001 to 2012, according to Kennelly.

The city staffer’s presentation on the Madison area’s economic dynamics makes a persuasive case that the Dane County metro area is impressively outperforming the rest of the state. With 10% of the state’s population, Dane County accounts for 12% of the state’s jobs, 15% of its economic output and 16% of the businesses created since 2000 and 73% of the net new jobs created in Wisconsin between 2004 and 2014.

The Milwaukee Journal Sentineldiced the numbers in a different fashion and came to the same conclusion: Dane County led the state in job creation between 2003 and 2013, with nearly 20,000 new jobs. That’s three times as many as second-place Waukesha County. Milwaukee County lost 19,000 jobs in the same period.

For anyone who still sees Madison as a cossetted government town — well, they need to think again. Kennelly’s report shows that the private sector is driving job and wealth creation in Dane County. “Our government workforce is effectively flat,” he says.

Even better, the growing industries here support good-paying jobs, namely in the biomedical/biotechnical and information technology business clusters.

“The Madison area is really an economic engine for Wisconsin,” Kennelly says. “State policymakers sometimes like to pick on Madison. A more constructive approach would be to say: ‘What are they doing right, and how can we replicate it in other parts of the state?'”

To read more, please go here.

Good News For Health IT?

March 19, 2015

If Madison and Dane County ever rise to a top ten metro area for technology, the driver will almost certainly be the growth of health-related technology companies led by former employees of  Epic Systems, the  Verona-headquartered leader in electronic health records.

It’s a good bet that Madison-area software writers, many of them bright Epic expats, jumped up pumping their fists when they read that Epic would shortly launch the “App Exchange” and “open the floodgates” to developers, as pioneer Madison tech entrepreneur Mark Bakken told the Wisconsin State Journal.

Bakken compared the App Exchange to Apple’s wildly successful App Store.

This was huge news. For all the good Epic has done for the Dane County community, it has shown steely indifference to the local health IT industry. The company’s intense focus on serving its worldwide 315 customers has never included playing Big Sister to expats dreaming of devising health software to piggyback onto the company’s proprietary system.

Bakken begged off from further commenting on the App Exchange, emailing, “My hands are tied on anything related to this and Epic in general right now.” Epic spokesman Shawn Kiesau also declined to comment.

But Bakken may have been overly exuberant in his prediction. A local tech leader, who asked for anonymity for business reasons, says Epic insiders say it’s a misnomer to compare Epic’s soon-to-launch App Exchange with Apple’s App Store.

To read more,  please go here.

This longer related story appeared in the same issue of Isthmus.

Epic’s Long Reach

December 5, 2014

Writing about software giant Epic Systems in its hometown is always interesting and always a challenge. The company is famously reclusive, and its former employees, who are at the heart of the Madison area’s emerging health IT industry, are afraid to say anything that might offend the powerful tech company.

In this story for Isthmus, I tease out the controversy over Epic’s noncompete policy for those expats.

The Huron Consulting Group’s announcement in April that it was buying Vonlay, a 130-person Epic-specialty consulting company, set off alarms locally when it became known than Epic had successfully intervened at the 11th hour to insist that Huron not hire Epic employees within two years of them leaving the company.

The one-year separation that Vonlay leaders observed in their hiring would be doubled for the acquiring firm. It also seemingly meant that former Epic employees who had signed an employment contract with a one-year noncompete clause when they had started at Epic would now be subject to a two-year stipulation they hadn’t agreed to.

Huron and Vonlay officials did not respond to queries, but Epic spokesman Brian Spranger confirmed that Huron had agreed to a two-year noncompete term. And then the shocker: “This is being reverted to a one-year term.” Spranger offered no explanation in his email for the reversal. “We’d rather not comment on the policy as a whole.”

There is no shortage of speculation. Most of it circles around Epic fearing it might be treading on federal antitrust laws and being accused of anti-competitive business practices.

To read more, please go here.

Epic’s New Focus

November 5, 2014

Epic Systems, the electronic medical records pioneer, has put Dane County on the map. I sketch out four strategic moves by the reclusive giant in this Isthmus story.

Epic is the big winner in the federally subsidized effort to shift American medical care from paper to electronic records. As part of President Obama’s economic stimulus plan, Congress approved a $27 billion incentive program in 2009 that touched off a mad scramble to modernize health systems in the name of improved efficiency and better care.

These health systems, which involve hospital and physician networks, can be complicated contraptions, and no company was better situated to harmonize its knotty internal operations than the well-seasoned Epic, which was founded in 1979 in the shadow of UW-Madison by the charismatic computer wizard Judith Faulkner.

Epic cleaned up in that gold rush. Today, one out of two Americans have their medical records on Epic software, and revenues at the fast-growing privately held company hit $1.7 billion in 2013.

Famously insular and only occasionally open to nosey reporters, Epic declined to provide an executive to be interviewed about its recent strategic moves. But local Epic watchers, a few on the record and more speaking not for attribution (they’re reticent because Epic is feared as well as respected), see a new strategy taking hold.

To read about those moves, please go here.

Lots of other Epic stories can be found by using the search engine at the right


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