Bloomington–based MGI Pharma (MGI) doesn’t usually go toe-to-toe with the heavyweights of the pharmaceutical business. “Big Pharma”—the Pfizers, Mercks, and GlaxoSmithKlines of the world—wants products with big (billion-dollar) revenues, says MGI President and CEO Lonnie Moulder. And MGI is happy with a few hundred million or so.
Or was.
In the coming months, MGI’s flagship product—Aloxi®—just might get the big guys’ attention. “Aloxi has blockbuster potential,” says Moulder. “It’s a best-in-class product, and it’s patent-protected till 2015.”
Aloxi® Injection treats chemotherapy-induced nausea and vomiting (CINV). Its competitive advantage? Clinical trials demonstrated that a single dose of Aloxi provides superior prevention of nausea and vomiting for up to five days.
A second Aloxi application—Aloxi PONV, for post-operative nausea and vomiting—was submitted to the FDA for approval in May 2007 and will be followed by submission of a capsule form of Aloxi for CINV in late-2007.
That’s only part of the success story. MGI has 10 projects in its development pipeline, and markets two other powerhouse drugs: Dacogen® for Injection fights myelodysplastic syndromes (MDS), a pre-leukemic condition, and the Gliadel® Wafer combats two types of brain cancer.
The company began in 1979 as Molecular Genetics, Inc., concentrating on animal health and agricultural biotechnology. It went public in 1983 and, five years later, shifted its business to human pharmaceuticals, becoming MGI Pharma.
Under Moulder’s leadership, MGI is fast becoming one of the nation’s leading biopharmaceutical companies. In 2003, when he took the helm, he built up the management team, began growing the commercial organization (from 20 to 200 employees), and led the charge in developing a new vision and niche for the company. Today, MGI focuses on oncology and acute-care—acquiring, researching, developing, and commercializing proprietary products. In addition to it’s headquarters, MGI has two other facilities for research and manufacturing (in Lexington, M.A. and Baltimore); just under 600 employees; and revenues that have grown from $49 million in 2003 to $343 million in 2006.
Even more telling: It’s on the edge of becoming sustainably profitable—which, in the biotech arena, is no small feat.
“We’re not about to be the next Pfizer, but to help illustrate,” says Moulder: Of the approximately 1,500 biopharmaceutical companies in North America, approximately 350 are publicly traded, and only about three dozen are sustainably profitable.
Moulder trained as a clinical pharmacist at Temple University in Philadelphia, planning to work in research. But he found himself increasingly drawn to patient care—and the biomedical industry. He spent 16 years in various commercial roles at Hoechst Marion Roussel (now Sanofi-Aventis), earning an MBA at the University of Chicago along the way. After managing a venture-stage biomedical company in Boston, he joined MGI in 1999 as executive vice president.
Moulder attributes the company’s success to its collaborative culture. “That’s what allows us to be successful in our business development and commercial organization,” he says.
“Lonnie’s not a showy CEO,” says Don Gerhardt, president and CEO of LifeScience Alley, a St. Louis Park–based trade association for which Moulder is a director. “He’s down-to-earth, but very wise and incredibly sophisticated in his knowledge of the business, his understanding of the issues around publicly traded companies, and his ability to gather a good team—and grow his company like mad.”
MGI considers about 50 projects at a time, with the goal of making one or two business transactions per year. Products at various stages of development include a sedative for short-duration procedures; a product to fight prostate cancer; another to treat a precancerous condition of the cervix, and another to treat painful mouth sores that can result from chemotherapy and radiation.
“I can’t think of a better industry to be involved in,” says Moulder. “It’s got interesting science, a professional environment, exciting business dynamics, and products that make a difference.”
