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Withdrawal of investors, lawsuit hit Histogen hard


#1

Chrome (col) posted this elsewhere.
Let’s hope Naughton can prove Histogen didn’t infringe on any patents, or this company’s cooked!!!

Withdrawal of investors, lawsuit hit Histogen hard
By Terri Somers
Union-Tribune Staff Writer
http://www3.signonsandiego.com…ors-lawsuit-hi/

Histogen, a San Diego company that revealed promising trial with a hair regrowth product last week, is about $1 million in debt and is staying afloat on the credit cards and cash of Chief Executive Gail Naughton.

(the bad)
Jan. 29, the day before the company was to close a $2.4 million funding round, investors pulled out, Naughton said. As a result, Histogen was forced to lay off all of its 36 employees until it could secure new investors, she said.

Earlier that day, Histogen had been served with a patent-infringement suit filed by SkinMedica, a San Diego company that has regenerative skin care products on the market.

The suit alleges that Histogen’s ReGenica product, made from growth factors and other cells that promote the activation and growth of stem cells, violates patented scientific techniques that SkinMedica bought in 2003.

The science in question was created at the now-defunct Advanced Tissue Sciences, a company that was run by Naughton, who is also dean of the College of Business Administration at San Diego State University.

When Advanced Tissue Sciences broke up, its assets, including its science, were sold.

The SkinMedica lawsuit also claims that to manufacture the ingredients for Histogen’s products, employees are using trade secrets covered by patents that SkinMedica owns. In addition to the hair regrowth treatment, HistoGen has regenerative skin creams for use after microdermabrasion and laser skin therapy.

Naughton said the lawsuit was filed to stop the planned March 6 launch of the cosmetic products.

It won’t stop the launch, she said. But it did prompt investors to pull out of the funding round because they did not want their money used to defend a lawsuit, she said.

Now Histogen is hoping to find new investors based on the promising early-stage data from the hair regrowth product, Naughton said.

In the meantime, most of the laid-off employees are continuing to work without receiving pay, at least not right away.

“Basically we have 19 to 20 people working as if nothing happened because they believe in the product and the company. They don’t want to shut down the experiments they are running,” Naughton said yesterday. “Obviously they cannot do this a long time. It’s a short-term situation.”

Once investors are committed, the employees will be reimbursed as consultants for the work they are doing now, she said. And they will be rehired, Naughton said.

Naughton denied the patent-infringement claims in the lawsuit.

Histogen’s growth factors and other ingredients are grown through a method that is much different from the one outlined in SkinMedica’s patent, she said.

(the only good news)
“I’ve been going out of my way for the last four years to make sure there is absolutely no infringement of the patent in terms of manufacturing or composition of our products,” Naughton said.

“I think that since we don’t have any patents formally published yet, they (SkinMedica) don’t have the benefit of knowing exactly what we are doing, and they want to stop the launch of our skin products.”

The first court date for the patent case is March 16, 10 days after Naughton plans to launch the Histogen skin products.


#2

I mean, LOL. 1 million in debt, and living on credit cards of the CEO :slight_smile:


#3

» I mean, LOL. 1 million in debt, and living on credit cards of the CEO :slight_smile:

Did you read the article? The company got sued so the investors pulled out. They are trying to keep the company afloat by using credit as a bridge loan. What’s so funny about that? At leas the science is real, unlike everything that has ever come out of Europe.


#4

» » I mean, LOL. 1 million in debt, and living on credit cards of the CEO :slight_smile:
»
» Did you read the article? The company got sued so the investors pulled
» out. They are trying to keep the company afloat by using credit as a
» bridge loan. What’s so funny about that? At leas the science is real,
» unlike everything that has ever come out of Europe.

Honestly fckhrls, what is your problem with Europe? Google for example “CERN”, and let me know what you think about it. True, more money is available for science in the US, and the research/3rd level education model is not perfect in the EU. However, having studied, lectured and been a researcher on either side of the Atlantic (in top 20 universities), I can tell you that based on my own experience and that of many of my ex-colleague (I gave up research a while ago), research in Europe is not that bad.


#5

» » » I mean, LOL. 1 million in debt, and living on credit cards of the CEO
» :slight_smile:
» »
» » Did you read the article? The company got sued so the investors pulled
» » out. They are trying to keep the company afloat by using credit as a
» » bridge loan. What’s so funny about that? At leas the science is real,
» » unlike everything that has ever come out of Europe.
»
» Honestly fckhrls, what is your problem with Europe? Google for example
» “CERN”, and let me know what you think about it. True, more money is
» available for science in the US, and the research/3rd level education model
» is not perfect in the EU. However, having studied, lectured and been a
» researcher on either side of the Atlantic (in top 20 universities), I can
» tell you that based on my own experience and that of many of my
» ex-colleague (I gave up research a while ago), research in Europe is not
» that bad.

Everybody es losing their jobs and their homes in the US,no investor in his right mind would pump any money into research in these days


#6

Histogen is the first company publishing plenty of HM photos.
I hope they find investors. its a ridiculous amount of money.

» Chrome (col) posted this elsewhere.
» Let’s hope Naughton can prove Histogen didn’t infringe on any patents, or
» this company’s cooked!!!

»
»
»
»
» Withdrawal of investors, lawsuit hit Histogen hard
» By Terri Somers
» Union-Tribune Staff Writer
» http://www3.signonsandiego.com…ors-lawsuit-hi/
»
» Histogen, a San Diego company that revealed promising trial with a hair
» regrowth product last week, is about $1 million in debt and is staying
» afloat on the credit cards and cash of Chief Executive Gail Naughton.
»
» (the bad)
» Jan. 29, the day before the company was to close a $2.4 million funding
» round, investors pulled out, Naughton said. As a result, Histogen was
» forced to lay off all of its 36 employees until it could secure new
» investors, she said.
»
» Earlier that day, Histogen had been served with a patent-infringement suit
» filed by SkinMedica, a San Diego company that has regenerative skin care
» products on the market.
»
» The suit alleges that Histogen’s ReGenica product, made from growth
» factors and other cells that promote the activation and growth of stem
» cells, violates patented scientific techniques that SkinMedica bought in
» 2003.
»
» The science in question was created at the now-defunct Advanced Tissue
» Sciences, a company that was run by Naughton, who is also dean of the
» College of Business Administration at San Diego State University.
»
» When Advanced Tissue Sciences broke up, its assets, including its science,
» were sold.
»
» The SkinMedica lawsuit also claims that to manufacture the ingredients for
» Histogen’s products, employees are using trade secrets covered by patents
» that SkinMedica owns. In addition to the hair regrowth treatment, HistoGen
» has regenerative skin creams for use after microdermabrasion and laser skin
» therapy.
»
» Naughton said the lawsuit was filed to stop the planned March 6 launch of
» the cosmetic products.
»
» It won’t stop the launch, she said. But it did prompt investors to pull
» out of the funding round because they did not want their money used to
» defend a lawsuit, she said.
»
» Now Histogen is hoping to find new investors based on the promising
» early-stage data from the hair regrowth product, Naughton said.
»
» In the meantime, most of the laid-off employees are continuing to work
» without receiving pay, at least not right away.
»
» “Basically we have 19 to 20 people working as if nothing happened because
» they believe in the product and the company. They don’t want to shut down
» the experiments they are running,” Naughton said yesterday. “Obviously they
» cannot do this a long time. It’s a short-term situation.”
»
» Once investors are committed, the employees will be reimbursed as
» consultants for the work they are doing now, she said. And they will be
» rehired, Naughton said.
»
» Naughton denied the patent-infringement claims in the lawsuit.
»
» Histogen’s growth factors and other ingredients are grown through a method
» that is much different from the one outlined in SkinMedica’s patent, she
» said.
»
» (the only good news)
» “I’ve been going out of my way for the last four years to make sure there
» is absolutely no infringement of the patent in terms of manufacturing or
» composition of our products,” Naughton said.
»
» “I think that since we don’t have any patents formally published yet, they
» (SkinMedica) don’t have the benefit of knowing exactly what we are doing,
» and they want to stop the launch of our skin products.”
»
» The first court date for the patent case is March 16, 10 days after
» Naughton plans to launch the Histogen skin products.


#7

» Chrome (col) posted this elsewhere.
» Let’s hope Naughton can prove Histogen didn’t infringe on any patents, or
» this company’s cooked!!!

»
»
»
»
» Withdrawal of investors, lawsuit hit Histogen hard
» By Terri Somers
» Union-Tribune Staff Writer
» http://www3.signonsandiego.com…ors-lawsuit-hi/
»
» Histogen, a San Diego company that revealed promising trial with a hair
» regrowth product last week, is about $1 million in debt and is staying
» afloat on the credit cards and cash of Chief Executive Gail Naughton.
»
» (the bad)
» Jan. 29, the day before the company was to close a $2.4 million funding
» round, investors pulled out, Naughton said. As a result, Histogen was
» forced to lay off all of its 36 employees until it could secure new
» investors, she said.
»
» Earlier that day, Histogen had been served with a patent-infringement suit
» filed by SkinMedica, a San Diego company that has regenerative skin care
» products on the market.
»
» The suit alleges that Histogen’s ReGenica product, made from growth
» factors and other cells that promote the activation and growth of stem
» cells, violates patented scientific techniques that SkinMedica bought in
» 2003.
»
» The science in question was created at the now-defunct Advanced Tissue
» Sciences, a company that was run by Naughton, who is also dean of the
» College of Business Administration at San Diego State University.
»
» When Advanced Tissue Sciences broke up, its assets, including its science,
» were sold.
»
» The SkinMedica lawsuit also claims that to manufacture the ingredients for
» Histogen’s products, employees are using trade secrets covered by patents
» that SkinMedica owns. In addition to the hair regrowth treatment, HistoGen
» has regenerative skin creams for use after microdermabrasion and laser skin
» therapy.
»
» Naughton said the lawsuit was filed to stop the planned March 6 launch of
» the cosmetic products.
»
» It won’t stop the launch, she said. But it did prompt investors to pull
» out of the funding round because they did not want their money used to
» defend a lawsuit, she said.
»
» Now Histogen is hoping to find new investors based on the promising
» early-stage data from the hair regrowth product, Naughton said.
»
» In the meantime, most of the laid-off employees are continuing to work
» without receiving pay, at least not right away.
»
» “Basically we have 19 to 20 people working as if nothing happened because
» they believe in the product and the company. They don’t want to shut down
» the experiments they are running,” Naughton said yesterday. “Obviously they
» cannot do this a long time. It’s a short-term situation.”
»
» Once investors are committed, the employees will be reimbursed as
» consultants for the work they are doing now, she said. And they will be
» rehired, Naughton said.
»
» Naughton denied the patent-infringement claims in the lawsuit.
»
» Histogen’s growth factors and other ingredients are grown through a method
» that is much different from the one outlined in SkinMedica’s patent, she
» said.
»
» (the only good news)
» “I’ve been going out of my way for the last four years to make sure there
» is absolutely no infringement of the patent in terms of manufacturing or
» composition of our products,” Naughton said.
»
» “I think that since we don’t have any patents formally published yet, they
» (SkinMedica) don’t have the benefit of knowing exactly what we are doing,
» and they want to stop the launch of our skin products.”
»
» The first court date for the patent case is March 16, 10 days after
» Naughton plans to launch the Histogen skin products.

I have a friend with about a million bucks. it is all his money, but if a great return is promised then hey mat be convinced. how can I contact them?


#8

» I have a friend with about a million bucks. it is all his money, but if a
» great return is promised then hey mat be convinced. how can I contact them?

Just a word of advise, if all your friend has is a million dollars. You probably don’t want him to invest it in Histogen yet - it’s way too risky. However, if he is a multi-millionaire and thinking of spending a million in something potentially worthwhile then it’s alright.


#9

is it just me but it seems that all we have are bad news lately


#10

» I have a friend with about a million bucks. it is all his money, but if a
» great return is promised then hey mat be convinced. how can I contact them?

Tell him to contact them via their investors section


#11

I think we all underestimated the effects of the global financial crisis.people are much more carefull with where they spend their money and these companies face one problem after another

i agree its all of bad news lately


#12

» I think we all underestimated the effects of the global financial
» crisis.people are much more carefull with where they spend their money and
» these companies face one problem after another
»
» i agree its all of bad news lately

Although the credit crunch impacted everyone, it mainly hit greedy investors and dumb people who bought more than they can afford.

Most savvy shoppers and investors will find a ton of opportunity in today’s market. This is actually a great time to buy a house, and it’s probably a great time to invest in a well-grounded company provided you have the cash at hand(not credit). Unfortunately, most of us don’t have cash; we’ve been trained like monkeys to leverage everything on credit.


#13

I can only argue with one word: “lately.” Unless I somehow missed the golden age of good news about hairloss treatments that actually work …