Profound Ventures' Impactful Social Entrepreneurship Initiatives

Slide Note

Proven entrepreneurs at Profound Ventures, LLC are dedicated to tackling significant societal challenges with innovative business models and technology solutions. Led by Brian Meshkin, Laura Hunter, Khanh Nguyen, and Felix Frueh, the venture accelerator focuses on diverse areas such as neuromodulation, diagnostics, behavioral healthcare, and stroke recovery to address pressing health issues facing society today. Their portfolio aims to revolutionize healthcare delivery and improve outcomes in an ever-evolving landscape.

kawtharc Follow

Uploaded on Sep 30, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript

1 10X Medical Device Conference - May 14, 2019 What on Earth Happened to Proove Biosciences? CONFIDENTIAL - Profound Ventures, LLC

2 What We ll Discuss Tonight A Little About Me About Profound Ventures About Proove Biosciences CONFIDENTIAL - Profound Ventures, LLC After 7 Years of Success: Where was Proove in December 2016 What Happened Next? 7 Months of Destruction Where Do You Go From There?

3 A Little About Me Husband: Married over 19 years to my Best Friend, Catherine, a Lawyer & Law Professor at Chapman University Award-Winning Executive & Social Entrepreneur: Earthly Angel, Baltimore Sun; Emerging Technology Company CEO of the Year, OCTANe; Dad: Parents of 3 great kids and devout members of The Church of Jesus Christ of Latter-day Saints Excellence in Entrepreneurship Award, OCBJ; CONFIDENTIAL - Profound Ventures, LLC Two-Time Finalist, EY Entrepreneur of the Year Award (OC); Idealist: Activist, Volunteer, Youth Sports Coach, PTA President, Former Publicly-Elected School Board Member Worked at Eli Lilly, Johnson & Johnson, Prometheus, & founded Proove Biosciences

4 Who We Are Profound Ventures, LLC ( Profound ) is a social entrepreneurship seed fund and new venture accelerator dedicated to using new business models and technologies to solve profound societal problems based in Orange County, California. Leadership Brian Meshkin Managing Partner Award-Winning Health Technology Entrepreneur (Inc 500, Deloitte Fast 500), founder of Proove, fmr with Lilly, J&J, & Prometheus Labs Laura Hunter, Esq. Partner Fmr General Counsel of Obagi Medical Products, CLO of Proove Biosciences & Head of Life Science Practice at international law firm, Brobeck CONFIDENTIAL - Profound Ventures, LLC Entrepreneurship to solve profound societal problems by creating, seed funding, and growing new business ventures and non-profit organizations Khanh Nguyen Partner Fmr CTO of Proove Biosciences, Freedom Communications, the Milken Institute, & DoctorDrew.com Felix Frueh, Ph.D. Partner Fmr head of Genomics at FDA/CDER; fmr CSO at Human Longevity; fmr President of Medco Research Institute

5 Our Current Portfolio Next-Gen Brain Computer Interfaces advancing neuromodulation with advances in big data analytics to personalize therapy ? Revolutionizing Diagnostics to Deliver Value through Hospitals Beyond the Duopoly of LabCorp & Quest Diagnostics Providing improved outcomes at the intersection of behavioral healthcare & advanced telehealth data technology Providing at-home rehab & data analysis for stroke recovery - 5th leading cause of death in the US CONFIDENTIAL - Profound Ventures, LLC Rapidly Aging Population Which Will Account for 25% of the US Population in 15 Years The Largest and Most Expensive Health Condition & the Leading Cause of Preventable Death Exploding Growth of Neurological Disease Cost the U.S. more than $1.5 trillion per year 8.8% of GDP

6 What on Earth Happened to Proove Biosciences? CONFIDENTIAL - Profound Ventures, LLC

7 About Proove Biosciences CONFIDENTIAL - Profound Ventures, LLC

8 Proove Biosciences: December 2016 278 FT Employees Research collaborations with leading centers: USC, UNC, McGill, Univ. of Utah, Cedars Sinai & others 60,000 sq. ft. campus in Irvine Spectrum Research awards from medical societies (ASIPP, ASRA, AAN) CLIA-credentialed, CAP-accredited clinical laboratory CONFIDENTIAL - Profound Ventures, LLC Over 100 scientific abstracts presented at meetings 354K precision medicine panels in 2016 alone Over 10 peer-reviewed publications $28.1M in cash collected revenue for 2016, $1M in cash EBITDA CMS and NIH Pain Consortium leadership support of technology 2nd yr in a row Inc. 500, Deloitte Technology Fast 500 Strong Board of Directors World s Largest & Highest Quality DNA Biobank & Big Data Clinical-Genetic Database in Chronic Pain >153,000 patients 2-years of externally audited financials Preparing to file S-1, raising mezzanine cross-over round to position the company for a strong IPO 15 precision medicine profiles on the market

9 And then we were victimized by Fake News & Corporate Espionage Warren Buffett once said, It takes 20 years to build a reputation and five minutes to ruin it. Reporter Charles Piller intentionally ignored primary sources provided Quite a Fall from Grace to Go from Earthly Angel in the Baltimore Sun to a Corrupt CEO in STAT News Reporter Charles Piller used sources fabricated by taking Proove s logo off the Internet and putting it on fraudulent documents 3 disgruntled employees conspired to invent accusations for a Whistleblower lawsuit to protect themselves while they were competing with Proove. Then after being fired, they went to Charles Piller

10 The Dangers of a One-Sided Story: How Charles Piller & STAT News Reported the Facts : Prince William Gives Onlookers Rude Gesture CONFIDENTIAL - Profound Ventures, LLC

11 The Dangers of a One-Sided Story: How a Professional Journalist Would Report the Facts : Prince William Holds Up the Number 3 CONFIDENTIAL - Profound Ventures, LLC

12 The Dangers of a One-Sided Story: Whether You Like Prince William or the Royal Family Determines Your Agenda or Confirmation Bias CONFIDENTIAL - Profound Ventures, LLC

13 How One Discredited Reporter Fired from the Los Angeles Times Created His Lies Quote Their Reaction to False Information as an opinion of the Person or Company Voila: a Credible Quote about the Company or Person to Create Plausible Deniability about Fake News Share Misinformation with Experts to Get Their Reaction to the Falsehood CONFIDENTIAL - Profound Ventures, LLC Examples: OIG Former Employee Opinions Pure Genetic Test Billing Practices Research Practices Investigation of an Ordering Doctor KOL Reaction

14 Some of Piller s Lies Reported by STAT News Bias Truth The Antithesis of the Accusations Piller s Lies Laboratory-Developed Tests (LDTs) Are Not Credible Because They Are Not Approved by the FDA Extensive published scientific evidence (>100 scientific posters, dozens of 3rd party publications, 10 peer-reviewed publications On just one of its profiles, Proove had 3 clinical validity papers of over 5K patients showing up to 97% accuracy and 3 clinical utility papers of over 15K patients showing 90% effectiveness No scientific evidence supporting testing Laboratories involved in pain and addiction are involved in kickback schemes Piller used a fraudulent source document where someone pulled down our logo from the Internet and created a false document Proove engaged in IRB-approved studies, listed on ClinicalTrials.gov, approved by leading institutions No doctor was ever paid or financially-induced to order testing Award-winning research from leading medical societies, Collaborations with leading researchers and research centers, Research methods reviewed and approved by leading centers to surpass highest standards (even beyond NIH-awardees) Coding approved by CMS in writing on four occasions, Proove underbilled and was paid at a price equal to 10% of what other labs were getting paid for PGx tests by CMS, Technology supported by the CMO & CDO of CMS Paid docs to order tests CONFIDENTIAL - Profound Ventures, LLC Laboratories are corrupt and any successful lab must be like Theranos Research is a sham Laboratory billing practices are corrupt and abuse the system Engaged in Medicare fraud

15 What did we do about it? Legal Counsel s Recommendation: Don t respond. It makes you look defensive. We reached out to the government and they told us that there is no investigation of Proove. As a limited-use public figure, defamation laws do not protect you, so you will not win a defamation lawsuit. Board of Director s Recommendation: As Mark Twain said, Never Pick a Fight with People Who Buy Ink by the Barrel. We ve been around a long- time. We are doing all the right things. Just take the high road. CONFIDENTIAL - Profound Ventures, LLC Unfortunately I was scared and inexperienced, and so I listened to the advice of legal counsel and my All-Star Board of Directors. I was wrong do to so.

16 The Situation Went from Bad to Worse May 2017 U.S. Attorney s office accidentally leaks a whistleblower lawsuit from a disgruntled ex-employee Proove lawyers inform U.S. Attorney s office of administrative mistake of leaking sealed documents on PACER U.S. Attorney s office re-seals accidentally unsealed documents Proove offers to meet with government to answer any questions June 7, 2017 FBI delivers subpoenas to Proove s office with the TV Cameras from the local Los Angeles CBS, NBC, and ABC television stations present Media reports FBI Raid which suggests charges, arrests, etc. FBI delivers subpoena for documents and buys employees pizza while collecting documents No charges, indictments, arrests, or any formal allegations of wrongdoing

17 Proove Biosciences: August 2017 Within 90 days of Subpoena for Documents, 7 months after 2nd Piller Hit Piece 90% Reduction in Revenue Before: $2.5M in mo. revenue; Now: $180K Medicare and private payer reimbursement placed on hold Ordering clinicians spooked (over 50% reduction Senior management stop taking pay (VP and C-Level) Fire almost all employees (Before 278, After < 5) Couldn t cut costs fast enough (built up a $3M AP) Put the company into a Receivership to restructure, ultimately Receiver decides to liquidate assets against initial plan, ceases operations and customer orders

18 What was the result of the inquiry? Government inquiry resulted in NO ALLEGATIONS OF WRONG DOING or CHARGES NO FINES or EVEN A SINGLE-DOLLAR OF A RECOUPMENT/CLAWBACK NO INDICTMENTS and NO ARRESTS THE ONLY TECHNOLOGY CLINICALLY-PROVEN IN PEER-REVIEWED LITERATURE TO HELP SOLVE THE OPIOID CRISIS CAME OFF THE MARKET, STAT NEWS GOT THEIR ADVERTISING REVENUE, & PILLER GOT A NEW JOB.

19 Where do you go from here? You take the lessons learned from the tragedy and help others avoid the pain you went through CONFIDENTIAL - Profound Ventures, LLC