Biovest names new CEO post-bankruptcy

TAMPA — With Biovest International's emergence from Chapter 11 bankruptcy, the biomedical firm has named a new CEO to transition the reorganized, recapitalized company from the clinical stage to the commercial stage.

Newly elected CEO Carlos Santos will lead the Tampa firm as it seeks regulatory approval in Canada and Europe for BiovaxID, a cancer vaccine it says increases remission from non-Hodgkins Lymphoma by at least a year without serious side effects. Santos previously served as the vice president of product development and regulatory affairs for the company.

Three clinical trials conducted in collaboration with the U.S. National Cancer Institute show that BiovaxID increases the duration of cancer remission following chemotherapy by inducing immune responses that correlate highly with long-term survival, says a news release.

Through bankruptcy reorganization, the Tampa company eliminated $48.5 million in debt, both secured and unsecured, by converting it into new shares of stock, says a news release. All Biovest shares of common stock, warrants and options that were outstanding prior to the company's reorganization have been cancelled and will no longer be traded.

Biovest emerged from Chapter 11 bankruptcy July 9 for the second time in five years.

“With Biovest's balance sheet significantly strengthened and virtually debt-free, the company believes it is well-positioned to continue advancing its global regulatory strategy for BiovaxID, including seeking European marketing approval, as well as supporting the development of its pipeline of patient-specific cancer vaccines,” the release says.

Santos replaces Sam Duffey, who will will lead a new Biovest-owned subsidiary, not yet formed, that will create opportunities based on the company's proprietary biomanufacturing technology. It will also advance the development of new anti-viral and anti-cancer products.

Biovest also announced that Eugene Grin, co-founder of Laurus Capital Management and co-founder and a principal of Valens Capital Management, was elected to the board. New York-based Valens is a registered investment adviser that manages multiple private investment vehicles.