The October 7th announcement of the sale of Wisconsin-based Prodesse for $60 Million is great news on many fronts.
For the Medical College of Wisconsin, who had a 1% stake, there's an immediate payoff. And, assuming that the original science included a royalty, there may be an ongoing royalty stream as well. (Could be 3-4% of sales per year. At $15MM, that's $600,000 annually.)
For those of us who cheer for entrepreneurs, it's great to see Tom Shannon succeed. I love Kevin Conroy's comment that "Tom is the best CEO in molecular diagnostics, not because he knew the industry inside and out, but because he's a doer. He put his head down and said 'I'm going to confront all these problems' without any capital."
It's always the people who lead ventures that make the difference. There was an inflection point in Prodesse where it would've been possible to walk away and admit failure. Lots of people have done it, and Tom didn't.
He developed a Plan B and made fundamental changes. He persevered and realized that the journey is a marathon and not a sprint. He managed his capital intelligently. And he came from outside the industry, brought leadership skills, and applied them. It's the people like Tom who make the big difference.
It's interesting to note that Prodesse created a lot of wealth in Wisconsin and stands to create more - not only through employment. If Tom helps more new ventures succeed, and Prodesse investors continue to spot great opportunities, the story repeats itself.
Congratulations to Tom, his investors, and his team.
