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PROFESSOR SCOTT STERN WINS FIRST KAUFFMAN MEDAL

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					THE NEWSLETTER OF THE HEALTH INDUSTRY MANAGEMENT/BIOTECHNOLOGY ALUMNI ASSOCIATION • KELLOGG SCHOOL OF MANAGEMENT • NORTHWESTERN UNIVERSITY
                                                                                                                                 FALL 2005

  PROFESSOR SCOTT STERN WINS FIRST                                                              DRANOVE,
  KAUFFMAN MEDAL                                                                                SATTERTHWAITE WIN
   The Ewing Marion Kauffman
  Foundation has awarded its first
                                                     In commemoration of the life and
                                                     work of its founder, Ewing Marion
                                                                                                NATIONAL AND
  Ewing Marion Kauffman Prize                        Kauffman, the Kauffman                     KELLOGG’S TOP
  Medal for Distinguished Research                   Foundation established the
  in Entrepreneurship to Scott Stern,                Kauffman Prize Medal to recog-             RESEARCH AWARDS
  a Northwestern University profes-                  nize and promote outstanding
  sor and researcher. The Medal was                  research in entrepreneurship. The
  presented to Professor Stern on                    Medal, which includes a $50,000            David Dranove, PhD, the Walter
  Jan. 8, 2005 at the American                       prize, is awarded every two years          J. McNerney Distinguished
  Economic Association annual                        to one scholar under age 40 whose          Professor of Health Industry
  meeting in Philadelphia.                           research has made a significant            Management and Professor of
                                                     contribution to entrepreneurship.          Management and Strategy and
                                                                                                Mark Satterthwaite, PhD, the
                                                     “Entrepreneurship is central to the        A.C. Buehler Professor of Health
                                                     American economy, fueling inno-            Industry Management and
                                                     vation, productivity and growth,”          Professor of Management and
                                                     said Carl J. Schramm, president            Strategy, who was recently elected
                                                     and CEO of the Kauffman                    a member of the American
                                                     Foundation. “Yet, relative to the          Academy of Arts and Sciences,
                                                     important role it plays, the entre-        received this year’s Stanley Reiter
                                                     preneurial process is not well             Award from the Kellogg faculty,
                                                     understood. The Kauffman Prize             for the article “Is More
                                                     Medal underscores the importance           Information Better?: The Effects
                                                     of the scholarly study of entrepre-        of Report Cards on Healthcare
  Professor Scott Stern (right) receives the Ewing   neurship and aims to inspire               Providers” in the Journal of
  Marion Kauffman Prize Medal for Distinguished      promising young scholars to con-           Political Economy. This paper
  Research in Entrepreneurship. Pictured with
  Professor Stern is Carl J. Schramm, President      tribute new insight to the field.”         was co-authored with Stanford’s
  and CEO of the Kauffman Foundation.
                                                                        Continued on page 11…                          Continued on page 6…


                                                         Newsletter Contents
       Scott Stern Wins First Kauffman Medal                  1, 11     Biotech 2005                                  13–15, 21–22
       Dranove, Satterthwaite Win Research Awards               1, 6    Board of Health Study                                   17
       Canadian Healthcare System,                                 2    ADA Diversity Program                                   18
       Alumni/Student Mixer, Scholarships                    3, 4, 5    Biotech Students Attend European Conference             19
       Walter McNerney’s Death                                     7    E & Y Healthcare Forum                                  20
       HIV/AIDS in China, India Conference                     8–11     Alumni News                                          23–24
       Maradei, Top Student Award                                12     Andrew Youn’s South Africa Internship                26–27
       Kellogg Takes Genzyme Case Prize                          12     Dranove’s New Strategy Book                             25
                           THE CANADIAN
                           HEALTHCARE SYSTEM:
                           FACTS, NOT FICTION
                           Northwestern Memorial Hospital’s Conference Center
                           was the home, on Friday, January 28th, for a
                           symposium on the above topic sponsored by the
                           Canadian Consulate General in Chicago.

                           The five principles of the Canada Health Act are the
                           cornerstone of the Canadian health care system and
    NEWS   FROM            have iconic status for Canadians. The legislation
                           affirms the Canadian government’s commitment to a
                           universal, accessible comprehensive, portable and
    PROGRAM DIRECTOR       publicly administered health insurance system. The
                           Canada Health Act aims to ensure that all residents of
                           Canada have access to necessary hospital and
                           physician services.
    JOEL SHALOWITZ, M.D.
                           While many people in the US are familiar with the
                           Canadian system, how the arrangement actually
                           operates is unknown. This educational symposium
                           provided participants with information on the history,
                           organization, and financing of health care in Canada.
                           It explained the five principles of the Canada Health
                           Act, outline the provincial governments’ role in
                           delivering health care and discussed health care
                           practices, management and programs. Experts
                           provided answers on both the basics and nuances of
                           the system.

                           Anne Charles, the Consul General in Chicago, opened
                           the program. First speaker: Kellogg’s Joel Shalowitz,
                           MD, MBA, who spoke on “The History of Canadian
                           Healthcare.” Fresh from his Fulbright in Toronto, Joel
                           gave an overview of how the Canadian System evolved
                           and how it works, as compared to the U.S. system. The
                           second speaker, Claudia Fegan, MD, President of
                           Physicians for a National Health Program, spoke about
                           universal access to healthcare, and how such a system
                           might work in the U.S. Dr. James Calvin, the director
                           of cardiology, Rush University Medical Center,
                           presented the perspective of a provider working within
                           the Canadian system to deliver care, and how it
                           contrasts with the delivery of medicine in the States.




2
Before the keynote address, Prof. Robert McMurphy,
of the University of Western Ontario and a member of      HEALTHCARE/BIOTECH
the Health Council of Canada, addressed “Facing the
Future,” identifying issues which the Canadian system     ALUMNI AWARD TWO
needs to address.
                                                          STUDENT SCHOLARSHIPS;
The keynote address was given by the Honorable Dr.
Carolyn Bennett, PC, MP, Minister of the State, Public
                                                          JOE PAPA ’83 KEYNOTES
Health, Canada. Prior to being elected to public
office, Dr. Bennett was a family physician in Toronto,
                                                          ALUMNI/STUDENT MIXER
a founding partner of Bedford Medical Associates in
downtown Toronto, and an Assistant Professor in the       Mr. Joseph Papa ’83, chairman and CEO of Cardinal
Department of Family and Community Medicine at            Health’s pharmaceutical technologies and services
the University of Toronto. Leading the fight to save      business unit, spoke at a Feb. 23rd Kellogg student/
Toronto’s Women’s College Hospital inspired her to        alumni event. The event was hosted by the Kellogg
run for public office.                                    Healthcare and Biotechnology Club and took place
                                                          at the James L. Allen Center on the Evanston cam-
She was first elected in 1997 and was re-elected in       pus. 80–100 people attended the event.
2000. She was appointed Minister of State, Public
Health, by Prime Minister Paul Martin in December         During his address, Papa noted current and likely
2003. A gifted communicator, she is passionate about      trends in the pharmaceutical industry. He stated that
Canada and about engaging citizens in its democracy.      both brand-name and generic drugs play important
She is a champion for health care, the environment,       roles in the sector, adding that the latter represent
women in politics and persons with disabilities. Dr.      about $20 billion in sales today. He expects this fig-
Bennett is also the co-author of Kill or Cure? How        ure to top $30 billion by 2008, or about 10% of the
Canadians Can Remake Their Health Care System.            branded market.

                                                          Some experts in the pharmaceutical industry opti-
                                                          mistically predict there will be at least “10 prescrip-
                                                          tions for every person in America by 2008,” said Papa.

                                                          He also pointed out that “branded pharmaceuticals
                                                          are the future pipeline for the generic manufacturers”
                                                          and said that global competition from Asia will pose
Student Mixer keynote speaker, Joe Papa KSM ’83.                                                                   Continued on page 4…




                                                         Alumni/Student Mixer (left to right): Program Director Joel
                                                         Shalowitz greets HIM/Biotech Alumni Board officers Patty Riskind
                                                         and Ted Pfeiffer.




                                                                                                                                          3
                                                                          HEALTHCARE/BIOTECH
                                                                          ALUMNI/STUDENT MIXER
                                                                          CONTINUED
                                                                          significant challenges for the
                                                                          generic industry, since the costs of
                                                                          active drug ingredients is much
                                                                          less in Asia than in the West.

                                                                          Mr. Papa was recently named
                                                                          Chairman and CEO of Cardinal
    Alumnus Joe Papa, the evening’s keynote speaker, continued to
                                                                          Health’s Pharmaceutical
    engage his audience in discussion following the reception.            Technologies and Services
                                                                          Business Unit, a $2.8 billion oper-
                                                                          ation providing drug development,
                                                                          formulation, sterile manufacturing,
                                                                          packaging and marketing services
                                                                          to pharmaceutical and biotech
                                                                          companies worldwide. Prior to
                                                                          this, Papa served as President and
                                                                          COO of Watson Pharmaceuticals
                                                                          Inc., a leading generic pharmaceu-
                                                                          tical manufacturer. Before joining
                                                                          Watson in November 2001, Papa
                                                                          was President and COO for
                                                                          DuPont Pharmaceuticals; President
                                                                          of global country operations-North
    Baxter’s Oliver Visa and Manish Kapoor catch up at the Mixer.
                                                                          America for Pharmacia Corp., and
                                                                          President of U.S. operations at
                                                                          Searle Pharmaceuticals.

                                                                          This event again marked the venue
                                                                          at which the HIM/B Alumni board
                                                                          presented two $2,500 scholarships
                                                                          to two graduating Kellogg students
                                                                          who have demonstrated academic
                                                                          achievement, healthcare leadership
                                                                          and service to the field, and finan-
                                                                          cial indebtedness.

                                                                          David Church ’99, an alumni
                                                                          board member who is the liaison
    Professor Alicia Loffler, PhD (left), gives scholarship winner Edna   to the school and students, led an
    Lazar her heartiest congratulations.
                                                                          effort to identify a handful of eligi-
                                                                          ble students qualified for the
                                                                          awards; this eventual half-dozen
                                                                          were reviewed by the Alumni
                                                                          Board and two were selected as
                                                                          award-winners.        Continued on page 5…

4
HEALTHCARE/BIOTECH ALUMNI/STUDENT MIXER,                                                            CONTINUED




They are Edna Lazar and Christopher Pfaff.                                            Christopher Pfaff has a BSc degree in Mechanical
                                                                                      Engineering and a MSc in Technology Management,
Edna Lazar graduated from Hebrew University in                                        both from the University of California at Berkeley.
Israel with a bachelor of Laws degree in laws and                                     After school he worked for Guidant Vascular
business administration; this followed her three                                      Intervention, then for management consulting firm
years in the Israel Defense Force’s Medical Corps                                     Prophet, Inc., based in San Francisco, CA.
where she oversaw the medics’ course at the
Military School of Medicine. After her law degree                                     Both Christopher and Edna will be joining the
she worked for 3 years at the third largest law firm                                  Johnson and Johnson family of companies in the
in Israel, Yigal, Arnon and Co.                                                       Bay Area following graduation from Kellogg.




Two HIM/Biotech Alumni Scholarship Awards given at Alumni/Student Mixer. Left to right: Alumnus David Church (Alumni Board Member), Awardees Christopher Pfaff and
Edna Lazar, Program Director Joel Shalowitz, MD, MBA, Alums Patty Riskind (Board Secretary) and Ted Pfeiffer (Board President).




                                                                                                                                                                     5
    DRANOVE, SATTERTHWAITE WIN TOP RESEARCH AWARDS,                              CONTINUED

    Daniel Kessler and Mark                Science at the Kellogg School of
    McClellan, now the federal             Management. He received his
    Administrator who oversees             Ph.D. in Economics from the
    Medicare and Medicaid. The             University of Chicago in 1955 and
    Stanley Reiter Best Paper Award is     joined the Kellogg faculty in 1967.
    given each year to the article         Professor Reiter has published
    judged to be “best” from among         four books and dozens of research
    those published by Kellogg faculty     papers in his career. In 2001, the
    in the preceding four calendar         Kellogg School instituted the
    years. The Selection Committee         Stanley Reiter Best Paper Award
    accepts nominations from the           to recognize Professor Reiter and
    Kellogg faculty and makes a sin-       the research accomplishments of
    gle selection based on the article’s   the School’s faculty.
    creativity, craftsmanship and
                                                                                     Dranove
    impact on its field. This article      Professor Dranove also has
    also recently won the 10th Annual      received additional recognition
    Research Award from the National       recently:
    Institute for Healthcare
    Management Foundation                  The Searle Fund has given
                                           Professor Dranove and Joel
    The author(s) selected were            Shalowitz, MD, a grant for
    announced at the annual Oh-Be-         $92,000 for a research project
    Joyful dinner at the end of the        entitled “Has the Malpractice
    School year and received a plaque      ‘Crisis’ Affected Access to
    recognizing this accomplishment.       Medical Care,” to study how hos-
    In the subsequent academic year,       pitals have responded to the mal-
    the winner(s) will present the         practice crisis. Dranove and
    research as part of a special lec-     Shalowitz are especially interested
    ture series to the Kellogg commu-      in learning whether hospitals have
    nity. To be eligible, the article      limited access to patients with
    should have been published in a        high risk conditions in the neuro-
    refereed journal. Articles co-         surgery and obstetrics specialties.      Satterthwaite

    authored with faculty from other
    institutions may be nominated.         Additionally, one of Professor
    The committee also considered          Dranove’s mentees, an undergrad-
    nominations of research mono-          uate economics major, Joel Hatton
    graphs.                                has received the Robert Eisner
                                           Prize awarded to the economics
    Stanley Reiter for whom the award      undergraduate with the best senior
    is named is the Charles E.             honors thesis. His thesis studied
    Morrison Professor of Economics,       the relationship between tobacco
    Mathematics and Managerial             taxes and teenage marijuana con-
    Economics and Decision Sciences        sumption and found some evi-
    and the Director of the Center for     dence that higher taxes have led
    Mathematical Studies in                teens to substitute away from ciga-
    Economics and Management               rettes and towards pot.

6
DEATH TAKES PROFESSOR WALTER J. MCNERNEY
We received notice that Walter J.                                              Chairman, Agency for Health Care
McNerney, Herman Smith                                                         Policy and Research (Dept. of
Professor of Health Policy                                                     Health and Human Services);
(Emeritus) at Kellogg died on July                                             Chairman Board of Trustees,
29, 2005. Walt taught the                                                      Medical Outcomes Trust; Visiting
“Advanced Health Policy” course at                                             Committee, Association of
Kellogg for many years and men-                                                Academic Health Centers; Visiting
tored numerous students. He came                                               Committee, University Health
to Kellogg in 1982 and was made                                                Services; Board of Overseers of
emeritus professor in 1999. Walt’s                                             Harvard College; Advisory
family and friends established the                                             Council to the Dean, Yale School
Walter J. McNerney Professorship                                               of Medicine; Advisory
in Health Industry Management at                                               Committee, Medical Center,
Kellogg upon his retirement, a                                                 University of Michigan.
chair currently held by healthcare
economist David Dranove.                                                       He published three books, two
                                      Institute for the Future, Institute of   monographs, several chapters and
Prior to coming to Northwestern,      Physician Management Relations,          over 75 articles.
from 1961 to 1978 Mr. McNerney        (Chairman) McNerney Heintz,
served as President of the Blue       Inc., Medicus Systems Corp.,             Awards received include: Award
Cross Association and from 1978       National Executive Service               of Merit, Forum for Healthcare
through 1981 served as President      Corps., Nellcor Corp., Osteotech,        Planning; Award of Honor and
of the Blue Cross and Blue Shield     Inc., the Stanley Works (NYSE),          Justin Ford Kimball Award,
Associations. These organizations     Value Health, Inc (NYSE),                American Hospital Association;
included 105 plans geographically     Ventritex, and was Chairman of           Yale Medal; Outstanding
dispersed throughout the country      American Health Properties (REIT         Achievement Award, University of
covering over 120 million persons     – NYSE).                                 Minnesota; Special Award for
and distributing annually benefits                                             Meritorious Service, AMA; Silver
amounting to approximately $55        His committee and commission             Medal Award, American College
billion through private and public    appointments included: Chairman,         of Healthcare Executives;
programs.                             Committee on Assessing Health            Secretary’s Unit Citation, HEW;
                                      Care Reform, Institute of                and Doctor of Humane Letters,
Prior to 1961, Mr. McNerney was       Medicine, (National Academy of           Rush University. He is also in
in hospital and medical center        Sciences); Advisory Panel on             Modern Healthcare’s Healthcare
administration and served on the      Assessment of Medical                    Hall of Fame.
faculties of the Graduate School of   Technology, Office of Technology
Public Health, University of          Assessment (U.S. Congress);              Mr. McNerney received a bache-
Pittsburgh and founded the health     Chairman, Board on Health Care           lor’s degree from Yale University
administration program at the         Services, Chairman, Board on             and a master’s degree from the
Graduate School of Management,        Special Initiatives, Institute of        University of Minnesota. He is
University of Michigan.               Medicine (National Academy of            survived by his wife Shirley, and
                                      Sciences); Commission on Future          is the loving father of W. James
Mr. McNerney served on the            Structure of Veteran’s Health Care,      McNerney, Jr.; Peter; Jennifer
Boards of numerous organizations:     Secretary, (Dept. of Veterans            Horskotte; the Reverend Daniel;
Hanger Orthopedic Group, Inc.,        Affairs); Physician Payment              and Richard H. as well as 22 lov-
the Hospital Fund, Inc., Hospital     Review Commission (U.S.                  ing grandchildren.
Research and Educational Trust,       Congress); Advisory Council Vice
                                                                                                                   7
    SYMPOSIUM ON HIV/AIDS IN INDIA AND CHINA;
    29TH MALCOLM MACEACHERN LECTURE
    As Kellogg increases its commit-       nomic consequences for the inter-      has taught at the University of
    ment to a more global approach to      national community.                    Maine, served as Special Assistant
    business issues, and as                                                       to Mrs. Katherine Graham of The
    Northwestern University’s              As is the Kellogg approach, stu-       Washington Post, for Chancellor
    International Program                  dents were involved in planning        Willy Brandt’s International
    Development Office sought to           the conference, with Todd Robin        Commission on International
    expand its series of conferences       selected to major-domo the effort.     Development Issues in 1978-1980,
    on international topics of interest,   After numerous planning meet-          was Assistant Representative of
    it seemed natural that the forces      ings, four distinguished speakers      The Asia Foundation in Thailand
    should combine, and that’s why         were selected for the April 2nd        1983-85, worked as a staff mem-
    NU’s Devora Grynspan came              program, held at the Tribune           ber of the U.S. House of
    knocking on Joel Shalowitz’s door      Auditorium of the James L. Allen       Representatives from 1984-1994,
    when a global healthcare topic         Center. Approximately 150 people       and has served as a consultant to a
    was to be considered.                  – students, faculty (university-       number of U.S. and U.N. agencies,
                                           wide), healthcare policy experts       businesses, and non-governmental
    To date, the human toll of the         and other local interested parties –   organizations.
    HIV/AIDS pandemic has been             attended.
    concentrated in Sub-Saharan                                                   Following some Q and A with Dr.
    Africa, home to roughly 70 per-        The opening speaker was Devora         Brown, NU Anthropology
    cent of infected persons world-        Grynspan, PhD, the head of             Professor Kensley Stewert, PhD,
    wide. World health expects, how-       Northwestern University’s Office       introduced her former colleague,
    ever, warn that conditions are ripe    of International Program               Wan Yan Hai, MD, a physician in
    for HIV/AIDS to explode across         Development, who welcomed the          China.
    India and China. With over five        assembled audience on behalf of
    million cases, India is second only    the university. She also reviewed      Dr. Wan Yan Hai is Director of the
    to South Africa in the number of       the genesis of the program for the     Aizhixing Institute of Health
    people infected with the HIV           audience before introducing Joel       Education and Founder of the
    virus. Recent estimates indicate       Shalowitz, MD, who introduced          AIZHI (AIDS) Actions Project,
    that China is not far behind, where    the first speaker who gave an          one of China’s more prominent
    the prevalence of HIV/AIDS is          overview of the HIV/AIDS prob-         AIDS organizations. His reporting
    estimated to increase by 20 to 30      lems in Africa as well as India and    for the project uncovered an AIDS
    percent annually.                      China.                                 epidemic in Henan Province,
                                                                                  where large numbers of peasants
    India and China account for            Dr. Nelle Temple Brown is              were infected with the virus after
    roughly 40 percent of the world’s      External Relations Officer of the      selling their blood at government
    population, and both countries are     World Health Organization in           supported clinics. Dr. Wan is a
    critical engines of global econom-     Washington, D.C. She represents        prominent AIDS educator and
    ic growth. If left unchecked,          in Washington the Geneva-based         staunch defender of human rights
    HIV/AIDS will not only have a          headquarters of WHO and the five       for people living with HIV/AIDS
    devastating human toll in these        WHO regional offices serving           in China. In 1992, Dr. Wan helped
    countries, but will also have sig-     Africa, Asia, Europe, and the          create China’s first telephone hot-
    nificant social, political, and eco-   Eastern Mediterranean. Dr. Brown       line providing information on
                                                                                                     Continued on page 10…




8
     The International Healthcare Symposium’s Speakers, Organizers and Special Guests gather at its conclusion.
     Left to right: Harvard’s Dr. Ajay Mahal, Dr. Wan Yanhai, symposium organizer-in-chief Todd Robins, KSM ’05, John and Isobel Soans, HIM Program
     Director Joel Shalowitz, NU’s Devora Grynspan, WHO’s Dr. Nelle Temple Brown, Dr. Konglai Zhang (MacEachern lecturer) and Dr. Kearsley Stewart, NU
     Department of Anthropology.




The 29th Malcolm MacEachern Lectures, Konglai Zhang, MD, Peking                 Dr. Nelle Temple Brown, the WHO’s Chief Liaison in Washington, DC, gave a
Union Medical College, and Dr. MacEachern’s daughter, Mrs. Isobel               Global Overview of the HIV/AIDS Epidemic in Asia.
Soans.




                                                                                                                                                            9
                                                                                                     HIV/AIDS         CONTINUED

                                                                                                     HIV/AIDS. Dr. Wan has spoken
                                                                                                     internationally on HIV/AIDS and
                                                                                                     human rights and has worked tire-
                                                                                                     lessly to secure the rights of indi-
                                                                                                     viduals infected with HIV/AIDS
                                                                                                     in China.

                                                                                                     Dr. Wan Yan Hai discussed the
                                                                                                     work of his organizations and the
                                                                                                     difficulties of working in indepen-
                                                                                                     dent (non-government) public
                                                                                                     health organization, and the con-
                       Devora Grynspan, PhD, Director of NU’s Office of International
                       Programs opened the conference with words of welcome.
                                                                                                     frontations with the bureaucracy
                                                                                                     they have overcome.

                                                                                                     The focus then turned to India,
                                                                                                     and issues confronting AIDS
                                                                                                     workers in that country, as studied
                                                                                                     by a Harvard-trained PhD health
                                                                                                     economist.

                                                                                                     Dr. Ajay Mahal is Assistant
                                                                                                     Professor of International Health
                                                                                                     Economics in the Department of
                                                                                                     Population and International
                                                                                                     Health at Harvard School of
                                                                                                     Public Health. He has written
     Dr. Ajay Mahal, Assistant Professor of International Health Economics at Harvard School
                                                                                                     extensively on the economic and
     of Public Health, focused on HIV/AIDS in India.                                                 human development consequences
                                                                                                     of the AIDS epidemic and on the
                                                                                                     use of policy interventions to
                                                                                                     address it. In 2002, he worked
                                                                                                     with the United Nations
                                                                                                     Development Program in New
                                                                                                     Delhi on a study of the policy
                                                                                                     responses to the AIDS epidemic in
                                                                                                     South Asia and lessons for the
                                                                                                     design of optimal strategies to
                                                                                                     address HIV in South Asia. He
                                                                                                     has also served as a consultant to
                                                                                                     two major non-governmental orga-
                                                                                                     nizations in India that have been

                                                                                                                        Continued on page 11…
     Dr. Wan Yanhai, Director of the Beijing Aizibing (AIDS) Institute of Health Education was the
     second speaker at the symposium. He is a prominent AIDS activist in China.




10
HIV/AIDS          CONTINUED                                                    STERN WINS FIRST
involved with HIV prevention and        Dr. Konglai Zhang is Professor of      KAUFFMAN MEDAL,              CONT
treatment activities. At the present,   Epidemiology at Peking Union
he is principal investigator on a       Medical College. He is Director of     Stern is a professor of Management
team of Harvard and Nigeria-            China AIDS Network, an NGO             and Strategy and of Health
based researchers to measure the        that emphasizes research and           Industry Management and of
economic effects of AIDS in             intervention on social and behav-      Biotechnology at the Kellogg
Nigeria.                                ioral aspects of HIV/AIDS preven-      School of Management. Professor
                                        tion and control, as well as on pol-   Stern received the Kauffman Prize
The final speaker of the program        icy development. Dr. Zhang holds       Medal for his enterprising research
presented the Malcolm T.                leadership positions in a variety of   into the idea marketplace, which
MacEachern Symposium Address.           organizations, including the           will permit the development of new
It was decided that since the           National Expert Consultation           market approaches that enable
MacEachern Symposium was to             Committee on AIDS Prevention           entrepreneurs to better produce and
be moved to the Fall of ’05, that       and Control, the Chinese               sell their intellectual property.
the International Symposium             Association for STD/AIDS
                                                                               “My research concentrates on how
would be a fitting backdrop for         Prevention and Control, and the
                                                                               technology entrepreneurs confront
the MacEachern Lecture since Dr.        Beijing Association for
                                                                               the challenges associated with
Mac spent a good portion of his         STD/AIDS Prevention and
                                                                               turning an ‘idea’ into a competitive
career traveling abroad in his          Control. His current research
                                                                               advantage. Technology entrepre-
efforts to promote high standards       interests include the social and
                                                                               neurship thrives when start-up
for hospital and patient care.          behavioral aspects of HIV/ADS
                                                                               innovators are able to simultane-
                                        prevention and control, epidemio-
                                                                               ously protect their ideas and create
This year’s Lecture was give by         logical studies of Hepatitis B, and
                                                                               a foundation for future innovation,”
one of the leading figures in           health systems research on mater-
                                                                               said Stern. “I am deeply honored
HIV/AIDS research and care in           nal and child health care in rural
                                                                               by this recognition from the
China. The difference between the       China.
                                                                               Kauffman Foundation.”
two physicians from China who
were speakers on the program are        Following the Q and A, the audi-       The $2 billion Ewing Marion
that Dr. Wan Yan Hai (the earlier       ence was invited to an Allen Center    Kauffman Foundation of Kansas
speaker) works with an NGO to           luncheon with the presenters.          City works with partners to
prod the government to act or it                                               advance entrepreneurship in
takes on projects itself, whereas                                              America and improve the educa-
Dr. Konglai Zhang (the                                                         tional achievement of youth. The
MacEachern Lecturer) tends to                                                  Kauffman Foundation was estab-
work within the government                                                     lished in the mid-1960s by the late
framework to get measures                                                      entrepreneur and philanthropist
accomplished, although he too is a                                             Ewing Marion Kauffman. Ewing
director of an important AIDS                                                  M. Kauffman founded Marion
NGO. In China, Dr. Zhang is                                                    Laboratories in Kansas City, which
affectionately known as “Dr.                                                   after several mergers, became part
Condom” for his many years of                                                  of pharmaceutical giant Hoechst
promoting safe sex among sex                                                   Marion Roussel, which was even-
workers and others.                                                            tually merged into pharma power-
                                                                               house Sanofi-Aventis. Information
                                                                               about the Kauffman Foundation is
                                                                               available at www.kauffman.org.

                                                                                                                      11
     GUILHERME MARADEI                        TAKES      HIM TOP STUDENT AWARD
     Brazilian student Guilherme                                                 his two years at Kellogg he worked
     Maradei took honors with the top                                            during the summer for Medtronic
     GPA among Health Industry                                                   in Minneapolis.
     Management majors at Kellogg for
     the class of 2005.                                                          Maradei majored in Health
                                                                                 Industry Management, Marketing
     Maradei is a 1998 industrial engi-                                          and Management and Strategy at
     neering graduate of the Escola                                              Kellogg and earned a 3.92/4.0
     Politecnica at the University of Sao                                        GPA while here. Following gradu-
     Paolo in Brazil. Following his                                              ation, he will return to McKinsey
     undergraduate commencement he                                               and Co. in the Florsham Park, NJ,
     went to work for McKinsey and                                               office.
     Co. in Sao Paolo and then in New
     Jersey. In both places he worked
     on projects for large pharma and
     medical device clients. Between




     KELLOGG TEAM WINS THE 2005 BIOTECH CASE
     COMPETITION SPONSORED BY GENZYME
     The Biotechnology conference Co-       followed by 10 minutes of ques-
     chairs organized the first annual      tion and answers with the judges.
     Kellogg Biotech Case Competition       The judges were Scott Minick
     on April 15, 2005. The purpose of      (Arch Ventures), Elliott Hillback
     this competition, which was spon-      (Genzyme), Jonathan Scholes
     sored by Genzyme, was to provide       (Genzyme), Tim Feddersen
     students with exposure to real         (Kellogg), and Alicia Loeffler
     world challenges faced by biotech-     (Kellogg).
     nology companies in a competi-
     tive, learning environment. Five       Cash prizes of $1,500 and $750
     teams participated in the competi-     were awarded to the first and sec-
     tion from business schools at          ond place teams. The first prize
     University of Chicago, Michigan,       winners were a team from
     Duke and Northwestern. Each            Kellogg, comprising of Anna K.
     team received the case one week        McVittie,Josh Neiman, Raymond
     prior to the competition. On the       Fecteau, and Amol Mahajan. The
     day of, they were given 10 minutes     second prize was won by the team
     each to make their presentations       from Michigan.



12
BIOTECH CONFERENCE 2005
This year’s biotech conference,        where he last held the title of       For example, the “Rising
sponsored by the Healthcare and        Divisional Vice President &           Healthcare Costs” panel focused
Biotech Club at Kellogg, was held      General Manager for the Anti-         on the seemingly ever-increasing
Saturday April 16th at the Jacobs      Infective/GI franchise, overseeing    costs of medical care and health-
Center on the Evanston Campus.         marketing, sales, late stage busi-    care overall and the public debate
Again the conference featured          ness development and Phase IV         and policy proposals they gener-
topics on healthcare and biotech       development for the franchise.        ate. The debate has become espe-
and their intersections within         Before joining the Anti-              cially controversial when dis-
pharma, vaccines and medical           Infective/GI franchise, Mr. Booth     cussing the issue of prescription
devices. The program featured two      rose through the ranks gaining        drug costs. The panel investigated
plenary speakers and nine panels       experience in a variety of sales,     the reasons behind the cost
from which attendees could             marketing, and managed care           increases and introduced
choose to attend three.                positions.                            approaches different stakeholders
                                                                             take to contain healthcare expens-
The opening keynote address was        Mr. Booth earned his bachelor’s       es. Close attention was paid to the
given by Mark Booth, President,        degree in biology from Northern       local environment, and looking at
Takeda Pharmaceuticals of              Illinois University, and his mas-     successful strategies that have
North America (TPNA). In this          ter’s degree in business adminis-     achieved a favorable balance
role, Mr. Booth oversees all           tration from the Kellogg School of    between the continued delivery
aspects of TPNA’s business. Mr.        Management. Mr. Booth is an           and the discovery of safe and
Booth has 20 years of industry         active member of the Chicago          effective drugs. How are shrink-
experience encompassing senior         business community and serves         ing budgets affecting the demand
leadership positions in sales, oper-   on the Kellogg’s Biotech              and cost of prescription drugs?
ations and product development.        Advisory Board. He is also a          What role will local/regional orga-
                                       board member of the National          nizations play in improving the
Before being named President in        Pharmaceutical Council.               delivery of healthcare? How will
August 2002, Mr. Booth was                                                   different policy proposals affect
Executive Vice President of the        Following Mr. Booth’s remarks         the costs of healthcare and pre-
company, responsible for all com-      the attendees selected from three     scription drugs? What effect will
mercial and business operations,       panels focusing on various aspects    these actions have on the discov-
as well as Medical and Scientific      of the business of biotechnology      ery of promising new prescrip-
Affairs. Prior to joining the firm     or healthcare. The three topics       tions drugs? All of these topics
in October 2001, Mr. Booth spent       were:                                 were explored by a quartet of
two years as General Manager and       • “Managing Biospace Together;        informed panelists. They were:
Senior Vice President of                   Winning Strategies for Biotech
Commercial Operations at the               and Pharma” (Prof. Ed Zajac       Naomi Aronson, PhD, Executive
Seattle-based biopharmaceutical            was the moderator)                Director, Blue Cross and Blue
company Immunex. There, he was         • “Rising Healthcare Costs: The       Shield Association Technology
responsible for sales, marketing,          Case of Prescription Drugs”       Evaluation Center
and project management. Mr.                (Prof. Joel Shalowitz, MD,        Dr. Aronson is the Executive
Booth developed, coordinated, and          was the moderator), and           Director of the Blue Cross and
drove strategic execution across       • “Sizing up Stem Cells:              Blue Shield Association
clinical, commercial, and manu-            Translating Recent Research       Technology Evaluation Center
facturing functions.                       Developments into                 (TEC). She has overseen TEC’s
                                           Commercial Opportunity”           development as a nationally recog-
Mr. Booth’s career began at                (Feinberg’s Prof. Richard Burt,
Abbott Laboratories in 1983,               MD, PhD, moderator)                              Continued on next page 14…


                                                                                                                         13
     BIOTECH 2005,             CONTINUED

     nized technology assessment pro-      vices in the Chicago office. Dr.        The late morning panels also cov-
     gram and an Evidence-based            Nedza is a graduate of the Stritch      ered a variety of topics of interest
     Practice Center (EPC) of the          School of Medicine, and is board        to the 175 attendees in the audi-
     Agency for Healthcare Research        certified in emergency medicine.        ence. These topics were:
     and Quality (AHRQ). Dr. Aronson       She is a graduate of the Executive      • “Made in India: The Future of
     has directed over 300 technology      Master’s Program of the Kellogg             Pharmaceutical and
     assessments and 6 evidence            School of Management of                     Biotechnology Outsourcing”
     reports for AHRQ. She has pub-        Northwestern University. Dr.                (Michael Eliasson, MD, PhD,
     lished articles in Annals of          Nedza served in the role of                 a Partner with Monitor
     Internal Medicine, Journal of the     Medical Director, Division of               Venture Services was the
     National Cancer Institute, Cancer,    Emergency Medical Services, for             Moderator)
     among others. Dr. Aronson was a       the Illinois Department of Public       • “Clinical Development:
     member of Northwestern                Health until 2002. Dr. Nedza cur-           Adapting to a Changing
     University faculty, specializing in   rently holds a faculty position on          Regulation Environment”
     sociology of science and medicine.    the Research Faculty, Division of           (Jessica Hopfield, a Principal
                                           Emergency Medicine at the                   with McKinsey and Co. was
     Robert A. Freeman, PhD,               Feinberg School of Medicine of              Moderator) and
     Managing Partner, The Freeman         Northwestern University.                • “Intellectual Property Rights:
     Group, LLC                                                                        Building an Intellectual Asset
     Mr. Freeman’s career in the phar-     Scott Streator, PharmD, MBA,                Management Competency”
     maceutical industry includes          Director of Health Care for the             (with NU Law School
     founding and directing the Health     Ohio Public Employees                       Professor Clinton Francis as
     Economics & Policy Analysis unit      Retirement System                           Moderator)
     (Marketing Services) and the          Scott Streator is the Director of
     Pharmacoeconomics & Product           Health Care for the Ohio Public         Following a buffet luncheon in
     Support (Medical Affairs) unit at     Employees Retirement System, the        Kafe Kellogg (the Jacobs Center
     Upjohn; serving as Senior             10th largest pension fund in the        atrium), the group re-assembled in
     Director of Corporate Health          U.S. where he oversees over $1B in      the OLC Auditorium to hear a
     Economics at Searle. After work-      annual expenditures on health and       keynote address on healthcare pol-
     ing as an Executive Director,         prescription drug benefits. Scott       icy issues leading to increased
     Public Policy for AstraZeneca         has applied numerous innovative         coverage of all U.S. citizens by
     Pharmaceuticals LP, he started        clinical and business strategies        health insurance. This rousing
     and now leads his own consultan-      resulting in sustainable prescription   address was given by Ezekiel J.
     cy firm The Freeman Group,            drug savings through unique bene-       Emanuel, MD, PhD, Chair of
     LLC. Mr. Freeman received his         fit designs, market share leverage,     the Department of Clinical
     B.S. in Pharmacy, an M.S. and         physician and consumer programs,        Bioethics, Warren G Magnuson
     Ph.D. in Health Care                  coverage determination and gener-       Clinical Center of the National
     Administration from the               ic/brand drug optimization. Prior to    Institutes of Health. Dr.
     University of Mississippi.            joining public sector employment        Emanuel is the Chair of the
                                           in 2004, Mr. Streator worked more       Department of Clinical Bioethics
     Susan M. Nedza, MD, MBA,              than 15 years in health care man-       at the Warren G. Magnuson
     FACEP, CMO, Centers for               agement with major prescription         Clinical Centers at the National
     Medicare and Medicaid                 drug supply chains including            Institutes of Health. He is also a
     Services, Chicago                     HMO, PBM, pharmaceutical man-           breast oncologist. After complet-
     Dr. Nedza is the Chief Medical        ufacturing and traditional hospital     ing Amherst College, he received
     Officer, Region V of the Centers      ad retail pharmacy practices.           his M.Sc. from Oxford University
     for Medicare and Medicaid ser-                                                                    Continued on page 21…

14
                                                  Professor Ed Zajac opens a session at Biotech 2005.




Opening Keynoter Mark Booth.




                               A Biotech 2005
                               panel in action.




                                                                           NIH’s Ezekiel Emanuel gave a rousing
                                                                           keynote address at Biotech 2005.




                                                                                                                  15
     MacEachern Lecture at ACHE Congress in Healthcare Management Luncheon Special Guests (from left to right) former ACHE President Stuart Wesbury (he was
     recruiting for the Public Health Service that day as well, thus the uniform), HIM Assistant Program Director James Drury, Mrs. Isobel MacEachern Soans, Program
     Director Joel Shalowitz, Alumni Board President Ted Pfeiffer, and Kellogg Professor Thomas Prince.




     For several years the Health Industry Management Program has awarded students substantial grants. The 2005 awardees of Health Industry Management
     Traineeship grants are (from l. to r.): Scott Meyers, Susan Li, William Gangi, Sonya Kumar, HIM Program Director Joel Shalowitz, MD, Joseph Petty, Kathryn
     Stock and Hyalker Amarol. These students were also recognized during the alumni/student mixer on campus.




16
CHICAGO BOARD                     OF   HEALTH SEEKS KELLOGG PLANNING
ASSISTANCE
James R. Webster, MD, the             A member of the team, Andrew            They also recommended that the
Michael Gertz Professor at NU’s       Youn, described the project in this     Board initiate a regular board
Feinberg School of Medicine and       way: “We were asked by the              development process. The team
who serves as Chairman of the         Chicago Board of Health to help         believes that a focus on three core
Chicago Board of Health contact-      them develop a business plan and        areas, and with some investment
ed Joel Shalowitz, MD, last winter    strategic vision for the future of      in development, the Board can
about some help with a project for    the Board. Although the Board has       achieve a more prominent and
the Board. Joel sought help from      played a prominent role in the          Pro-active role in promoting pub-
some student volunteers to meet       public health of the city, it has few   lic health in the Chicago area.
with Dr. Webster and to under-        official powers relative to the
stand the scope of what was being     Chicago Department of Public            The team presented its analysis on
requested and the time commit-        Health and few official resources.”     May 18th to the Board of Health,
ment which would be needed to                                                 the Commissioner of Public
carry the project out (under Joel’s   After careful analysis, interviews,     Health, and several Deputy
tutelage). The students worked on     discussions with experts and study,     Commissioners. “Our recommen-
the project for five months           the team “recommended that the          dations were well received. There
(January to May). The team was        Board focus its activities in three     was excitement about expanding
composed of Shirley Aguila,           key areas of excellence: Public         the Board’s role in serving the
Elizabeth Lee, Denis O’Connor,        representation, Partnership, and        Chicago community, while focus-
Seth Vilensky, Emily Wang and         Advocacy.” These are activities         ing its activities in a few core
Andrew Youn.                          that are closely in line with the       areas,” adds team member Seth
                                      Board’s unique competencies.            Vilensky.




            Youn                                   Lee                                   Vilensky




                                                   Aguila
           O’Connor                                                                       Wang




                                                                                                                    17
     AMERICAN DENTAL ASSOCIATION’S DIVERSITY INSTITUTE
     ORGANIZED BY KELLOGG SCHOOL OF MANAGEMENT FACULTY
     Increased participation in interna-                                                               “I went home more often in the last
     tional medical missions. An educa-                                                                year than I have in the past 20
     tional program on the relationship                                                                years,” said Dr. Dexter, who hails
     between periodontal disease and                                                                   form the former Klamath Indian
     osteoporosis. An outreach program                                                                 Reservation in Southern Oregon.
     designed to increase the number of                                                                The government terminated its
     Hispanic dental students. Another                                                                 recognition of the Klamath as a
     to help foreign-trained dentists nav-                                                             tribe in the 1950s, and they remain
     igate the licensure process.                                                                      a largely impoverished population.
                                                                                                       But for Dr. Dexter, termination
     These are some of the personal                                                                    meant self-sufficiency, which he
     leadership projects selected and car-                                                             fostered through education. “The
     ried out by the eight dentists in the    Professor Tom Prince and Dean Vennie Lyons oversee ADA   way I looked at it, termination did-
                                              Diversity Program.
     first ADA Institute for Diversity in                                                              n’t do something to me, it did
     Leadership – and they all highlight       with hands-on experience in identi-                     something for me,” he said. “For
     the extraordinary leadership roles        fying and taking action on a civic or                   my class project, I wanted to do
     that dentists have in improving the       professional issue of personal                          something to direct funds to pro-
     oral health of their communities.         importance.                                             grams that I would want to support,
                                                                                                       like helping Native-American stu-
     “Our profession’s ideals really shine     “You’ll be amazed at how many                           dents go to college,” he added.
     in the dentists’ leadership projects,”    doors open for you when you start
     said ADA President Eugene                 your project,” Dr. Donald Dexter Jr.,                   The result is Nu Buflo, a nonprofit
     Sekiguchi. “they tackle ambitious         a graduate of the 2003 Institute.                       coffee enterprise that directs pro-
     goals, and they’re already making a                                                               ceeds to a Native-American college
     difference for their communities          For Dr. Dexter, the ADA Institute for                   education program. Nu Buflo has
     and with colleagues.”                     Diversity in Leadership renewed his                     distributor and marketing strategy
                                               confidence and passion for the pro-                     in place, and Dr. Dexter expects it
     The ADA Institute for Diversity in        fession. “I think in dentistry, as a                    to be up and running in early 2005.
     Leadership provides a year-long           profession, you get kind of beat up,”
     educational experience for dentists       explains the general dentist from                       Professor Thomas Prince, Deans
     who are members of racial, ethnic         Eugene, Ore. “You work alone, with-                     Robert Korajczyk and Vennie
     and/or gender groups that have tra-       out a lot of contact from your peers.                   Lyons, and professors Keith
     ditionally been underrepresented in       The Institute really invigorated my                     Murnighan, Tim Calkins (among
     leadership roles.                         enthusiasm for the profession.”                         others) from Kellogg lead Institute
                                                                                                       classes and advise the class mem-
     The Institute has been developed by       Dr. Dexter’s personal leadership pro-                   bers on carrying out their projects.
     Kellogg’s Professor Thomas Prince,        ject demonstrates the challenges
     Professor of Health Industry              Institute class members faced and                       The ADA Institute for Diversity in
     Management and Accounting, and            how they formulated a plan of action                    Leadership is made possible by
     the ADA’s Joe Martin, and is              to achieve their ultimate goal. What                    the ADA Foundation through the
     endorsed by the ADA board and             began as a video for Native                             generous contribution from
     leadership.                               American populations on the risks                       Colgate-Palmolive Co.,
                                               associated with periodontal disease                     GlaxoSmithKline, Procter &
     Class members are challenged to           led him to eventually re-direct his                     Gamble and Sullivan-Schein.
     select projects that provide them         personal focus.
18
BIOTECHSTUDENTS ATTENDED THE PRESTIGIOUS                                                                 BIOVISION
CONFERENCE IN FRANCE
Three Kellogg students nominat-       Only 100 students were selected                     officials from several prominent
ed by the Biotechnology Center        to attend this forum, which                         institutions, including the New
were invited to attend the presti-    included PhD’s, Post Docs and                       York Academy of Sciences, the
gious Biovision world life sci-       MBA’s from North America,                           European Molecular Biology
ences conference in Lyons,            Europe, Japan, China and India ,                    Organization, and the American
France. Biotech majors Dario R.       among others. The selection                         Association for Advancement of
Benavides (KSM ’05), Bernardo         process was conducted by top                        Science.
Garcia-Manzano (KSM ’06) and
Stephen Waddell (KSM ’06)
spent the week of April 8-15 in
Europe delving into many differ-
ent aspects of life sciences.

Biovision’s goal is to build a net-
work and further the careers of the
world’s most promising talents in
life sciences. The conference con-
sisted of three workshops that
required attendees to reflect upon
three interdependent questions
about the future and the goals of
life sciences. The conference par-
ticipants also attended a day dedi-
cated to the presentations and
                                        Stephen Waddell, Henri A. Termeer, CEO, Genzyme, Dario R. Benavides, and Bernardo Garcia-Manzano.
round table discussions from 12
Nobel Laureates.




                                                                                  Farewell and
                                                                                  Good Luck,
                                                                                  Dr. Wang
                                                                                  Professor Joel Shalowitz (left) and
                                                                                  Thomas Prince (right) presented a certifi-
                                                                                  cate to Jie Wang, MD a WHO Fellow who
                                                                                  was attached to the Health Industry
                                                                                  Management Program for two years while
                                                                                  completing coursework at Kellogg.




                                                                                                                                            19
     ERNST AND YOUNG, KELLOGG PRESENTED HEALTHCARE
     FORUM TO ASSESS 2004 ELECTION
     Shortly after the 2004 national                              Dr. Vladeck outlined the                           inside-the-beltway approach was
     election, Kellogg’s Health                              healthcare policies laid out in                         very informative and practical.
     Industry Management Program                             President Bush’s healthcare                                 Reacting to the two speakers –
     and Ernst and Young put on a                            speeches and identified what they                       and in general to the issues raised
     forum - on Tuesday, November                            might mean for different con-                           – were four panelists: Michael
     9th – entitled “Healthcare 2005:                        stituencies (such as the uninsured,                     Maves, MD, MBA, CEO of the
     Issues and Priorities for the                           physicians, hospitals, businesses,                      American Medical Association;
     President and the 109th                                 etc) should they be brought to                          Charles Lauer, Publisher of
     Congress”. The program was held                         fruition in the upcoming legisla-                       Modern Healthcare magazine;
     at the Tribune Auditorium at the                        tive terms under a Republican-                          Barry Maram, Director of the IL
     James L. Allen Center on the                            controlled House and Senate.                            Department of Public Aid; and
     Evanston campus. Joel Shalowitz,                             The next speaker was Richard                       Henry Allen, an attorney with
     MD, served as moderator for the                         Meltzer, an attorney, and experi-                       Holland and Knight who teaches
     program, assisted by E and Y                            enced lobbyist in Washington,                           Kellogg’s Health Law course.
     Partner Jay Barkett.                                    D.C., where he is a partner for                             Approximately 125 persons
         The opening speaker for the                         Washington Council/Ernst and                            (faculty, students, local healthcare
     program was Bruce Vladeck,                              Young. Mr. Meltzer was very                             executives and Kellogg alums)
     PhD. Dr. Vladeck is a Professor                         pragmatic in his approach to the                        attended the meeting, and asked
     of Healthcare Policy at Mt. Sinai                       numerous healthcare issues iden-                        questions during the Q and A ses-
     School of Medicine in New York                          tified. He was interested in the                        sion prior to lunch at the Allen
     City and has recently joined E                          votes certain legislation could get,                    Center.
     and Y as a National Healthcare                          and the opposition that the pro-
     Consultant. Vladeck is a former                         posed legislation would draw. His
     Administrator of the Healthcare
     Financing Administration (now
     the Centers for Medicare and
     Medicaid Services), the govern-
     ment agency which oversees
     Medicare and Medicaid.




                                                             Keynote Speakers and panelists at the Ernst and Young Kellogg post election healthcare forum discussing the
                                                             2004 election results: (back row, left to right: Attorney Henry Allen; Barney Maram, Director of Illinois
                                                             Department of Public Aid; keynoter Bruce Vladick; Publisher Charles Lauer of Modern Healthcare; keynoter
                                                             Richard Meltzer, Esq; AMA CEO Michael Maves, MD; front row: Joel Shalowitz, MD and E&Y’s Health
                                                             Sciences partner Jay Barkett).

 At the Ernst and Young/Kellogg Forum, Charles Lauer,
 Publisher of Modern Healthcare gets caught up with an old
 friend, Professor Professor Edward F.X. Hughes, MD.



20
BIOTECH 2005,              CONTINUED

in Biochemistry. He received his       American Physicians, the AMA-          advanced by the speaker from
MD from Harvard Medical School         Burroughs Welcome Leadership           Merck which has supplied for
and his PhD in political philoso-      Award, and a Fulbright                 free, over a 10 year period of
phy from Harvard University. His       Scholarship (which he declined).       time, the drug Mectizan which is
dissertation received the Toppan       In 2004, Dr. Emanuel was elected       a reliable treatment for river
Award for the finest political sci-    to membership in the Institute of      blindness which affects numerous
ence dissertation of the year.         Medicine (IOM) and the National        African countries. Merck has been
Between 1987-88, he was a fellow       Academy of Science.                    working with the U.N. and several
in the Program in Ethics and the                                              NGOs to wipe out this scourge.
Professions at the Kennedy School      Dr. Emanuel also served on
of Government at Harvard. After        President Clinton’s Health Care        Professor Linda Emanuel intro-
completing his internship and resi-    Task Force, the National Bioethics     duced the topics with a series of
dency in internal medicine at          Advisory Commission (NBAC),            questions: What are the responsi-
Boston’s Beth Israel Hospital and      and on the bioethics panel of the      bilities of the firms and what are
his oncology fellowship at the         Pan-American Healthcare                the responsibilities of the govern-
Dana-Farber Cancer Institute, he       Organization. Dr. Emanuel has          ment/public sector? How do com-
joined the faculty at the Dana-        been a visiting professor at the       panies balance the bottom line
Farber Cancer Institute. Dr.           University of Pittsburgh School of     versus the rights and obligations
Emanuel was an Associate               Medicine and has held the Brin         of patients? Are healthcare bene-
Professor at Harvard Medical           Professor at Johns Hopkins             fits a right or a privilege? In this
School before joining the National     Medical School.                        panel we discussed how some
Institutes of Health.                                                         socially responsible companies
                                       The final series of panels in the      proceed on these often difficult
He has published widely on the         afternoon again focused on three       issues, and demonstrate what
ethics of clinical research, advance   topics:                                frameworks could be set up when
care directives, end of life care      • “The Social Responsibility of        taking actions that seem outside
issues, euthanasia, health care            the Healthcare Industry”           the usual scope of increasing
reform, the ethics of managed              (Linda Emanuel, MD, PhD,           shareholder value.
care, and the physician-patient            Moderator)
relationship in The New England        • “Medical Devices: Is the             Moderator
Journal of Medicine, The Lancet,           Industry Failing to get the Best   Linda Emanuel, MD, PhD, is
JAMA, and many other medical               Devices to Patients and            Professor of Medicine and the
journals. His books on medical             Physicians?” (Professor E.F.X.     Director of the Buehler Center on
ethics The Ends of Human Life,             Hughes, MD, Moderator) and         Aging at Northwestern
has been widely praised and            • “Biotech Clusters, At Home           University’s Feinberg School of
received honorable mention for the         and Abroad” (Professor Scott       Medicine, and Professor of Health
Rosenhaup Memorial Book Award              Stern, PhD, Moderator)             Industry Management at the
by the Woodrow Wilson                                                         Kellogg School. She is the
Foundation. He has also published      Regarding the “Social                  founder and Principal of the
No Margin, No Mission: Health-         Responsibility of the Healthcare       Education for Physicians in End-
Care Organizations and the Quest       Organization,” this group of pan-      of-Life Care (EPEC) Project. She
for Ethical Excellence and co-edit-    elists, from several large pharma      is Health Section Director for
ed Ethical and Regulatory Aspects      and biotech organizations focused      Kellogg’s Ford Motor Company
of Clinical Research: Readings         on one or more projects which          Center for Global Citizenship
and Commentary. He has received        showed the “social responsibility”     research initiative on international
numerous awards including elec-        of these large firms. A particular-
tion to the Association of             ly gripping narrative was                                 Continued on page 22…

                                                                                                                         21
     BIOTECH 2005,              CONTINUED

     corporate responsibility for ethics    James R. Baumgardt, President,        being developed for the treatment
     in health care. Prior to joining       Guidant Foundation, Guidant           of malaria. Mr. Dintruff travels fre-
     Northwestern University, she was       Corporation                           quently to the 68 nations where
     Vice President of Ethics Standards     Jim Baumgardt serves as a non-        these programs are offered.
     and Head of the Institute for          employee, President of the            Abbott’s efforts provide access to
     Ethics at the American Medical         Guidant Foundation on a contrac-      critical products from Abbott where
     Association.                           tual basis. He has held that posi-    the need is greatest.
                                            tion since early 2000. The Guidant
     Dr. Emanuel was trained at             Foundation has distributed $76.5      Ken Gustavsen, Manager,
     Cambridge University, University       mil since its creation in 1995.       Mectizan Donation Program,
     College London (Ph.D.), Oxford         Originally from Chicago, Mr.          Merck and Co.
     University, Harvard Medical            Baumgardt graduated from Rose-        Kenneth Gustavsen is Manager,
     School (M.D.), and Harvard             Hulman Institute of Technology as     Global Product Donations for
     University.                            a chemical engineer in 1970. After    Merck&Co., Inc. His responsibilities
                                            several assignments in Eli Lilly      include the management and strate-
     Panelists                              process engineering he switched to    gic development of all activities
     Naseem S. Amin, MD, MBA, VP            the sales/marketing side of the       associated with the Merck Mectizan
     Head of International                  business and completed an MBA         Donation Program. He serves as the
     Commercial Development,                at Butler University. While provid-   liaison between Merck and the vari-
     Genzyme Corporation                    ing leadership to Lilly’s Medical     ous partners involved in Mectizan
     Dr. Amin currently holds the posi-     Device and Diagnostic Division as     distribution for onchoceriasis (river
     tion of Vice President, Head of        Director of new business develop-     blindness) and lymphatic filariasis.
     International Commercial               ment, he became part of Guidant’s     He also manages Merck’s donations
     Development at Genzyme                 spin-off from Lilly and participat-   of other pharmaceutical products
     Corporation. He has broad respon-      ed as a member of its senior man-     and vaccines. In 2004, Merck donat-
     sibility for guiding business devel-   agement group from its inception      ed $430M worth of medicines,
     opment activities and is instrumen-    as a public company in 1995.          including Mectizan, to health pro-
     tal in identifying new, external                                             grams and disaster response efforts
     business acquisitions, their negoti-   Rob Dintruff, Director of Global      throughout the developing world.
     ation and integration into             Care Initiatives, Abbott              Prior to joining Merck, he worked
     Genzyme. He formerly held the          Laboratories                          for the non-profit agency World
     title of Vice President, Clinical      Mr. Rob Dintruff is a Director of     Relief, where he served as Project
     Development at Genzyme. In this        Abbott’s Global Care Initiatives.     Director for Kosovo and Albania,
     capacity, he provides medical lead-    He has worked with Abbott             based in Pristina, Kosovo
     ership and guidance for the suc-       Laboratories over the past 23 years   (Yugoslavia). There he directed
     cessful launch and clinical devel-     since completing his graduate         World Relief’s post-war activities
     opment of multiple products. Dr.       work at the University of             and coordinated efforts with the
     Amin’s other professional experi-      Michigan. In recent years, Mr.        United Nations, NATO, USAID and
     ence includes work as an executive     Dintruff has worked to develop        other government and non-govern-
     at Baxter Healthcare Corporation.      Abbott’s Step Forward program, an     ment agencies. Ken graduated from
     He is a graduate of the University     initiative that assists children      the United States Naval Academy
     of London’s Royal Free School of       orphaned by HIV and AIDS in           with a Bachelor of Science degree in
     Medicine, Dr. Amin also holds an       developing nations. He currently      oceanography and is currently work-
     MBA from the Kellogg School of         oversees the Abbott Access and        ing towards a Masters of Business
     Management.                            Determine HIV Donation                Administration degree at Rutgers
                                            Programs with a new initiative        University.

22
ALUMNI NEWS
1991                                     1992                                    he has worked since 1993. In
                                                                                 January he founded a new invest-
Scott Winslow writes with good           Kathy McDonald welcomes                 ment fund, Balkan Accession Fund
news. Winslow Technology                 classmates to “visit me at the          (BAF), which he co-manages.
Group, which Scott founded in            Center for Health Policy (chpp-         BAF targets flexible equity and
November 2003, recently complet-         cor.stanford.edu) and get a tour of     mezzanine investment structures in
ed a profitable first year with $1.6     Stanford. We’re busy trying to          leading mid-sized private compa-
million in sales. The company            provide evidence to help with           nies, with a focus on Romania and
offers storage solutions for general     national and international health-      Bulgaria. The targeted capitaliza-
business applications. Clients           care challenges, which seem to be       tion of the fund is EUR 75 million
include large organizations such as      appearing in the news more fre-         and the first close was for EUR 20
Biogen Idec, MRO Software and            quently these days. It would be         million. BAF is still looking for
Beverly Hospital.                        great to hear from folks from our       investors, so feel free to contact
                                         class who work in some part of the      Tom at thiggins@baefinvest.com
Karen Garbe Matjucha writes: I           healthcare system.”                     if you are interested.
now have three children, ages 6 l/2,
3 l/2 and 16 months. Things are a        Karl Krista writes “on the family       1995
bit nuts in our house in Sudbury,        front, everything is great. My old-
Mass. I am still with Deloitte           est daughter Kami just turned 6 and     Tracy Heilman and her husband
Consulting and have been a partner       will start school in September, and     Ray also grew their family by 50
for four years. I have had responsi-     our second child, Arrie, just turned    percent; Ray wrote “Tracy and I
bility as the national practice leader   7 months old. We live near Vienna       are the proud parents of a BIG
for provider supply chain consult-       in a nice house with a big garden       baby boy, Boden Heilman Macika
ing for the last four years, and four    and enjoy the quality of life this      (see picture). He weighed in on
months ago became the managing           city has to offer. Professionally, my   March 1 at 9 pounds, 3 ounces,
partner for Deloitte Consulting’s        partners and I managed a success-       and measured 20.5 inches (where
Boston office. There never seems         ful exit from our biotech company,      is the height to go with that
to be enough time in the day. She        CellControl AG, in Munich. We           weight?!). We are all doing great
writes: I keep in close touch with       sold the global rights for phase 111    and can’t wait to introduce him to
Anne Marie Maman, who is now             development and marketing of our        you.”
the CEO of a medical device start-       cancer compounds to a major phar-
up in Philadelphia. She has relo-        maceutical company. I now spend         1996
cated to Princeton, N.J.                 50 percent of my time consulting
                                         for medical technology companies        Rob Hermann writes: “I’m the
Jackie George is in charge of new        and venture funds, and 50 percent       portfolio manager and recently
product development at Blue Cross        of my time investing in medical         became president of a money-
Blue Shield of Massachusetts and         devices with a business angel           management firm based in
has been on the national speaking        group, so I’m always looking for        Cleveland called The Logix
circuit due to her expertise in con-     deals.”                                 Group. I still split time between
sumer-driven health plans. She                                                   New York and Cleveland, but just
bought a house on Cape Cod two           1993                                    officially moved to Cleveland in
years ago and is doing great.”                                                   early January. So if there are any
                                         Tom Higgins is managing director        Kellogg classmates in Cleveland,
                                         and CIO of the Bulgarian-               I’d love to hear from them. More
                                         American Enterprise Fund, where         importantly, I got married in

                                                                                                                      23
     November to a great woman             Wat. It really is a small (Kellogg)    pleted its IPO and has now begun
     named Valerie Laser in our com-       world!                                 trading on the NASDAQ.
     mon hometown of Cincinnati.
                                           David Church has resigned his          EMP-16
     1997                                  role on the HIM Board and as
                                           School Liaison Coordinator             Allen Goldberg in October
     Patty Riskind, president of           because he has moved to New            received the designation of master
     Health-Intell, writes with the news   York for a new position as             fellow by the board of regents of
     that the company has spun off         Director of Planning for NY            the American College of Chest
     from 3d Health Inc. Her company       University School of Medicine.         Physicians. Allen writes: “I am
     is a market research and consult-                                            now fully involved in a project at
     ing firm that has assumed man-        Julie Sullivan Owens writes that       The CHEST Foundation that I
     agement of 3d Health’s patient sat-   they are now in San Antonio,           began with my mentor, Dr. C.
     isfaction survey, physician market    Texas where husband Brett, a           Everett Koop, to enhance commu-
     research and business develop-        physician, is doing a two-year fel-    nication in medicine. We are now
     ment/lead generation consulting       lowship in Sports Medicine, with       focused on overcoming healthcare
     services. Patty can be reached at     the first year at Brooke Army          disparities.
     priskind@healthintell.com.            Medical Center. For the 2nd (clin-
                                           ical) year, they will be at the hos-
     Brian Scullion recently made          pital at West Point. Please see pic-
     partner at William Blair & Co. He     ture she sent of her 2-year old
     is in the healthcare investment       daughter Cassidy with her and
     banking group.                        Brett.


     1998                                  2000

                         Jen Ryan          Dave Peacock, after several years
                         sent a picture    living in Australia working for
                         of her new        Bain, has joined Merck’s
                         son, Beau         Respiratory Franchise Business
                         Halstead Ryan     Group as a Senior Marketing
                         (see picture)     Manager, based in Worth Wales,
     and she reports “we are having a      PA.
     great time with our new career as
     parents.”                             2001

     1999                                  This year Keith Vendola stepped
                                           off Wall Street, moved to the Bay
     Helene Liss, who is working at        Area and joined Threshold
     Moody’s Investor Services in          Pharmaceuticals as the director of
     Hong Kong spent some time trav-       business development. He says
     eling around Thailand with Jill       the biotechnology company devel-
     Levine and Patti Doyle and took a     ops targeted therapeutics for can-
     side trip to Cambodia, where she      cer and benign prostatic hypertro-
     ran in to Kathryn Sugerman            phy. The company recently com-
     while taking in the sights at Ankor



24
DRANOVE, MARCIANO PEN NEW BOOK                                               ON      STRATEGY
Continuing the tradition                                                     strategy effectively so your
established with Kellogg on                                                  business can succeed. You’ll learn
Marketing, a fourth book in the                                              to analyze your current
Kellogg series brings you the latest                                         competitive position, develop the
and best insight on modern                                                   perfect strategy to match your
business strategy. Written by                                                goals, and apply that strategy
David Dranove, the Walter                                                    thoughtfully and effectively. You’ll
McNerney Professor of Health                                                 find expert guidance on:
Industry Management and a
Professor of Management and                                                  • Measuring your firm’s
Strategy at the Kellogg School,                                                competitive advantage
and Sonia Marciano of the
Harvard Business School (and                                                 • Analyzing opportunities and
formerly of the Kellogg faculty)                                               threats in your industry
Kellogg on Strategy continues the
tradition of sharing the knowledge             Professor David Dranove       • Responding to a competitors
and experience of Kellogg’s                                                    strategy and pricing
esteemed faculty with practitioners
everywhere.                            become an industry leader, drive      • Coping with entry into new
                                       rivals from the market, innovate        markets
Instead of rehashing the basics of     rapidly or imitate the competition.
strategy, Kellogg on Strategy offers   With examples from many of the        • Positioning your firm against
practical solutions and                world’s top corporations, you’ll        the competition
perspectives on choosing a             learn what has worked for them
strategy and putting it into action    and what will have the best chance    • Developing a sustainable, long-
for those who already understand       of working for you.                     term competitive advantage
the underlying concepts.
Executives, managers, and MBAs         Using the specialized tools the       And much more
will find real guidance on strategy    authors provide, you’ll discover
choice and application without         how your company is really doing
wading through the low-level           and craft a strategy to get you to
material found in a typical            your goals quicker – whatever
business school strategy primer.       those goals may be. With a proven
                                       framework for determining what
Setting aside business trends and      your company needs and how to
buzzwords, the authors look at         get there, Kellogg on Strategy
strategy without the hype. Every       moves well beyond the theoretical
business is one-of-a-kind, so the      to present the practical, workable
tactics and templates here stress      strategy solutions every company
finding what’s unique about your       needs.
business and developing a strategy
that will enhance that uniqueness –    Written for business executives
and help you profit from it.           and MBA students, Kellogg on
                                       Strategy is a practical guide to
The book presents a four-step          choosing the right strategy for
process for strategic analysis that    your business and applying it
helps you decide whether you           correctly. Rather than covering
should grow, downsize, enter new       the basics of strategy, this expert
markets, dominate a niche,             guide shows you how to use




                                                                                                                    25
     ANDREW YOUN’S SUMMER                                      IN    SOUTH AFRICA
     Andrew Youn, about to enter his second year at Kellogg, has been spending his summer in South Africa, working on a program
     to combat AIDS. He recently sent pictures (following page, p. 27) and a description of his activities (below)which we would
     like to share with you.
               Update: I have been running around like a crazy man, and absolutely having the time of my life.
               Because my organization is a start-up and short on staff, they have sent me all over this beautiful,
               beautiful country. It’s like a vacation every week! The natural wonder here is totally out of control.
               You can hardly turn a corner without running into an unbelievable expanse of mountains, or
               breathtaking views into tree-covered valleys, or the sun setting over pastoral hills. At night: a sky
               full of stars.

               Okay where to begin. First, I never thought I’d say this, but “work has been incredible.” The
               founders of my organization are pioneering a new, community-based approach to healthcare. Our
               organization doesn’t rely on big, shiny hospitals to provide AIDS treatment for our patients.
               Hospitals, (particularly shiny ones), are in very short supply in Africa. Rather, we organize poor
               communities to provide medical care for themselves. We go to a community and 1) find the best
               community doctors, who usually operate one-room practices out of a shopping mall, and we give
               them the tools and training to treat AIDS. 2) We supplement the doctors by training and organizing
               a network of community support leaders, who provide the patient follow-up and support that is
               critical for AIDS patients. We basically organize poor communities to look after themselves, and
               these communities are able to mobilize a stunning array of resources. I believe that this concept is
               the future of healthcare in Africa.

               The most gratifying part of my experience has involved actually implementing this healthcare
               model, and getting ground-level experience with these communities. It has been a great opportunity
               to learn about the lives of AIDS patients, poor people in general, community leaders, local
               politicians, and community doctors. The highlight was definitely last weekend, at one of my main
                                                     ”
               sites. We held a “patient enrollment, a three day education and enrollment session for patients
               starting in our AIDS treatment program. We were expecting about 50 people. But *200* people
               showed up. It was utter, utter chaos. There were people milling around everywhere, we had nurses
               drawing dozens of vials of blood, we ran out of three different kinds of forms, babies crying, and we
               had to scrounge up more than a hundred additional meals! But when the dust finally settled, my
               coworker and I had educated and enrolled 140 patients onto AIDS treatment over three days.

               I simply cannot describe the emotion I felt. The life expectancy of these patients is less than 12
               months, and I saw in front of me an ocean of people, choosing to live. Each one special. There is
               this amazing little boy I have gotten to know, Mbuso, who has these horrible open sores on his face.
               Yet he is strong like a tree. Standing on a chair, he spoke in front of his community members about
               the importance of taking his medicine every day so that he could live, all in his tiny tiny voice, and
               … I felt so alive to be able to witness him. It was an amazing feeling.

               Thankfully, I haven’t had to digest this all alone. I have had a great South African friend to share
               these experiences with, Zanele (pronounced Zanelay) - we have been a two-person team, traveling
               together for the last two months. This amazing human being is absolutely full of life. Zanele is the
               fourth and last sister in her family, and her name means “enough girls.”

               Zanele educates our patients before they begin treatment, and can tug at the heart of a crowd of
               people like you wouldn’t believe. She has amazing charisma, and wields emotion with great skill.
               She is absolutely tireless, and keeps patients on the edges of their seats, listening and participating
               and laughing, even at the end of seven hours of training. Zanele has this fire within her that doesn’t
               feed off of any fuel I know of - rather, her fire grows stronger with every person she passes it on to.
               She is a born educator and leader.




26
Work pictures first. My “office“ at one of our rural sites. Beats a cubicle any day!




                                                                                          This was a great moment for me. After weeks of preparation work, this is the
                                                                                          first patient enrollment session at Edendale. Zanele is teaching these patients
                                                                                          to be informed and responsible owners of their own health, before they begin
                                                                                          AIDS treatment.




  Another good moment for me, one month later. This is our second patient
  enrollment at Edendale, where a sea of people showed up to take control of
  their health. The best part is that this was all driven by the community leaders
  and doctors that we trained – we hardly did anything. This is the power of
  community-based healthcare.
                                                                                         My instant pals: Zaneleswa, Zime, and Anele. Their key financial support is
                                                                                         from a woman who is on AIDS treatment. I shudder to think of what would
                                                                                         have happened if she had been allowed to die.




 The other key component to our community-based healthcare model in Edendale. These are
 some of the local community leaders that we trained and organized. These leaders will pro-
 vide thousands of follow-up visits to make sure that we are providing high quality care to our
 patients, who are extremely poor and need continuous support.


                                                                                                                                                                            27
                                          M I S S I O N S TAT E M E N T
        “THE MISSION OF THE HEALTH INDUSTRY MANAGEMENT PROGRAM IS TO PREPARE STUDENTS,

        THROUGH THE INTEGRATION OF TEACHING, RESEARCH AND COMMUNITY SERVICE ACTIVITIES,

         TO PLAY LEADING MANAGERIAL ROLES IN A VARIETY OF POSITIONS OVER THE COURSE OF

        THEIR CAREERS IN THE HEALTHCARE FIELD. THE PURPOSE OF OUR EFFORTS IS TO IMPROVE THE

            HEALTH STATUS OF THE POPULATIONS SERVED BY OUR GRADUATES AND FACULTY.”




                                  Save the Date!
                                         May 19, 2006
            Feinberg Pavilion, Chicago Campus, Northwestern Memorial Hospital
                                21st Malcolm MacEachern Symposium




                                  Save the Date!
          Next year’s Biotech Conference will be held January 14, 2006.

              The Program will be held on Kellogg’s Evanston Campus.
               Please watch your mail and e-mail for further specifics.




                                      M I S S I O N S TAT E M E N T
     “BIOTECHNOLOGY AIMS TO FIND NEW BENEFITS FOR SOCIETY WITH THE DEVELOPMENT OF PRODUCTS
          THAT WILL CURE, TREAT AND PREVENT HUMAN DISEASES, PREVENT HUNGER AND INCREASE

      SUSTAINABILITY OF THE PLANET’S AGRICULTURAL AND ENVIRONMENTAL RESOURCES. TOWARDS THIS

     MISSION THE   KELLOGG CENTER FOR BIOTECHNOLOGY CORE PURPOSE IS TO DEVELOP KELLOGG AS THE
          MAJOR GLOBAL FORCE SHAPING THE MANAGEMENT OF BIOTECHNOLOGY. THIS INCLUDES

                    EDUCATIONAL, RESEARCH AND TECHNOLOGY ENHANCEMENT ACTIVITIES.”



28

				
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