Kevin LaCroix

In this edition of the D&O & Life Sciences series, sponsored by RT Specialty Group, host Michael Garofalo, SVP in the National Life Science Practice at RT Specialty, welcomes Kevin LaCroix, an Executive Vice President at RT ProExec, a division of RT Specialty.  The topic is D&O issues for life science companies.

Life Science companies are vulnerable to securities litigation,” said Mr. LaCroix, and D&O underwriters need to be aware of many important issues such as:

  1. What stage is the life science company in – Is it developmental stage or does it have products in commercial distribution
  2. What is the financial condition of the company?
  3. How has the company been performing?

Mr. LaCroix goes on to say, “For a developmental stage company that has products in the clinical trial pipeline,  the underwriter is going to want to know how vulnerable the company is to setbacks in the clinical trial process and whether it has good prospects for it being able to complete the process.”

According to Mr. LaCroix, for a company that has a commercialized product,  D&O underwriters are going to want to know the company’s revenue stream, competitive threats, regulatory issues, products undergoing clinical trials, and safety and efficacy issues relating to the product.  Mr. LaCroix believes that safety and efficacy concerns have a great deal to do with the manufacturing process.

Other issues D&O underwriters need to be concerned about include insider trading patterns and the timing of when shares were either purchased or sold; how stable company management is; if the company has engaged in any mergers and acquisition activity; and finally the companies claims history.

For more information on the Life Sciences industry, visit the RT Specialties website or the WRIN.tv On Demand Library.

 

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