Tom Shannon

Tom Shannon, Past Chief Executive Officer & Director of Prodesse

Congratulations to Tom Shannon.  Prodesse was sold to San-Diego-based Gen-Probe Inc. for $60 million in 2009.

You don’t want to catch what Prodesse tests for (infectious diseases), but you definitely want to catch the spirit that Tom Shannon brought to the fledgling organization.

Prodesse makes absolutely cutting edge diagnostic tests for infectious diseases. A spin-off from the Medical College of Wisconsin, Shannon’s investor group bought 51% interest in 2002 when the company had few, if any customers.

After realizing the flagship product was too labor-intensive, they contracted for all new IP in 2004 and began making tests that could be cleared by the FDA. Prodesse now has FDA-cleared tests for respiratory disease detection and more in submission for gastro intestinal infections (Clostridium difficile), with other respiratory clearances coming. Sales have grown 80-120% each year for these last four years, with five of the country's top 10 hospitals using Prodesse… 65 US customers in all. In the world of biotech, laden with R&D costs, Prodesse is profitable.

As an entrepreneur, Tom Shannon knew nothing about biotech. As he explains, “I knew what the widgets did, though, versus how to make them. Ironically, we have also learned the science and now, I do know how to make them! So it was a marketing play to me. We continue to have acquisition overtures but with 30% net margins and sales rapidly increasing we may continue to run this enjoyable business a bit longer.”

Shannon has owned other entrepreneurial businesses, including an Agency within the insurance and securities firm Axa Advisors and transportation businesses that were purchased and sold in Nebraska and Florida – a far cry from the current biotech biz.

Tom’s advice? For science-based companies: “Know your intellectual property position and steer clear of government grants unless they directly lead to a commercialized product.”

Tom’s general advice: “Run your small company as a big company with audited financials from day one and also go into the deal pre-financed so you can determine your own fate without outside influences.”