The executive vice president who led the capital deployment team at Safeguard Scientifics has resigned as the investment firm goes through a re-organization initiated by CEO Stephen Zarrilli, according to a statement from the company. Zarrilli was named CEO in November.
Jim Datin’s resignation is scheduled to take effect June 30. Datin joined Safeguard in 2005 as managing director of the healthcare team and has led the capital deployment team since October 2011.
The re-organization is designed to create a “a flatter organizational structure… to produce greater efficiency and effectiveness in deploying capital and realizing exits. We also intend to further develop our segment domain knowledge with several key hires,” the statement said.
In a response to emailed questions, a spokeswoman for the company expanded on what it meant by “key hires.” It includes plans to hire a managing director-level deal team member with a healthcare/venture background and one to two associates who will support its technology and healthcare deal team members.
So what was inefficient about its capital deployment and exit strategy before? The emailed response said it wasn’t inefficient:
“…a flatter corporate structure will contribute to achieving Safeguard’s growth targets and that greater consistency in capital deployed will grow our stable of partner companies and allow for more consistent monetizations. We remain focused on our core business as the main driver to increase Safeguard’s capital under management to a range of $550 million to $700 million by year-end 2015.”
Datin led the company’s expansion of its healthcare IT investments. He will hold on to seats on the boards of medical device company NovaSom and remote monitoring company Sotera Wireless, serving as a company representative. He will also continue to sit on the board of specialty pharmaceutical company NuPathe, which secured 510(k) clearance from the FDA in January. Its drug delivery system using a transdermal patch to relieve migraine headaches is designed for sufferers whose nausea prevents them from taking oral medication.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Zarilli also praised Datin in the statement as a “talented executive and consummate professional”:
“He helped revitalize and refocus the company and leaves the company in excellent financial and strategic condition. “
