CEO Spotlight: David Johnson of Alliqua

OWM: Please describe the education, training, and work experiences that prepared you for your current position as the CEO of Alliqua.   I attended The Northern Alberta Institute of Technology in Canada, and I am a Fellow of the Wharton School of Business at The University of Pennsylvania. I have been in the medical device industry for more than 30 years, the past 25 leading businesses in small, medium, and large company environments. Most recently before Alliqua, I spent 12 years with ConvaTec (Skillman, NJ), nine of those as the CEO and COO. We had a successful run during those years, building a strong company from $650 million in revenue when I joined in 2000 to $1.7 billion when I left. This was done through the efforts of great people who truly cared about the customer. OWM: Why did you choose to lead this particular company?   I had been looking for a company that encompassed three characteristics, all of which were evident in Alliqua. First, I wanted a technology that was unique but accepted in the marketplace; Alliqua’s electron-beam processed hydrogel technology fit the bill. Second, I was looking for a commercial platform around which to build; Alliqua’s Silverseal® and Hydress® match this criterion. They are efficacious, save the healthcare system money, are fully FDA-approved, and have HCPC codes for reimbursement. Finally, I was looking for a Board that supported the vision of building a world-class wound company. I joined the Board in November 2012 and took over as CEO in February 2013. OWM: What do you like most about working there?   I love working with very smart and innovative people. I love building something the marketplace needs — it is more fun and energizing to build something rather than tear things down, as so many large companies seem to be doing more recently. We are building at Alliqua every day. Finally, I love reconnecting with so many customers that we have known for many years and helping these wound practitioners find innovative, cost-effective solutions to manage their patients. At Alliqua, we do this every day. OWM: What makes you the most proud of Alliqua and your employees?   I am most proud of the commitment that each person at Alliqua has made. Our mission talks about adding value to our stakeholders: our shareholders, our customers, and our patients. We live this at Alliqua. The progress we have made in such a short period of time is due to these committed professionals. OWM: What are some of the company’s biggest accomplishments thus far?   Far and away, it is the team we have assembled at Alliqua. If you read the bios of these people, you will realize the world-class nature of the team. They have demonstrated past success, have passion and commitment for what we are trying to do at Alliqua, and are principled professionals who lead with integrity. Most of all, they are fun to work with.   In addition, we are in the middle of building a world-class sales and distribution network. Although this effort is still in its early stages, I am proud of the team that is being assembled, and I continue to look at expanding this team with qualified and dedicated professionals all across the country.   Finally, we recently completed a capital raise of $3 million that was led by insiders, which will allow us to continue to expand the organization. OWM: What differentiates Alliqua from their competitors?   First, we currently market innovative technology solutions to the wound care practitioner in a cost-effective way. Tomorrow, we will expand those solutions to incorporate more technologies into the menu of options the wound care expert can use. Second, our growing world-class sales force is well-suited to partner with these experts, supporting them when needed and being open to any suggestions about enhancing our offerings.   This company has an ability to win on two fronts: not only are we well on the road in building up a world-class wound care company, but we also have a strong thesis that our hydrogel technology can be an effective delivery mechanism for certain molecules for topical and/transdermal drug delivery. Recently, we announced a proof-of-principle study to look at our hydrogel patch with lidocaine. Stay tuned as the value proposition continues to be built here. OWM: What is the biggest challenge you face working in the realm of wound care?   Like any healthcare company, the changing regulatory landscape continues to be a moving target. This is very evident in the United States, with major shifts happening in the regulatory pathway of certain technologies, the reimbursement of products, and the uncertainty of the future for our customers. After saying that, I believe this is the new norm, so adjusting your mindset and resetting your sails could create a competitive advantage moving forward. OWM: In what direction would you say the industry is moving?   The wound care industry remains a very fragmented part of the medical device sector. Despite so much innovation, there are few distribution channels to allow this innovation to penetrate the market effectively. This is why we at Alliqua believe there is a need for a company like ours to consolidate several of the leading technologies under one roof and to offer a suite of technological solutions to the wound care practitioner to manage all of their chronic and acute wounds, with a professional support organization to help these experts. Many of our current customers have welcomed this approach, and we hope many more will experience this in the future. OWM: How does Alliqua remain competitive in the wound care field?   To some degree, the past can be used to predict the future. At the end of the day, innovative technology that is designed for value will always have a place in our society. What I mean by that is we need products and technologies that — backed up by credible data — demonstrate efficaciousness and also have the ability to save the healthcare system money. That’s what we all try to do each and every day at Alliqua. OWM: What is the company doing to give back as far as corporate social responsibility or sustainability efforts are concerned?   All of us at Alliqua have a strong sense of accountability to our social responsibility. Quite frankly, our current manufacturing process is a great example of this. Today, our unique manufacturing process uses electron beam manufacturing to crosslink polymers versus using chemicals. We rally around this cause and create products that are more water-soluble than was possible in the past. This is just one example of our commitment.