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MELA Sciences says CFO, three board members resign

  • MELA Sciences' (MELA) CFO Richard Steinhart resigns.
  • CEO Rose Crane will step in while the company searches for a replacement.
  • The company also says three members of its board have resigned "due to other professional commitments and a desire to streamline the Board to better reflect the company's current size."
  • Jeffrey ODonnell, Managing Director at BioStar Ventures, joins the Board. (PR)
Comments (3)
  • upsofloating
    , contributor
    Comments (8) | Send Message
     
    That the CFO and three Directors have resigned at once from Mela Sciences, Inc., suggests the rather unsettling image of rats fleeing from a sinking ship, specially after the former CEO, "Golfo", resigned, so it seems, not all that long ago. When Golfo left, his plan for Mela's growth was openly repudiated by all who stayed on, and the new CEO vowed to institute a "new marketing plan" to replace Golfo's, one that could result finally in Mela's financial viability. The current resignations of key players in the "new plan", including the CFO, unhappily suggests a break-down in the entire team's ability to agree on a single successful direction for the company's marketing future. I don't want to believe that Mela cannot successfully market its melanoma diagnostic device. An endorsement by a Dermatology professor at Harvard Medical School indicated her belief that "Melafind" was adding a whole new dimension of certainty and reliability to melanoma diagnosis, but with Golfo's leaving and now with the current resignations, the overwhelming impression is of a batter, who has now taken two strikes, in his "at bat", and must succeed in connecting with the ball now, or never.
    2 Jan 2014, 08:06 PM Reply Like
  • upsofloating
    , contributor
    Comments (8) | Send Message
     
    After writing the above comment, I read something about Jeffery O'Donnell, who is the newly appointed director of Melanoma, replacing the three directors who recently resigned. Among Mr. O'Donnell's professional activities is his lecturing on methods by which vendors of medical devices, etc., can win Medicare approval, so that patients are routinely reimbursed for any expense incurred in using a medical service or device.

     

    Mr. O'Donnell's experience and expertise in obtaining medicare approval suggests that the final "Hail Mary" attempt by Mela Sciences to achieve economic viability will consist of focusing, maybe exclusively, on obtaining approval of its device by Medicare, instead of seeking a "fee for service" from patients, who will not be reimbursed by their insurance.

     

    In its campaign, for successfully winning FDA approval of Melafind, Mela Sciences cited a study finding that Dermatologists, unaided by "Melafind", missed diagnosing actual melanomas 28% of the time, while Dermatologist using "Melafind" only missed 2% of the melanomas. If those findings were legitimate, then Medicare's "bottom line" will be greatly improved if a $50 scan by Melafind is added as a medically necessary diagnostic tool in catching Melanoma at an early stage, prior to a later virtually uncurable stage, with all its expensive attempts at prolonging life, etc.

     

    Will Mela Sciences succeed in its attempt to make the use of "melafind" into a fully reimburseable medicare benefit ? Its nice to think so.
    11 Jan 2014, 12:57 PM Reply Like
  • flowerseq
    , contributor
    Comments (51) | Send Message
     
    I appreciate your insight as a fellow holder of MELA and as a person with high skin cancer risk. I've believed in this product for a long time, and cannot imagine a device that is this critical to diagnosing a disease of this magnitude to simply go away. Of course if the company is bought out of bankruptcy we as shareholders will lose, but no one has mentioned strategic partnerships with a parent company. I have to continue to think there are options out there. Their latest financials and the comments from Rose Crane are both optimistic and fatalistic, which leaves a lot of confusion as to how bad things can get before the White Knight arrives. Insurance reimbursement would certainly help a lot of things quickly, but this has been talked about as a major issue for at least two years. That they are just now addressing the effort to gain their Medicare number for coding leaves one wondering if someone just woke up.
    6 Jul 2014, 12:28 PM Reply Like
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