Page 21 of Acceptable Risk


  “I understand,” Edward said. “Frankly I’m not interested in giving away much equity at all.”

  “How much money do you think you would need?” Stanton asked.

  “I’d have to set up a state-of-the-art lab,” Edward said, beginning to think out loud.

  “What’s the matter with the lab you already have?” Stanton asked.

  “The lab belongs to Harvard,” Edward said. “I have to get the Ultra project away from Harvard because of a participation agreement I signed when I accepted my position.”

  “Is this going to cause us some problems?” Stanton asked.

  “No, I don’t think so,” Edward said. “The agreement concerns discoveries made on company time using company equipment. I’ll argue that I discovered Ultra on my own time, which is technically correct although I’ve done the preliminary separation and synthesis on company time. Anyway, the bottom line is that I’m not afraid of some legal harassment. After all, Harvard doesn’t own me.”

  “How about the development period?” Stanton asked. “How much shorter do you think you could make that?”

  “A lot,” Edward said. “One of the things about Ultra that has impressed me is how unbelievably nontoxic it appears to be. I believe this fact alone will make FDA approval a breeze since characterizing specific toxicities is what takes so damn much time.”

  “So you’re talking about getting FDA approval years sooner than the average,” Stanton said.

  “Without doubt,” Edward said. “Animal studies will be accelerated if there’s no toxicity to worry about, and the clinical portion can be collapsed by combining phase II and phase III with the FDA’s expedited schedule.”

  “The expedited plan is for drugs targeted for life-threatening diseases,” Kim said. From her experience in the SICU she knew something about experimental drug testing.

  “If Ultra is as efficacious for depression as I think it will prove to be,” Edward said, “I’m confident we can make a case for it in relation to some serious illness.”

  “What about western Europe and Asia?” Stanton asked. “FDA approval is not needed to market a drug in those areas.”

  “Very true,” Edward said. “The USA is not the only pharmaceutical market.”

  “I’ll tell you what,” Stanton said. “I can easily raise four to five million without having to give up more than a token amount of equity since most of it would come from my own resources. How does that sound?”

  “It sounds fantastic,” Edward said. “When can you start?”

  “Tomorrow,” Stanton said. “I’ll start raising the money and organizing the legal work to set up the corporation as well as to start the patent applications.”

  “Do you know if we can patent the core of the molecule?” Edward asked. “I’d love the patent to cover any drug formulated with the core.”

  “I don’t know, but I can find out,” Stanton said.

  “While you’re seeing to the financial and legal aspects,” Edward said, “I’ll start the process of setting up the lab. The first question will be where to site it. I’d like to have it someplace handy because I’ll be spending a lot of time there.”

  “Cambridge is a good location,” Stanton said.

  “I want it away from Harvard,” Edward said.

  “How about the Kendall Square area?” Stanton suggested. “It’s far enough away from Harvard and yet close enough to your apartment.”

  Edward turned to Kim and their eyes met. Kim guessed what he was thinking so she nodded. It was a gesture imperceptible to the Lewises.

  “Actually I’m moving out of Cambridge at the end of August,” Edward said. “I’m moving to Salem.”

  “Edward is coming to live with me,” Kim said, knowing it would quickly get back to her mother. “I’m renovating the old house on the family compound.”

  “That’s wonderful,” Candice said.

  “You old rogue,” Stanton said as he reached across the table and gave Edward a light punch in the shoulder.

  “For once in my life my personal life is going as well as my professional life,” Edward said.

  “Why don’t we site the company somewhere on the North Shore?” Stanton suggested. “Hell, commercial rents up there must be a fraction of what they are in the city.”

  “Stanton, you’ve just given me a great idea,” Edward said. He turned sideways to look at Kim. “What about that mill-turned-stables on the compound? It would make a perfect lab for this kind of project because of its isolation.”

  “I don’t know,” Kim stammered. She’d been caught totally unawares by the suggestion.

  “I’m talking about Omni renting the space from you and your brother,” Edward said, warming to the idea. “As you’ve mentioned, the compound is a burden. I’m sure some legitimate rent could be a real help.”

  “It’s not a bad idea,” Stanton said. “The rent could be totally written off, so it would be tax free. Good suggestion, old sport.”

  “What do you say?” Edward asked.

  “I’d have to ask my brother,” Kim said.

  “Of course,” Edward said. “When? I mean the sooner the better.”

  Kim looked at her watch and calculated that it was about two-thirty in the morning in London, just about the time Brian would be getting down to work. “I could call him any evening,” Kim said. “I suppose I could even call him now.”

  “That’s what I like to hear,” Stanton said. “Decisiveness.” He pulled his cellular phone from his pocket and pushed it across to Kim. “Omni will even pay for the call.”

  Kim stood up.

  “Where are you going?” Edward asked.

  “I feel self-conscious calling my brother in front of everyone,” Kim said.

  “Perfectly understandable,” Stanton said. “You go on into the ladies’ room.”

  “I think I prefer to step outside,” Kim said.

  After Kim had left the table Candice congratulated Edward on the progress of his relationship with Kim.

  “We’ve been enjoying each other’s company,” Edward said.

  “How much personnel would you need at the lab?” Stanton asked. “Hefty salaries can eat up capital like nothing else.”

  “I’d keep the number to a minimum,” Edward said. “I’d need a biologist to handle the animal studies, an immunologist for the cellular studies, a crystallographer, a molecular modeler, a biophysicist for nuclear magnetic resonance, a pharmacologist, plus myself and Eleanor.”

  “Jesus Christ!” Stanton exclaimed. “What the hell do you think you are creating, a university?”

  “I assure you this is a minimum for the kind of work we’ll be doing,” Edward said calmly.

  “Why Eleanor?”

  “She’s my assistant,” Edward said. “She’s the person I work with the closest, and she’s crucial to the project.”

  “When can you start to assemble this team?” Stanton asked.

  “As soon as you have the money,” Edward said. “We’ll have to have first-class people, so they won’t come cheap. I’ll be enticing them away from coveted academic appointments and lucrative positions in private industry.”

  “That’s exactly what I’m afraid of,” Stanton said. “Many new biomedical companies go belly-up from a hemorrhage of capital from overly generous salaries.”

  “I’ll keep that in mind,” Edward said. “When can you have money available for me to draw on?”

  “I can have a million available by the beginning of the week,” Stanton said.

  The first courses of their dinner arrived. Since Candice and Stanton were having hot appetizers, Edward insisted they start. But no sooner had they picked up their forks when Kim returned. She sat down and handed Stanton his phone.

  “I’ve good news,” she said. “My brother is delighted with the idea of paying tenants in the old mill building, but he insisted that we will not pay for any improvements. That will have to be up to Omni.”

  “Fair enough,” Edward said. He picked up his gla
ss in preparation for another toast. He had to nudge Stanton, who was momentarily lost in thought. “To Omni and to Ultra,” Edward said. They all drank.

  “This is how I think we should set the company up,” Stanton said as soon as he put his glass down. “We’ll capitalize with four and a half million and value the stock at ten dollars a share. Out of the four hundred and fifty thousand shares we’ll each hold one hundred and fifty thousand, leaving one hundred and fifty thousand for future financing and for attracting the best people by offering some equity. If Ultra turns out to be anything like it’s been described tonight, each share of the stock will end up being ungodly valuable.”

  “I’ll drink to that,” Edward said, raising his wineglass yet again. They all clinked their glasses and drank, particularly Edward, who found himself enjoying the wine selection he’d made. He’d never had better white wine, and he took a moment to savor its vanilla bouquet and slightly apricot finish.

  After the dinner was over and goodbyes had been said, Kim and Edward climbed into Edward’s car in the restaurant’s parking lot.

  “If you wouldn’t mind, I’d like to skip the walk in the square,” Edward said.

  “Oh?” Kim questioned. She was mildly disappointed. She was also surprised, but then the whole evening had been a surprise. She’d not expected Edward to have been willing to take an evening off, and on top of that, his behavior had been exceptional from the moment he’d picked her up.

  “There’s some phone calls I’d like to make,” Edward said.

  “It’s after ten,” Kim reminded him. “Isn’t it a little late to be calling people?”

  “Not on the West Coast,” Edward said. “There’s a couple of people at UCLA and Stanford who I’d like to see on the Omni staff.”

  “I gather you are excited about this business venture,” Kim commented.

  “I’m ecstatic,” Edward said. “My intuition told me I was onto something important the moment I learned we’d stumbled onto three previously unknown alkaloids. I just didn’t know it was going to be this big.”

  “Aren’t you a little worried about the participation agreement you signed with Harvard?” Kim asked. “I’ve heard about similar situations leading to serious trouble in this town, like during the 1980s, when academia and industry became much too cozy.”

  “It’s a problem I will leave to the lawyers,” Edward said.

  “I don’t know,” Kim said, unconvinced. “Whether lawyers are involved or not, it could affect your academic career.” Knowing how much Edward valued teaching, Kim was worried that his sudden entrepreneurial enthusiasm was clouding his better judgment.

  “It’s a risk,” Edward admitted. “But I’m more than willing to take it. The opportunity Ultra offers is a once-in-a-lifetime proposition. It’s a chance to make a mark in this world and to earn some real money while doing it.”

  “I thought you said you weren’t interested in becoming a millionaire,” Kim said.

  “I wasn’t,” Edward said. “But I hadn’t thought about becoming a billionaire. I didn’t realize the stakes were that high.”

  Kim wasn’t sure there was that much difference, but she didn’t say anything. It was an ethical question that she didn’t feel like debating at the moment.

  “I’m sorry about making the suggestion of converting the Stewart stables to a lab without discussing it with you beforehand,” Edward said. “It’s not like me to blurt something like that out on the spur of the moment. I guess the excitement of talking with Stanton got the best of me.”

  “Your apology is accepted,” Kim said. “Besides, my brother was intrigued with the idea. I suppose the rent will be helpful in paying the taxes on the property. They’re astronomical.”

  “One nice thing is that the stables are far enough away from the cottage so the lab’s presence won’t bother us,” Edward said.

  They turned off Memorial Drive and headed into the quiet, residential back streets of Cambridge. Edward pulled into his parking spot and turned off the engine. Then he hit his forehead with the palm of his hand.

  “Stupid me,” he said. “We should have driven back to your place to get your things.”

  “You want me to stay tonight?”

  “Of course,” Edward said. “Don’t you want to?”

  “You’ve been so busy lately,” Kim said. “I didn’t know what to expect.”

  “If you stay it will make heading up to Salem in the morning that much easier,” Edward said. “We can get an early start.”

  “You definitely want to go?” Kim asked. “I had the sense you won’t want to take the time.”

  “I do now that we are siting Omni there,” Edward said. He restarted the car and backed out. “Let’s go back and get you a change of clothes. Of course that’s assuming you want to stay—which I hope you do.” He smiled broadly in the half-light.

  “I suppose,” Kim said. She was feeling indecisive and anxious without knowing exactly why.

  8

  * * *

  Saturday,

  July 30, 1994

  KIM and Edward did not get an early start as Edward had suggested the night before. Instead Edward had spent half the morning on the phone. First he’d called Kim’s contractor and architect about expanding the work at the compound to include the new lab. They’d agreed with alacrity and offered to meet at the compound at eleven. Next Edward had called a series of representatives of laboratory equipment manufacturers and scheduled them to show up at the same time as the contractor and architect.

  After a quick call to Stanton to be sure the money he’d promised would be immediately forthcoming, Edward phoned a series of people whom he wanted to consider recruiting for Omni’s professional staff. Edward and Kim did not get into the car for the drive north until well after ten.

  By the time Edward parked in front of the stables in the Stewart compound there was a small crowd of people waiting. They had all introduced themselves, so Edward was spared the task. Instead he waved for them to gather by the padlocked sliding door.

  The building was a long, single-story stone structure with infrequent windows set high under the eaves. Since the terrain fell off sharply toward the river, the back was two stories, with separate entrances to each stall on the lower level.

  Kim tried multiple keys before finding the correct one to open the heavy padlock. After sliding it open, everyone entered what was the ground floor from the front and the second story from the rear.

  The interior was a huge, undivided long room with a cathedral ceiling. On the rear side of the building there were multiple shuttered openings. One end of the room was filled with bales of hay.

  “At least the demolition will be easy,” George said.

  “This is perfect,” Edward said. “My idea of a lab is one big space so that everyone interfaces with everyone else.”

  The stairway leading down to the lower level was constructed of rough-hewn oak and pegged together with dowels an inch in diameter. Downstairs they found a long hall with stalls to the right and tack rooms to the left.

  Kim tagged along and listened to the plans to convert the barn rapidly into a state-of-the-art biological and pharmacological laboratory. Downstairs there were to be quarters for a menagerie of experimental animals including rhesus monkeys, mice, rats, and rabbits. There was also to be space for tissue- and bacterial-culture incubators along with containment facilities. And finally there were to be specially shielded rooms for the NMR and X-ray crystallography.

  The upstairs would house the main laboratory space as well as a shielded, air-conditioned room for a large mainframe computer. Every laboratory bench would have its own terminal. To power all the electronic equipment a huge electrical service would be brought in.

  “Well, there you have it,” Edward said when they had finished the tour. He turned to the contractor and architect. “Can you see any problems with all this?”

  “I don’t think so,” Mark said. “The building is sound. But I would suggest we design an entran
ce with a reception area.”

  “We won’t be having many visitors,” Edward said. “But I see your point. Go ahead and design it. What else?”

  “I can’t see that we’ll have any trouble with permits,” George said.

  “Provided we don’t say anything about the animal aspect,” Mark said. “My advice is just not to mention it. It could create problems that would take a long time to resolve.”

  “I’m more than happy to leave the civic relations to you experienced men,” Edward said. “The fact is, I’m interested in expediting this project, so I’d like to take full advantage of your expertise. And to speed completion I’m willing to give a ten percent bonus above time, materials, and fees.”

  Enthusiastic and eager smiles appeared on Mark’s and George’s faces.

  “When can you start?” Edward asked.

  “We can start immediately,” Mark and George said in unison.

  “I hope my little job isn’t going to suffer with this newer and bigger project,” Kim said, speaking up for the first time.

  “No need to worry,” George said. “If anything it will speed work up at the cottage. We’ll be bringing a big crew in here with all the trades represented. If we need a plumber or an electrician for some small task on your job, they’ll already be on site.”

  While Edward, the contractor, the architect, and the various medical-equipment reps settled down to work out the details for the new lab, Kim wandered outside the stables. She squinted her eyes against the hazy but intense noontime sun. She knew she wasn’t contributing to the planning of the lab, so she hiked across the field toward the cottage to check on the renovation.

  As she neared the building she noticed the trench had been filled in. She also noticed that the workmen had reset Elizabeth’s headstone into the ground above the grave. They’d laid it flat just as they’d found it.

  Kim entered the cottage. It seemed tiny after being in the stables. But the work was progressing well, especially in the kitchen and the bathrooms. For the first time she could imagine what they would be like when they were finished.