(taken from the Jan/Feb 2006 issue of On Balance magazine)

SuperCPA: Life is good

By Amy E. Gaeth

The science of fighting cancer is not something most people identify with CPAs. They should meet Ralph Kauten, CPA.

Battling cancer is all in a day’s work for Kauten, chairman and CEO of Quintessence Biosciences, Inc. in Madison. The company’s latest cancer therapy is based on human protein. “We think it’s rather elegant to be able to treat a human disease with a human product, using the intelligence of human design to treat a human disease,” Kauten said.

Chief of Quintessence since 2002, Kauten ascribes the company’s mission to the cutting-edge nature of the industry. “With the emergence of new science, biotech companies must be able to recognize new opportunities as they arise and recognize the impacts that new discoveries have on their business strategy,” he said.

Kauten harnesses resources to build the company and refine its vision, setting goals, managing operations and encouraging innovation. His challenge is to make meaningful change in products, services and processes in order to create value for customers, employees, shareholders and the general public.

“Over the years, the biotech industry has emerged from an embryonic state with a few fledgling companies to a major market with a very large number of both companies and scientists focused on carving out a future,” Kauten explained. “With growth in the number of competing interests in the industry it has become increasingly difficult to identify a specialty.”

Kauten’s journey into biotech began 26 years ago when he met a scientist who wanted to start a company. In 1979, he helped form Biotech, Inc., now known as Promega, in Madison. With Kauten as vice president of finance and a member of the Board of Directors, the company made the Inc. Magazine list of fastest-growing companies. Kauten helped build Promega from a startup with two employees to a business with more than 700 employees and $150 million in annual revenue.

Thirteen years later, Kauten and two colleagues left the company and co-founded PanVera Corp., focused on developing products and technologies to enhance the process of drug discovery. In 1994, Kauten and colleagues formed Mirus Corp., a former subsidiary of PanVera that develops gene therapy technologies for the biomedical market. Under Kauten’s leadership, PanVera grew from three employees in 1992 to more than 100 employees and $20 million in revenue in 2001.

Kauten’s accomplishments at PanVera included creating a strategy and vision, defining the company as “The Protein Company ™, and playing a key role in providing tools and enabling technology for the drug discovery industry. He put the administrative systems in place, created the sales and marketing approach, raised equity and debt financing, arranged for distribution with major companies, and led the merger of PanVera with Aurora Biosciences Corp.

During Kauten’s tenure at PanVera, he received the Blue Chip Enterprise Award from Massachusetts Mutual Life Insurance Co. and awards from the Small Business Administration, Fisher Scientific and the state of Wisconsin. The company also was noted on the Inc. Magazine list of fastest-growing companies. Kauten received the Entrepreneur of the Year Award from Ernst & Young in 2001. He left PanVera in 2002 and joined Quintessence.

Gov. Jim Doyle appointed Kauten to represent the biotech industry on the Economic Growth Council in August 2003 and the Wisconsin Development Finance Board in July 2004.

Before entering biotech, Kauten was Heublein Corp.’s plant controller at Ortega Taco Facility in Stoughton. He also taught courses in financial accounting and auditing at the University of Wisconsin-Whitewater. He began a career at Grant Thornton in Madison in 1973.

Throughout his career, Kauten has created employee-friendly business cultures based on high ethical standards. “Build respect and trust for the people you work with and you’ll get it back,” Kauten said. “You’ll find a very dedicated, committed group of people who are willing to go above and beyond the requirements of the position to make sure that the organization is successful.”

His passion and compassion stand Kauten in good stead. Bertren D. Figi, CPA, vice president of administration for The Custom Shoppe in Watertown, said: “One thing that stands out in the successes these firms achieved is Ralph’s values and how he treats his employees and business associates with respect.” Figi met Kauten through the WICPA’s CPAs in Industry Committee and has participated in networking with him over the past 20 years.

Kauten was a member and past chairperson of the CPAs in Industry Committee and helped start networking groups of industry CPAs across Wisconsin. He was president and a member of the Board of Directors for the former WICPA Southern Chapter.

For his achievements and expertise, Kauten was inducted into the AICPA 2005 Business and Industry Hall of Fame upon nomination by the WICPA. “Ralph is a wonderful example of what a CPA credential brings to all facets of one’s professional and personal life,” said WICPA Executive Director LeRoy C. Schmidt, CPA.

 “Ralph has branched out and made some really exciting things happen in the field of biotech,” said WICPA President David O. Christianson, CPA.

On the personal side, Kauten devotes time to his family and is a local leader. His contributions have benefited a cross-section of the community, from children in day care to Boy Scouts and the homeless. For the past decade, Kauten has managed the Christmas meal sponsored by First United Methodist Church. In addition, he volunteers regularly at Grace Episcopal Shelter, where he assists in meal preparation. He also serves on the Boards of Mirus Corp., Lucigen Corp., First Business Bank, Dean Health Plan, Swiss Center of North America, BellBrook Labs and Platypus Technologies.

Being a mentor is vital to Kauten. He recently mentored two middle-school students who attended the Youth Entrepreneur Camp sponsored by the UW-Madison Small Business Development Center. Kauten gave them real-world business experience as they shadowed him at work and attended Venture Fair, the Wisconsin Biotechnology Conference and other events.

As he mentors future entrepreneurs and leaders, Kauten emphasizes values, leadership and a commitment to Wisconsin. Michael W. Carr, CPA had firsthand experience under Kauten’s tutelage at a WICPA networking event. “He is always willing to offer assistance or share an experience. Ralph embodies all that is good about our profession,” said Carr, chief financial officer of GeoAnalytics in Madison.

Kauten has good reason to value relationships and mentoring. He attributes his success to his strong family values and other people, including CPAs. “The people that I’ve met during my career, including members of the WICPA, have played a significant role in making me who I am today. I cherish the relationships that I’ve built over the years.”

 

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