Advancis executive assumes board chair

Edward Rudnic is adding the chairman’s duties to his role as chief executive at Advancis Pharmaceutical Corp., a Germantown biotechnology company.

Advancis, which Mr. Rudnic helped found four years ago, is developing advanced antibiotics for infectious diseases, such as certain ear infections, bronchitis, pharyngitis and sinusitis.

Mr. Rudnic, 48, takes over as chairman of Advancis’ board of directors from Jim Isbister, another co-founder, on Saturday. Mr. Rudnic will lead his first board meeting on June 3.

Mr. Isbister accelerated his retirement plans, which originally were set for mid-2005, to comply with Nasdaq Stock Market listing requirements that the board have a majority of independent directors.

“This was the best solution because we didn’t want to be rushed on adding another independent director to the board,” Mr. Rudnic said, adding that the company is searching for another independent board member.

The change will give the Advancis board a majority of independent directors, although the company did not give exact numbers.

Mr. Rudnic said the chairmanship will add more administrative work to his regular job of running daily operations, interacting with shareholders and keeping the company on track with its product rollout.

Advancis, with 90 employees, has 11 products in development and five antibiotics in clinical trials. The company plans to introduce its first commercial product by the end of 2005.

“This is an exciting and humble validation by the board of what we have tried to accomplish,” Mr. Rudnic said.

The Advancis board was “pleased to strengthen its independence and to place its confidence in a capable executive” such as Mr. Rudnic, said Wayne T. Hockmeyer, lead independent director on the board.

The biggest challenge of having the dual role at Advancis will be making sure that the company keeps up with the complex corporate governance rules that have come from the Sarbanes-Oxley Act, Mr. Rudnic said.

“It’s a lot of work, but we have a superb staff,” he said.

Mr. Isbister, whom Mr. Rudnic calls a “trusted confidant” and “vital strategic partner,” will keep in touch with the company as an independent consultant.

Like most emerging biotechnology companies, Advancis has been operating in the red since its startup, but Mr. Rudnic said the company plans to report sustainable profits by 2006.

Sales this year are expected to reach $30 million to $40 million with a reduced loss between $17 million and $20 million. Advancis lost $21 million in 2003.

The company is roughly breaking even on a cash basis, Mr. Rudnic said.

Mr. Rudnic lives in North Potomac with his wife, Beth.