Asian American TV Flourishes at Botree
Princeton Technologist Offers Krav maga
Corrections or additions?
These articles were prepared by Barbara Fox for the March 9, 2005
issue of U.S. 1 Newspaper. All rights reserved.
Life in the Fast Lane
Pity the pharmaceutical finance departments that have to figure out
drug pricing. The federal government insists on the lowest price,
drugstore chains jostle for bulk pricing, consumer groups protest high
prices, and all the while the generic companies lurk in the shadows,
ready to pounce when the patents expire. Just what is a fair and
efficient method of pricing a drug so that the profits pay for the
research?
Setting different prices for different customers is a concept that
began in the transportation industry in the 1970s, when special
software was developed for the airlines. Such pricing arbitrage may
now be available for pharmaceutical firms. Model N, a South San
Francisco-based company that opened an office in Princeton Forrestal
Village, says it can offer the same revenue management efficiency to
life science firms – pharmaceuticals, medical technology firms, and
biotechs.
The name, Model N, is meant to evoke the legendary Model T Ford, for
which Henry Ford pioneered the assembly line concept. “Just like the
Model T revolutionized manufacturing,” says Steve Zocchi, vice
president of marketing and sales at the 100-person firm, “we believe
we are at the beginning of the formation of a new category of
software.”
Model N, he says, has a seamless, end-to-end process from pricing
through settlements payment. Its integrated approach eliminates
revenue leakage and delivers the visibility and controls needed to
avoid the risks of non-compliance to government pricing and
Sarbanes-Oxley regulations. “We see a new generation of cross
applications that bridge the worlds. They reach out into a
distribution channel, aligning people across departments and corporate
boundaries.”
Zocchi and his cohort, Barbara Competello, moved into HQ on January 1.
Competello, senior director and engagement manager, is in charge of
what is scheduled to be a 25-person office. The daughter of a
policeman and an international agent for the Internal Revenue service,
she grew up in New York City, graduated from Duke in 1985 and has an
MBA from the University of Virginia. She was an early founder of
Cambridge Technology Partners and joined Model N in 2003.
Zocchi, the son of a psychiatrist, went to Knox College, Class of
1980, and has an MBA in international business from American Graduate
School of International Management in Phoenix, Arizona, known as
Thunderbird. At NetDynamics Inc. he worked with Model N’s founders,
the inventors of Spider, the first Internet applications server, in
1993. It was bought by Sun Microsystems to shore up its Java software
area. Some of this same crew founded Model N in 1999.
“We believe we are at the beginning of a new category of software,”
says Zocchi. Most of the life science revenue management is being
addressed, he says, by homegrown systems or spreadsheets. “They are
putting together whatever solutions they can, or trying to get their
arms around whatever contracts or pricing they have.” As for other
software available – a generic approach to managing revenue doesn’t
work, says Zocchi. “You have to have domain expertise and shape the
solution.”
During the dotcom bust, as other dotcoms were going out of business,
Model N was focusing on building the application with its first
customer, Ortho-Clinical Diagnostics. The firm flew low to the ground
during these years and managed its growth and cash conservatively.
Along the way Model N landed a $30 million round of funding from Accel
Partners. “Our expectations are very high and our view is this company
should be on a path where revenue is growing 50 to 100 percent on a
year-to-year basis,” said Jim Breyer. Formerly a Princeton resident,
he is a managing partner of at Accel Partners and a member of Model
N’s board.
Model N added another $11 million in December. “We actually haven’t
used that money, but it is always easier to get money when you don’t
need it,” says Zocchi.
Now that Model N has a complete suite of products optimized for life
science companies, and now that the economy has improved, it hopes for
rapid growth.
“Our gross over the last year has been twice that from our previous
year, and we continue to have made our financial plan every year the
company has been in existence,” says Zocchi. “We have been cash flow
positive three out of six quarters, but we are trying to invest in
engineering and building out product. We are looking at international
expansion this year.”
Opening this office signaled a different level of commitment and
infrastructure, and Competello will spend 80 percent of her time in
Princeton. “This office will give us a base and an infrastructure
where our clients are. It will allow me to spend time with clients and
recruit in the Princeton area and supplement our client-facing
services.”
“It gives us the sense that there are two places that are Model N,”
says Competello. With 10 people now, she expects to double in size in
the next several months, hiring sales, field marketing, and
professional services personnel. “As we expand to that level, it will
make more sense for us to find our own office space in the second half
of the year.”
Development is done in California, and engineers at an offshore
facility test the software as the engineers build it in “follow the
sun development.” Testing is done offshore at night, and the results
are ready in the morning. Later the offshore facility will offer 24 x
7 technical support.
The official description of Model N’s product: solutions for revenue
management including pricing, contract management, and settlements
applications that enable life science companies to transform their
business processes for managing the end to end lifecycle of revenue.
“With Model N Revenue Management, companies reduce regulatory
compliance risks and eliminate the sources of revenue leakage that
cost companies millions of dollars each year.”
The two big issues in life science revenue management are customer
consolidation and regulatory compliance. Consolidation can mean that
customers are very savvy about price manipulation. An individual
customer contract may include prices, discounts, and rebates for
hundreds of products affecting hundreds of orders. An article last May
in Bio-IT world quoted a Computer Sciences Corp. survey that found a
billion dollar life science company can leave $40 million on the table
every year.
As for compliance, or Sarbanes Oxley exposure, Competello says that
small companies that are operating ethically – but thought they were
operating under the radar – are being examined more closely.
Model N does not fear competition. For one thing, it has a head start.
“If this category grows the way we expect, I’m sure there will be more
companies entering this market,” says Competello. “If people don’t
compete with us then we are in the wrong space. The real key is
working closely with the customers to help them drive more value.”
Model N, 116 Village Boulevard, Suite 200, Princeton08540. Barbara Competello, marketing director, east coast.609-734-4306; fax, 609-520-1702. Home page: www.modeln.comTop Of PageAsian American TV Flourishes at BotreeJust in time for the surge in Bollywood popularity, Augustine Hoon andMunish Sood, founders of Botree Investments LLC, have helped to launchthe first 24/7 Asian American television network, called ImaginAsianEntertainment Inc. (www.iatv.tv).Botree was founded in 2001 on Nassau Street and moved to 3,000 squarefeet at 700 Alexander Road. Except for its stake in the televisionnetwork, Botree focuses on active portfolio management, financialconsulting, and wealth preservation.The institutional arm of the firm, Princeton Advisory Group Inc., isan SEC registered investment advisor with more than $3 billion inassets under management. Clients include domestic and internationalbanks and financial and insurance institutions.Botree Asset Management, with more than $100 million under activemanagement, is based in Alexandria, Virginia, and manages assets forhigh net worth individuals and family offices. There are 15 investmentprofessionals overall.The television network was founded last fall to serve the AsianAmerican community; it opened a movie theater in New York and a radiostation in California as cross-promotion vehicles. “Just as MTV andBET helped usher youth and hip-hop culture into mainstream America,IaTV will infuse the current television landscape with the bestAsian/Asian American media content available,” says a press release.Hoon, 38, grew up in Queens. An alumnus of State University of NewYork, at Binghamton, he moved to Princeton in 1989. Sood, who alsogrew up in Queens, graduated from Rider University in 1994, startedhis career on Wall Street, and joined Augustine Hoon two years ago toco-found Botree. The company is named after the tree under whichBuddha found enlightenment.Hoon and Sood met each other at Global Value Investors, the investmentfirm on Alexander Road owned by Ram Kalluri. Bill Barish of CommercialProperty Network helped them find the Alexander Road space, which wasdesigned by KSS Architects. Michael Mann of Pepper Hamilton is one ofthe attorneys.Botree Investments LLC, 700 Alexander Road, Suite 302,Princeton 08540. Augustine Hoon and Munish Sood. 609-252-9555; fax,609-252-9511.Top Of PagePrinceton Technologist Offers Krav magaDavid Kahn and some of his friends from Princeton University founded asuccessor to Technology Management & Funding, a technologycommercialization boutique founded by his uncle, Harry Brener. “Wework with technologists and take equity only if we are successful ingetting funding,” he says. Alan Hegedus left retirement to be the CEO.Kahn’sfather, Alfie Khan, is a colorful Princeton entrepreneur. Ahistory major at Princeton University, Class of 1994, he worked forhis uncle, Harry Brener, at Technology Management & Funding, went tolaw school in Miami, worked in Manhattan at AIG, and spent some timein Israel learning hand to hand combat.PTP’s flagship company, Intellicoat, has an energy-saving roof coatingcalled SolarSave that reflects heat from the sun, rejecting 98 percentof the sun’s energy, and is being marketed in southern climes. “Weguarantee 65 percent of the energy savings, and for selectedbuildings, we will coat the roof at our cost, and the clientparticipates in the savings with us,” says Kahn, who declines to namethe secret ingredient in the coating, made in Florida. So far, thefirm has coated the San Diego Naval Base and is working with schooldistricts in Florida.Kahn has a second company, Hammerhead LLC, based on his training inIsrael, about which he has written a book. It provides global securityconsulting, training, and risk management to government organizationsand the private sector.A combat training called “Krav maga close quarters” is supervised byformer chief military instructors of the Israeli hand-to-hand combatsystem. The teaching team includes those with skills in counter-terrorand counter-guerrilla operations, urban warfare,close-quarters-combat, close protection services, high-riskentry/arrests and tactical emergency medicine. The company justfinished training at Fort Dix and is scheduled to train policeofficers at Valley Road school this month.Princeton Technology Partners, 100 Overlook Center,Princeton 08540. Alan Hegedus, CEO. 609-734-8484; fax, 609-734-0066.www.solar-save.comHammerhead Ops, 100 Overlook Center, Suite 102, Princeton08540. David Kahn, owner. 609-921-2001; fax, 609-734-0066.www.hammerheadops.comTop Of PageManagement MovesAmicus Therapeutics, 675 Route 1 South, Technology Centerof New Jersey, North Brunswick 08902. John F. Crowley, CEO.732-745-9977; fax, 732-745-9769. Home page: www.amicustherapeutics.comIn January John F. Crowley replaced Norman Hardman as CEO. Hardman isnow chief scientific officer. Crowley had been the founding CEO ofNovazyme Pharmaceuticals on Nassau Street, and most recently he hadfounded Orexigen Therapeutics. Matthew Patterson is the new chiefbusiness officer and Gregory Licholai, the new vice president ofmedical affairs and corporate development.Amicus develops orally-active, small molecule drugs to treat humangenetic diseases. Its first drug, for Fabry disease, is in a Phase Iclinical trial.Top Of PageExpansionsBartolomei Pucciarelli LLC, 2564 Brunswick Pike,Lawrenceville 08648. James Bartolomei, partner. 609-883-9000; fax,609-883-9008. Home page: www.bp-cpas.comAs planned, the consulting and accounting firm moved to its ownbuilding last month (U.S. 1, October 6, 2004).Beazer Realty Inc. (BZH), 250 Phillips Boulevard, Suite290, Princeton Crossroads at Ewing, Trenton 08618. Paul Schneider,president. 609-538-0244; fax, 609-538-1899. Home page: www.beazer.comThe residential home builder moved from 12,000 square feet at 250Phillips Boulevard to 15,000 feet at 275 Phillips Boulevard. About 70people work here.Creation Stummer Inc., 115 Stryker Lane, Hillsborough08844. John K. Haug, president. 908-281-9235; fax, 908-281-9623. Homepage: www.nowali.comIn January John Haug moved two companies from 7 Ilene Court in BelleMead to expanded space in Hillsborough, where he has six employees.Founded in 1980, Creation Stummer is a subsidiary of Franz Stummer &Co in Linz, Austria, and is a distributor of children’s clothing.Plush Pups (www.plushpups.com) was formerly known as JKHInternational, and it distributes toy canines.Infragistics Inc., 50 Millstone Road, Building 200,Windsor Corporate Park, Suite 150, East Windsor 08520. Dean Guida,CEO. 609-448-2000; fax, 609-448-2017. Www.infragistics.comDean Guida’s company, a computer software development company, hasgrown from 20 to 70 employees in three years. A serial entrepreneur,Guida graduated from the University of Miami in 1987 and had foundedProtoview Development.Systech Solutions Inc., 2540 Route 130, Cranbury CampusSuite 128, Cranbury 08512. Robert M. DeJean, CEO. 609-395-8400; fax,609-395-0064. Home page: www.systech-tips.comSystech Solutions moved from Cedar Brook Corporate Center to Route130, expanding from 18,000 to 30,000 square feet and from 40 to 49people. It manufactures automated inspection systems – bar codereading machines, automation systems, and manufacturing systemscontrols.Top Of PageName ChangesHG MultiMedia Inc., 29 Airpark Road, Princeton 08540. KenGreenberg, media director. 609-921-6200; fax, 609-921-6204. Home page:www.hg-multimedia.comHG Media merged with Sean Hayes Design to form HG MultiMedia. KenGreenberg of HG Media had focused on media planning and buying and isnow the media director. Hayes, who focuses on creative design andproduction, is the creative director.Greenberg was a telecommunications major at Indiana University inBloomington, Class of 1978, who had worked at Nassau Broadcasting, KIX101.5, and at C-Tec cable television. His first company was calledVoiceWorks, and at HG Media his original partner was Ray Hirschman,who is now with Princeton Communications Group.Top Of PageCrosstown MovesNational Registered Agents Inc., 100 Canal PointeBoulevard, Suite 108, Princeton 08540. Dennis E. Howarth, president.800-767-1553; fax, 609-716-0820.The registered agents office moved from 51 Everett Drive to 100 CanalPointe Boulevard. It has registered agents in 50 states available todo business on behalf of out-of-state corporations.SimStar Inc., 240 Princeton Avenue, American MetroCenter, Hamilton 08619. David Reim, CEO. 609-378-0100; fax,609-378-0220. Home page: www.simstar.comOn Friday, March 25 SimStar will move from 202 Carnegie Center to15,000 square feet at American Metro Center. SimStar offers strategy,development, and servicing of E-business solutions for thepharmaceutical industry.Marshall & Swift/Boeckh), 505 Lawrence Square BoulevardSouth, Lawrenceville 08648. Sara Earle, vice president of underwritingoperations. 609-689-9366; fax, 609-689-6700. Home page:www.msbinfo.comLast fall the College Road office of this firm consolidated with theLawrence office, which now houses both operations. One section of the90-person office compiles construction cost data for the insurance andconstruction industries, and the other provides building costinformation for property insurance firms, agencies, inspectioncompanies and claims adjusters. It also compiles and distributesresidential and commercial data.NCI Consulting: Publicis Healthcare Group, 202 CarnegieCenter, Suite 101, Lawrenceville 08648. Susan Lavine Coleman,president. 609-919-6250; fax, 609-919-6255. Home page:www.nciconsult.comNCI Consulting’s 11-person office moved from 2000 Lenox Drive to asuite at the Carnegie Center that is also occupied by other divisionsof NCI, and it has a new phone and fax. A division of PublicisHealthcare Group, it does strategic and marketing consulting forpharmaceutical and healthcare-oriented consumer products companies.Top Of PageDeathsMalcolm Byron Roszel, 85, on February 28. He had been vice presidentof construction at Lewis C. Bowers and Sons.Ronald Tellefsen on March 5, of non-Hodgkin’s lymphoma. He was CEO ofthe Babe Ruth League on Brunswick Pike. The funeral is Saturday, March12, at 10 a.m. at S. Raphael’s Church in Hamilton.Next StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
