Company Moves: ORC Buys; PLS Sells
Princeton Softech Acquires SELECT
Corrections or additions?
These articles were published in U.S. 1 Newspaper on June 2, 1999.
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Life in the Fast Lane: Compugen
Scientists on the cusp of this century who are trying
to develop therapies from genomic and protein sequences can be likened
to the gold miners of the 19th century. They each must sift through
the mud and water for countless hours before finding the gold. For
the ’49ers, it was nuggets of metal; for scientists it is useful sequences
of DNA and proteins.
But unlike the miners, today’s gold diggers have the tool of bioinformatics
to help them shovel, sift, and determine what’s gold.
One company with a high-tech sieve is Israel’s Compugen, which has
recently moved into the Exit 8A area to set up a secondary research
and development home. Compugen’s use of bioinformatics is the sieve
with the ability to analyze gene sequences thousands-folds faster
than through traditional laboratory screening and other analysis methods
and products.
“Bioinformatics is the application of computer technology in order
to model and understand the molecular mechanisms of life,” says
Simchon Faigler, one of the founders of Compugen and the vice president
of technology. He sees Compugen’s place in the pharmaceutical field
as using bioinformatics to convert the ever-increasing pool of genetic
data from raw material into meaningful information. The ultimate goal
is to pave the way for cures and therapies.
“Our customers are looking for genes that have some effect on
specific pathologies or diseases,” says Faigler. The key to Compugen’s
speed is algorithms, or mathematical formulas, that dictate how the
computer hunts for similarities between sequences and how it identifies
a match. “Sequences are small pieces of a very large puzzle,”
says Faigler. “Our program tries to assemble them together to
build up a bigger picture.”
The algorithms Compugen has embedded in its products increase the
speed at which meaningful information can be extracted from genomic
and protein sequence data, accelerating the discovery of new drug
targets. By using its own technology, Compugen researchers have been
able to identify over 3,000 genes that were previously unknown. They
used standard experimental methods to estimate that more than 90 percent
of these new gene forms (more than 2,700 genes) are real — they
are in present in human cells.
The company has reached significant milestones in its short history.
Last year Compugen won a contract from the U.S. Patent and Trademark
Office to supply software and hardware for examining biological patent
applications and accelerating the approval process. Compugen’s products
will analyze the extensive protein and DNA sequence data being submitted
in the patent applications.
Another coup happened last October, when the company signed a three
year, multimillion dollar collaboration with Parke-Davis for the LEADS
drug target discovery platform. This platform addresses two problems
facing researchers today. “It takes all known data and clusters
this data together, solving the puzzle of how to build genes out of
the fractional data available right now,” says Faigler. “Then,
out of these genes that we built, we can fish out those that might
be useful to the life science or the pharmaceutical researchers.”
Compugen has also finished its fourth round of financing. “Each
round was bigger,” says Faigler. Far from the seed capital of
$100,000 per year Compugen received in 1993, the end of 1998 saw the
close of a $15 million equity private placement. Clal Biotechnologies
Industries, one of Israel’s investment firms, led the financing. Other
financiers of this round include Hapoalim Investments, Ampal, Evergreen
Funds, and Cayrex Private Equity.
When the company began, its one financial supporter was the Israeli
government, which granted seed money and a place to work — in
the Negev desert town of Sde-Boker. The company recently moved to
the metropolitan Tel Aviv. And despite the office in New Jersey, Compugen
has no plans to sell itself off to American bidders like some Israeli
companies are doing. “I don’t think we’ll even consider it,”
says Faigler.
All the money made by the company is being invested back into research
and development. It has not recorded any profits in six years, and
a rough estimate by Faigler predicts five more profitless years.
Compugen and the field of bioinformatics have grown with the expectation
that new drugs and therapies will be derived from information gleaned
from the blueprint of the human genome. With only a fraction of the
100,000 human genes already discovered, the database of information
is massive and the challenge is picking out the useful information
from the junk.
The company’s first product — the Bioaccelerator — was a piece
of specialized hardware that attached to a workstation and could accelerate
certain analysis software by three orders of magnitude. Since then
the company has developed the BioXL which is even faster than the
Bioaccelerator.
Customers came soon after the products were offered. Merck bought
the first Compugen machine (slightly larger than a personal computer)
in 1994 and has since bought two more, at about $200,000 each.
In 1995 the company began to market GenCore software, the first sequence
analysis package designed for high throughput environments — where
thousands of genes and other biological sequences are analyzed daily.
The software, packaged with the company accelerators, has become the
de facto standard for high throughput sequence analysis, says Faigler.
Compugen is selling the acceleration hardware and software products
to an impressive array of big pharmas and smaller firms. In addition
to Parke Davis and Merck, the clients include SmithKline Beecham,
Amgen, Eli Lilly, Bayer, Wyeth Ayerst, Human Genome Sciences, Incyte
Pharmaceuticals, and Millennium Pharmaceuticals. Collaborators include
Parke-Davis, EBI (in the United Kingdom), the Sanger Centre (UK),
and the Weizmann Institute in Israel.
As far as competition goes, no one comes close to providing what Compugen
does, says Faigler. But to evaluate his claim one must step back to
look at the contenders in the various contests:
In one arena the government-funded Human Genome Project (HGP)is battling it out with entrepreneur Craig Venter of P.E. Celera totry to sequence the complete human DNA located in the 23 chromosomes.Scientists believe there are between 100,000 and 150,000 human genesembedded within those chromosomes.”They are trying to measure the sequences at the DNA level, thehome of the chromosomes, trying to extract the DNA code from the 23pairs of chromosomes present in every human cell,” says Faigler.”After they finish doing it all the raw data of the human genomewill be known.” The government-funded method has the reputationof being more accurate but significantly slower. Scientists claimVenter’s method is risky, but if he succeeds he will have the databefore it enters the public domain.In another arena the Institute of Genomic Research (TIGR) inRockville, Maryland, and NIH’s National Center for Biotechnology Informationhave built gene databases out of available data. The NIH databaseis called Unigene.A quick tutorial: DNA (in the nucleus of the cell) is the templatethat generates the RNA. The RNAs, in turn, are translated into matureRNAs (MRNAs) which in turn are translated into proteins, which dothe actual work. Random short samples of MRNA (very close to the proteinsthemselves) are called ESTs or expressed sequence tags. These ESTsare the most popular subject for current research.Faigler says that TIGR and NCBI are using only the ESTs for theirinput data. In contrast, Compugen works with almost all of the availablepublic data: ESTs, MRNAs, and the actual DNA. “We are taking allthe known data including the genomic data from the HGP project andanalyzing it together,” says Faigler.Compugen’s analysis is superior, Faigler says, “because the qualityand level of pharmaceutically relevant information that you can extractfrom this data is higher than the raw data itself.” He also saysCompugen has better modeling of the biological processes that generatethe data. “We can reverse-build the pieces of the puzzle and getmore accurate results.””We build genes out of this data,” says Faigler, “andgenes and the function of genes are what people are looking for.”Sometimes fate brings people together and sometimesit’s mandated military service. The latter was the case for the threefounders of Compugen, who formed their company in 1993 after eachhad finished serving for the Israeli army. Eli Mintz, Amir Natan,and Simchon Faigler took their studies of math, science and computersinto the field of bioinformatics.Mintz, the CEO and president, developed algorithms and wrote and managedsoftware for Israel Aircraft Industries’ Mabat subsidiary. Natan,VP of software, developed algorithms and signal processing softwareat Rafael, the National Armaments Development Authority. Both arestill in Israel.Simchon Faigler moved to the U.S. in September. Faigler, along withthe others, studied at the Hebrew University where he earned a BAin physics and mathematics. He spent the rest of his time there inthe communications division, in development of rapid hardware forsmart communication systems. After a year as an independent consultantfor the defense industry, he joined his army colleagues to start acompany outside the area of defense. He currently lives in Edisonwith his wife, Ruth, an accountant, and their son and daughter.The Israeli company is closing its first U.S. branch, in Woburn, justoutside Boston. Sales and customer support staff from that officewill move to Exit 8A, along with new hires and employees from Russiaand Israel. In two months the Exit 8A office will have 13 employers;it will expand its R&D efforts and continue to support partners andcustomers in the area. Compugen has grown to nearly 100 employeesworldwide.”Our object in the future is to concentrate on big customers –the 50 large pharmaceuticals,” says Faigler. “New Jersey isa very good place to be.”– Monika J. GuendnerCompugen, 7 Centre Drive, Suite 7, Jamesburg 08831.Simchon Faigler, VP, technology. 609-655-5105; fax, 609-655-5114.Home page: https://www.cgen.com.Millstone, Not!Enough discussion, the Department of Transportationis saying, about the Millstone Bypass. With or without the supportof Princeton Township and Borough, we’re going to build it. “Afterworking close to 20 years on this project we need to move forward.Further analysis would not help the motorists on Route 1,” saysDOT spokesman John Dourgarian, after a meeting last week on the $50million project. “There is rarely a transportation project thathas unanimous support, but it was very clear that West Windsor, thePrinceton Chamber, Mercer County, Princeton University, Eden Institute,and Sarnoff are all in strong support.””Based on the fact that the project is entirely in WestWindsor, we should advance this project as fast we possibly can,”says Dourgarian.The process: a public information session this summer, environmentalassessment by fall, a public hearing in the fall, environmental reviewby the Federal Highway Administration, final design, and propertyacquisition. “We feel we can start construction in 2002 and completeit in two years.”What will happen: A cloverleaf will be built at Route 1 and Harrison,eliminating the traffic signals at Harrison and Washington and FisherPlace. Eden will move nearby to new quarters built and funded by PrincetonUniversity. The bypass road will start at the railroad bridge in PrincetonJunction, proceed through Sarnoff property and over the cloverleaf.Motorists can either peel off at Harrison or continue along the canalto turn right on Washington Road.Opponents of the original plan can claim minor victories: The opportunityto enter and leave Princeton under the archway of Washington Road’sdramatic elms will be preserved, because Washington Road will remainopen for right turns on and off Route 1.The bypass road was downgraded from 45 or 50 miles per hour to 40miles per hour and will be posted at 35. Instead of coming within350 feet from the Delaware & Raritan Canal, the closest point nowis 500 feet. A signal will disperse traffic at the point where thebypass road intersects Washington Road.What won’t happen: The Washington Road circle will not be replacedby an underpass, nor will the bypass be extended from Washington Roadto Alexander Street.– Barbara FoxTop Of PageCompany Moves: ORC Buys; PLS SellsOpinion Research Corporation International (ORCI),3206 Route 206 and Orchard Road, Box 183, Princeton 08542-0183. JohnShort, chairman and CEO. 908-281-5100; fax, 908-281-5105.The company announced the acquisition of Macro InternationalCorp., another market research firm, for $28 million on Friday, May28. This will nearly double the size of the 61 year-old firm, andplace it among the top 10 market research companies in the US. Whilemost Opinion Research clients are Fortune 500 corporations, most ofMacro’s business comes from government contracts. The acquisitionwill mean Opinion Research will have offices in Europe, Latin America,Asia and Africa, as well as the US.The expansion comes on the heels of former CEO Michael Cooper’s resignationin February. John F. Short, former chief financial officer, is nowboth chairman and CEO.Princeton Learning Systems Inc., 707 State Road,Suite 212, Princeton 08540. William J. Healy, president. 609-924-2882;fax, 609-924-5090. Home page: https://www.fsu.org.Yipinet, a California-based Internet company, has boughtPrinceton Learning Systems, and the two companies will merger theironline learning systems. Princeton Learning Systems was founded fouryears ago (U.S. 1, November 25, 1998, and March 24, 1999) to design,implement, and manage Internet and Intranet-based systems for training,testing and regulatory compliance. Its core software product providingaccess testing and reporting via the web, and its chief virtual productis Financial Services University.Yipinet is 18 months old, funded to the tune of $18.5 million, andplans to go public this year. The Princeton branch of the companywill stay on State Road and retain its employees; William Healy willstay with the new company and be president of PLS Services, and StevenHaase will be vice president of sales and financial services.Top Of PagePrinceton Softech Acquires SELECTPrinceton Softech (CHRZ), 1060 State Road, Princeton08542-1423. Joseph A. Allegra, president. 609-497-0205; fax, 609-497-0302.Home page: https://www.princetonsoftec.com.Princeton Softech has bought SELECT Software Tools PLC,which has a product line that meshes with Princeton Softech’s eDatadistribution and management technologies — Object Oriented, Component-BasedDevelopment products for developing and implementing Java and C++eBusiness applications.Princeton Softech has bought all the assets of SELECT, which willcontinue its R&D activities at its current home office in Cheltenham,England. Princeton Softech, a subsidiary of Computer Horizons Corp.,has 110 employees on State Road. SELECT is also a public company (Nasdaq:SLCTY).Top Of PageNew in TownTRISH USA Corp., 379 Princeton-Hightstown Road,Building 1, Suite 3, East Windsor 08520. Shandy Amin, CEO. 609-371-5111.Home page: https://www.trishusa.com.TRISH USA Corp, a developer of workflow management and customer caresoftware, has opened an office on Princeton-Hightstown Road. The 10-yearold company moved from the Secaucus area. TRISH also has an officein Brazil, where the majority of its clients are located.The six-person staff on Princeton-Hightstown Road develops and customizessoftware for clients including Lucent and Embertel.Alpha Capital Corp., 379 Princeton-Hightstown Road,Building 3, East Windsor 08520. Ragu Patel, managing director. 609-426-9002;fax, 609-426-9069.The Alpha Group, a boutique investment banking firm that specializesin financial transactions for businesses with revenues between $100,000and $25 million, has opened its third office at 379 Princeton-HightstownRoad. The company also has locations in Woodbridge and Virginia.Alpha Capital Corp., as the new branch is called, will focus on theemerging technology sector companies, assisting them in fundraising,business planning and preparation for IPO.Top Of PageCrosstown MovesNational Association of Scholars, 221 WitherspoonStreet, Princeton 08540. Stephen Balch, president. 609-683-7878; fax,609-683-0316. Home page: https://www.nas.org.The National Association of Scholars, founded in 1987, was scheduledto move its headquarters from 575 Ewing Street to 221 WitherspoonStreet on Tuesday, June 1. Phone and fax numbers are the same.King Interests Inc., 506 Carnegie Center, Princeton08540. William F. King III, president. 609-951-6900; fax, 609-951-6935.The real estate development firm moved from 504 Carnegie Center.K&L Labs, 33 Wall Street, Princeton 08540. LawrenceFridkis, founder. 609-924-6880; fax, 609-924-6890. Home page: https://www.kllabs.com.K&L Labs, a pre-press and offset printing firm, moved from Route 571to 33 Wall Street. Phone and fax numbers are new.Top Of PageContracts AwardedPharmaSeq Inc., 11 Deer Park Drive, Princeton CorporateCenter, Suite 204, Monmouth Junction 08852. Wlodek Mandecki, presidentand CEO. 732-355-0100; fax, 732-635-0428. Home page: https://www.pharmaseq.com.PharmaSeq Inc. has signed an agreement with Sarnoff Corporation forSarnoff to design and make miniature micro-transponders that willtransmit the identity of DNA sequences coded into the transponders.It also announced a $250,000 investment by the NJ Commission on Scienceand Technology to commercialize light-powered micro-transponders ina radio-frequency identification system.The Women’s Law Project, 1908 Riverside Drive,Trenton 08618. H. Joan Pennington, executive director. 609-394-1506;fax, 609-394-2574.The nonprofit organization providing sliding scale and pro bono legalservices has received a grant of $236,998 from the Office of JusticePrograms in the U.S. Department of Justice to expand its servicesfor domestic violence victims. The funds will be used to train andappoint attorneys specializing in domestic violence in Mercer, Burlington,and Ocean counties. Women’s Law Project (WLP) was founded in 1997,under the aegis of the National Center for Protective Parents Inc.Hailing the grant as an endorsement of WLP’s mission to secure qualitylegal representation for domestic violence victims Pennington says,”These women have lost their children, lost their property, andeven lost their safety by going into court unrepresented or representingthemselves.” WLP’s attorneys work with the shelter in Mercer Countyoperated by Womanspace and the shelters in Burlington and Ocean countiesoperated by Providence House.Top Of PageManagement MovesThe Windrows at Princeton Forrestal, 2 Azalea Court,Forrestal Village, Princeton 08540. Paul M. Lewis, executive director.609-514-0001; fax, 609-514-0005.Paul M. Lewis is now executive director at this retirement communitydeveloped by CareMatrix Corporation of Needham, Massachusetts. Itincludes Chancellor Park (an assisted living community), ForrestalSkilled Nursing and Rehabilitation Center, and independent townhouses.Lewis went to the University of Vermont.Consultation on Church Union, 258 Wall Street,Princeton 08540. Lew Lancaster, general secretary. 609-921-7866; fax,609-921-0471.Consultation on Church Union, a 30-year-old organization promotinginterdenominational unity among nine member churches, closed its officeon Wall Street Friday, May 28. Daniell Hamby, the general secretary,is taking over the parish at St. Andrew’s Episcopal church in Yardley.The organization is looking for a new executive. Lew Lancaster, aresident of Louisville, Kentucky, who has been with the Christianministry for 40 years, will act as general secretary in the interim.Top Of PageDeathsMary E. DeCore, 91, on May 22. She and her husband ownedJack Honore’s Barber Shop on Palmer Square.Ruth Moment Cortelyou, 92, on May 23. In Franklin sheestablished and ran the Farm School and Camp Rogapeki-J.B. Bud Chavooshian, 77, on May 27. He was assistant commissionerof the Department of Community Affairs and a professor at Rutgers.Joyce M. Cipelli, 61, on May 27. She was a waitress atP.J.’s Pancake House for 30 years.Corrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
