Meteoric Medarex: Biotechs Go Dot-Com

Stock News: Bristol Slide

Expansions: AcuTech, Physical Acoustics

Expansions: Slide Design, WithumSmith&Brown

Crosstown Moves: CIMserve and e-vue

Deaths

Corrections or additions?

Published in U.S. 1 Newspaper on March 8, 2000. All rights reserved.

Good News for Biotechs: Liposome

While the scientists probe the mysteries of the human

genome, biotech stocks are heating up. Two companies, Liposome and

Medarex, are making news now. Liposome has been bought by Elan Corporation,

Ireland’s biggest drugmaker, at a price estimated at $15.28 per share,

and an additional $2.50 per share if the company’s breast cancer drug,

Evacet, wins approval by the European Union. Medarex had a "follow-on"

public offering and netted $388 million, with the stock rising more

than $20 in the first day (and more than $70 for the week!).

Only three months after it collected $3 million in tax credits by

selling its losses to Public Service Enterprise Group, Liposome announced

the merger with Elan Corporation, the Dublin-based biotechnology company

that specializes in drug-delivery systems. Liposome manufactures and

markets cancer-fighting drugs. The merger, announced this Monday,

March 6, gives Liposome shareholders .3850 of an Elan share for each

share of Liposome common stock. The transaction is valued at $575

million.

Liposome will remain a separate division of Elan, which will use its

European sales-force to market two of the Princeton company’s most

promising drug therapies — AbelcetR, an alternative treatment

for cancer patients, and Evacet, a treatment for breast and other

cancers that was denied approval by the U.S. Food and Drug Administration

in the fall of last year. Liposome will retain its facilities and

300 employees, including 190 workers in Princeton at the headquarters

on Research Way. But CEO Charles Baker is expected to leave.

Although Elan already markets pain-reducing drugs for cancer patients,

the merger signaled the company’s continued move into oncology and

exploration of different drug delivery techniques.

As the name implies, Liposome uses tiny fat droplets to deliver its

anti-cancer drugs, therefore minimizing toxic side effects. One of

its most important drugs, AbelcetR, is a lipid-based formulation of

amphotericin B used to treat severe fungal infections in patients

who reject conventional cancer treatments. That drug alone pulled

in roughly $86.2 million for the company in 1999, making Liposome

one of the few biotechnology companies to make a profit.

On the other side of the Liposome coin, though, Evacet, the drug for

treating breast and other cancers, was rejected by the U.S. Food and

Drug Administration in September, causing Liposome’s shares to fall

56 percent in six months. Following that debacle the company announced

that it was considering buyout offers.

Liposome officials have said the company still believes in Evacet,

and with Elan’s backing, Liposome will now continue to develop Evacet

for markets outside the U.S. If it is approved by the European Union,

Liposome shareholders will get a cash payment from Elan of $98 million.

Following the merger announcement, Elan’s shares fell 1.7 percent

— to 41.3 euros in Dublin — but remain up 45 percent for the

year.

The Liposome Company Inc. (LIPO), 1 Research Way,

Princeton Forrestal Center, Princeton 08540-6619. Charles A. Baker,

chairman and CEO. 609-452-7060; fax, 609-452-1890. Home page: http://www.lipo.com.

Top Of Page
Meteoric Medarex: Biotechs Go Dot-Com

On the heels of being featured in Business Week’s breathless

account of biotech’s resurgence ("Move Over, Dot-Coms. Biotech

is back," in the March 6 issue), Medarex, the State Road-based

biotech, pushed its planned follow-on public offering onto the table.

It priced a public offering of common stock at $172 on Friday. That

day its Nasdaq shares went up to $206 and closed at just over $194.

The underwriters, led by Morgan Stanley Dean Witter, exercised an

overallotment option so the offering totaled 2,399,204 shares and

netted $388 million.

As Business Week points out, this surge is fueled in part by dotcom

profits, which are burning a hole in successful investors’ pockets,

and in part by interest in biotechs from the big pharmas. The biotech

mania may seem eerily like the one in 1990 that lasted just one year

before cratering. The difference is that now these companies finally

have some products ready for market and are beginning to show some

black ink.

Medarex, for instance, has signed deals with 15 companies that want

to use its special mouse, engineered to have a human immune system.

Its competitor, Abgenix, has signed 17 deals. "Even though there

is no clinical proof that the antibodies being developed by Abgenix

and Medarex work better than other kinds," says the article, "investors

are scrambling to grab a piece of the action."

Medarex (MEDX), 707 State Road, Princeton Gateway,

Suite 206, Princeton 08540. Donald L. Drakeman, president. 609-430-2880;

fax, 609-430-2850. Home page: http://www.medarex.com.

Top Of Page
Stock News: Bristol Slide

The stock dropped nearly 10 points after a Newark judge dismissed the company’s patent claim to keep its $1.5 billion cancer drug, Taxol,

out of the hands of genetic drug makers. Ivax Corp. will be able to put its own version of Taxol on the market. In an amazing week, Escalon

tripled in value and Integra, NexMed, and Nycomed all soared. (Excerpt of stock table caption).

Top Of Page
Expansions: AcuTech, Physical Acoustics

AcuTech Consulting Inc., 4301 Route 1 South, Suite

200, Box 255, Monmouth Junction 08852-0255. Larry Aleksandrich, group

manager. 609-750-0788; fax, 609-750-0156. Home page: http://www.acutech-consulting.com.

The consulting firm moved from 116 Village Boulevard to 3,800 square

feet at Princeton Executive Center. It provides consulting, training,

and software services for state and federal process safety and risk

management regulation compliance. It is a value-added reseller of

five software product lines for risk management and process safety.

For instance, Release Rate is a Windows tool that calculates discharge

rates based on accidental releases of stored toxic or flammable materials

from process equipment and piping. Phone and fax are new.

Physical Acoustics Corp., 195 Clarksville Road,

Princeton Junction 08550. Sotirios Vahaviolos Ph.D., president and

CEO. 609-716-4000; fax, 609-716-0706. Home page: http://www.pacndt.com.

The acoustics emission testing firm, which monitors metal fatigue

using sound, has merged with Scanning Systems International, a systems

integrator of PC-based ultrasonic inspection systems. As a result

of the merger, Richard E. Kazares, former president of SSI, has become

general manager of PAC’s new ultrasonic systems division. Formerly

located in Silver Spring, Maryland, SSI is in the process of being

located to PAC’s Princeton Junction Headquarters. Both companies are

now a part of MISTRAS Holdings.

Top Of Page
Expansions: Slide Design, WithumSmith&Brown

Slide Design and Production Inc., 44 South Main

Street, Pennington 08534. Richard Van Fleet, president. 609-737-1123;

fax, 609-737-6345. Home page: http://www.slidedesign.com.

This 10-year-old firm, which specializes in corporate presentations,

is updating itself with a new interactive/web division. The Interactive

Media Group of Slide Design and Production will focus on design, computer

animation, and interactive presentations for corporate websites and

CD-ROMs. It will specialize in interactive training programs, physician

education packages, medical simulations, and video capture.

WithumSmith&Brown, 100 Overlook Center, First Floor,

Princeton 08540. Leonard H. Smith CPA, shareholder in charge. 609-520-1188;

fax, 609-520-9882. Home page: http://www.withum.com.

A Westfield-based CPA firm, Galinkin, Gelinas & Company, has joined

WithumSmith&Brown, the accounting and consulting company.

Also, a North American taxation group has been formed to use resources

of HLB International, a world wide organization of professional accounting

firms. The new group — HLB North America Tax Services Group —

will help international taxation clients in areas such as transfer

pricing, expatriates, hybrids, E-commerce taxation and local issues.

Top Of Page
Crosstown Moves: CIMserve and e-vue

CIMserve (Construction Information Management),

2127 Route 33, Suite B, Hamilton 08690. Vincent A. Trossello PE, owner.

609-584-5455; fax, 609-584-5755. Home page: http://www.constructioninfo.-

com.

The data processing consulting firm has moved from North Main Street

in Cranbury to a building it purchased on Route 33. It provides data

to the construction industry for mid-range IBM systems.

e-vue, 33 Wood Avenue South, Eighth Floor, Iselin

08830. Kenneth Sun, president. 732-590-0102; fax, 732-452-9726.

A spinoff from Sarnoff, e-Vue, has left its parent company and moved

to new facilities in Iselin. The company develops, markets, and distributes

MPEG-4 compliant interactive multimedia technologies.

Top Of Page
Deaths

Myron K. Parker, 46, on January 28. He was a self-employed

commodities trader.

Edward James Folmer on March 3. He sold real estate for

Weidel and chaired Mansions in May 2000 for the Mercer ARC.

The Mercer Oak, circa 300, at Princeton Battlefield on

March 3. The tree had sheltered General Mercer at the Battle of Princeton

on January 3, 1977. In recent years it had been supported by wires

and braces. It fell in a windstorm.

Susanne Marie Guner, 43, on March 4. She had been a strategic

coordinator at Strategic Technology Systems and Base Ten Systems at

1 Electronics Drive.

Corrections or additions?


This page is published by PrincetonInfo.com

— the web site for U.S. 1 Newspaper in Princeton, New Jersey.

Facebook Comments