Tom Gray’s Grand Bank Reprise

HRA’s Fidelity Deal


Crosstown Moves

Leaving Town

">Management Moves


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These articles by Barbara Fox and Peter J. Mladineo were published in U.S. 1 Newspaper on September 9, 1998. All rights reserved.

Just in Time Birth Control

You've heard of Just-in-Time manufacturing, which involves raw materials being shipped to an assembly line to arrive at the exact moment they are needed. Now here is just-in-time contraception.

Gynetics, the Belle Mead-based company (U.S. 1, June 17), has now received its Food and Drug Administration approval for its Preven brand Emergency Contraception Kits, which could be on druggists' shelves by the end of the month. They are being manufactured by Barr Laboratories in upstate New York and marketed by Gynetics.

The Preven kit uses just four light blue pills, two taken as soon as possible after sex, and two taken 12 hours later. Available by doctor's prescription, the pills are supposed to prevent pregnancy when they are taken within three days after a known or suspected birth control failure or after sex without birth control. For information call 888-preven2 or the Princeton University Office of Population Research's hotline 888-not-2-late.

Studies indicate that 98 out of 100 women who use the emergency dosage within three days after unprotected sex or contraceptive failure will not become pregnant. So this kit could prevent half of the 2.7 million unintended pregnancies occur in the United States each year, says Anita Nelson, who teaches obstetrics and gynecology at the University of California at Los Angeles.

"Women may want to discuss, with their doctors, keeping the Preven Kit on hand in case emergency contraception becomes necessary," says Nelson. Nevertheless, in spite of the reported safety of this product, there can be side effects: nausea and/or vomiting that may last from a few hours or up to one or two days.

This is the first time the FDA has approved such a product, says Roderick L. Mackenzie, the 63-year-old CEO and founder of Gynetics Inc. Doctors and many laypeople have long known that high-dose treatment with estrogen and progestin is effective in preventing pregnancy after sex. Yet until now, if you asked your doctor about this method of after-the-fact contraception, he or she was prohibited by FDA regulations from telling you about it. That would be "off-label" usage, which means using a product for purposes other than those for which the FDA approved the drug, and it's against the law.

Mackenzie emphasizes that his emergency contraceptive is no abortion pill, like the controversial French compound known as RU-486. Studies indicate that Preven prevents or delays ovulation, perhaps by preventing the fertilization of an egg that has been released from the ovary, or by making changes in the lining of the uterus to prevent implementation of a fertilized egg. In either scenario, the pill is working before pregnancy begins, he says.

"This is a contraceptive that prevents pregnancy. It will not interrupt a pregnancy," he notes. "If a woman is already pregnant, using this drug won't hurt the fetus, and the pregnancy will carry on. It's not abortion; it's birth control"

Mackenzie spent much of his career working for Ortho, the J&J subsidiary best known for its birth control pill, and was president of Ortho Worldwide. In 1980 he had a consulting practice but in 1984 founded GynoPharma, which brought the controversial copper intrauterine device (IUD) back to the American market. His reintroduction of the IUD in 1988 attracted the attention of J&J's McNeill division, which bought the company in 1995.

Rarely if ever does the FDA actually request that a drug be submitted for approval, but that is what happened here. "I've been around for a while, and have become modestly well known in the field of women's reproductive medicine," Mackenzie explains.

According to Mackenzie, the FDA realizes that unwanted pregnancies are a huge problem in the United States, and a look at the statistics shows why. The United States has the highest rate of unwanted and unplanned pregnancies in the developed world and by far the highest rate of abortion.

If things work out as Mackenzie plans, the emergency birth control pill should be a $100 million product annually. Look for the IPO sometime in late 1999 or early 2000. "Although it may sound corny," Mackenzie has said, "women's health is not only good financially, but also enormously satisfying emotionally. We're doing something that matters."

Gynetics, 105 Raider Boulevard, Suite 203, Belle Mead 08502. Roderick Mackenzie, chairman and CEO. 908-359-2429; fax, 908-359-6660.

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Tom Gray's Grand Bank Reprise

In January, shortly before agreeing to sell Carnegie Bank to Sovereign Bank, the directors of Carnegie Bancorp decided to invest in a bank in Palm Beach County, Florida. Thomas Gray, Mark Wolters, and Richard Rosa, purchased Admiralty Bank, a $45 million community bank with three branches in Palm Beach Gardens. Bruce Mahon, Carnegie's former chairman, has the same post at Admiralty.

But overseeing the funds of the vast post-retirement community in South Florida has apparently not been enough for Gray and crew, and now they are back in Princeton, hurrying to open their second bank start-up, Grand Bank, National Association.

This bank will initially be housed in a 7,000 square feet at 4275 Route 1 South, across from Dow Jones in Monmouth Junction. The 28-year-old, two-story building is owned by Bacchus Associates. Reports say that the directors intend to totally renovate the building in time for an early 1999 opening.

This news comes barely a month after the sale of Carnegie Bank for $94 million in Sovereign stock. This is a mite surprising for a group that appeared to be taking a South Florida reprieve after closing a deal that was ruled a coup by some -- with Carnegie selling for 20.2 its project earnings and 282 percent of its tangible book value. But last week Wolters told reporters that, at least for he and Gray, "it was time to brush the sand off our feet and jump back in."

Gray, 50, will be the chairman, and Wolters, 39, formerly executive vice president of Carnegie Bank, will be president and CEO. Rosa, the CFO for Carnegie Bank, will again be the CFO. Peter Pantages of McKay Real Estate Group and Theodore Dolci Jr. will also be directors.

The directors hope to sell 60 shares at $115,000 to raise $6.9 million, in contrast to the minimum of $4 million required by law. Its clients would be small-to-medium-size businesses in Kingston, Plainsboro, and South Brunswick.

Grand Bank will join two other new banks, Village Bank, a thrift bank that will open on Quakerbridge Road, and Hopewell Valley Community Bank, to be a commercial bank on Route 31.

Grand Bank, National Association, 4275 Route 1, Monmouth Junction 08852. 609-586-8604.

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HRA's Fidelity Deal

Initially David Fried wanted to be a lawyer. Now Fried is up to his elbows in law, although from a different perspective. Fried is the president of Human Resources Alternatives Inc., a professional employer organization (PEO) that recently moved from 13 Roszel Road, where it still maintains an affiliate, HRA Staffing, to Burlington.

But here's the big news: HRA recently sold a minority interest of the company to HR Logic, a Boston-based PEO owned by Fidelity Ventures, the venture capital arm of Fidelity Investments, and Patricof & Co. Ventures. The two companies will remain separate entities and will pool some of their resources. "We're really excited about the relationship," Fried says. "Right now Fidelity is actually supporting our systems. We're hoping to soon be able to offer Fidelity's 401(k) products. The resources that they bring to bear are tremendous."

PEOs are essentially outsourced human resource departments that small to medium-size companies pay to take care of various HR functions, such as benefits or sexual harassment policies -- thorny areas of New Jersey's employment law.

Fried characterizes HRA as a "high-end" PEO specializing in payroll, 401(k), health insurance, and workers compensation. The average client for HRA has between 25 to 50 employees and is just under the threshold for budgeting an HR department.

"We have a lot of lawyers under contract because they understand that their time is their money," says Fried. "They don't want to spend 20 hours a week doing administrative services when they can spend 20 hours a week billing at $100, $200 an hour. I think that's the other draw, there's a real savings of time. Our turnover on clients is almost nonexistent."

A political science major from Glassboro State (Class of 1989), Fried started selling human resources services in college, and subsequently saw the nascent industry take off. "When I came out of college I had to go into it," he says. "It was the end of the '80s when the market was doing very well."

After consulting stints with Presbyterian Homes of New Jersey and Sunrise Assisted Living, Fried, the son of Renee Dale, the founder of Force II Personnel, followed his mother's lead and started his own business. "I literally leveraged everything I had. I put most of the company on credit cards and off I went."

Now the firm has 30 employees, services more than 200 companies with 3,000 employees, and has offices in King of Prussia, Burlington, and Princeton. Fried hopes to open another office in Manhattan in the next few months as well.

Fidelity was not the first company to show interest. "We had quite a few suitors, primarily all public companies," he says. "We chose Fidelity because of its high-end, high-touch services. It supports 2 million investors, and over $800 billion under management. Obviously this is something that they're very good at. And our goal is to really take this to an IPO in the next 36 months."

"It will help us in a few ways, one having the name recognition of Fidelity, the other having the resources the cash infusion will allow. It will also streamline us through the northeast. We hope to become the premiere player from Boston down to New Jersey."

-- Peter J. Mladineo

Human Resources Alternatives Inc. (HRA), 6 Terry Lane, Burlington. David Fried, president. 609-387-8828; Home page:

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Allegra Print & Imaging, 3371 Route 1, Mercer Mall, Unit 7-C, Lawrenceville 08648. Ellis Galimidi, president. 609-452-8111; fax, 609-452-2828. E-mail: Home page:

Allegra Print & Imaging, 3 Nami Lane, Lawrenceville 08648. 609-631-7875; fax, 609-631-0185. E-mail: Home page:

Allegra now has a production facility at Nami Lane with four presses, including a Heidelberg Quickmaster DI, a four-color digital press. Meanwhile the Mercer Mall store does typesetting, graphic work, and desktop publishing, as well as high-speed copying and binding. Ellis Galimidi founded the 20-person firm in 1990 and his brother Maurice is the manager of the mall store.

Coldwell Banker/ Boyer Realty, 10 Nassau Street, Third Floor, Princeton 08542. Pat Schoudel, manager. 609-688-1350; fax, 609-252-0674.

To establish a presence in commercial real estate in the area, Coldwell Banker has bought the commercial real estate firm, J.T. Boyer Realty. Boyer is known for its focus on properties in a 15-mile radius of Princeton -- office buildings, retail and commercial space, commercial land, office condominiums, plus some associated residential properties. Tom Boyer and his associates, Lee Whitney and Dixie Curtice, moved from Witherspoon Street to the third floor at 10 Nassau Street.

"We are looking forward to this association with Coldwell Banker as a very positive business move," says Boyer. "We will retain our knowledge of the Princeton market and will be able to use the very strong inter-office referral network in the commercial market that Coldwell Banker has to offer."

Boyer has retained his firm, Property Management Services LLC, at the original location, 145 Witherspoon Street, as a separate entity. Phone: 609-921-1806; fax, 609-921-1432.

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Crosstown Moves

Princeton Forrestal Village, 2 Village Boulevard, Princeton Forrestal Village 08540. Dennis Deehan, senior property manager. 609-799-7400; fax, 609-799-0245. Home page:

The management office has moved from 136-200 Main Street.

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Leaving Town

MetLife Brokerage, 214 Carnegie Center, Suite 301, Princeton 08540. Robert Rockell, president. 609-243-7100; fax, 609-243-0089.

Indicative of the growing "one-stop shopping" model for financial services, Metlife Brokerage has been subsumed under MetLife's individual business division in Bridgewater. It moved from 19,000 square feet at 214 Carnegie Center to 440 U.S. Route 22 East, Suite 301, Bridgewater, 08807. The new toll-free number 800-543-3287.

The 100-employee Carnegie Center brokerage, once headed by Robert W. Powell and Russ Gramlich, moved to the third floor of Carnegie 212 in 1992. The new brokerage bosses are Bob Rockell and John Kozakis.

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">Management Moves

Lenox Inc., Lenox Products Group, 100 Lenox Drive, Lawrenceville 08648-2394. 609-896-2800; fax, 609-895-0139.

Richard Stearns, the 47-year-old chief executive officer, has turned his company Jaguar back to Lenox and left his post to raise money for Christian relief as the president of World Vision, the largest such organization in the world. Stearns has had marketing positions at Gillette, Parker Brothers, and Franklin Mint.

Summit Bancorp, 301 Carnegie Center, CN 53166, Princeton 08543. 609-987-3200; fax, 609-987-3331. Home page:

Kevin Gillen is the new president of the central region of Summit Bank and will supervise 76 branches in Mercer, Morris, Somerset, Hunterdon, and Warren counties. An alumnus of Lycoming College in Pennsylvania, he joined the bank in 1980. He will be based in Somerset.

Northrop Grumman Corporation, 103 Carnegie Center, Suite 305, Princeton 08540. Alan Todd, manager accelerator design. 609-520-1800; fax, 609-520-1810. E-mail: Home page: http://www.grump.-com.

The Advanced Energy Systems Group moved out of 2,800 square feet in 103 Carnegie Center and is spinning off from Northrop Grumman. Alan Todd, the manager of accelerator design, says the group is in the process of working out the details, and will reopen in the Princeton area shortly. The Advanced Energy Systems Group specializes in accelerator and energy technology, such as electron accelerator systems, free electron lasers, and plasma physics.

Rider University, 2083 Lawrenceville Road, Lawrenceville 08648. 609-896-5000; fax, 609-895-5681. Home page:

Richard D. Chamberlain has been appointed vice president for development and university relations, succeeding Nancy O. Gray, who now has a similar vice presidency at Princeton Theological Seminary. Chamberlain has had positions at Cook Children's Medical Center in Fort Worth, University of Texas Southwestern Medical Center, and at Colorado College, where he raised $49.9 million in five years. An Oberlin alumnus, he has also worked at UCLA, Brown, and Oberlin.

University of Medicine and Dentistry of New Jersey -- Robert Wood Johnson Medical School, 675 Hoes Lane, Piscataway 08854. Harold L. Paz MD, dean. 732-235-7600; fax, 732-235-4006.

Bernard D. Goldstein has been appointed acting dean of the newly established School of Public Health. He is founding director of the Environmental and Occupational Health Sciences Institute. A new master's degree in public health will be offered in Newark in cooperation with Rutgers and New Jersey Institute of Technology.

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Margaret D. Wilson, 59, on August 27. She was Princeton University's director of graduate studies and acting chair of the philosophy department.

Harry R. Wolfe, 49, on August 31. He worked at IMO Industries, De Laval Delroyd Division.

Mary C. White, 37, on September 1. She had been an assistant to podiatric surgeon William A. Foote.

John T. Garboski Jr. 60, on September 1. He was a technical supervisor at Princeton Plasma Physics Laboratory.

James T. Kassel Jr., 34, in the Swissair Flight 111 crash on September 2. A Medford Lakes resident, he was senior manager of corporate meeting planning services at Bristol-Myers Squibb on Route 206.

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