New in Town: Crick Cruikshank

Second Spinoff for Medarex

Nyce Case Update

Baker Expands

Fleet Sold

Stock News


Corrections or additions?

These articles by Barbara Fox were prepared for the April 14, 2004

issue of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane

As a result of a very big contract with CIGNA HealthCare for

custom-designed employee health care plans, CareGain will be expanding

from 4,000 square feet at Center Point Industrial Park. No location

has been announced, but the requirement is for 10,000 to 15,000 square


Two years ago CareGain, a pioneer in the area of healthcare savings

accounts, had just four employees (U.S. 1, February 7, 2002). Now the

company has 30 employees and expects to hire 75 or 100 people,

including Java programmers and customer service people with a

technical background.

CareGain is building its growth on employer desire to drive down

health care costs and on last December’s legislation creating health

care savings accounts (HSAs) for Medicare.

CareGain’s products will help enable CIGNA to implement a new suite of

products bearing the slogan "CIGNATURE – Your plan. Your choice." In

this suite will be consumer-driven health plan options and consumer

outreach and education programs that can help manage costs and improve

health care outcomes.

The suite will be available for plans that start after January 1,

2005. "It will free employers from traditional industry approaches

that tie plan features like medical management or network size to

specific products," says a press release. "Instead, employers can now

‘mix and match’ features to build a custom plan aligned with their

budget and employee preferences.

CareGain’s Defined-Care platform can customize consumer-directed

health plans. Employers can incent employees to make certain decisions

that may increase the value of their health care benefits, either

through an HRA or an HSA. An HRA is a health care reimbursement

arrangement provided by the employer that allows monies unused in one

year to be rolled over into the employee’s account for the next year.

The HSA is the health care saving account provided for by December’s

Medicare legislation. Unlike the HRA, employees in an HSA can

contribute to the account along with the employer and their monies are

tax deferred.

CIGNA’s CIGNATURE suite allows employers to select their own options

in five areas: clinical programs, benefit plan design, network size,

use of primary care physician, and funding type.

"Consumer-directed healthcare is not a single product," says Amit K.

Gupta, MD, president & COO of CareGain. "It is an evolving strategy.

CIGNA’s decision to advance this strategy is a reflection of the

company’s commitment to contain employer costs and engage consumers

from multiple directions – from introducing infrastructure and

operational efficiencies to providing plans that focus on population

health management and behavior modification through incentive-based

plan designs."

"The marketplace is ready for a new way of thinking about and building

benefits plans," says John Coyle, health care senior vice president at

CIGNA. "CIGNATURE plans eclipse products that restrict choice based on

network and benefits, and address the market dynamics that employers

face today.

"Employers want to control plan costs without compromising care and

quality. And they recognize that merely having employees pay an

ever-larger portion of the health care bill is a short-term, rather

than a sustainable, solution to managing costs," says Coyle. "At the

same time, they want to offer greater consumer choice, help employees

to become more informed about health care, and improve employee

understanding of how their choices impact costs. Our new portfolio

gives them the means to achieve all these objectives."

– Barbara Fox

CareGain Inc., 3A South Middlesex Avenue, Center Point

Industrial Park, Monroe Township 08831. David J. Lenihan, chairman and

CEO. 609-409-3666; fax, 609-409-3671. Home page:

Top Of Page
New in Town: Crick Cruikshank

Four weeks ago Jamison Eaton & Wood expanded from Chatham and opened

an office at the corner of Alexander Road and Vaughn Drive, Metro

Office Center III. Ernest "Crick" Cruikshank, senior vice president

and chief investment officer, is in charge. Founded in 1972, Jamison

Eaton & Wood is an independent investment management firm with

institutional and individual clients.

Right now just three people occupy 2,400 square feet, but Cruikshank

plans to hire eight people by the end of the year – experienced

portfolio managers and portfolio administrators. Realtor Gerard

Fennelly is his neighbor and, says Cruikshank, "Jerry was

extraordinarily helpful in helping us finding our space." Patrick

Luzzi of Advance Realty Group, representing the landlord, says that

the building is now 100 percent leased.

Cruikshank has been with this firm since 1988. A native of Chatham, he

graduated from Princeton University in 1966 and then began working on

Wall Street. In 1976 he joined Salomon Brothers, first in Atlanta and

then in Manhattan, where he was in charge of the national hiring and

training programs. Then he moved to the municipal group working with

hedge funds, mutual funds, insurance companies and bank portfolios. A

Hopewell resident since 1984, Cruikshank continues his undergraduate

interest, rowing, and owns a single scull. He has a daughter who heads

marketing for Valentino in Manhattan; a son who is working in real

estate in Georgia, and two children in college, one getting an MBA at

Boston College and the other a senior at Brown.

Cruikshank has recruited Edward "Ted" Bromley Jr. to join him. A 1958

graduate of Princeton University with an MBA from Harvard, Bromley had

most recently been senior vice president at United States Trust

Company. He had also been a partner at Delafield, Harvey Tabell

(bought by U.S. Trust in 1992), and had worked at Stein Roe & Farnham

and Butcher and Sherrerd.

JE&W seeks individual as well as institutional clients, assuming the

individuals have a portfolio in excess than $1 million. "We are

committed to a high level of personal service," says Cruikshank. As

institutions get larger, through mergers, the infrastructure can

sometimes get in the way. In contrast a small institution, he says,

has the advantage of being able to give each client personal contact

with a senior investment manager. "We have been focused in northern

New Jersey," Cruikshank says, "but we have clients scattered

throughout the south."

Cruikshank’s particular responsibilities at JE&W include fixed income

strategy and tactics. "When I joined JE&W it was an opportunity for me

to step in and run the fixed income business for them," he says. He

manages the largest pools of fixed income money for both taxable and

tax-exempt clients. "Part of our business is acting as a sole

investment advisor to a large southeast public pension fund, a $15

billion pool of funds. For a small investment manager we do think we

have a particular capability within the bond arena."

"Whatever the asset class, you have to have discipline and stick to

your principles," he advises. "It’s a lot of hard work. You have to

process a lot of information and formulate it into a reasonable sense

of assumptions and scenarios."

As an art and French major in the European civilization program at

Princeton, Cruikshank defends the liberal arts degree: "You have to

process a lot of information and to develop critical thinking, and any

undergraduate degree should develop those skills."

Jamison Eaton & Wood Inc., 821 Alexander Road, Suite 120,

Princeton 08540. 609-945-1400; fax, 609-945-1410. Home page:

Top Of Page
Second Spinoff for Medarex

Medarex is spinning off its second company, Celldex Therapeutics Inc.

Celldex filed on Friday, April 9, for an initial public offering of up

to $50 million in common stock. The first spinoff for Medarex was

Genmab, founded in 1999. Medarex will own about three-fourths of

Celldex’s outstanding common stock.

No information is available about the number or the price of the

shares, and no date for the offering has been set, but the $50 million

would go for clinical trials and commercialization of the company’s

product candidates and to expand the R&D programs. Monies will also be

used to pay whatever license fees are owed to Medarex, to acquire or

invest in businesses, products or technologies, or to fund working

capital. Janney Montgomery Scott LLC will be the underwriter, and if

and when the IPO goes through, stock would trade on Nasdaq as CDEX.

Don Drakeman founded the Medarex at Dartmouth in 1987 and moved it to

20 Nassau Street in 1989. The firm went public in 1991 and bought a

genetically perfected mouse in 1997. Now the UltiMAb Human Antibody

Development System, develops monoclonal antibody-based therapeutics

for cancer, inflammation, autoimmune, and infectious diseases. The

headquarters is at Princeton Gateway at 707 State Road, and it has a

multi-product Phase III manufacturing laboratory in Annandale. It

trades on Nasdaq as MEDX.

With Lisa Drakeman as CEO, Genmab is expanding at its North American

Headquarters at 457 North Harrison Street and trades on the Copenhagen

stock exchange as GEN. It works to create and develop human antibodies

for the treatment of life threatening and debilitating diseases


Celldex is a development-stage biotechnology company that focuses on

R&D and commercialization of therapeutic vaccines and other products

that can either enhance or suppress the human immune system. In its

initial stages, it had been known as Keycell Technologies.

Medarex, 707 State Road, Princeton 08540. Donald L.

Drakeman, president and CEO. 609-430-2880; fax, 609-430-2850. Home


Top Of Page
Nyce Case Update

A development in the Jonathan Nyce case: Stark & Stark attorney

Sanford Durst is representing the parents of Michelle Nyce in a

custody battle over the three children. Nyce, the founder and former

CEO of Epigenesis at Cedar Brook Corporate Center, is accused of

murdering his wife, Michelle, on January 16.

The case will be heard in Family Court by Judge Jane Grall, but

nothing has been scheduled, says Durst. "My hope is that the custody

matters will be settled as expeditiously as possible, but it will take

time to be sure that we are serving the best interests of the three

minor children," says Durst.

Other potential legal actions include the possibility of an

administrator being appointed for Michelle Nyce’s estate. The estate

could also pursue a wrongful death suit.

"Apart from the legal issues involved it is a difficult situation. All

custody cases are emotional for the parties going through it. Custody

issues are the most difficult part of a family law attorney’s job,"

says Durst. "Fortunately I have not had a case where the underlying

allegations have been similar."

Other Stark & Stark attorneys, Paul Norris and Elizabeth Kreger, are

representing the Michelle Nyce’s parents in their request to freeze

Jonathan Nyce’s assets. A hearing on whether to unfreeze the assets so

Nyce can make bail is scheduled for Thursday, April 29, in the court

of Judge Neil Shuster.

Teodoro Rivera, Michelle Nyce’s father, has moved from the Philippines

to Hopewell Borough and has found a job, Durst says. The Nyce

children, ages 12, 10 and 5, are living with Jonathan Nyce’s brother

and sister-in-law, Michael and Margaret Nyce, in Eagleton,

Pennsylvania. Jonathan Nyce is being held at the Mercer County

Correction Center on $2 million bail; he is being represented by Robin

Lord and Maria Noto.

Top Of Page
Baker Expands

Having purchased the former Chicopee building in Dayton, Baker

Residential expanded from its former Central Jersey headquarters at 7

Centre Drive in Monroe to 3,000 square feet in a property occupied by

Medicia Corp. on Route 130. The move took place at the end of March,

and phone and fax are new.

The Baker Companies are based in Pleasantville, New York, and also

have offices in Morris Plains and Danbury, Connecticut. The

residential division has finished developing the Walker Gordon Farm in

Plainsboro and its current projects include three residential projects

with water views: Lighthouse Bay, single family homes and townhouses

in South Amboy, and townhouse projects – Boatworks in Bayonne and

Riverside in Secaucus.

The Medicia/Baker site had been the home of Chicopee, formerly the

non-woven fiber division of Johnson & Johnson. Chicopee was bought and

its operations were moved out of state. Eight years ago the building

and 71 acres were up for sale for $8.2 million, but in 1997 Medicia

signed a 15-year, $20 million lease and expanded from Belle Mead.

With 400 employees, the Medicia Corporation still occupies the greater

part of the 250,000 square foot building. Medicia is a custom

manufacturer of fine cosmetics, OTC preparations, and private label

products, and it also does contract packaging.

Baker Residential, 2351 Route 130, Suite 4, Box 1013,

Dayton 08810. Ian Jones, vice president. 732-438-1677; fax,

732-438-1678. Home page:

Medicia Corp., 2351 Route 130, Box 1015, Dayton

08810-1015. Frederick W. Von Rein, president. 732-438-3200; fax,

732-438-1536. Home page:

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Fleet Sold

On April 1 FleetBoston Financial Corp. was sold for $47 billion to

Bank of America Corp., based in Charlotte, North Carolina. It is now

the nation’s third largest bank, with about 35 million consumer and

small business customers, about 5,700 branches from coast to coast and

16,500 ATMs. Only Citigroup and the planned merger of Bank One and

J.P. Morgan Chase are larger.

Because Bank of America has few locations in Central Jersey, area

Fleet employees may not be very affected by staff cuts. Layoffs are

expected to run as high as 13,000, or about seven percent of 181,000,

the combined headcount of the two banks. Fleet customers have received

notices that they will be able to use Bank of America ATM machines

without charge.

Kenneth D. Lewis, chief executive of Bank of America, will hold the

same position at the combined bank, which retains that name.

FleetBoston CEO Chad Gifford becomes chairman of the new bank.

Fleet Bank New Jersey (FBF), 301 Carnegie Center, CN

53166, Princeton 08543. Doug Kennedy, chairman of Fleet New Jersey.

609-987-3672. Home page:

Top Of Page
Stock News

Chiral Quest, the life sciences chemistry company, has raised $7.2

million in a private placement organized by ThinkEquity Partners,

Paramount Capital, and Casimir Capital. CEO Alan D. Roth reports that

the offering size was increased from what had been planned "due to

substantial investor interest." Investors bought about 4.28 million

shares of commons stock at $1.50.

Chiral Quest provides chiral products, technology, and services to the

pharmaceutical and fine chemical industries. It also "develops

chemical catalysts and other products used in the synthesis of desired

isomers of chiral molecules," according to a press release.

Chiral molecules have mirror image pairs, called isomers. These

isomers may have the same boiling points, smoothness, and solvent

properties, but they may differ in another important way. Eliminate

one of the isomers, and the single isomer version of the drug does

more with less. It is more powerful and more cost effective. When

delivered, it is safer, because it carries less excess baggage.

Chiral Quest was a spin off from Penn State in 2000, was restructured

last year, and launched as a listed company in February 2003 (U.S. 1,

June 5, 2003). Other officers include Ronald E. Brandt, vice president

of business development, and Xumu Zhang, chief technology officer.

K. Barry Sharpless, a world authority in chiral chemistry, chairs the

scientific advisory board, which also includes James P. Collman of

Stanford University. The company’s board includes Vincent M. Aita of

Kilkenny Capital Management, Stephen Roth (no relation to the CEO Alan

Roth), a former Johns Hopkins biology professor who co-founded Neose

Technologies in 1990; Kenneth W. Brimmer, board chairman of Active IQ

Technologies, Inc. and former executive officer of Rainforest Cafe;

and three people from Paramount Capital – Stephen C. Rocamboli, David

M. Tanen, and Michael Weiser.

Chiral Quest Inc. (CQST), 7 Deer Park Drive, Princeton

Corporate Plaza, Suite E-2, Monmouth Junction 08852. Alan D. Roth,

CEO. 732-274-0399; fax, 732-274-0402. Home page:

Top Of Page

Neil Upmeyer, 57, on April 9. A former vice president of the Gallup

Organization, he was vice president for the Center for Analysis of

Public Issues.

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