Biotech Report Card

Mack-Cali Buys Route 1 Frontage

Medarex Expands

Intellisphere Expands

New in Town

Contracts Awarded

Deaths

Corrections or additions?

This article by Barbara Fox was prepared for the June 30, 2004

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

Life in the Fast Lane

David J. Sorin is leaving the College Road office of Hale & Dorr and

taking six colleagues with him to join the business and finance

practice of Morgan, Lewis & Bockius at the Carnegie Center. The

addition is certainly a coup for Steven Cohen, who leads that practice

at Morgan Lewis. Cohen’s firm now has 34 lawyers at the Carnegie

Center.

“We have been successful in growing our practice from 11 clients in

1998 to 125 at the time of this merger,” says Cohen of Morgan Lewis.

“Together, we will represent 250 emerging business and technology

companies, which is a very powerful critical mass to demonstrate to

the financial community — bankers, venture capitalists, and investment

partners. The additional size will allow two plus two to be much more

than four in terms of what we can do for our clients.”

“There are lots of good lawyers out there, and what clients often look

for is the connectivity — the ability to introduce them to strategic

partners and financial resources,” says Cohen. “Because of our

critical mass, representing 250 emerging growth companies, most of

which are in New Jersey, it gets the attention of the investment

banking community and the venture capitalists who are looking for

introductions to new companies to work with.”

The four new partners “are exceptional corporate finance and

technology transaction lawyers with industry experience in the growing

areas of information technology and life sciences,” says Francis M.

Milone, chairman of the Morgan Lewis, which has 1,200 lawyers in 18

cities. “Their IPO practice adds significantly to Morgan Lewis’

capabilities nationally and internationally.”

Sorin was a leader in building the infrastructure to support the New

Jersey/New York technology corridor. A graduate of New York University

and Fordham, Sorin co-founded the New Jersey Technology Council and in

the last three years his team represented clients in more than 400

transactions with a value of $18 billion. He started out at Smith

Stratton and was recruited by Pittsburgh-based Buchanan Ingersoll to

open a Princeton office in January, 1993. By 2001 the office with two

attorneys had grown to 60 attorneys. At that point, Sorin said

Buchanan Ingersoll did more IPO, mergers & acquisition, and venture

financing work for high tech companies than did any other firm in the

area.

Then he was recruited by Boston-based Hale and Dorr and walked out of

Buchanan Ingersoll with 32 attorneys and their support staff. “We

needed to be at a firm with considerably more depth and focus on high

technology,” he said at that time. “Instead of being at a firm where a

relative few focused on technology, I went with a firm with rich

expertise.”

Hale and Dorr merged last month and is now officially known as Wilmer

Cutler Pickering Hale and Dorr. Sorin is leaving with three partners

(Andy Gilbert, Karen Leisten, and Rich Mattessich), two associates and

one of counsel attorney.

Andrew P. Gilbert went to Colgate and Rutgers. He represents corporate

clients ranging from startup ventures to mature public companies, and

his securities experience includes representing issuers, underwriters,

and venture capital firms in connection with public and private

offerings.

Karen F. Leisten earned both her undergraduate and law degrees from

Fordham. She represents technology, biotech, and other clients in the

commercialization of technology assets and intellectual property

cases. She was on the team representing Hewlett-Packard in the Apple

v. Microsoft and Hewlett Packard case.

Richard S. Mattessich has been representing start-up ventures,

development stage and more mature private entities and publicly traded

companies. A CPA and MBA who went to Georgetown for his undergraduate

degree, he has an MBA from New York University and a law degree from

the University of Texas. He has been helping to raise capital for both

public offerings and private placement.

Cohen is delighted to have his former opponents on his side of the

fence. “In 1998 Morgan Lewis had asked me to grow the business and

finance practice in Princeton,” he says. “In Philadelphia we had

developed the premiere emerging business and tech/life science

business in the Philadelphia area. Often we represented more than 50

percent of the companies presenting at Philadelphia venture fairs. But

we had seen a lot of activity in New Jersey that we were not able to

capture from Philadelphia and New York.”

That was in the same time period that David Sorin was leading the

business practice at Buchanan Ingersoll and Hale & Dorr. “I have had a

lot of respect for them as competitors and they had a lot of respect

for us. We have worked on opposite sides of deals and we have trust,”

says Cohen.

What about future conflicts of interest? They won’t happen, says

Cohen. “Our primary goal is to represent emerging growth companies,”

says Cohen. So if Hale and Dorr represented a company, and Morgan

Lewis represented the investor in that company, then the investor will

have to use a different law firm. Companies make better clients than

investors.

Morgan, Lewis & Bockius LLP, 502 Carnegie Center, Suite 301, Princeton

08540-6273. Robert Alan White, managing partner. 609-919-6600; fax,

609-919-6639. www.morganlewis.com

Top Of Page
Biotech Report Card

New Jersey came out way ahead in two major studies on bioscience

issued earlier this month. It turns out that it is among only three

states with a specialty in three of the four bioscience industry

sub-sectors, according to a comprehensive survey conducted by

Biotechnology Industry Organization (BIO), Battelle Memorial

Institute, SSTI, and Fleishman-Hillard International Communications.

Entitled “Laboratories of Innovation: State Bioscience Initiatives

2004,” the survey measured the level of employment concentration

within a state as compared to the nation. It identified New Jersey’s

sub-sector specialties as pharmaceuticals, medical devices and

equipment, and research and testing. The study also reported that

university investment in research and development is up 30 percent

from 2001.

A Deloitte & Touche study measured the economic impact of the

biotechnology industry on New Jersey. It revealed that biotech

companies employ nearly 8,000 employees, and that does not count those

employed by pharmaceutical and medical technology firms. This amounts

to more than $892 million of labor income annually.

The Biotechnology Council of New Jersey has also released the New

Jersey Life Sciences Resource Guide. The guide and the two major

reports are available by calling BCNJ at 609-890-3185 or at the

website (www.biotechnj.org).

The key factors that seem to influence bioscience employment,

according to the Battelle survey, include available capital, access to

facilities and equipment, a stable and supportive tax and regulatory

environment, a long-term perspective, and to what degree the research

institutions get involved.

New Jersey has the extra advantage of being the second state in the

nation to legalize stem cell research and the first to provide state

funding for it, through the new New Jersey Stem Cell Research

Institute.

“Biotechnology companies in New Jersey benefit from the state’s rich

academic environment, highly skilled labor pool, large concentration

of pharmaceutical companies — including 17 of the 20 largest

pharmaceutical companies in the world that have major facilities in

the state — and innovative and supportive government programs and

policies,” says Kenneth I. Moch, president and CEO of Parsippany-based

Alteon Inc. and chairman of the Biotechnology Council of New Jersey

(BCNJ). The success factors:

Access to a skilled labor pool. New Jersey is ranked eighth in the

nation in biological scientists in the workforce. The average number

of these scientists from fiscal 2000-2002 was 17,880, compared with

461,973 in the entire United States.

Academic/industrial interaction is encouraged through bioscience

research parks: New Jersey Technology Center in North Brunswick

located between Rutgers and Princeton universities, University Heights

Science Park, under development in the central ward of Newark by a

consortium of four universities and colleges, and the Waterfront

Technology Center at Camden.

Commitment to building bioscience R&D. Due to several recent

investments, total university life science expenditures in New Jersey

have gone up more than 30 percent in three years.

Capital made available to bioscience companies by encouraging the

venture capitalists, direct company financing, and facilities

financing.

Support for bioscience entrepreneurs and emerging bioscience companies

is available through business development services, bioscience

industry organizations, and lab incubators.

“These report findings once again underscore why New Jersey is the

ideal location for bioscience companies,” says Debbie Hart, president

of Biotechnology Council of New Jersey. “With unparalleled

collaboration between industry, academe and government, the

Biotechnology Council of New Jersey, as its sole mission, will work to

ensure that this vital industry continues to thrive in our state.”

Top Of Page
Mack-Cali Buys Route 1 Frontage

Even though Mack-Cali Realty Corporation has yet to finish developing

two prime properties that it owns in Princeton, it bought 60 acres of

land at Route 1 and Meadow Road from Steiner Equities Group. The $20.5

million sale was announced on Monday, June 28. It comes with approvals

to develop 770,000 square feet of commercial space, including a hotel

and four office buildings totaling 607,000 square feet.

Mack-Cali’s new property has some frontage on Route 1. It is between

the Carnegie Center and the Meadow Road overpass, north of the new

Lowe’s shopping center.

Headquartered in Cranford, the real estate investment trust owns

Princeton Overlook on Route 1, to which two more buildings can be

added. It has more approved land on Vaughn Drive for an office

building, bringing the potential for development to 1 million square

feet. It also owns and manages 103 Carnegie Center, 500 College Road,

and 3 Independence Way.

“With the scarcity of developable land in the region, this transaction

allowed us the opportunity to acquire land in what is perhaps the top

location in the Princeton submarket,” says Mitchell E. Hersh,

Mack-Cali’s president and CEO.

Mack-Cali Realty Corporation (CLI), 103 Carnegie Center, Suite 321,

Princeton 08540. 609-452-0648; fax, 609-452-0651. www.mack-cali.com

Top Of Page
Medarex Expands

Medarex announced on Friday, June 25, that it will pay $4.7 million

for Ability Biomedical Corporation, a privately held Canadian

biotechnology company. The acquisition is expected to be completed in

August, and it will be paid in a combination of cash and/or Medarex

stock.

Medarex is particularly interested in Ability Biomedical’s

intellectual property on IP-10, a protein believed to be associated

with such immune disorders as multiple sclerosis, rheumatoid

arthritis, inflammatory bowel disease, chronic obstructive pulmonary

disease, and type I diabetes. IP-10 is also known as CXCL10.

IP-10 is currently the focus of preclinical studies for MDX-1100, a

fully human antibody from Medarex. The company expects to file an

Investigational New Drug application with the FDA for MDX-1100 in the

first half of 2005.

If the IP-10 antibody program goes well, in three years Medarex will

have to pay an additional $3.56 million in cash and/or Medarex stock.

The fall back position will be that Medarex can revert to the original

January 2003 joint collaboration agreement with Ability Biomedical.

Focusing on therapeutics to treat life-threatening and debilitating

diseases, Medarex has the UltiMAb Human Antibody Development System,

which creates and develops fully human antibodies.

Ability Biomedical is a private two-year-old firm supported by

GrowthWorks Capital Ltd. With locations in Vancouver, British

Columbia, and Irvine, California, Ability Biomedical has leveraged

discoveries made by Thomas E. Lane and Hans S. Keirstead at the

University of California.

“We have been pleased with our previous collaboration with Ability

Biomedical, and we believe that this acquisition strengthens our

position to develop antibody therapeutics to a potentially important

target implicated in many inflammation and autoimmune diseases,” says

Medarex CEO Donald L. Drakeman.

Earlier this month Medarex announced that the U.S Food and Drug

Administration has granted orphan drug designation to a fully human

anti-CTLA-4 antibody, MDX-010, for the treatment of high-risk Stage

II, Stage III and Stage IV melanoma.

The designation provides eligibility for a special seven-year period

of market exclusivity upon approval, potential tax credits for

research, grant funding for research and development, reduced filing

fees for marketing applications and assistance with the review of

clinical trial protocols. It is granted for treatments that offer

potential therapeutic value for diseases that affect fewer than

200,000 people in the U.S.

Another Medarex success was that a Phase II clinical trial for

refractory Hodgkin’s disease showed some success with 18 percent of

the patients. All the patients in the trial had had no success with at

least two other therapies.

Medarex (MEDX), 707 State Road, Princeton 08540. Donald L. Drakeman,

president and CEO. 609-430-2880; fax, 609-430-2850. www.medarex.com

Top Of Page
Intellisphere Expands

Intellisphere LLC, a medical publisher at Princeton Meadows Office

Center, doubled its size by buying Hospital Research Associates, a

market research firm for the pharmaceutical industry. The purchase

price was not disclosed.

Hospital Research Associates was formerly a division of Medimetrik

Inc., a marketing communications and research company based in

Fairfield. The 30-person firm, now a division of Intellisphere,

provides telephone surveys, convention-based research, focus groups,

and personal interviews. In more than 400 hospitals it has the

infrastructure in place to collect data on drugs and diagnosis through

patient case histories. HRA will be able to tap Intellisphere’s

databases to get access to additional physicians.

The son of a publisher, Michael Hennessy is CEO of Intellisphere,

which used to be part of Multimedia Healthcare. He founded that in

1992 and then took in a major investor, Freedom LLC. In 2002 he bought

the Internet side of the business. The print side (called Multimedia

Healthcare/Freedom LLC) is now totally separate and located at 4365

Route 1 South (www.mmhc.com).

Intellisphere’s COO, Herbert A. Marek, reports that the firm had an

average annual revenue increase of 63 percent over five years, and it

sold more than 1,000 ad pages last year. Marek went to Kean College

and has a master’s in science from Rutgers and an MBA from Fairleigh

Dickinson. After working in marketing and business development for

pharmaceutical companies such as Johnson & Johnson he was general

manager and executive vice president at Medical World Communications,

a company headed by Jack Hennessy, Michael Hennessey’s brother. He

started working for Michael Hennessey in 1997.

Intellisphere’s major product, MD Net Guide, is a print journal and a

biweekly Internet newsletter/website with useful links. “MD Net Guide

is the only multimedia vehicle of its kind that provides a roadmap to

the Internet,” says Marek, “helping as many as 250,000 physicians keep

up with the confusing array of medical information available online.”

The acquisition of HRA will help Intellisphere acquire a much broader

range of marketing and educational programs.

Among HRA’s more than 30 employees are registered nurses and trained

medical interviewers who conduct telephone surveys, convention-based

research, focus groups and personal interviews.

Intellisphere also has nine specialty editions, including physicians’

guides and such custom publications as “Focus on African-American

Health” and “Family Medicine Net Guide,” a waiting room magazine for

consumers. Intellisphere has also started an education division, which

could have synergy with the website and the research division, HRA.

The combined companies will have more than 60 employees, says Marek,

but at least for now HRA will stay in Fairfield, where it occupies

nearly 7,000 square feet. Intellisphere has a comparable space, about

6,300 square feet.

How it happened: “I put together a business plan that identified

pharmaceutical market research as an area we wanted to get into,” says

Marek. DeSilva & Phillips, of Park Avenue in New York, had been the

investment bankers that put together the Multimedia Healthcare/Freedom

deal, and Marek had kept up that contact. “We made sure they knew what

we were doing, and that we had a strategic vision. They brought the

acquisition to our attention, we evaluated it, and it took about 30

seconds to say yes.”

Intellisphere, 666 Plainsboro Road, Suite 300, Plainsboro 08536.

Michael Hennessy, CEO. 609-716-7777; fax, 609-716-4747.

www.mdnetguide.com

Top Of Page
New in Town

D.R. Horton Associates opened a state-wide design center at the former

headquarters location for AAA on Route 130. In New Jersey the firm

builds from 600 to 800 houses a year, ranging from town homes to

houses costing more than $1 million. Its roots are in a company called

S.G.S. Communities, founded in 1992, and acquired by a national firm,

Texas-based D.R. Horton. The New Jersey headquarters is in Freehold.

The closest D.R. Horton development to Princeton is the Village Grand

at Bear Creek in West Windsor. An adult community, it consists of 540

single detached homes costing in the mid $250s, plus 14 affordable but

smaller homes, selling in the $70s. An association fee pays for the

16,000-foot clubhouse and a social director, and each cul de sac has

an special feature, such as a putting green, a horseshoe pit, or a

special garden.

Other adult communities are in Manalapan, Egg Harbor, and West

Deptford, and all-ages housing developments are in Bordentown, Delran,

Moorestown and West Deptford.

Lisa Dawson, a 13-year-veteran of D.H. Horton and the mother of three

children, is in charge of the new 4,300 square foot design center,

which will soon have seven employees. Homebuyers come here to select

cabinets, countertops, bathroom upgrades, flooring, HVAC, appliances,

and even doors and windows. Her oldest daughter also works for the

firm.

D.R. Horton Associates (DHI), 1 AAA Drive, Suite 104, Robbinsville

08691. Lisa Dawson, design center manager. 609-586-6612; fax,

609-586-6614. www.drhorton.com

Top Of Page
Contracts Awarded

Princeton Communications Group has created print, radio and television

ads in English and Spanish for New Jersey’s $1.2 million advertising

and awareness campaign for 18 federally qualified health centers. The

campaign, which began in the middle of May, is part of the state

health department’s $10 million budget to fund infrastructure and

growth grants for the centers, which are overseen by the New Jersey

Primary Care Association.

The ads are posted on the inside and outside of NJ Transit buses and

trains. They are on television on TBS, BET, MTV, Cartoon Network and

Lifetime programs, and on the radio on black-targeted and Latino radio

stations.

Each center is featured as “The Feel Good Place.” For instance, when a

television ad features a black couple holding a little girl, the man

says, “It’s healthcare at its best,” and a voiceover of a woman says,

“We think of it as the feel good place.”

“The purpose is to upgrade public awareness and perception of the high

quality services that these centers provide,” says Mike Keeler,

executive vice president of the ad agency. “We wanted to position them

as a place to go, not just in an emergency, but when you needed help

and wanted to feel good about the care you are getting and where you

are getting it.”

For instance, the Henry J. Austin center on Warren Street in Trenton

is sometimes perceived as being only for the uninsured. “But because

of the breadth of services it provides, it represents a wonderful

healthcare choice for anyone,” says Keeler. Among the Austin center

services are pediatrics, adult medicine, OB/Gyn, prenatal, dental,

adolescent health education, nutrition and HIV counseling. In

addition, it offers 24-hour emergency service, the services of a

social worker, and is bilingual. It takes most insurance plans.

Princeton Communications Group came up with the slogan as a result of

indepth interviews across the network of centers. “We interviewed

thought leaders and nurses to triangulate about what these centers,

and what they should be,” says Keeler. “What people want to talk about

is not their problems, but the resolution of the problems.”

“There was a perception problem, and the centers needed to be

branded,” says Krampf. The contract came through the New Jersey

Primary Care Association, not through the state. Instrumental in

getting the contract, Krampf says, was the ad agency’s association

with Nancy Becker Associates, a public affairs group.

“A key point of the contract is that not a single dollar of spending

goes outside the state,” says Keeler. “It was very difficult to

construct a media plan that did not use New York and Philadelphia, but

it gave us an opportunity to show our creativity.”

Princeton Communications Group Inc., 112 Titus Mill Road, Pennington

08534. Lawrence H. Krampf, chief executive officer. 609-818-9800; fax,

609-818-9213. Home page: www.pcgads.com

Top Of Page
Deaths

Robert C. Saums, 80, on June 26. He had worked in the family business,

Saums Interiors, since itw as founded in 1957. The funeral is

Thursday, July 1, at 10 a.m. at St. Alphonsus Catholic Church in

Hopewell.

Arlene Moore, 48, on June 26. She was a staff assistant at in the

National Assessment of Educational Progress Department of Educational

Testing Service.


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