Heartland Doing IPO

Chiral Quest Names New CEO, Expands

Digital Transition: Slide Design To Creative Media

Companies Bought

Contracts Awarded

Consumer Drug Site

Management Moves

ETS Sells Capstar, a For-Profit, to Thomson

Corrections or additions?

These articles by Barbara Fox were prepared for the August 18,

2004 issue of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane

Among the more than 200 R&D companies in greater Princeton are more

than 120 firms with fewer than a dozen employees – just the kind of

firms that need small spaces. And small lab space, incubator-size or

slightly larger, is hard to find. Using land in East Windsor that his

family has owned for 35 years, Michael J. Simon hopes to attract these

labs and tap the potential of Princeton as a petri dish for biotech

businesses.

Simon says he learned patience from the lifelong interest in the Asian

strategy game of Go. "My father taught me a key rule for business –

play dumb. And the game of Go taught me patience," says Simon. "When

you make a mistake, that stone looks at you for the whole game, so you

learn to go slowly and carefully."

The first of four buildings in his high-tech development will have 10

wet laboratories. Called SciPark (sciparknj.com), the proposed

270,000-foot park is situated on 35 acres, located just off Route 133

on Old Trenton Road (Edinburg Road), north of Route 571 and across

from Windsor Corporate Park.

The first building is scheduled to be completed in January, 2006, and

R&D companies will be able to lease a laboratory as small as 6,000

square feet. Each lab will have two drainage systems, an

effluent-cleaning machine area, dock-height loading bays, computer

network lines, and an employee lounge. Stephen Tolcash of GVA Buschman

is the exclusive leasing broker and the space is listing for $15.50

net, plus $5 per square foot common area charge.

"With current vacancy rates for single-story, flex-R&D facilities in

this marketplace well under 8 percent, there is a significant demand

for the unique space being offered at SciPark," says Simon. "Unlike

most of the big-box flex space in central New Jersey, SciPark will

meet the needs of smaller users and will feature the flexible

structural design to accommodate a wide variety of tenant needs. There

is simply no other comparable space being planned in central New

Jersey like SciPark."

Paul McArthur of Trillium Realty Advisors in Hopewell is the

development manager for SciPark. "I can say that if it weren’t for

Paul I wouldn’t be developing this," says Simon. The shell was

designed by site planner John Chester, and the design is by Keith Hone

of Hone & Associates.

Even though SciPark is expensive to build, it is reasonable in

comparison to retrofitting another space to be a laboratory, says

Simon. "The spaces are small but bigger than an incubator and much

smaller than the competitive private developers."

Labs are new for Simon, who for 25 years has been building small

warehouses on reasonably priced smaller plots of land where streets

have been cuts and city blocks formed. "If you are a small developer,

he points out, "it is hard to find three to five acres."

He found success in Twin Rivers, which has what he calls "reasonable"

setback requirements. He built two warehouses there, one on Lake Drive

occupied now by Windsor Tech, the electronics equipment recycling

firm, and one on Twin Rivers Drive occupied by NexMed. NexMed, the

impotence cream company that is headquartered in Robbinsville, wanted

to fit out the warehouse as laboratory. "Then I asked, why am I

building warehouses? Why don’t I just build laboratories," says Simon.

"That’s how I got the idea of SciPark."

"We are still in the permit process," he says, "and getting the first

or second tenant might be hard." But the state of New Jersey is

financially encouraging the growth of biotech companies "and venture

capital is sitting on a ton of money."

A 1975 graduate of Columbia, Simon completed most of the course work

for a PhD in English from Brown (focusing on the poetry of John

Ashbery). He learned Japanese so he could read Go books, and has

attained the impressive rank of 5 Don. He worked in real estate in

Tokyo, where he established a funky, for Tokyo, New York-style Jewish

deli, and he met his future wife. A multi-faceted personality,

self-labeled as "a bit of a nerd," he also speaks Spanish and French

and is an avid web page developer. SciPark is one of the few

developments with its own web page.

Since 1984, his company, Simon Developments LLC, has developed and

renovated commercial real estate projects totaling a million square

feet. Simon also has a business that makes smart cards for mass

transit fare collection.

Simon describes his family background: "I come from a family that

takes farmland and builds industrial buildings." He grew up in

Teaneck, where his father, David Simon, was one of the first postwar

industrial developers. "In Englewood he built five warehouses at a

time when it was hard to get steel," says Simon. "He almost went

broke, but he sold them all. In 1951 he developed Moonachie at the

time that it was all farms."

The "right" time to develop the East Windsor land never came for

Simon’s father. "My father was waiting for the state to build Route

133, and he didn’t live to see it developed," says Simon. "They

finished Route 133 two years after he died. But as you drive around

the jughandle, you pass the back of our site. We can’t put signs up

there, but I think people will see the towers through the trees."

Trillium Realty Advisors LLC, 83 Princeton Avenue, Suite

3C, Hopewell 08525. Paul McArthur, president. 609-466-0400; fax,

609-466-2940. Home page: www.trilliumrealty.com and www.sciparknj.com.

Top Of Page
Heartland Doing IPO

Heartland Payment Systems Inc. has filed plans to go public on Nasdaq

with an initial stock offering worth as much as $75 million.

Heartland, which provides credit-card processing systems, has its

corporate headquarters and accounting office on Hulfish Street, but of

the more than 700 employees, just a dozen work here. Other offices are

in Ohio, Texas, Arizona, and Indiana.

Founded in 1997 with a business investment of $1 million, Heartland is

now one of the largest privately owned payment processors. It offers

credit and debit card, payroll and related processing services to more

than 70,000 restaurant, hotel, and retail merchants throughout the

United States. It was named to the Inc. 500 list of the

fastest-growing private companies in America for two consecutive years

and was ranked last year as seventh in the Top 25 Companies By Size

category.

Proceeds of the IPO would help pay down $2.9 million in debt and

redeem warrants to purchase 1 million shares of common stock. The

remainder would be used for general corporate purposes, including

working capital and potential acquisitions.

No price range for the shares was disclosed in the Securities and

Exchange Commission filing. Greenhill Capital Partners currently own

28.2 percent of the firm, and LLR Equity Partners owns nearly 17

percent.

Heartland Payment Systems (HPAY), 47 Hulfish Street,

Suite 400, Princeton 08542. Robert Baldwin, CFO. 888-798-3131; fax,

609-683-3815. Home page: www.heartlandpaymentsystems.com

Top Of Page
Chiral Quest Names New CEO, Expands

Chiral Quest Inc. has a new president and CEO, Ronald Brandt,

replacing the founding CEO, Alan D. Roth. Brandt has created a new

parent company, VioQuest Pharmaceuticals Inc. Chiral Quest will

continue to work on its core technology – asymmetric products and

services including catalysis products and services – as a wholly owned

subsidiary of VioQuest. Another wholly owned subsidiary, VioQuest Drug

Development Inc. will acquire, develop, and commercialize human

therapeutics.

The company was an academic spinoff at Penn State in 2000, was

restructured, and was launched as a listed company in February on the

OTC bulletin board. It moved in June, 2003, to Princeton Corporate

Plaza at 7 Deer Park Drive. The facility has a laboratory capable of

making multi-kilo quantities of large compounds; it has 50-liter

reactors and the latest in analytical instruments (U.S. 1, June 25,

2003). Now it is a public company with almost 20 employees.

"Chiral Quest is a leading supplier of chiral catalysts and

intermediates in one of the fastest growing sectors of the

pharmaceutical and fine chemical industries," says Brandt, who is also

interim president and CEO of VioQuest Pharmaceuticals Inc.

"Over the last several months, I have been delighted to work with Ron,

and believe he has the experience and personal qualities that a leader

of our company requires to maximize its value," said Xumu Zhang, the

chief technology officer, in a press release.

Zhang (pronounced Shang), went to Wuhan University in the People’s

Republic of China, has a master’s degree from the University of

California at San Diego, and did doctoral and post doctoral work at

Stanford. He has consulted for Pfizer and Catalytica, holds several

patents, and has received numerous awards. He spent a sabbatical with

a Nobel laureate from California, K. Barry Sharpless, who is now

chairman of the scientific advisory board.

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

Corporate Plaza, Suite E-2, Monmouth Junction 08852. 732-274-0399;

fax, 732-274-0402. Home page: www.chiralquest.com

Top Of Page
Digital Transition: Slide Design To Creative Media

Slide Design Interactive has changed its name to Creative Media Works,

representing the design world’s paradigm shift to digital.

"We do so much more than slides here – we are heading toward more

interactive design and printing work," says marketing director Carly

Van Fleet, daughter of Richard Van Fleet, who founded the company 15

years ago.

The firm initially focused on quality slides for corporate

presentations, plus brochure design and layout. It weathered the

change to digital by expanding its capabilities to digital imaging

(large format posters, duplicating CDs and DVDs), and multimedia

(websites, interactive CDs/DVDs, and animation).

"Nevertheless, we still do powerpoint presentations for many

healthcare clients – they have thousands of slides that need to be

formatted," says Carly Van Fleet. She graduated from the University of

Central Florida in 2000, is assistant production manager, and is in

charge of marketing for the 20-person firm.

The name change has been in progress for about a year. "Internally we

came up with the name, but we worked with a marketing company –

MarketEntry – to force us to keep to a schedule in making the

decisions," she says. "We are hoping to attract new business and keep

all our old clients. We have gotten a very positive response."

Creative Media Works, 44 South Main Street, Pennington

08534. Richard Van Fleet, president. 609-737-1123; fax, 609-737-6345.

Home page: www.creativemediaworks.com

Top Of Page
Companies Bought

Taylor Technology Inc., 107 College Road East, Princeton

08540. Paul Taylor, president. 609-951-0005; fax, 609-951-0080.

Paul Taylor, who founded Taylor Technology in 1991, has sold his

company to SFBC International for $20.9 million, including $16.9

million in cash and about $4 million in restricted common stock.

Taylor announced this deal at the end of July. He has signed a

long-term employment agreement with the acquiring firm and all 65

current employees are expected to continue with SFBC Analytical.

SFBC International, Inc. provides specialized drug development

services to global and specialty pharmaceutical, biotechnology and

generic drug companies.

Taylor Technology Inc. provides bioanalytical laboratory services,

especially mass spectrometry services for new drug programs for major

pharmaceutical companies. Using high-pressure liquid

chromatography-tandem mass spectrometry and gas chromatography-tandem

mass spectrometry, it can develop, validate, and perform methods for

quantitative analysis of drugs and/or metabolites in biological

fluids, such as blood, serum, plasma, or urine.

Because Taylor and SFBC share only one significant client, the sale

represents a significant boost to SFBC’s client list.

SFBC has a wholly-owned subsidiary that operates a bioanalytical

laboratory in Philadelphia, and it will spend $4 million for a

state-of-the-art laboratory in Toronto, due to open next January.

Other bioanalytical laboratories are in Quebec City and Barcelona.

Oppenheimer & Co. Inc. (OPY), 302 Carnegie Center,

Princeton 08540. Lawrence J. Rubenstein, branch manager/senior vice

president. 609-734-0400; fax, 609-734-0939. Home page: www.opco.com

When Fahnestock bought Oppenheimer last year, it took Oppenheimer’s

name. Now this New York-based wealth management firm has 1,600

financial advisors, 11 at this location, and nearly 100 branches. Its

clients are high net worth individuals, particularly those who need

corporate and executive services. It has $45 billion in client assets,

says Lawrence J. Rubenstein, senior vice president.

Top Of Page
Contracts Awarded

Billtrust, 51 Everett Drive, Building B, Suite 50,

Princeton Junction 08550. Flint Lane, president. 609-580-0050; fax,

609-580-0041. Www.billtrust.com

IDEXX Laboratories, a 2,500-person animal health technology company

based in Maine, signed a contrast for an automated billing system

provided by Billtrust on Everett Drive.

Billtrust reengineered invoices for IDEXX so that they incorporate

variable marketing messages and different payment options. Billtrust

created a custom website that empowers customers to select or modify

their preferred means for receiving bills, choosing from mail, E-mail,

or fax.

In June 84 Lumber Company signed a similar contract. Billtrust offers

automated invoicing and statement systems for small and medium-sized

businesses.

Orchid BioSciences Inc./Cellmark (ORCH), 4390 Route 1

North, Princeton 08543. Paul J. Kelly MD, CEO. 609-750-2200; fax,

609-750-6400. Home page: www.orchid.com

Orchid Cellmark has a contract from the National Institute of Justice

to create genetic profiles from DNA samples collected from Illinois

felons. Mark Stolorow is executive director of Orchid Cellmark, the

forensic DNA testing subsidiary of Orchid BioSciences Inc., which has

laboratories in Maryland, Tennessee, and Texas.

On completion, the profiles will be added to the national Combined DNA

Index System, or CODIS, operated by the Federal Bureau of

Investigation.

The parent company, Orchid BioSciences, announced a smaller

second-quarter loss, thanks in part to more attention to high growth

areas such as Orchid Cellmark. For the quarter, the loss was 10 cents

per share compared to 90 cents last year.

Princeton Lightwave Inc., 2555 Route 130 South, Suite 1,

Cranbury 08512. Yves Dzialowski, CEO. 609-495-2600; fax, 609-395-9114.

Home page: www.princetonlightwave.com

In July Princeton Lightwave landed an Air Force contract worth more

than $1 million to develop a next-generation laser technology for use

in sensors and communications systems. The two-year contract is

supposed to produce a powerful laser that is not damaging to human

eyes.

Founded in 2000, Princeton Lightwave markets and develops high

performance optoelectronic components and subsystems.

Voxware Inc., 168 Franklin Corner Road, Suite 3,

Lawrenceville 08648. Tom Drury, CEO. 609-514-4100; fax, 609-514-4101.

Home page: www.voxware.com

TJX, the parent company of T.J. Maxx and Marshall’s stores, has bought

the VoiceLogistics system of Voxware to use with its multilingual

workforce in Woburn, Massachusetts. Voxware’s pilot program proved

that workers who speak different languages can simultaneously interact

with the same application.

"They really put our VoiceLogistics software through its paces,

conducting an extensive pilot program that focused on logistics

challenges unique to the retail and garment industry sectors," says

Tom Drury, Voxware’s CEO.

By interacting with workers, VoiceLogistics helps to coordinate a

conveyor system, eliminating paper pick lists and verifying each

activity as it occurs.

Altech Star, 5 Independence Way, Suite 300, Princeton

08540. Anand Natarajan. 609-514-5108.

Altech Star Inc. is partnering with Actuate Corporation, a leader in

enterprise reporting solutions. Altech focuses on web-enterprise,

business intelligence, and strategic outsourcing solutions. Though

based at 5 Independence Way, it has offshore services available in

Chennai, India.

For companies with revenues of more than $1 billion, Actuate has an

application platform to help develop intuitive, Web portal-like

reporting and analytic applications that organize information.

Top Of Page
Consumer Drug Site

Stada Pharmaceuticals Inc., 5 Cedar Brook Drive, Cranbury

08512. Christian Scheiner, president. 609-409-5999; fax, 609-409-5995.

Www.stadausa.com

Stada Pharmaceuticals has a new website with information on its

Rheumatrex drug, which can treat patients with rheumatoid arthritis (

www.rheumatrex.info).

Patients can learn about diagnostic procedures, available treatments –

including drug therapy, diet and exercise – and get answers to common

questions about the disease.

Founded in 1895 as a pharmacists’ cooperative, Stada sells, markets,

and distributes more than 300 prescription generic products and over

the counter products, including products originally owned by Mova

Laboratory. When Mova was bought by the German firm (Stada

Arzneimittel AG) a Cleveland subsidiary moved to the current location

in Cranbury.

The headquarters is in Bad Vilbel, Germany, and there are 18

subsidiaries. The firm contracts manufacturing to leading FDA-approved

manufacturers in the U.S. and Europe,

Top Of Page
Management Moves

Mercer County Community College, 1200 Old Trenton Road,

Box B, Trenton 08690. Robert R. Rose, president. 609-586-4800; fax,

609-587-4666. Home page: www.mccc.edu

Mark McCormick, an attorney who coordinates the paralegal program at

Mercer County Community College, is the new dean of the college’s

Business and Technology Division. He succeeds Jacqueline B. Sanders,

who had been dean for 17 years. In addition to business programs, the

division also covers such areas as information technology, funeral

service, aviation, and hotel and restaurant management.

A French major at Davidson College in North Carolina, he earned a law

degree from New York University in 1984, and he has been at MCCC for a

year. At the Community College of Philadelphia, McCormick had built

the program from 40 students to more than 300. He practices law on a

part-time basis in Pennsylvania, focusing on probate and estate

planning. McCormick will launch Mercer’s first online paralegal course

this fall.

Top Of Page
ETS Sells Capstar, a For-Profit, to Thomson

Capstar LLC, the for-profit subsidiary of Educational Testing Service,

has been sold to the Thomson Corporation (TOC) for an undisclosed

price. Capstar’s CEO, Michael J. Fitton, right, will stay with the

firm, which is still expected to move in the near future to Alexander

Road near the Hyatt Regency. "I am going to be involved in putting

these companies together to make sure they are leveraged to achieve

their maximum potential," says Fitton.

ETS and Thomson have frequently partnered on bids, and since late last

year the two companies had been talking about some kind of formal

arrangement, either a joint venture or an acquisition.

Thomson currently does 90 percent of ETS’s computer-based test

delivery through its subsidiary, Thomson Prometric (which had bought

Sylvan Learning). Thomson’s purchase of Capstar will be good for ETS,

Fitton says: "Everybody sees this as positive, because ETS and Thomson

have complimentary services. They do test delivery and administration

but they don’t have a strong test development and psychometric

capability, which is what we bring to them."

No one need fear for their jobs, and in fact Fitton sees the company

expanding. "Thomson generated $1 billion in cash last year, and they

want to invest and grow this business," says Fitton.

Headed by Ken Thomson, who is reportedly the richest man in Canada,

Thomson is based in Stamford, Connecticut, and has annual revenues of

more than $7 billion and 38,000 employees. Thomson Prometric

(www.prometric.com) is based in Baltimore and has 3,000 employees

worldwide. Thomson owns several other Princeton-based firms, including

Peterson’s with 200 workers on Lenox Drive and eMed Guides, with a

handful of employees on Route 1 North.

ETS is the world’s largest private, nonprofit education and

measurement organization, and though it had a five percent staff

reduction in June, it still has about 2,600 employees in the Princeton

area.

Capstar was founded in 1996 as an ETS subsidiary, the Chauncey Group,

but it can draw on ETS’s three decades of experience in putting

together competency assessment, learning, and measurement solutions to

corporations, national associations, and government agencies. Capstar

develops or delivers about 875,000 exams annually, has produced more

than 10,000 hours of E-learning content, and has written hundreds of

books with technical content. It currently has 150 employees on

Rosedale Road and 600 additional workers in Baltimore, Maryland (with

iLearning Inc.) and St. Paul, Minnesota (with Experior Assessments).

Fitton, 46, is the firm’s third CEO and has been on the board of the

Chauncey Group (the original spinoff) since it was founded (U.S. 1,

October 29). The son of an engineer and a social worker, he majored in

computer science at Rutgers, has a master’s degree from Stevens

Institute of Technology, and had a 10-year technical career at Bell

labs. Leveraging a lifelong interest in business, he worked for a

small company in New York, then founded a couple of companies,

including one that did fixed price systems integration for major

companies and one that formed and capitalized companies in the

technology and real estate markets. Active in real estate, he

developed the Sky View Golf Club in Sparta plus the 80 homes that

surround the club.

Although Fitton is restricted by the Hart-Scott-Rodino Antitrust Act

from talking about specifics, he does say that the workers from ETS

and/or Capstar will indeed eventually occupy Alexander Commons, the

47,000 square-foot new building at 693 Alexander Road. Originally

scheduled for last January, the move-in date keeps getting pushed

back, he says, in part because of redesigned space and the need to get

plans approved by the township.

Capstar LLC, 664 Rosedale Road, Princeton 08540-0001.

Michael Fitton, president & CEO. 609-720-6500; fax, 609-720-6550. Home

page: www.capstarlearning.com


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