Accenture Strikes Again: B-M Squibb

More Energy R&D

Provident IPO: Elder Profits

NeoStrata Expands

Law Firm Leaving

Hyatt Buys Suites

Expansions

Contract Signed

Death

Corrections or additions?

These articles by Barbara Fox were prepared for the December 15,

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

Life in the Fast Lane

Five years after PowerZyme spun out from the Sarnoff Corporation, it

has doubled its funding with a $7.4 million Series D round, announced

on December 13, led by Battelle Ventures LP. The nine-person firm is

developing the first high-performance enzyme-catalyzed portable power

source, which it hopes will be a "drop-in" replacement for lithium

batteries. CEO Don Scuilli says he plans to add seven people in 2005

and to double the firm’s space at Princeton Corporate Plaza.

Created as a $150 million independent venture fund last year, Carnegie

Center-based Battelle Ventures has made only two other investments,

both in Silicon Valley firms. Kef Kasdin, a general partner at

Battelle Ventures, has been working with PowerZyme and has joined its

board.

"Every living thing has an enzyme-driven `power plant’ in each cell,

and PowerZyme is developing its power source by adapting the

principles perfected in nature for more than 2 billion years," says

Kasdin. "PowerZyme’s power source uses completely new and more

efficient cell chemistries than current portable power sources."

PowerZyme has the first enzyme-catalyzed power source. Instead of

using a passive process that counts on diffusion to move protons

across a cell’s membrane, PowerZyme’s technology dynamically pumps

protons across the membrane. Its self-regulating control is based on

the load.

PowerZyme targets the $5 billion annual market for replaceable lithium

batteries in such consumer products as cameras and camcorders, PDAs,

notebooks and laptop computers, cell phones and smart phones with

Wi-Fi capabilities, and such entertainment devices as music and game

players. Other potential applications are for bar-code scanners or

military field communications.

"While we are still early stage and operating in a competitive field

of companies trying to improve on the lithium battery, PowerZyme

presents a unique approach to achieving longer-lasting, lighter-weight

portable power that will help to close the widening power gap in an

increasingly mobile society," says Scuilli.

"The size and chemistry of what is currently in the market is limited

to what power it can produce and how long it can last," says Scuilli.

"Most original equipment manufacturers (OEMs) want smaller, lighter

devices, easy to transport, but to produce more functionality they

need a bigger battery."

"Our ultimate goal is either to replace or be part of those portable

devices as a power source," says Scuilli. "We don’t use heavy metals

or toxic materials, so the impact on the environment could be very

positive. All of the components in our power source are recyclable or

are disposed of easily."

So far the company has secured one broad, inclusive patent, and has 16

patents surrounding that, says Scuilli. The patent attorneys are

Lerner David et al in Westfield, and the corporate attorney is Ella

DiTrizo at Dechert LP on Lenox Drive. The company is running two

prototype power sources, one for a digital camera and the other for a

Game Boy, and soon it will do pre-production automated manufacturing

of some component parts. But, says Scuilli, "it is too early to say

when we will go into the manufacturing phase."

On January 15 the firm will expand from 1,500 to 3,700 square feet on

Deer Park Drive. It is hiring electrical and mechanical engineers.

Battelle Ventures was joined in the round by two other new PowerZyme

investors – Calvert Funds and Zon Capital Partners. PowerZyme has now

raised a total of $15 million, and of PowerZyme’s earlier investors

chipped in for this round, including Commons Capital, Micro-Generation

Technology Fund (managed by Arete Corp.), RockPort Capital Partners,

and SAM Private Equity.

Headed by Mort Collins, Battelle Ventures had pledged to funnel 20

percent of its funds to companies that are not connected to the

National Laboratories managed or co-managed by the Battelle Memorial

Institute. Before Battelle’s investment, PowerZyme was in this

not-connected category, but now BMI is working with PowerZyme to speed

development of its power source.

PowerZyme is the fund’s first energy investment. Other target areas

include homeland security, life sciences, information technology, and

materials. In July Battelle Ventures funded SafeView, an idea from the

Pacific Northwest National Laboratory to make 3-D holographic

technology for a nonintrusive security screening system; and in

September it funded Genospectra, a provider of dynamic cellular

analysis tools (www.battelleventures.com).

Rose Ritts, the COO, had worked with this technology as director of

biotechnology systems at the Sarnoff Corporation. She was a biomedical

and electrical engineer from Duke who has her PhD in electrical

engineering from Stamford, where she also went to the Executive

Management Program.

Scuilli, CEO, has been with PowerZyme since the spinoff. "I was at a

venture fair at Sarnoff, and I was the one that saw the technology

introduced," he says. "I solicited the angel investors that put in the

first $2.5 million."

Scuilli grew up on Pittsburgh’s West Side, where his father was a

construction laborer and his mother a waitress. He had a football

scholarship to Geneva College, in Beaver, Pennsylvania, and he majored

in business administration with a concentration in economics. He has

done postgraduate work at Case Western Reserve and Northwestern’s

Kellogg School.

Scuilli, who is married and has five children, started his career in

banking, then went to Wall Street, where he most recently was

president of William E. Pollock & Co. an old-line government bond

dealer, which he helped revitalize and grow. When he sold that company

he left the workforce to pursue his youthful dream, to be a football

coach, volunteering for five seasons at Upsala College.

Then he devoted full time to making investments. In 1986 he took a $1

million stake in Plus One, a health services firm that has grown more

than 400 percent. In addition to PowerZyme, he also invested in

another Sarnoff spinoff, Summit-based Secure Products, a

ceramic-phosphor and optoelectronics developer that targets the

security and authentication needs of large national governments and

secure document printers. He also helped incubate Electrox, a

developer of electronic manufacturing systems that has semiconductor

contracts.

"This is my first time as CEO of a technology company," says Scuilli.

"It feels great. I’m enjoying it, I’m learning a lot."

PowerZyme, 11 Deer Park, Princeton Corporate Plaza, Suite

202, Monmouth Junction 08852. Rose Ritts, chief operating officer.

732-438-9300; fax, 732-438-9350. Home page: www.powerzyme.com

Top Of Page
Accenture Strikes Again: B-M Squibb

Bristol-Myers Squibb employees were notified last week that their

company has signed a contract with Accenture to provide services in

the areas of information technology, financial, and human resources.

Meetings were held with employees in the potentially affected areas

before a company-wide E-mail was sent about the contract.

"The decision to work with a third-party company to deliver these

services is consistent with Bristol-Myers Squibb’s strategy to focus

on 10 disease areas where there are unmet medical needs and where we

can make a difference in people’s lives," says Steffanie Archbald,

spokesperson. "To support this focus, we have been redeploying

resources and looking carefully at our cost structure to ensure that

we continue to effectively invest behind our business and growth

drivers, as well as behind our R&D pipeline."

B-MS has 8,600 workers in central New Jersey, 1,700 of them on

Scudders Mill Road and 600 at Nassau Park, home of the financial

shared services and global strategic sourcing departments. Services to

be outsourced include financial transaction processing, application

development and support, and HR operations and payroll.

The agreement with Accenture (formerly Andersen Consulting), signed on

December 8, follows Accenture’s major contract with Educational

Testing Service, which will outsource its supply chain including the

printing, publishing, warehousing, distribution, tracking and shipping

of tests and test materials globally. That two-year contract totaled

$142 million.

No dollar figure has been given on the B-MS contract, which is termed

"multi-year" and "global." Based in Bermuda, Accenture has more than

100,000 people in 48 countries, and this month it added an office in

southern China and 1,000 jobs in Germany, Switzerland, and Austria

(www.accenture.com).

Bristol-Myers Squibb Co. (BMY), One Squibb Drive, Box

191, New Brunswick 08903-0191. 732-519-2000. www.bms.com

Top Of Page
More Energy R&D

Another young company in Princeton, Princeton Power Systems, is

working on new energy technology, but instead of trying to replace

lithium batteries, it works with these batteries on an industrial

level. Founded in 2001 by graduates of Princeton University, Princeton

Power Systems has a cost-effective way of fending off power

interruptions. Its software can control an uninterruptible power

supply device, like a giant voltage regulator that protects against

brief power flickers as well as uneven current (U.S. 1, November 28,

2001).

Earlier this fall the 13-person firm landed a $250,000 Springboard

Fund grant from New Jersey, and now it has an impressive contract with

Science Applications International Corporation, the largest

employee-owned research and engineering company in the United States

(www.saic.com). It is developing a high-voltage, dynamic power source

for the United States Air Force’s Active Denial System. Using PPS’s

patented AC-link Technology, this power source will employ a lithium

ion battery bank to supply dynamic direct current power to the energy

transmitter.

"To mount the system on a Humvee, the size and weight of the power

supply are critical," says Darren Hammell, CEO of Princeton Power

Systems. "AC-link enables the SAIC team to incorporate a small,

lightweight, high-frequency internal transformer that will provide the

required voltage conditioning and ensure the smallest possible

footprint. In addition, AC-link’s inherent efficiencies place less

strain on the cooling system and offer flexible design options."

Princeton Power Systems Inc., 501 Forrestal Road,

Forrestal Campus, Suite 211, Princeton 08540. Darren Hammell, CEO.

609-258-5994; fax, 609-258-7329. Home page: www.princetonpower.com

Top Of Page
Provident IPO: Elder Profits

Just about the time that Darryl W. Copeland Jr. opened the

headquarters of Provident Senior Living Trust at 600 College Road, the

company filed an Initial Public Offering. It aims to raise up to $439

million in stock by offering 29 million shares.

When it goes public Provident will be a real estate investment trust

(REIT) that buys senior living center properties and leases them back.

Among its properties are Brookdale Living Communities (BLCI) and

Alterra Healthcare Corp. (ATHCQ), including Alterra Clare Bridge of

Hamilton on Whitehorse Mercerville Road. Its shares are held by

Farallon Capital Management, Hunter Global Investors, Franklin

Advisors, Friedman Billings Ramsey, and others. In its move to 600

College Road, Provident was represented by Tim Norris of Callaway

Commercial, and Jim Kinzig represented the landlord, the Aegis Group.

Copeland was not available for an interview during the "quiet period"

of the IPO, but he had been featured in this newspaper when he started

a dotcom geared for seniors (U.S. 1, August 16, 2000). Until last

April, he had been managing director of an affiliate of Fortress

Investment Group, an alternative investment and asset management firm

with more than $6.5 billion under management.

A biomedical engineer at Duke, Class of ’81, Copeland grew up in

Cherry Hill and is the son of an engineer. He has a master’s in

computer science from New Jersey Institute of Technology, and an MBA

from Wharton. He worked at RCA in Moorestown and on Wall Street for

eight years, including a stint as an investment banker with Donaldson

Lufkin & Jenrette. Then he took a job as CFO of one of his clients,

Brookdale Living Communities, a publicly traded senior housing company

(www.brookdaleliving.com).

In 2000 Copeland moved from Chicago to Cranbury, where he and his

wife, Karen, have two school-aged children. From March, 2000, to June,

2001, he had a dotcom company, DWC Web, on Emmons Drive. He was

anticipating the "silver tsunami," the tidal wave of Internet savvy

seniors that is predicted to engulf the web. "When I was at Brookdale

I saw how computers were becoming a big activity in the senior

communities," he said then. "But the major portals were designed,

developed, and geared to a much younger crowd."

Copeland’s web portal was easy to navigate, had big print, and had

highly visible click-through buttons. His five-person firm’s marketing

plan involved donating computers to residential communities. But even

though the company acquired a loyal subscriber base, it failed to get

the continued investment that it needed, and it closed its website,

www.next50.com, on August 3, 2001.

Apparently simultaneously Copeland was a managing director at

Fortress, because he had arranged the $21 million mortgage for

Brookdale’s 217-unit independent living facility, the Hallmark, in

Battery Park. It opened early in 2001 and, after the area recovered

from the World Trade Center disaster, attained a good leasing record.

In early 2004, Provident seeded its real estate portfolio with 21

senior living properties from Brookdale and Alterra. Its shares are

estimated to price at about $15.

Provident Senior Living Trust, 600 College Road East,

Suite 3400, Princeton 08540. Darryl Copeland, president. 609-720-0825;

fax, 609-720-0826.

Top Of Page
NeoStrata Expands

On Monday, December 13, NeoStrata consolidated its 50-person firm at

College Road. Until then, it had two spaces: a headquarters at 4

Research Way and a laboratory on College Road. Now it occupies 33,800

feet, which represents an addition of 3,000 square feet. The phone and

fax does not change. The 50-person company focuses on therapeutic skin

care and patented alpha-hydroxy acid formulations. Also here are

TriStrata, PolyStrata Pharmaceuticals, and Tri-Strata Technology.

Founded in 1988, NeoStrata Company Inc. is the company that everyone

hoped would go public, because it seemed to have a sure-fire

technology – the ingredient for Fountain of Youth face creams. It

remained private, thanks to a strong patent position, and major

cosmetic firms such as Estee Lauder and Elizabeth Arden have to pay

royalties to use the formulation. NeoStrata has its own brands,

including Exuviance.

Alpha hydroxy acid wipes out the fine lines and wrinkles caused by

overexposure to the sun or by aging. Occurring in citrus fruits and

sugar cane, tomato juice, apples and wine, as well as in milk, they

can help the skin shed its outer layer, the stratum corneum, where

wrinkles show themselves.

NeoStrata’s founders, dermatologist Eugene Van Scott and

dermatopharmacologist Ruey Yu, met at Temple University in 1968. Their

first joint publication, in 1974, reported the effectiveness of alpha

hydroxy acids to treat ichthyosis, a genetic skin condition.

This collaboration resulted in an effective treatment for a relatively

intractable, unsightly skin condition, but it also led to an

understanding of how alpha hydroxy acids affect skin, in general. The

pair also discovered a number of organic acids whose previous names

did not reveal their common structural features.

The firm was founded as Polystrata in Connecticut in 1988. TriStrata

Technologies, a subsidiary of NeoStrata located in Delaware, holds the

intellectual property, issuing licenses and collecting royalties.

NeoStrata, the operating company, develops technologies and quality

assurance, takes care of marketing and sales, and coordinates

manufacturing.

NeoStrata Company Inc., 307 College Road East, Princeton

08540. Richard H. Wildnauer, president. 609-520-0715; fax,

609-520-0849. www.NeoStrata.com

Top Of Page
Law Firm Leaving

After three years, a merger, and a defection, the law firm of Hale and

Dorr has closed its doors at 650 College Road. Hale and Dorr had been

known as Wilmer Cutler Pickering Hale and Dorr since the merger took

place last spring.

The defection happened in June, when David J. Sorin took six

colleagues to join the business and finance practice of Morgan, Lewis

& Bockius at the Carnegie Center (U.S. 1, June 30, 2004). In 2001

Sorin had founded this office of Hale and Dorr, bringing 32 attorneys

and their staff with him from the Princeton office of Buchanan

Ingersoll, which he also founded.

This office did corporate finance law, including venture capital

financing, mergers and acquisitions, and tax matters, and it had 23

attorneys in spring, 2004.

A trade publication, Legal Week, reported that, when compared to

Columbia, Stanford, and Oxford, the Princeton office had failed to

bring in the expected number of university spin-off deals.

Now Milt Charbonneau and Brian McMamimon of Colliers Houston & Co.

represent the Boston-based firm in its efforts to sublease 26,800

square feet.

Hale and Dorr LLP, 650 College Road East, Princeton

08540. Www.haledorr.com

Top Of Page
Hyatt Buys Suites

The Pritzker family, owners of Hyatt Corp. hotel chain and the Hyatt

Regency at the Carnegie Center, plans to buy the 143-hotel AmeriSuites

chain. The deal is reportedly worth $600 million, though that figure

was not disclosed by the buyer or the seller, the Blackstone Group.

Hyatt is based in Chicago and AmeriSuites is based in Fairfield,

Connecticut. The purchase would include AmeriSuites at Carnegie Center

West.

Top Of Page
Expansions

Two companies that make auto headlights, one from Japan and one from

Taiwan, have leased up the latest building at CenterPoint at 8A

Industrial Park, built by Matrix Development Group.

The New Jersey branch of Genera Corp. has already moved from 1242

South River Road to 152,000 square feet on 5 Fitzgerald Avenue. It is

being joined by Sabry Lee Inc., which is taking 77,000 square feet.

Sabry Lee Inc. imports and distributes aftermarket automobile

accessories manufactured in Taiwan by Eagle Eyes Traffic Ind. Co.,

Ltd. It makes plastic head, tail lights, and plastic corner lights,

and it also carries side view mirrors, fan assemblies, and AC

condensers. Scott Belfer of CBRE represented Sabry Lee, which is

expanding from the West Coast.

With a headquarters in La Palma, California, Genera Corporation is the

North American distribution arm of TYC, a Japanese maker of auto

replacement lamps. In this country it has 710,000 square feet of

warehouse space in five distribution centers. Phone and fax have not

changed.

Designed by Venezia & Associates of New Brunswick, the one-story

Fitzgerald Avenue building is made of pre-cast structural concrete. It

has 36-foot clear ceilings and is equipped with Early Suppression Fast

Response sprinkler systems, multiple loading docks, and flexible

parking.

Genera Corporation, 5 Fitzgerald Avenue, Suite A, Monroe

08331. 609-409-8168; fax, 609-409-8190. Home page: www.genera.com.

Top Of Page
Contract Signed

Sharbell Development Corp., 1 Washington Boulevard,

Robbinsville 08691. 609-918-2400; fax, 609-448-2714. Home page:

www.sharbell.com

Sharbell Development Corporation has signed its first tenant, a

cardiology practice, for Washington Town Center’s West Lake Office

Building. The developers are being represented by NAI Fennelly.

Comprehensive Cardiology Consultants PA will be moving from 179

Klockner Road to 8,200 square feet in the state’s first

neo-traditional town center.

Located off Route 33, Washington Town Center has residential, retail,

and office/medical space in a small town planned community. Phase I of

the office building has nearly 39,000 square feet. "This commercial

corridor is no longer the ugly duckling to Princeton," says Tom Troy,

senior vice president of Sharbell.

Among Sharbell’s developments are Foxmoor in Washington Township,

Brentwood Estates and Gentry in Plainsboro, Summerfield in South

Brunswick, Windsor Park Estates in West Windsor, and Sharps Farm in

Hamilton.

Top Of Page
Death

Paul E. Bevensee, 69, on December 6. He was founder and president of

the Princeton Windsor News Service.

Corrections or additions?


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