Asian American TV Flourishes at Botree

Princeton Technologist Offers Krav maga

Management Moves

Expansions

Name Changes

Crosstown Moves

Deaths

Corrections or additions?

These articles were prepared by Barbara Fox for the March 9, 2005

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

Life in the Fast Lane

Pity the pharmaceutical finance departments that have to figure out

drug pricing. The federal government insists on the lowest price,

drugstore chains jostle for bulk pricing, consumer groups protest high

prices, and all the while the generic companies lurk in the shadows,

ready to pounce when the patents expire. Just what is a fair and

efficient method of pricing a drug so that the profits pay for the

research?

Setting different prices for different customers is a concept that

began in the transportation industry in the 1970s, when special

software was developed for the airlines. Such pricing arbitrage may

now be available for pharmaceutical firms. Model N, a South San

Francisco-based company that opened an office in Princeton Forrestal

Village, says it can offer the same revenue management efficiency to

life science firms – pharmaceuticals, medical technology firms, and

biotechs.

The name, Model N, is meant to evoke the legendary Model T Ford, for

which Henry Ford pioneered the assembly line concept. "Just like the

Model T revolutionized manufacturing," says Steve Zocchi, vice

president of marketing and sales at the 100-person firm, "we believe

we are at the beginning of the formation of a new category of

software."

Model N, he says, has a seamless, end-to-end process from pricing

through settlements payment. Its integrated approach eliminates

revenue leakage and delivers the visibility and controls needed to

avoid the risks of non-compliance to government pricing and

Sarbanes-Oxley regulations. "We see a new generation of cross

applications that bridge the worlds. They reach out into a

distribution channel, aligning people across departments and corporate

boundaries."

Zocchi and his cohort, Barbara Competello, moved into HQ on January 1.

Competello, senior director and engagement manager, is in charge of

what is scheduled to be a 25-person office. The daughter of a

policeman and an international agent for the Internal Revenue service,

she grew up in New York City, graduated from Duke in 1985 and has an

MBA from the University of Virginia. She was an early founder of

Cambridge Technology Partners and joined Model N in 2003.

Zocchi, the son of a psychiatrist, went to Knox College, Class of

1980, and has an MBA in international business from American Graduate

School of International Management in Phoenix, Arizona, known as

Thunderbird. At NetDynamics Inc. he worked with Model N’s founders,

the inventors of Spider, the first Internet applications server, in

1993. It was bought by Sun Microsystems to shore up its Java software

area. Some of this same crew founded Model N in 1999.

"We believe we are at the beginning of a new category of software,"

says Zocchi. Most of the life science revenue management is being

addressed, he says, by homegrown systems or spreadsheets. "They are

putting together whatever solutions they can, or trying to get their

arms around whatever contracts or pricing they have." As for other

software available – a generic approach to managing revenue doesn’t

work, says Zocchi. "You have to have domain expertise and shape the

solution."

During the dotcom bust, as other dotcoms were going out of business,

Model N was focusing on building the application with its first

customer, Ortho-Clinical Diagnostics. The firm flew low to the ground

during these years and managed its growth and cash conservatively.

Along the way Model N landed a $30 million round of funding from Accel

Partners. "Our expectations are very high and our view is this company

should be on a path where revenue is growing 50 to 100 percent on a

year-to-year basis," said Jim Breyer. Formerly a Princeton resident,

he is a managing partner of at Accel Partners and a member of Model

N’s board.

Model N added another $11 million in December. "We actually haven’t

used that money, but it is always easier to get money when you don’t

need it," says Zocchi.

Now that Model N has a complete suite of products optimized for life

science companies, and now that the economy has improved, it hopes for

rapid growth.

"Our gross over the last year has been twice that from our previous

year, and we continue to have made our financial plan every year the

company has been in existence," says Zocchi. "We have been cash flow

positive three out of six quarters, but we are trying to invest in

engineering and building out product. We are looking at international

expansion this year."

Opening this office signaled a different level of commitment and

infrastructure, and Competello will spend 80 percent of her time in

Princeton. "This office will give us a base and an infrastructure

where our clients are. It will allow me to spend time with clients and

recruit in the Princeton area and supplement our client-facing

services."

"It gives us the sense that there are two places that are Model N,"

says Competello. With 10 people now, she expects to double in size in

the next several months, hiring sales, field marketing, and

professional services personnel. "As we expand to that level, it will

make more sense for us to find our own office space in the second half

of the year."

Development is done in California, and engineers at an offshore

facility test the software as the engineers build it in "follow the

sun development." Testing is done offshore at night, and the results

are ready in the morning. Later the offshore facility will offer 24 x

7 technical support.

The official description of Model N’s product: solutions for revenue

management including pricing, contract management, and settlements

applications that enable life science companies to transform their

business processes for managing the end to end lifecycle of revenue.

"With Model N Revenue Management, companies reduce regulatory

compliance risks and eliminate the sources of revenue leakage that

cost companies millions of dollars each year."

The two big issues in life science revenue management are customer

consolidation and regulatory compliance. Consolidation can mean that

customers are very savvy about price manipulation. An individual

customer contract may include prices, discounts, and rebates for

hundreds of products affecting hundreds of orders. An article last May

in Bio-IT world quoted a Computer Sciences Corp. survey that found a

billion dollar life science company can leave $40 million on the table

every year.

As for compliance, or Sarbanes Oxley exposure, Competello says that

small companies that are operating ethically – but thought they were

operating under the radar – are being examined more closely.

Model N does not fear competition. For one thing, it has a head start.

"If this category grows the way we expect, I’m sure there will be more

companies entering this market," says Competello. "If people don’t

compete with us then we are in the wrong space. The real key is

working closely with the customers to help them drive more value."

Model N, 116 Village Boulevard, Suite 200, Princeton

08540. Barbara Competello, marketing director, east coast.

609-734-4306; fax, 609-520-1702. Home page: www.modeln.com

Top Of Page
Asian American TV Flourishes at Botree

Just in time for the surge in Bollywood popularity, Augustine Hoon and

Munish Sood, founders of Botree Investments LLC, have helped to launch

the first 24/7 Asian American television network, called ImaginAsian

Entertainment Inc. (www.iatv.tv).

Botree was founded in 2001 on Nassau Street and moved to 3,000 square

feet at 700 Alexander Road. Except for its stake in the television

network, Botree focuses on active portfolio management, financial

consulting, and wealth preservation.

The institutional arm of the firm, Princeton Advisory Group Inc., is

an SEC registered investment advisor with more than $3 billion in

assets under management. Clients include domestic and international

banks and financial and insurance institutions.

Botree Asset Management, with more than $100 million under active

management, is based in Alexandria, Virginia, and manages assets for

high net worth individuals and family offices. There are 15 investment

professionals overall.

The television network was founded last fall to serve the Asian

American community; it opened a movie theater in New York and a radio

station in California as cross-promotion vehicles. "Just as MTV and

BET helped usher youth and hip-hop culture into mainstream America,

IaTV will infuse the current television landscape with the best

Asian/Asian American media content available," says a press release.

Hoon, 38, grew up in Queens. An alumnus of State University of New

York, at Binghamton, he moved to Princeton in 1989. Sood, who also

grew up in Queens, graduated from Rider University in 1994, started

his career on Wall Street, and joined Augustine Hoon two years ago to

co-found Botree. The company is named after the tree under which

Buddha found enlightenment.

Hoon and Sood met each other at Global Value Investors, the investment

firm on Alexander Road owned by Ram Kalluri. Bill Barish of Commercial

Property Network helped them find the Alexander Road space, which was

designed by KSS Architects. Michael Mann of Pepper Hamilton is one of

the attorneys.

Botree Investments LLC, 700 Alexander Road, Suite 302,

Princeton 08540. Augustine Hoon and Munish Sood. 609-252-9555; fax,

609-252-9511.

Top Of Page
Princeton Technologist Offers Krav maga

David Kahn and some of his friends from Princeton University founded a

successor to Technology Management & Funding, a technology

commercialization boutique founded by his uncle, Harry Brener. "We

work with technologists and take equity only if we are successful in

getting funding," he says. Alan Hegedus left retirement to be the CEO.

Kahn’sfather, Alfie Khan, is a colorful Princeton entrepreneur. A

history major at Princeton University, Class of 1994, he worked for

his uncle, Harry Brener, at Technology Management & Funding, went to

law school in Miami, worked in Manhattan at AIG, and spent some time

in Israel learning hand to hand combat.

PTP’s flagship company, Intellicoat, has an energy-saving roof coating

called SolarSave that reflects heat from the sun, rejecting 98 percent

of the sun’s energy, and is being marketed in southern climes. "We

guarantee 65 percent of the energy savings, and for selected

buildings, we will coat the roof at our cost, and the client

participates in the savings with us," says Kahn, who declines to name

the secret ingredient in the coating, made in Florida. So far, the

firm has coated the San Diego Naval Base and is working with school

districts in Florida.

Kahn has a second company, Hammerhead LLC, based on his training in

Israel, about which he has written a book. It provides global security

consulting, training, and risk management to government organizations

and the private sector.

A combat training called "Krav maga close quarters" is supervised by

former chief military instructors of the Israeli hand-to-hand combat

system. The teaching team includes those with skills in counter-terror

and counter-guerrilla operations, urban warfare,

close-quarters-combat, close protection services, high-risk

entry/arrests and tactical emergency medicine. The company just

finished training at Fort Dix and is scheduled to train police

officers at Valley Road school this month.

Princeton Technology Partners, 100 Overlook Center,

Princeton 08540. Alan Hegedus, CEO. 609-734-8484; fax, 609-734-0066.

www.solar-save.com

Hammerhead Ops, 100 Overlook Center, Suite 102, Princeton

08540. David Kahn, owner. 609-921-2001; fax, 609-734-0066.

www.hammerheadops.com

Top Of Page
Management Moves

Amicus Therapeutics, 675 Route 1 South, Technology Center

of New Jersey, North Brunswick 08902. John F. Crowley, CEO.

732-745-9977; fax, 732-745-9769. Home page: www.amicustherapeutics.com

In January John F. Crowley replaced Norman Hardman as CEO. Hardman is

now chief scientific officer. Crowley had been the founding CEO of

Novazyme Pharmaceuticals on Nassau Street, and most recently he had

founded Orexigen Therapeutics. Matthew Patterson is the new chief

business officer and Gregory Licholai, the new vice president of

medical affairs and corporate development.

Amicus develops orally-active, small molecule drugs to treat human

genetic diseases. Its first drug, for Fabry disease, is in a Phase I

clinical trial.

Top Of Page
Expansions

Bartolomei Pucciarelli LLC, 2564 Brunswick Pike,

Lawrenceville 08648. James Bartolomei, partner. 609-883-9000; fax,

609-883-9008. Home page: www.bp-cpas.com

As planned, the consulting and accounting firm moved to its own

building last month (U.S. 1, October 6, 2004).

Beazer Realty Inc. (BZH), 250 Phillips Boulevard, Suite

290, Princeton Crossroads at Ewing, Trenton 08618. Paul Schneider,

president. 609-538-0244; fax, 609-538-1899. Home page: www.beazer.com

The residential home builder moved from 12,000 square feet at 250

Phillips Boulevard to 15,000 feet at 275 Phillips Boulevard. About 70

people work here.

Creation Stummer Inc., 115 Stryker Lane, Hillsborough

08844. John K. Haug, president. 908-281-9235; fax, 908-281-9623. Home

page: www.nowali.com

In January John Haug moved two companies from 7 Ilene Court in Belle

Mead to expanded space in Hillsborough, where he has six employees.

Founded in 1980, Creation Stummer is a subsidiary of Franz Stummer &

Co in Linz, Austria, and is a distributor of children’s clothing.

Plush Pups (www.plushpups.com) was formerly known as JKH

International, and it distributes toy canines.

Infragistics Inc., 50 Millstone Road, Building 200,

Windsor Corporate Park, Suite 150, East Windsor 08520. Dean Guida,

CEO. 609-448-2000; fax, 609-448-2017. Www.infragistics.com

Dean Guida’s company, a computer software development company, has

grown from 20 to 70 employees in three years. A serial entrepreneur,

Guida graduated from the University of Miami in 1987 and had founded

Protoview Development.

Systech Solutions Inc., 2540 Route 130, Cranbury Campus

Suite 128, Cranbury 08512. Robert M. DeJean, CEO. 609-395-8400; fax,

609-395-0064. Home page: www.systech-tips.com

Systech Solutions moved from Cedar Brook Corporate Center to Route

130, expanding from 18,000 to 30,000 square feet and from 40 to 49

people. It manufactures automated inspection systems – bar code

reading machines, automation systems, and manufacturing systems

controls.

Top Of Page
Name Changes

HG MultiMedia Inc., 29 Airpark Road, Princeton 08540. Ken

Greenberg, media director. 609-921-6200; fax, 609-921-6204. Home page:

www.hg-multimedia.com

HG Media merged with Sean Hayes Design to form HG MultiMedia. Ken

Greenberg of HG Media had focused on media planning and buying and is

now the media director. Hayes, who focuses on creative design and

production, is the creative director.

Greenberg was a telecommunications major at Indiana University in

Bloomington, Class of 1978, who had worked at Nassau Broadcasting, KIX

101.5, and at C-Tec cable television. His first company was called

VoiceWorks, and at HG Media his original partner was Ray Hirschman,

who is now with Princeton Communications Group.

Top Of Page
Crosstown Moves

National Registered Agents Inc., 100 Canal Pointe

Boulevard, Suite 108, Princeton 08540. Dennis E. Howarth, president.

800-767-1553; fax, 609-716-0820.

The registered agents office moved from 51 Everett Drive to 100 Canal

Pointe Boulevard. It has registered agents in 50 states available to

do business on behalf of out-of-state corporations.

SimStar Inc., 240 Princeton Avenue, American Metro

Center, Hamilton 08619. David Reim, CEO. 609-378-0100; fax,

609-378-0220. Home page: www.simstar.com

On Friday, March 25 SimStar will move from 202 Carnegie Center to

15,000 square feet at American Metro Center. SimStar offers strategy,

development, and servicing of E-business solutions for the

pharmaceutical industry.

Marshall & Swift/Boeckh), 505 Lawrence Square Boulevard

South, Lawrenceville 08648. Sara Earle, vice president of underwriting

operations. 609-689-9366; fax, 609-689-6700. Home page:

www.msbinfo.com

Last fall the College Road office of this firm consolidated with the

Lawrence office, which now houses both operations. One section of the

90-person office compiles construction cost data for the insurance and

construction industries, and the other provides building cost

information for property insurance firms, agencies, inspection

companies and claims adjusters. It also compiles and distributes

residential and commercial data.

NCI Consulting: Publicis Healthcare Group, 202 Carnegie

Center, Suite 101, Lawrenceville 08648. Susan Lavine Coleman,

president. 609-919-6250; fax, 609-919-6255. Home page:

www.nciconsult.com

NCI Consulting’s 11-person office moved from 2000 Lenox Drive to a

suite at the Carnegie Center that is also occupied by other divisions

of NCI, and it has a new phone and fax. A division of Publicis

Healthcare Group, it does strategic and marketing consulting for

pharmaceutical and healthcare-oriented consumer products companies.

Top Of Page
Deaths

Malcolm Byron Roszel, 85, on February 28. He had been vice president

of construction at Lewis C. Bowers and Sons.

Ronald Tellefsen on March 5, of non-Hodgkin’s lymphoma. He was CEO of

the Babe Ruth League on Brunswick Pike. The funeral is Saturday, March

12, at 10 a.m. at S. Raphael’s Church in Hamilton.


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