I-State Expands

Sarnoff’s Songbird: VCs Hear Good Things

SJP Groundbreaking:

New CEO at Cytogen

New in Town

Crosstown Moves

Deaths

Corrections or additions?

These articles by Peter J. Mladineo and Barbara Fox were published in U.S. 1 Newspaper on September 2, 1998. All rights reserved.

Life in the Fast Lane

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I-State Expands

More high tech companies are taking root in East Windsor’s

arable soil. The latest news: I-Stat, the developer of blood diagnostic

products, is leasing 37,000 square feet at Windsor Center Drive, across

from the Lockheed Martin plant. A total of 120 employees are expected

to occupy the space by September 19. This is a consolidation of its

offices at Forrestal Center and at 109 Morgan Lane in Plainsboro.

The 303-A College Road headquarters didn’t allow I-Stat any more room

to grow, explains Bill Beattie, I-Stat’s vice president of human resources.

Moreover, the lease was expiring in September. "It’s nearly 100

percent occupied," says Beattie.

Windsor Center is owned by Brandywine Realty, the real estate investment

trust that recently purchased the DKM portfolio on Lenox Drive. Its

size, flexibility of layout, and the economics of the property convinced

I-Stat to make the move. "It was a good deal," says Beattie.

"It did not disrupt the commutes of the majority of our workforce."

The nearly 60,000 square-foot building is also occupied by Happy World

day care center and preschool.

There is a minor commercial boom happening in the once-sleepy farms

along Route 571 and I-Stat is just the next in line to be enticed

by East Windsor’s affordable leases and available space. This area

has already netted Shiseido, the cosmetics manufacturer that opened

a packaging facility in the old Carter-Wallace plant up the road.

Also Windsor Corporate Park, consisting of four buildings on 115 acres

containing 300,000 square feet in the old Lockheed Martin complex,

is almost ready to come on to the Class A market. "Space can be

delivered in a matter of a few months," said Aubrey Haines, of

GMH Realty, the leasing agent.

Janice Mironov, East Windsor’s mayor, is practically

talking Silicon Valley. "We’re on a roll and we fully anticipate

that it will continue," she says. "It’s a super location and

companies are realizing that. We also have put into place some very

business-friendly streamlined procedures within the community to assist

businesses and we also have a attractive high quality community for

people to live and work in. These are all very high-tech, high-quality

type businesses that we have been attracting along that corridor."

I-Stat’s main product is a hand-held, point-of-care diagnostic system

that does blood analyses using a few drops of blood. It consists of

an analyzer roughly the size of a portable phone and disposable test

cartridges that perform the most common blood tests. I-Stat is marketing

this system to neonatalogist as an alternative means to monitoring

pre-term infants (who are currently given regular blood transfusions

while on intensive care watches). I-Stat systems are in use in health

organizations including VHA, Kaiser Permanente, and Premier. The company

is traded on NASDAQ as STAT.

I-Stat’s net sales for the second quarter increased by $10.5 million,

24.95 percent, compared to last year’s second quarter increase of

$8.4 million. I-Stat cartridges have also been selling well. The sales

volume increased by 47.7 percent in the second quarter, 1.62 million

units, compared to 1.10 million units for the same period last year.

More importantly, in August I-Stat signed an agreement with Abbott

Laboratories where Abbott would take over the sales and marketing

aspects of I-Stat’s analyzers in exchange for an minority equity position

— 2 million shares at $11.35 per share. The two would collaborate

on the development of new products. "Abbott gives I-Stat the marketing

and distribution strength we need to realize the full potential of

our technology," says William P. Moffitt, president and CEO, in

a press release. "This alliance will also help us achieve the

economies we need to maximize the efficiency of our production process,

making our products even more cost-efficient."

— Peter J. Mladineo

I-STAT Corp., 303 A College Road East, Princeton

08540. William P. Moffitt, president and CEO. 609-243-9300; fax, 609-243-9311.

Home page: http://www.i-stat.com.

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Sarnoff’s Songbird: VCs Hear Good Things

Songbird Medical Corporation, a little-known research

firm working on new hearing aid technology, has received $12 million

in second-round financing, the single largest investment in New Jersey

during the second quarter of 1998. Fred Fritz is the president of

this latest spinoff of the Sarnoff Corporation that is keeping an

eye on the demographics of an aging baby boomer population.

Fritz majored in engineering at the University of Illinois, Class

of 1972, and has an MBA from Harvard; most recently he was president

of Coleman North America. Ron Goldfuss, the CFO, majored in economics

at Boston College, Class of 1968, and has a Wharton MBA. Mike Tardugno

is the senior vice president, and the rest of Songbird’s team is made

up of Sarnoff employees.

"Sarnoff has a reputation on the TV side but they do a tremendous

number of other products in medically related areas. Many of the other

things that Sarnoff has worked on will come into play," says Goldfuss.

Though Songbird is being billed as working on "disposable"

hearing aids, the throw-away aspect is not the company’s central concern,

he says.

A Boston-area firm, Prism Venture Partners, led the first round of

financing along with Johnson & Johnson Development Corp. and Tredegar

Investments Inc. They were joined for the second round by Bank of

America Ventures and Oak Investment Partners.

In spite of Songbird’s success, venture capital investment in the

state is down when compared to the same quarter last year, reports

Bob Roche, regional director of the survey taken by PricewaterhouseCoopers.

Songbird and 16 other companies received a total of $73.1 million

in the quarter ending this June, compared with last year when 21 companies

received nearly double that amount, $132 million.

Nettech Systems Inc. at 600 Alexander Road (http://www.nettechrf.com)

received $3.5 million in second stage financing from Early Stage Enterprise,

Graystone Ventures, and Keystone Ventures .

Signius, formerly of Witherspoon Street and now located in Somerset,

has $3 million in bridge financing from UST Private Equity Investors

Inc. and Fidelity Ventures. It is doing roll-up mergers of paging

dispatch services, voicemail, and telemarketing communications services.

Therics Inc. at University Square (http://www.therics.com) reportedly

received $2,500,000 from IAI Ventures Inc. for its innovative 3-D

production process for medical products and devices. SysTech Solutions,

the packager of automation software on Cedar Drive in Cranbury (http://www.systech-tips.com)

received a $500,000 bridge investment from Anthem Capital and Euclid

Partners IV.

"Technology industry companies received over three quarters of

all investment dollars in New Jersey," says Roche. "Seven

New Jersey-based venture capital funds reported investing $42.2 million

in 17 deals during the most recent quarter." Among them, Accel

Partners of Palmer Square, gave $1 million to an Oceanport-based firm,

Tellium Inc., to develop low noise broadband transmission technology.

Songbird Medical Corporation, c/o Sarnoff, CN 5300,

Princeton 08543-5300. Fred Fritz, president. 609-734-2000; fax, 609-720-4847.

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SJP Groundbreaking:

Spec on Roszel Road

Groundbreaking for a $40 million 300,000 square foot

building at Alexander and Roszel roads, the first speculative construction

in Princeton in years, will be Thursday, September 3, at 2 p.m. A

26,000 square foot warehouse is being torn down for the Class A office

building, designed by Bob Blakeman of the Hillier Group, to be built

by Bovis Construction. "The vacancy rate in this market is 1 percent

and largest block of contiguous space is about 9,000 square feet,"

says Charlie Hatfield, vice president of SJP Properties.

"A lot of people said they were going to be first to break ground

on a spec building," says Hatfield, former director of corporate

marketing for the Hillier Group, "but we did, and we are."

SJP, founded by Steven J. Pozycki, manages 12 million feet of Class

A space and is one of the largest privately held real estate development

and management companies in the state.

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New CEO at Cytogen

H. Joseph Reiser is the answer to Cytogen’s search for

a new president/CEO and a new direction for a firm that is rich in

technological potential but struggling to find a workable business

plan. He replaces founding scientist Thomas J. McKearn and a board

member from Boston University, John E. Bagalay, who had served as

acting CEO since June.

Reiser went to Indiana University, Class of 1970, and stayed to earn

a PhD in physiology. After a stint in academe he spent virtually his

entire business career, 17 years, at Berlex Laboratories, the Wayne-based

subsidiary of Schering AG, most recently as corporate vice president

and general manager, pharmaceuticals. On his four-year watch, he increased

revenue growth, started new direct-to-consumer marketing programs,

and initiated various unusual clinical development programs in pain

management and gene therapy.

Berlex is known for a sustained release cardiovascular drug, an oral

contraceptive, transdermal estrogen replacement therapy, and the introduction

of Betaseron, the first commercial product for treatment of multiple

sclerosis.

Cytogen firm markets and develops products for targeted delivery of

diagnostic and therapeutic substances directly to sites of disease.

It went public in 1986 and has had three products approved by the

Food & Drug Administration nuclear medicine-based diagnostics: Quadramet,

Prostascint, and OncoScint (U.S. 1, June 24). Founder McKearn is now

working on lymphocyte therapy at a Massachusetts-based subsidiary,

Cellcor.

Cytogen Corporation, 600 College Road East, CN

5308, Princeton 08543-5308. H. Joseph Reiser, president and CEO. 609-987-8200;

fax, 609-452-2975. Home page: http://www.cytogen.com.

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New in Town

Document Depot, 126 Stanhope Street, Princeton

Forrestal Village, Princeton 08540. Edward Keenan, owner and president.

609-520-0094; fax, 609-520-1294. E-mail: edkimkeen@aol.com.

Edward Keenan has opened a copy shop/computer rental store in Forrestal

Village. Keenan, 31, has a degree from Fordham University (Class of

1989), was controller and systems manager for Office Tech in Bellmawr.

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Crosstown Moves

Lapjack Systems, 5 Independence Way, Princeton

08540. Andy Goren, president and CEO. 609-514-5181; fax, 609-514-5176.

Home page: http://www.lapjack.com.

Lapjack Systems moved to the Office Gallery at 5 Independence Way,

vacating a suite at 600 Alexander Road it moved into earlier this

year. The toll free number is still 888-LAPJACK, but the phone and

fax are still new.

"It made a lot of sense to us," says Andy Goren, the president.

Since he launched Lapjack, a security device for laptops, in June,

the product has sold nearly 10,000 units — most of them in Europe

where the company is working with more master distributors. It is

a subsidiary of TV Objects.

The Spencer Group Inc., 475 Wall Street, Research

Park, Princeton 08540. Gordon W. Spencer, president. 609-252-0111;

fax, 609-252-0060.

It moved from 3,000 square feet in 104 Carnegie Center to a shared

suite in Research Park’s D/J Business Services at 475 Wall Street.

The firm specializes in product acquisition for major retail chains

and management advisory service relative to the apparel industry.

HIP Health Plan of New Jersey, 1 HIP Plaza, North

Brunswick 08902. Victoria A. Wicks, president and CEO. 732-937-7600;

fax, 732-937-7810. Home page: http://www.hipnj.com.

The computer center at 100 Horizon Drive has moved to consolidate

with headquarters at HIP Plaza in North Brunswick.

Outpost Outpost Inc., 301 North Harrison Street,

#411, Princeton 08540. Janice Abrahams, president. 609-921-6001; fax,

609-252-9605. E-mail: info@outpost2.com. Home page: http://www.outpost2.com.

The Internet consulting firm moved from 295 Nassau Street to the Aparri

Dance Studio at 217 Nassau Street. The mailing address is 301 North

Harrison Street, Number 411, Princeton 08540. The phone and fax remain

the same.

Gateway Funding, 1230 Parkway Avenue, Suite 101

A, Ewing 08628-3081. Allan Smith, branch manager. 609-671-1080; fax,

609-671-1240.

Consolidated Mortgage changed its name to Gateway Funding, the name

of its parent company, and moved out of 2,000 square feet at 100 Canal

Point Boulevard to 1230 Parkway Avenue in Ewing.

O’Gorman & Johnsen, 624 Rosedale Road, Princeton

08540. 609-921-0777.

John O’Gorman moved his investment banking outfit from 3490 Route

1 to his home. He had left his post as regional vice president with

United Jersey Bank, where he had been for 27 years, when UJB merged

with Summit, and he started his own firm with J.P. Morgan alumnus

Jim Johnsen.

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Deaths

Elizabeth Ann Jungeblut, 67, on August 18. She was a senior

research assistant at ETS.

Christine Elizabeth Sutton, 54, on August 23. She had

worked at Applegarth Care Center.

William J. Malloy, 75, on August 23. He was a maintenance

supervisor at Princeton University.

Sukhmandir Singh Khalsa, 48, on August 25. He was co-director

of the Khalsa Yoga Center in Hamilton.

John S. LaMarca, 74, on August 26. He was president of the International

Union of Electronic Electrical Technical Salaried & Machine Workers

Local 469.

Corrections or additions?


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