Pharmaceutical Services

Biotech R&D

Electronic R&D


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This article by Kathleen McGinn Spring was prepared for the September 4, 2002 edition of U.S. 1 Newspaper. All rights reserved.

N.J. Technology Fast 50

Growth — fast growth, category-stealing growth,

growth at all costs — was the mantra of the end of the decade

just passed, and the very beginning of this decade too. Fueled by

venture capital and soaring stock prices, a number of technology companies

did achieve dizzying growth. Global consulting firm Deloitte & Touche

honors the companies that grew revenues at the fastest rate during

the past five years, and that invested heavily in R & D during that


The firm’s Technology Fast 50 lists are compiled geographically, and

zero in on just 19 areas within the United States. New Jersey is one

of those areas, and nearby Delaware Valley is another. Just being

recognized as a hot bed of technology is an honor for New Jersey.

It joins three hot tech regions in California, Chicago, Virginia,

Washington State, and only 14 other states or regions. Even Massachusetts,

home of the famous Route 128 technology corridor, does not get its

own awards; it is lumped into a New England category.

After the tech gyrations calm down a little, it may be New Jersey’s

inclusion as a state that nurtures innovation that matters more than

what company was growing how fast in 2002. For though there was some

truly eye-popping growth — 293,493 percent at ITXC Corp. tops

the list — many of the fast growers are now devoting substantial

energy not to getting bigger still, but to surviving.

Some of the New Jersey Technology Fast 50 are private companies, others

are public. Both groups have suffered, but the second group has had

its humbling laid out in S.E.C. documents and stock charts for all

to see. Stock prices that hit — or surpassed — $100 a share

in the first days of 2000 are rarely as much as one-tenth of that

number now and some are counted in pennies. Reorganizations are ongoing,

as are staff reductions. S.E.C. documents detail the hunt for fresh

capital and list how much cash is left, and what measures are being

taken to make it last.

In the midst of this tech gloom, which has engulfed the hares as well

as the turtles, there are hopeful signs. Among the Fast 50 in the

Princeton area, there are companies that are gaining new business,

inking new R & D agreements with academic institutions, and rolling

out new products. Lessons have been learned. Now all that is left

is to wait out the economy.

Among the New Jersey Technology Fast 50 from the Princeton area:

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Epam Systems

Epam Systems, 29 Emmons Drive, Suite C-10, Princeton

08540. Founded 1992. Staff size: 10. Square feet: 8,000.


Founded in Belarus, Russia 10 years ago, Epam, a privately-held

computer consulting firm, was originally named Effective Programming

America. Number 24 on the Fast 50 list with five-year revenue growth

of 1,109 percent, it has enlarged its physical space too. It recently

moved from 3,000 square feet to 8,000 feet in Princeton Commerce Center.

Epam does consulting in sales force automation on PCs for various

industries, domestic and foreign. The programs are webcentric and

adaptable for Internet and intranet use (U.S. 1, June 16, 1999).

Most system development work occur’s in Epam’s facilities in Moscow

and Minsk. The company is involved in developing the Russian software

industry, and hires engineers in the former Soviet Union at what its

website terms "extremely reasonable rates."

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Princeton Video Image

Princeton Video Image Inc. (PVI), 15 Princess Road,

Lawrenceville 08648; computer hardware and software for video processing

for television advertising production. Founded 1990. Brown Williams,

chairman. Human resources: Judy Reed. Purchasing: Jeffrey Drobits.

Staff size: 60. Square feet: 25,000.

609-912-9400 609-912-0044

Princeton Video Image claimed the number 15 spot on the Fast 50 list

with five-year revenue growth of 2,100 percent. PVI is the company

responsible for the technology that generates now-you-see-them, now-you-don’t

virtual advertisements that viewers see behind batter’s boxes and

on soccer fields during televised sporting events.

After flying as high as nearly $15 a share, the company’s stock price

is now just over its 52-week low of 62 cents. On June 26, PVI announced

that Cablevision Systems Corp. had invested $5 million in convertible

debt in the company. In a press release, the company said that it

was especially pleased with this transaction "in light of the

current challenging financial markets" and that it continues to

be in "active discussions with other strategic partners to maximize

the future potential of our company."

For the second quarter, PVI reported revenue of $3.6 million, up from

$1 million a year ago, and a net loss of $3.5 million, compared with

a loss of $3.2 million in the second quarter of 2001.

In reporting these results to the S.E.C., the company announced steps

to "reduce expenses, eliminate redundancy in its operations, and

improve its financial performance." In July, it reduced its U.S.

workforce by 14 percent through a combination of layoffs and attrition.

During August, PVI is "instituting significant salary reductions

for most senior executives in order to reduce overhead."

On a positive note, on August 8 PVI announced that it had signed a

three-year agreement with the NFL to continue sale and insertion of

virtual advertising for all NFL International telecasts.

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Pharmaceutical Services

Newton Interactive

Newton Interactive, 2425 Pennington Road, Pennington

08534; strategic planning, design, integration, technical development,

and implementation of content management, E-marketing and E-learning

systems, also Internet, extranet, and intranet solutions, specializing

in pharmaceutical industry. Founded 1991. Debra Newton, CEO. Human

resources and purchasing: Tom Konstantynowicz. Staff size: 42. Square

feet: 12,000.

609-818-0025 609-818-0045

Newton Interactive placed number 36 on the Fast 50 list with five-year

growth of 479 percent. The privately-held marketing company specializes

in interactive tools for the pharmaceutical industry. Its services

include website development, intranets, extranets, interactive sales

training, and strategic planning and technology infrastructure for

E-Learning and content management.

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Biotech R&D


Medarex Inc., 707 State Road, Princeton Gateway,

Princeton 08540; biopharmaceutical developing monoclonal antibody-based

therapeutics for cancer and other diseases, including the UltiMAb

Human Antibody Development System, with a multi-product Phase III

manufacturing laboratory in Annandale. Founded 1987. Donald L. Drakeman,

CEO. Staff size: 30. Square feet: 6,000.

609-430-2880 609-430-2850

Medarex, at number 23 on the Fast 50 list, grew its

revenues 1,209 percent over the past five years. The biotech develops

therapeutic products for cancer, autoimmune disease, and other diseases

based on proprietary technology in the field of immunology. A number

of therapeutic antibody product candidates using the company’s UltiMAb

Human Antibody Development System are in various stages of human trials.

Its preclinical development pipeline includes product candidates for

a variety of indications, such as oncology, autoimmune/inflammatory

diseases, and infectious diseases.

The company’s stock, moving along in the low single digits throughout

1998 and the beginning of 1999, ran up to almost $100 a share early

in 2000, before beginning to drop. The stock is now trading at about

$7 a share, just above its 52-week low of $6.10.

On August 14, Medarex reported second quarter revenue of $12.6 million

and a net loss of $17.9 million, or 24 cents a share. During that

quarter, the company decided to delay indefinitely the planned construction

of a large-scale manufacturing facility at its Bloomsbury location.

The company will seek third-party manufacturing agreements and expand

its existing clinical manufacturing facility in Annandale.

Despite a drop in its capitalization, the company has $402 million

in cash and cash equivalents on hand, and has upped its R & D expenditures,

from $4.5 million in the second quarter of 2001 to $18.4 million in

the second quarter of 2002.

Orchid Biosciences

Orchid BioSciences Inc., 4390 Route 1 North, Princeton

08543; Production services and technologies of single nucleotide polymorphism

(SNP) scoring and genetic diversity analysis, also 30,000 feet at

303 College Road East. Founded 1995. Dale R. Pfost, CEO. Human resources:

Sarajane Mackenzie. Purchasing: Barry Lynn. Staff size: 130. Square

feet: 21,000.

609-750-2200 609-750-6402

Orchid Biosciences sits at number 30 on the Fast 50 list with five-year

growth of 730 percent. The biotech develops and commercializes technologies,

products, and services designed to measure and analyze information

related to genetic diversity, or the genetic variability that distinguishes

one organism from another. It provides products and services for genetic

variability analysis for pharmaceutical, biotechnology, academic,

and agricultural applications.

On August 14 Orchid announced that revenue for the quarter ended June

30, 2002 was $16.4 million, an increase of $9.7 million as compared

with the year ago period. Net loss was $12.2 million as compared with

a loss of $14.3 million for the corresponding period in 2001. Research

and development spending was down, from $16.1 million in the quarter

ended June 30, 2001 to $12.5 million in the most recent quarter. The

decrease was due to a $2.1 million decrease in the purchase of laboratory

supplies and to a reduction in research personnel.

In reporting results for the quarter ended June 30 to the S.E.C.,

Orchid stated: "We expect our restructuring efforts in the second

quarter of 2002 and anticipated incremental restructuring efforts

during the third quarter to reduce further spending. We believe that

the result of these efforts, coupled with expected increases in both

revenues and gross margins in all of our business units, will enable

us to use our existing cash reserves to operate our ongoing business

activities over at least the next 12 months. However, we may need

to access the capital markets for additional funding for strategic

business activities."

Orchid’s stock began trading in mid-2000 and quickly rose to $60 a

share. It hit a new 52-week low of 90 cents on August 5, and is now

trading at about $1 a share.


Pharmacopeia Inc., 3000 Eastpark Boulevard, CN

5350, Princeton 08543-5350; patented chemical screening libraries

for early drug testing and development. Founded 1993. Joseph A. Mollica,

CEO. Purchasing: Dennis Biunno. Staff size: 150. Square feet: 70,000.

609-452-3600 609-452-3672

Pharmacopeia is number 40 on the Fast 50 list with five-year revenue

growth of 399 percent. The company’s drug discovery business integrates

proprietary small molecule combinatorial and medicinal chemistry,

high-throughput screening, in-vitro pharmacology, computational methods,

and informatics to discover and optimize lead compounds. Its software

subsidiary, Accelrys, develops and commercializes molecular modeling

and simulation software for the life sciences and materials research

markets, cheminformatics and decision support systems, and bioinformatics

tools, including gene sequence analysis.

On August 6 the company announced a revenue increase of 8 percent

to $29.3 million for the second quarter and a loss of $5.1 million.

At the same time, it announced a restructuring through which it will

cut its staff by approximately 80 employees, a reduction of some 10


In its report to the S.E.C. on second quarter results, Joseph Mollica,

CEO, said that "over the last 12 months we have reduced costs

in the Drug Discovery unit, and improved its efficiency. In the software

division, while revenue grew, that growth was slower than we had previously

anticipated. Current market conditions require that we reduce our

headcount while both maintaining service levels and honoring our company’s

commitment to research and development."

Pharmacopeia’s stock price, which rocketed to nearly $100 a share

early in 2000, is now approximately $8 a share, at the low end of

its 52-week range of $5.99 to $19.32.

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Electronic R&D

Discovery Semiconductors

Discovery Semiconductors Inc., 110 Sylvia Street,

Ewing 08628; design of custom semiconductor chips for NASA and U.S.

Air Force, optical photoreceivers for telecommunications. Founded

1993. Abhay Joshi, owner & CEO. Human resources: Sharon Joshi. Staff

size: 26. Square feet: 14,000.

609-434-1311 609-434-1317

At number 33 on the Fast 50 list, Discovery Semiconductor has grown

591 percent in the past five years. A privately-held manufacturer

of optical receivers, the company states right up front, on its website

home page, that it is "fiscally conservative." It thereby

demonstrates how very fast the key buzz words in the tech industry

have changed. Where using cash to reel in market share with the single-minded

focus of a great white shark closing in on its prey was all the rage

just three years ago, the word "conservative" linked with

money management is suddenly a very good thing.

Discovery, founded in 1993, has fed its growth with Small Business

Innovation Research contracts. The company, which moved to new offices

in Ewing in May, has reinvested proceeds from commercial operations

into research, while attaining profitability. Its goal is to become

an independent Fortune 1000 company within five years.

PD/LD Inc. (Photo Diode-Laser Diode), 30-B Pennington-Hopewell

Road, Pennington 08534; fiber coupling and packaging of fiber optic

devices. Founded 1993. Vladimir Ban, president. Human resources: Karen

Reid. Purchasing: Mary Kay Powers. Staff size: 60. Square feet: 15,000.

609-564-7900 609-564-7901

PD-LD came in at number 46 on the Fast 50 list with growth of 312

percent over the past five years. Founded in 1993, the privately-held

company manufactures for the optical communications, sensor, and medical

industries. Its products include fiber coupled coaxial lasers and

LEDs, high power pulsed lasers, CWDM Modules, and combiners.

The company received significant financing in 2000 and moved to new

facilities in March, 2001. It has photosensitive glasses under development

and is in joint development programs with Princeton University.

Universal Display

Universal Display Corporation Inc., 375 Phillips

Boulevard, Ewing 08618; flat panel, full color OLED displays. Founded

1994. Steven Abramson, president. Human resources: Katerina Aggelikas.

Purchasing: Lily Khalif. Staff size: 30. Square feet: 21,000.

609-671-0980 609-671-0995



Universal Display Corp. is number 22 on this year’s Fast 50 list with

five-year revenue growth of 1,233 percent. The company, in conjunction

with Princeton University and the University of South California,

is engaged in the research, development, and commercialization of

Organic Light Emitting Diode (OLED) technology for use in flat panel

displays and other applications.

One technology application is based on the fabrication of transparent

cathodes. The company’s transparent cathode technology provides the

ability to develop transparent and high contrast displays using organic

materials. It also provides the ability to build OLEDs on opaque surfaces

or active matrix thin film transistors with a greater fill factor

and aperture rate.

For the quarter ended June 30, Universal Display reported revenue

of $455,026 and a net loss of $5,577,787. In a press release, Sidney

Rosenblatt, CFO, said of the results: "We continue to accelerate

our development activities, while maintaining a conservative approach

to our use of cash."

In August the company completed a direct offering to institutional

investors through which it raised approximately $6,038,323, according

to its most recent 10 Q filing with the S.E.C. In that filing it stated

that it has sufficient cash to meet its obligations through the end

of the current fiscal year.

On August 12 Universal announced two $100,000 Small Business Innovation

Research contracts by the U.S. Department of Energy to demonstrate

the feasibility of using its high-efficiency phosphorescent OLED and

flexible OLED technologies for general lighting applications.

In a press release, the company stated that "based on proprietary

technology developed for the flat panel display industry, Universal

Display and its research partners, Princeton University and the University

of Southern California, have identified several new approaches to

generate highly-efficient white light that may also open up significant

new opportunities in the general lighting industry."

Universal’s stock, which traded at over $30 a share in early-2000,

hit a new 52-week low of $4.89 on August 5, and is now trading at

about $6 a share.

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ITXC Corp. (Internet Telephony Exchange Carrier),

750 College Road East, Princeton 08540; international Internet telephony

services carriers, wholesale call routing. Founded 1997. Tom Evslin,

CEO. Staff size: 185. Square feet: 70,000.

609-419-1500 609-419-1511

IXTC Corp., claiming top spot on the New Jersey Fast 50 Technology

list, grew nearly 300,000 percent in five years. It is a wholesale

telephone company that sends calls to and from over 150 countries,

operates a voice network called and carries calls between

telephone companies. Its customers are most of the largest fixed-line

and mobile telephone companies in the world, as well as many new competitive


The company has ridden the telecom wave of the past few years, way

up and then way down. It went public toward the end of 1999, and by

the beginning of 2000, its stock price was up over $100 a share. It

fell steadily throughout 2001, reaching a low of $2.25 in the spring

of that year. It now trades at about $4.10 a share.

Times are tough in the telecom industry, but ITXC remains hopeful.

On August 21 the company told analysts it expects 2002 revenue to

come in at $270 to $300 million. Losses are expected to totally 44

cents a share in 2002, but to drop to 3 cents a share in 2003. The

company expects to become cash flow positive by the end of that year.

In accepting the Fast 50 award, Tom Evslin, chairman and CEO of the

company, acknowledged the awful telecom climate, but said positives

include a good supply of talented workers. IXTC is taking advantage

of these stars, who were hard to find during the tech/telecom boom.

On August 14 it announced that it had hired Cynthia Artin as its vice

president of public relations. Artin last worked for Global Crossing.

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