Daily Business Update

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September 29, 2006

Raytheon to pay $400,000 salary to its new chief accounting officer

Raytheon Co. disclosed today that it will pay Michael J. Wood, its newly appointed vice president and chief accounting officer, an annual base salary of $400,000.

The aerospace and defense company said in a document filed with the Securities and Exchange Commission that Wood, who will assume his posts Monday, also has a target bonus of 60 percent of his annual base salary, with a guaranteed bonus of $120,000 for 2006.

In August, Raytheon's relocation vendor purchased Wood's former residence for $1.16 million as part of Raytheon's key employee relocation policy, according to the filing.

Upon certain approvals, the company said that Wood will also be awarded 5,000 shares of restricted stock.

In addition, Wood, who last worked as audit partner for KPMG LLC, will be eligible to participate in certain benefit plans and programs.

Upon his arrival at Raytheon, Wood will serve as the company's principal accounting officer, a position currently held on an interim basis by David C. Wajsgras, its senior vice president and chief financial officer. (Dow Jones)

Posted by globebusiness at 3:19 PM | Comments (0)

Fairmont Copley Plaza chief sets sail for Bermuda

Jonathan Crellin, general manager at the Fairmont Copley Plaza, has been named general manager of the Fairmont Hamilton Princess in Bermuda, a hotel also known as the "Pink Palace." Crellin is scheduled to assume his new post Oct. 23. A successor to Crellin at Copley Plaza has not yet been announced, a hotel spokeswoman said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:52 PM | Comments (0)

New ad campaign for John Hancock Financial Services

John Hancock Financial Services plans to spend between $25 million and $35 million over the next year on a new ad campaign to reshape its image among baby boomers.

The company hired Boston ad firm Hill Holiday to create its new “The Future is Yours” campaign, the company’s first attempt to create a new brand identity in a decade and its first new ad campaign since Canadian firm Manulife Financial bought the company in 1994. Hancock is spending twice as much on this campaign as it did on ads last year.

The ads are Hancock’s attempt to refresh its identity among those aged 40 to 70 – whom it calls the “baby boomer plus” generation – by reminding them of the promises they’ve made about the future to their children, families, and themselves. The ads will run on cable networks like MSNBC, ESPN and Discover, and in print and on web sites beginning Oct. 2. (By Keith Reed, Globe staff)

Posted by globebusiness at 9:35 AM | Comments (0)

During high heat, R.I. could end utility shutoffs

Rhode Island utility regulators are considering prohibiting companies from shutting off utility service on extremely hot days to customers who cannot pay.

The state Public Utilities Commission voted 3-0 Thursday to consider the rule change, which Chairwoman Elia Germani called the first of its kind in New England.

The commission will allow the public to comment on the change for 30 days, then decide whether to adopt it. First proposed by anti-poverty groups, the measure now has the support of National Grid, the state's largest electrical supplier.

"It will be in place for next season," Commissioner Mary Bray said.

Current rules forbid utility shutoffs for some poor customers between Nov. 1 and April 15. The new proposal would prevent shutoffs whenever the National Weather Service issues an excessive heat advisory or warning.

Federal weather forecasters issue those advisories and warnings anytime heat and humidity make it feel hotter than 100 degrees for two consecutive hours. (AP)

Posted by globebusiness at 9:27 AM | Comments (0)

Raytheon awarded $24.2 million Navy pact

The Navy awarded a $24.2 million contract to a business unit of Raytheon Corp. for multi-spectral targeting systems, including 21 turret units and associated items in support of two combat helicopters.

The MTS is also used on the Predator unmanned aerial vehicles. The work will be performed in McKinney, Texas, and is expected to be completed by May 2008.

Shares of Raytheon closed up 20 cents at $47.98 on the New York Stock Exchange. (AP)

Posted by globebusiness at 9:10 AM | Comments (0)

Palomar,Gillette Making Light-Based Hair Removal Device

Palomar Medical Technologies Inc. entered the next phase of development of a light-based hair removal device for women.

The Burlington, Mass., researcher and developer of light-based systems for cosmetic treatments said the new device relates to an agreement with Gillette Co., a unit of Procter & Gamble Co. (PG), from February 2003.

Palomar said within 30 days of receiving over-the-counter marketing clearance from the Food and Drug Administration it will receive a development completion payment of $2.5 million from Gillette.

Palomar said the progress is within the targeted timeframe and has come after three years of planning and development. (Dow Jones Newswires)

Posted by egoodridge at 8:56 AM | Comments (0)

September 28, 2006

Shrewsbury man indicted in $13 mln investment fraud scheme

A former Worcester investment adviser was charged with mail and wire fraud today in a 20-count indictment that accused him of bilking $13 million from 15 investors, including relatives and a prominent Central Massachusetts business leader.

Amit U. Mathur, 35, of 3 Sunflower Circle, Shrewsbury, was charged today in connection with a four-year scheme in which he held himself out as a savvy hedge fund manager who consistently outperformed the major stock market indices, according to an indictment returned in Boston today.

His investment advisory company -- Entrust Capital Management Inc. of Worcester -- was shut down in April 2005 when the Securities and Exchange Commission charged him and a partner with misappropriating $3.6 million in clients' money, spending it on gambling activities, car payments, credit car bills, New England Patriots season tickets, jewelry and clothing.

If convicted, Mathur faces a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims.

The indictment says approximately $13 million in client funds were lost as a result of Mathur's misappropriation of funds and trading losses experienced in a Kimball & Cross brokerage account.

The indictment identifies the clients by their initials and specifies that DM, a Westborough businessman, incurred an $11 million loss because of his involvement with Entrust.

David G. "Duddie'' Massad of Westborough, chairman and majority owner of Commerce Bancshares Corp. of Worcester, has a civil lawsuit pending against Mathur. In that lawsuit, Massad alleges he lost approximately $15 million because of Entrust's wrongful acts.

A spokesperson for the US attorney's office said Mr. Mathur was not arrested and will be summonsed to court for his arraignment at a later date.

Gary C. Crossen, Mr. Mathur's lawyer, said "Mr. Mathur is looking forward to his opportunity to prove that he committed no crime."
(Worcester Telegram & Gazette)

Posted by egoodridge at 5:34 PM | Comments (0)

Deutsche Bank agrees to $250,000 fine

Deutsche Bank Securities has agreed to pay a fine of $250,000 to settle charges that it had engaged in dishonest and unethical activity, Massachusetts Secretary of State William F. Galvin said today.

Deutsche Bank hired an agent who had been dismissed by a previous employer for violating state securities law, Galvin's office said, and then attempted to persuade his former clients to move their accounts to Deutsche Bank.

A letter from Deutsche Bank to those customers ignored the facts surrounding the agent's dismissal and stated the agent was an "effective professional held in high esteem," Galvin's office said.

"Providing misleading disclosures to entice new business is an example of investor abuse," Galvin said in a statement, which noted that Deutsche Bank had admitted to the facts in the case.

Attempts to seek comment from Deutsche Bank were not immediately successful.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 4:31 PM | Comments (0)

Heading to the airport? New service lets you check bags at the convention center

The Boston Convention & Exhibition Center has signed up six airlines for a new $10 service that lets convention attendees check their bags at the BCEC and then head directly to flights from Logan International Airport.

Conventioneers can also get airline boarding passes printed out at the South Boston hall through the service. Airlines that have agreed to participate so far include Alaska, American, Continental, Delta, Northwest, and JetBlue Airways.

BCEC spokeswoman Bridget M. Perry said the service is being offered at a 14,000-attendee International Association of Chiefs of Police convention Oct. 15 and will be available to other conventions requesting it.

BCEC officials are also working to include other airlines that serve Logan, such as AirTran, United, and US Airways. Baggage Airline Guest Services of Orlando runs the service.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 2:34 PM | Comments (0)

Verizon bringing FiOS to Belmont

The town of Belmont is the 19th municipality in Massachusetts to strike a deal allowing Verizon Communications Inc. to offer its new fiber optic subscription television service there.

Belmont granted Verizon a cable-TV franchise, a deal that spells out the terms under which a provider like Verizon can pipe its video signals into homes in cities and towns. Franchise agreements are required by law for cable providers, though they exempt satellite services like Dish Network and DirecTV, and they often include provisions for technology funding for schools plus regular cash payments.

Verizon now plans to aggressively market FiOS to the estimated 10,000 homes in Belmont.
(By Keith Reed, Globe staff)

Posted by globebusiness at 2:16 PM | Comments (0)

NStar declares quarterly dividend

Energy delivery company NStar said today that its board declared a quarterly dividend of 30.25 cents per common share.

The dividend is payable Nov. 1 to shareholders of record at Oct. 10. (AP)

Posted by globebusiness at 1:33 PM | Comments (0)

Friendly Ice Cream chief executive resigns

Friendly Ice Cream Corp. president and chief executive John L. Cutter resigned, leaving temporary leadership of the restaurant chain to its chairman, Donald N. Smith, the company said today.

Cutter has led Friendly since February 2003, and previously served as the president and chief operating officer from December 1998 to February 2003. Before joining Friendly, Cutter was chief operating officer of Boston Chicken Inc.

Smith has served as chairman of Friendly's board since 1988, and he preceded Cutter as chief executive from 1988 to 2003. Smith will assume oversight of the company while a search is conducted for Cutter's replacement.

"We all recognize the importance of moving quickly to fill those roles," Smith said.

Friendly is a 71-year-old chain of 515 company-owned and franchise restaurants in the Northeast serving sandwiches, entrees and ice cream desserts. Wilbraham-based Friendly also distributes its ice cream through more than 4,500 supermarkets and other retail locations. (AP)

Posted by globebusiness at 1:26 PM | Comments (0)

New England Baptist Hospital seeks more acute-care beds

New England Baptist Hospital in Boston is closing its 20-bed nursing home unit and will ask the state to change the unit's license to allow beds for acute medical care, to meet added demand expected from the addition of four operating rooms, the hospital said. With the change, the specialty orthopedic hospital will have 140 beds for acute patients, most of them recovering from bone-related surgeries and procedures. The hospital told 28 employees of the nursing home unit this week that they can move to jobs at the Coolidge House nursing home in Brookline, or be retrained to work in other parts of New England Baptist, said Erin McDonough , hospital spokeswoman.
(By Christopher Rowland, Globe staff)

Posted by globebusiness at 1:17 PM | Comments (0)

Boston's first Renaissance hotel expected to open in December 2007

To the sound of bagpipes and drum, a 25-foot-long steel beam, painted white and decorated with a US flag and signatures of steelworkers from Local 7 and others, was raised this morning at the topping-off of the Renaissance Boston Waterfront Hotel in South Boston.

Executives from Renaissance Hotels & Resorts and officials from the Massachusetts Port Authority, Boston Redevelopment Authority, Boston Convention & Exhibition Center, and Payton Construction Co. joined workers for the event, one year after ground was broken on the 471-room hotel at D and Congress streets. The Renaissance is expected to open in December 2007.

The hotel, adjacent to the Park Lane Seaport residences and the new Legal Test Kitchen restaurant, will have 21 suites, flat-panel televisions, connections for laptop computers and MP3 players, and wireless Internet access.

The Renaissance Boston Waterfront, designed by The Stubbins Associates of Cambridge and to be operated by Marriott International Inc., will have a seafood restaurant operated by Marriott, a Starbucks, and two ballrooms.

The 21-story hotel, Boston's first Renaissance, will share parking with the nearby residences, apartments, and condominiums that are being completed and now are being occupied.
(By Thomas C. Palmer Jr., Globe staff)

A rendering of the lobby of the Renaissance Boston Waterfront.

Posted by globebusiness at 11:52 AM | Comments (0)

Astro-Med sells its facility

A Rhode Island company that makes medical instruments and printing equipment, is selling its Braintree facility to developers for $6.1 million in cash.

Astro-Med Inc. of West Warwick said it sold the 24.7-acre property to a group called Hanover R.S. Limited Partnership and plans to move its manufacturing operation to a new location in Rockland by the end of October. The company gave no details on Hanover's plans for the property.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:15 AM | Comments (0)

BAE receives $35.2M contract modification

The Army awarded BAE Systems Inc. a $35.2 million contract modification late Wednesday to a firm-fixed-price contract to accelerate delivery of thermal weapon sights.

The work will be performed in Lexington, and is expected to be completed by Oct. 31, 2008. Contact funds will not expire at the end of the current fiscal year.

BAE Systems is a unit of U.K.-based BAE Systems PLC, Europe's largest defense contractor. (AP)

Posted by globebusiness at 11:08 AM | Comments (0)

Report: Iraq interested in Raytheon aircraft

The Iraqi government is interested in buying spy aircraft from Raytheon Corp., Bloomberg News reported this morning.

The report gave scant details about the potential purchase, which could see Iraq buy as many as 24 of Raytheon's King Air 350ER aircraft worth as much as $900 million.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:06 AM | Comments (0)

Deal could save Shreve's

A consortium of liquidators and jewelers, including David & Co. of Chestnut Hill, reached a tentative sales agreement late last night with the bankrupt parent company of Shreve, Crump & Low that could potentially save Boston’s oldest jeweler from shuttering its doors, according to officials involved in the deal.

The accord — valued at nearly $12 million — would likely salvage at least one of two Shreve’s stores operated by Tyringham Holdings Inc. Under the plan, David & Co. would operate the Shreve's brand and Schiffman's of North Carolina would run Shreve's sister chain, Schwarzschild Jewelers in Virgina, according to the officials who requested anonymity because the deal is not finalized. David & Co. and Schiffman's will continue the Schwarzschild and Shreve, Crump & Low names. As part of the agreement, three national liquidators would sell off some inventory through clearance sales.

‘‘We are optimistic both businesses will continue,’’ one official said.

For Shreve's, the store at the Mall at Chestnut Hill will likely remain in tact but the future of the new Boston flagship on Boylston Street is still unclear because of its expensive lease that costs about $130,000 a month, according to the officials.

The agreement must still be approved by a US Bankruptcy Court judge in Richmond, Va., at a hearing on Oct. 3. The deal was reached yesterday after 12 hours of negotiating as part of the auction process to sell off Tyringham’s assets after it filed for bankruptcy-court protection this month. The court filing blames Shreve’s recent move to an expensive, remodeled location in the Back Bay and a shift away from its traditional merchandise for the decline of the business.
By the end of 2005, Shreve’s and Schwarzschild saw sales drop 26 percent to $31 million from $42 million in 2000, according to the bankruptcy filing. The businesses also racked up their biggest losses tallying $9 million in 2005.

Kim and Ann Birks, owners of the Tyringham Holdings, could not be reached last night for comment.

An official for David & Co., one of the consortium’s members, also could not be reached for comment. With a family background in the jewelry business, David G. Walker has built David & Co. ‘‘to reflect and carry on the traditions of his family,’’ according to the company’s website. Rather than expanding the number of stores, and doing business ‘‘by the numbers,’’ in a ‘‘cookie cutter’’ manner, the company’s website says Walker has spent his time ‘‘making the one shop the best shop.’’

If approved, the deal with the consortium of jewelers and liquidators would replace an earlier agreement reached with Carlyle & Co. Jewelers, a North Carolina company, which that offered to buy Tyringham for $9.8 million. Carlyle had committed to keeping Schwarzschild but made no promises on Shreve’s future, according to the Chapter 11 filing on Sept. 6 in bankruptcy court. Carlyle’s owners could not be reached for comment last night.

The Birkses had tried to find a buyer this summer, but in a series of preliminary offers most potential buyers were interested only in the Virginia stores because the financial problems connected with Shreve’s were considered by some to be insurmountable, Thomas S. Gillespie, Tyringham chairman, said in an affidavit.

The Birkses concluded that the best chance of survival for Shreve’s — which traces its roots to a 1796 store across from Paul Revere’s silversmith shop in Downtown Crossing — was to file for bankruptcy court protection. The filing allows new owners to step in, without the burden of debt, and potentially renegotiate Shreve’s expensive lease on Boylston Street.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 10:56 AM | Comments (0)

Alnylam gets $23M to fight Ebola

Cambridge-based Alnylam Pharmaceuticals Inc. said this morning that it won a $23 million government contract to develop a treatment for the deadly Ebola virus and other viruses of its type.

The deal, with the National Institute of Allergy and Infectious Diseases, has a four-year term and calls for Alnylam to develop so called small interfering RNAs, or molecules that could damage the genetic makeup of viruses like Ebola.

Ebola is a deadly virus that causes uncontrollable bleeding, and the government considers it a potential threat in the hands of terrorists.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:35 AM | Comments (0)

Profit up at CRA

CRA International, a Boston financial and management consulting firm, reported a 10.1 percent increase in its third quarter profit, to $8.7 million for the three months ended Sept. 16, compared with $7.9 million in net income for the same period last year.

Its improved bottom line came on revenues that climbed 15.7 percent in the quarter, growth that the company attributed to improved performance in its international dealings and the acquisition of another firm. CRA bought Ballentine Barbera Group, another consulting practice, at the beginning of the third quarter.

The company's revenues climbed to $107 million from $92.5 million in the same quarter a year ago. CRA said it expects revenue growth of between 18 and 20 percent for the full fiscal 2006 year, with net income of between $26.5 million and $27.5 million, or $2.18 to $2.27 per share.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:02 AM | Comments (0)

Fed's Minehan: Economic Education Important

Federal Reserve Bank of Boston President Cathy Minehan said today that the U.S. central bank has an important role to play in promoting economic education.

"The modern world is a complicated place" and "a basic grasp of economics and personal finance will not only improve (people's) ability to navigate a changing job market," it will also help them "build wealth for their future," she said.

"We face a formidable challenge in raising the overall level of economic and financial literacy in the United States" and elsewhere, Minehan said. Ultimately, "central bank support for economic and financial education is a form of enlightened self-interest," she said.

Minehan's comments were prepared for delivery before a group in Warsaw, Poland. She made no mention of monetary policy in her formal remarks. (Dow Jones)

Posted by globebusiness at 8:56 AM | Comments (0)

Forrester Research names operating chief

Forrester Research Inc., a technology consulting and research firm, said yesterday that it named Charles Rutstein to the newly created position of chief operating officer, effective Jan. 1.

Rutstein, 34, has worked at Forrester for seven years, currently as president of Forrester Americas, the company's largest operating group. Before joining Forrester, Rutstein was a consultant at Price Waterhouse Management Consulting Services.

Forrester has not had a COO for five years, the company said. (AP)

Posted by globebusiness at 8:27 AM | Comments (0)

Hewlett-Packard general counsel resigns

WASHINGTON, DC -- Hewlett-Packard Co. said this morning its general counsel Ann Baskins has resigned, effective immediately. The move comes just hours before executives from the California computer maker and others are scheduled to begin testifying here in Washington to Congress about the corporate-spying the company conducted using Boston-area investigators.

In a statement, Hewlett-Packard chief executive Mark Hurd thanked Baskins for her service at the company, which she joined shortly after law school, but did not give a specific reason for her departure. "Stepping down was a very hard decision for her, but by doing so she has put the interests of HP above her own and that is to be commended,'' Hurd said.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 8:16 AM | Comments (0)

UMass nurses vote to authorize a strike

Registered nurses at UMass Memorial Medical Center's University Campus in Worcester voted overwhelmingly last night to authorize their union leadership to call a strike if necessary in their ongoing negotiations with hospital management. The union said that 762 nurses cast ballots, with the nurses voting 716 to 46 in favor of the strike authorization.

The union has said its members are angry over the hospital's demands for concessions on pensions, health benefits, wages, paid days off, and layoff language. Negotiations began in January, and little progress has been made, though the contract expired in April.

Posted by globebusiness at 12:52 AM | Comments (0)

September 27, 2006

Verizon Expects To Spend $18B On Fiber-Optic Project

Verizon Communications said today that it expects to invest a total of $18 billion through 2010 to deploy its fiber-optic network.

The New York-based telecommunications giant said it would have cost $4.9 billion to maintain its traditional copper-wire network over the same period.

Verizon said the project is on target to reach a total of 6 million homes by the end of the year, with an additional 3 million a year planned through 2010.

The company expects to pass 18 million homes with its fiber network by the end of 2010, or more than half of the roughly 33 million households in the company's 28-state wireline service area.

Verizon expects its fiber-optic, or FiOS, network to generate positive operating income starting in 2009. (Dow Jones)

Posted by globebusiness at 4:25 PM | Comments (0)

Ben & Jerry's changes its egg-buying policies

Ben & Jerry's Homemade Inc. is changing its egg-buying policies to give hens a break.

The Vermont ice cream maker will become the first national food manufacturer to require egg producers to allow their laying hens to live outside cages, the Humane Society of the United States and the company said.

It will take four years for Ben & Jerry's to change all its egg-buying practices, the company said.

The company agreed to the change after the Humane Society made an issue last month of the fact that Ben & Jerry's bought eggs from Michael Foods Inc., of Minnetonka, Minn., which couldn't guarantee its hens were being treated properly.

The animal welfare group recently launched a campaign dubbed "A Scoop of Lies: Ben & Jerry's and Factory Farm Cruelty."

It called on Ben & Jerry's to stop buying eggs from Michael Foods, which the Humane Society said had hens dying of starvation, live hens living among dead ones and sick birds caught in cage wires.

The company, which doesn't buy eggs directly from farmers but uses about 2.7 million pounds of egg yolks a year, cut its ties with Michael Foods as a result.

According to the Humane Society, 95 percent of the eggs produced in the United States come from egg producers that keep hens in tightly-packed cages -- known as batteries -- that are so cramped, the birds can't spread their wings.

Once the program is implemented, the eggs that Ben & Jerry's uses will come from hens that have nests, perches and dust bathing areas. "It's a higher standard than merely cage-free," Shapiro said. (AP)

Posted by globebusiness at 4:12 PM | Comments (0)

Public meeting scheduled on Apple store

The Boston Redevelopment Authority has scheduled a public meeting for Oct. 4 to get community feedback on a proposal by Apple Computer Inc. to build its first store in Boston.

The meeting is set for 6:30 p.m. at Fisher College.

After obtaining approval for its preliminary store design from the Back Bay Architectural Commission, Apple submitted a proposal to build a three-story building to the BRA on Sept. 11, a spokeswoman for the city's planning agency said.

Apple hopes to demolish an existing building at 815 Boylston St. in the Back Bay, then build a store whose front would largely be made of glass.

Apple's plan has the support of Mayor Thomas M. Menino.

It's likely that the BRA would take action on Apple's request by the end of the year, the BRA spokeswoman said.

A community meeting is a standard part of the BRA's review process of design proposals, she said. The BRA would weigh the feedback it gets on Apple's proposal before making a decision on whether to approve the store, she said.

A call to Apple's Boston consultant on the project was not immediately returned.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:54 PM | Comments (0)

Stoughton man pleads guilty to fraud

A Stoughton man has pleaded guilty to fraud in a scheme in which he was accused of gaming investors out of more than $860,000 by telling them he could obtain valuable options for Home Depot stock at favorable prices.

Richard L. Mortelliti, 44, faces as many as 20 years in prison, three years' probation and a $250,000 fine when he is sentenced on three counts of mail fraud Dec. 18. U.S. District Judge Nancy Gertner presided over the case.

Mortelliti's scheme, according to federal prosecutors, consisted of conning investors with claims he could obtain Home Depot shares through stock options because he had been contracted by the company to build new Home Depot stores. That deal, he told his marks, would allow him to buy Home Depot options that he could hold for two years and then cash in -- netting as many at 19 shares for every one option he redeemed.

Duped investors then ponied up just shy of a million dollars to get a piece of the action, but the only action to be had was by Mortelliti, prosecutors said: he spent the cash on travel, hotels, food and jewelry.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:36 PM | Comments (0)

Mass. group wins research grant

A group of medical researchers from Massachusetts is among nine such teams to win a $300,000 grant from the Robert Wood Johnson Foundation to conduct two-year projects.

The Massachusetts team won its grant to study how the quality of nursing care effects the overall quality of care at acute care hospitals here and in Maine. The Massachusetts Hospital Research and Education Association, Inc; the Massachusetts Hospital Association, the Institute for Nursing Healthcare Leadership, the Institute for Health Policy at the Massachusetts General Hospital, and the Massachusetts Organization of Nurse Executives are all participants in the study.

The Johnson foundation is a Washington, D.C.-based organization that funds research on healthcare related topics.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

Groove Mobile delivers Iris artists to cell phone users

Groove Mobile, a Bedford company that designs and runs music download services for cell phone service carriers, said today that it added a new client in the music industry.

Iris Distribution, a San Francisco company that handles digital music sales for independent record labels, will make its catalog of artists and songs available to Groove to be included in its wireless download services.

The deal will mean songs from groups like The Preservation Hall Jazz Band and heavy metal troupe Anthrax will be available to cell phone users to download if their carrier is using a groove system. Groove's biggest client in the United States is the wireless carrier Sprint.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:38 AM | Comments (0)

FDA approves Boston Scientific ear system

Boston Scientific Corp. said today that the Food and Drug Administration approved its Harmony HiResolution Bionic Ear System.

The Natick, Mass. medical-products company said that the product delivers 120 spectral bands - five to 10 times more than competing systems - helping to significantly increase hearing potential for the severe-to-profoundly deaf.

The Harmony system was recently cleared by Health Canada and received European CE mark approval. The product, which is approved in the U.S. for adults only and for all patients in Canada and Europe, is expected to be available in early 2007. (Dow Jones)

Posted by globebusiness at 10:28 AM | Comments (0)

New gay Internet video channel powered by Maven Networks

Maven Networks, a Boston broadband video company, is in a new deal to launch an online video channel aimed at gays and lesbians.

The deal with the New York-based here! cable network, which also targets that audience, calls for Maven's media system software to be used to allow here! to deliver its programming, on demand, via its Web site. The service will be known as here! Video, and feature two to five minute shorts and trailers of here! programming, plus behind the scenes footage and some advertising content.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:04 AM | Comments (0)

Willow Laboratories to test New Bedford students for drugs

Lynn-based Willow Laboratories said it won a deal with the New Bedford public school system to run the state's first voluntary, parent-endorsed drug testing program.

The program, called Drug-Free New Bedford, will see Willow conducting random drugs tests on students, provided they and their parents agree to the testing, over a three year period. The tests will be conducted via a saliva sample, and counseling would be offered to students who test positive to illicit drug use.

The value of the contract was not disclosed.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:56 AM | Comments (0)

Raytheon delivers new radar systems to Air Force

Raytheon Co. said this morning that it delivered the first of a new breed of radar systems to the US Air Force for testing.

The so-called "active electronically scanned array" radar systems are designed for use aboard f-15 fighter jets, allowing their pilots to detect threats and targets. The Air Force is expected to start the final leg of the developmental stage of testing of the systems soon.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:51 AM | Comments (0)

iBasis lands deal with Telecom Georgia

iBasis Inc., a Burlington voice-over-Internet phone company said it landed a deal with Telecom Georgia to handle international voice traffic.

Financial details of the pact, which will see iBasis routing some of its international calls from Georgia -- the former Soviet republic, not the US state -- over iBasis' network, were not disclosed.

iBasis calls will also be routed over Telecom Georgia's lines in some instances.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:45 AM | Comments (0)

September 26, 2006

High housing costs hurting state economy, study says

The Massachusetts town of Avon has the most homeowners over age 65 (37 percent of the population); Middleton had the fastest population growth from 2000 to 2004 (15 percent); Weston had the highest median house price ($1.2 million) last year, and Boxford has the fewest low-income residents (10.7 percent), according to The Greater Boston Housing Report Card 2005-2006 released today by The Boston Foundation and the Citizens' Housing and Planning Association. These were among the data in the study, which contends high housing costs are Massachusetts' top economic challenge. It is "driving away our children, recent college graduates and the skilled and trained workers we need to make our economy thrive," Paul Grogan, the foundation's president, said in a statement.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 4:34 PM | Comments (0)

Verizon's FiOS coming to Andover and Boxford

Verizon Communications Inc. said it has reached deals with the towns of Andover and Boxford that clear the way for it to offer its new FiOS TV service there.

FiOS TV is a subscription video service much like cable, but delivered over Verizon's fiber optic lines. Those lines are the linchpin in Verizon's strategy to compete with cable companies by offering video, superfast Internet connections and other data services over home broadband networks. Verizon currently offers FiOS TV in 18 Massachusetts communities, but the company must negotiate separate deals with every municipality where it wants to offer the service.

Verizon says it is already negotiating with 50 other cities and towns in Massachusetts for the right to offer the service, which is marketed as a less expensive and more robust alternative to cable or satellite.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:12 PM | Comments (0)

Johnson & Johnson sues Boston Scientific

Months after health care giant Johnson & Johnson lost a bidding war for medical device maker Guidant Corp., J&J is suing the winner, Boston Scientific Corp., and Abbott Laboratories, alleging the two companies breached J&J's merger agreement with Guidant.

New Brunswick-based Johnson & Johnson is seeking $5.5 billion in damages, according to the lawsuit, which was filed Monday in U.S. District Court in New York. The lawsuit also seeks reimbursement for court costs, attorney fees and interest.

The suit asks the court to rule that Indianapolis-based Guidant breached the companies' merger agreement, reached in December 2004 and revised the following November, and that Boston Scientific and Abbott intentionally interfered with the deal and induced Guidant to breach it.

Natick, Mass.-based Boston Scientific trumped Johnson & Johnson's final offer of $24.2 billion with a $27.2 billion bid to acquire Indianapolis-based Guidant and its portfolio of stents, defibrillators, pacemakers and other medical devices.

Guidant paid Johnson & Johnson a $705 million breakup fee after it opted to accept Boston Scientific's offer in late January, ending a nearly two-month-long bidding war. To eliminate possible antitrust snags, Boston Scientific agreed to divest Guidant's stent and vascular business to Abbott for $4.1 billion in cash and a $900 million loan.

Paul Donovan, spokesman for Boston Scientific, said his company "complied with all the terms of the J&J/Guidant merger agreement. We believe the suit is meritless, and we expect to demonstrate that in court."

"We find it curious that J&J has chosen to sue eight months after Boston Scientific entered into a definitive agreement with Guidant, and five months after the transaction closed," Donovan said. (AP)

Posted by globebusiness at 12:51 PM | Comments (0)

JetBlue adds San Juan

JetBlue Airways is adding San Juan, P.R., to the list of nonstop destinations it serves from Logan International Airport -- at least through this winter.

The New York-based low-fare airline said it will offer one daily roundtrip between the two cities beginning Dec. 13 and ending next April 30. Fares will range between $109 and $349 each way, taxes and fees not included.

San Juan will be the 22d destination that JetBlue flies to nonstop from Logan, making the Boston its second-largest flight base.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:48 AM | Comments (0)

Navy orders more anti-bomb robots from Foster-Miller

Waltham-based robotics company Foster-Miller Inc. says it received an order from the Naval Explosive Ordinance Disposal Technology Division for 80 additional anti-bomb robots.

The deal adds $22.8 million to the total revenues Foster-Miller has realized under its six-year deal with the Navy unit, which is worth up to $257 million. Foster-Miller has collected a total of $76.4 million under the contract, which was signed last September.

The company's "Talon" robots are designed to dispose of so-called improvised explosive devices, the kinds of roadside bombs and other explosive weapons often used by opposition fighters in Iraq against the US military.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:34 AM | Comments (0)

New walkway opens at Logan

Logan International Airport crews have completed construction of a new walkway that will lead to big changes in operations at the Terminal B gates of American Airlines. American and affiliated regional-jet carrier American Eagle rank as the biggest combined airline operation at Logan by passenger volume.

Logan crews Monday completed a new walkway behind security between the main American Airlines check-in counters and those of American Eagle, which are located at the far northeastern end of American's Terminal B pier. As a result on Friday the current American Eagle security checkpoint will be closed and all passengers checking in for Eagle flights will go through the main American checkpoint, which will be expanded to 8 lanes from 6, said Logan spokesman Phil Orlandella.

On or about Nov. 20, the current American Eagle checkpoint will become a secured exit lane for passengers arriving on American and American Eagle flights, Orlandella said. American uses Eagle to provide service from Boston to several destinations including Baltimore, Raleigh/Durham, N.C., St. Louis, and Toronto.

The new walkway connection is part of an estimated $50 million joint construction project at Terminal B by American; the Massachusetts Port Authority, which runs Logan; and airport concessionaire BAA Boston Inc. The project is adding a 15,000-square-foot food court by next summer and increasing the number of stores in the American terminal to 23 from 17. Work earlier this year eliminated what had been a big hassle for American Eagle customers: a mandatory bus ride out to the Amelia Earhart terminal to board Eagle planes. Since March all Eagle flights have left from American gates.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 11:08 AM | Comments (0)

Millennium offers $515M for AnorMed

Millennium Pharmaceuticals Inc. this morning launched a surprise $515 million bid to grab Canadian biotechnology company AnorMed Inc. away from its larger Cambridge neighbor Genzyme Corp.

Millennium's offer substantially tops the $380 Genzyme offered for AnorMed in late August. AnorMed's board of directors, which urged shareholders to vote against Genzyme's offer, said this morning it had agreed to the Millennium deal.

Although AnorMed does not yet have any products on the market, the company has reported promising human-trial results for an injection that could help patients with blood cancer.

Genzyme's hostile offer for AnorMed late last month made waves in the biotechnology world, where acquisition deals are normally negotiated behind closed doors and neatly sewn up before being announced publicly. After twice being rejected in private talks with AnorMed's board, Genzyme took its offer directly to the company's shareholders, who have until early next week to formally respond to the offer.

Reached by phone this morning, a spokesman for Genzyme could not comment on whether the company would make a counter-offer.
(By Stephen Heuser, Globe staff)

Posted by globebusiness at 10:19 AM | Comments (0)

Profit rises at Stride Rite

Children's shoe designer and marketer Stride Rite Corp. said today that its third-quarter profit rose 10.4 percent, aided by higher sales.

For the quarter ended Sept. 1, net income rose to $8.5 million, or 23 cents per share, from $7.7 million, or 21 cents per share, last year. Excluding stock option and acquisition expenses, profit would have been $8.9 million, or 24 cents per share, in the latest quarter.

Revenue rose to $177.5 million from $146.2 million in the year-earlier period.

Sales in stores open at least one year -- a closely watched performance gauge called same-store sales -- rose 4.1 percent at the Stride Rite retail chain.

The company, which is based in Lexington, forecast that current fourth-quarter sales will be "relatively flat" for Keds brand footwear, and stay "solid" in its international segment. It also projected "a less significant decline" for Tommy Hilfiger footwear versus the 33 percent drop in this year's first nine months.

Stride Rite also reaffirmed full-year earnings guidance of 82 cents to 88 cents per share, excluding the impact of a lower tax rate. The outlook includes 5 cents of stock options expense, 4 cents of sales impact related to the Saucony acquisition, and integration costs of $3.2 million, or 5 cents per share. (AP)

Posted by globebusiness at 10:10 AM | Comments (0)

Ambient in deal with Duke Energy

A Newton company that develops so-called "broadband-over-power-line" technology has landed a deal in which it will install its technology in 6,000 North Carolina homes, the company said today.

Under the deal between Ambient Corp. and Charlotte, N.C.-based electric utility Duke Energy Corp., Ambient will install the technology in 6,000 homes in Charlotte that are served by Duke.

Financial details of the deal were not disclosed. The North Carolina deal represents the largest yet for Ambient, which in July received a key approval from the Federal Communications Commission allowing it to move ahead with such installations.

Broadband-over-power-line is a technology that allows high-speed connections over the Internet and between devices on home networks to be made simply by plugging into everyday electrical outlets. Ambient makes two products -- an "x-node" which is installed at electric power substations and enables broadband technologies on the electrical grid, and "couplers" which are installed on utility poles in neighborhoods, allowing individual homes to connect. Residents would still need a special modem that they obtain from their utility company to make the service work in the home.

An Ambient spokeswoman said downloads over the power line Internet connections move at between 10 megabits per second and 20 megabits per second, faster than both the average cable modem and DSL connections that are common in most broadband homes. Whether or not customers have to switch broadband providers or pay extra for the power line service is up to the electric utility, she said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:03 AM | Comments (0)

MagneMotion raises $3M

MagneMotion, an Acton company that makes parts for high-speed magnetic levitation trains, said it raised $3 million in equity and debt in its latest round of funding today.

The round was led by the Massachusetts Capital Resource Co., a private investment firm funded by local insurance companies. Exactly how much that company contributed to the round was not disclosed.

Two-thirds of the MagneMotion's new financing was in equity, while the final million came in the form of debt. The company said it plans to use the new capital to grow market share for its motor technology and development of its so-called MagLev technology.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:06 AM | Comments (0)

Indevus halts premature ejaculation study

Biotech drugmaker Indevus Pharmaceuticals Inc. said today it will abandon its trial of pagoclone as a treatment for premature ejaculation, after a mid-stage clinical trial did not show significant improvement versus placebo.

Instead, the company, which is based in Lexington, has met with the Food and Drug Administration to plan a clinical trial using pagoclone to treat persistent developmental stuttering. The company plans to begin the late-stage clinical trial in the first half of 2007.

In a mid-stage clinical trial, pagoclone significantly reduced the frequency and duration of stuttering, and improved patients' evaluations of their instances of stuttering. However, in a nine-point doctor-rated evaluation, patients getting pagoclone saw a numerical but not a significant improvement over those taking placebo.

The FDA suggested the company test the drug in both adults and children, determine the minimum effective dose, and have the agency officially sign off on the clinical trial designs.

About 3 million people in the United States stutter, with males affected about four times more often than females. (AP)

Posted by globebusiness at 8:38 AM | Comments (0)

Analogic swings to loss

Analogic Corp., which designs health and security imaging equipment, said Tuesday it swung to a loss in the fourth quarter due to weak health imaging sales and hefty charges.

For the quarter ended July 31, the company posted a loss of $8.5 million, or 63 cents per share, compared with a profit of $4.3 million, or 31 cents per share, during the same period last year.

Latest-quarter results included restructuring and asset impairment charges of $12.1 million, related to a medical computed tomography development program, the company's decision to discontinue the development of a medical CT workstation, and the closure of its SKY Computers subsidiary.

Revenue declined 8 percent to $83.7 million from $90.7 million during the comparable year-ago quarter.

For the fiscal year ended July 31, Analogic's profit fell 13 percent to $25.1 million, or $1.81 per share, from $28.9 million, or $2.12 per share, last year. Revenue improved 8 percent to $351.4 million from $326.5 million a year ago.

Results included a gain of $20.2 million, or $1.46 per share, from the sale of Camtronics Medical Systems. (AP)

Posted by globebusiness at 8:28 AM | Comments (0)

N.E. Power officials optimistic

A recent agreement to help spur new electricity-generating plants in New England has left the region better prepared to meet rising demand and avoid rolling blackouts in the next few years, energy officials said Monday.

The head of New England's power grid manager and the chairman of the Federal Energy Regulatory Commission on Monday credited the agreement for yielding a flurry of new power plant proposals in New England, reversing a sharp drop-off in recent years.

The officials, Gordon van Welie of ISO New England and Joseph Kelliher of FERC, cautioned that many obstacles remain before the plants can go online. But they told a regional energy conference that New England now appears capable of meeting electricity demand over the next few years because of the pact allowing power generators to bid at auctions for the right to build plants.

The pact was reached last fall and approved in June by FERC, despite opposition from officials including the attorneys general in Massachusetts and Connecticut, who objected to the expected rate increases the plan would yield.

The agreement "speaks volumes about the region because those were hard calls. And there are costs associated with ensuring adequate electricity supply in the region," Kelliher, who was named FERC's chairman by President Bush last year, told reporters before delivering a speech at the conference organized by ISO New England.

Van Welie, president and CEO of ISO New England, said his Holyoke-based nonprofit corporation has received applications for more than 35 new generation projects since the middle of last year, when it was clear a settlement would be reached to adopt the so-called "Forward Capacity Market."

"Obviously, the market signals are working," van Welie said.

The majority of the proposed plants are in Massachusetts and Connecticut -- the most populous of New England's six states, with the greatest need for new resources.

However, van Welie cautioned the proposals must meet permitting requirements and overcome likely political resistance. He cited long delays that have held up Massachusetts' Cape Wind wind-energy project off Nantucket and proposals for new transmission lines in Connecticut.

"Although there is good news in the fact that investment in new supply appears to be on the rebound, these proposed plants have not yet been built," van Welie said. "And until they are, the growth in peak demand will jeopardize the reliable operation of the system."

The 1990s boom in new energy plant construction turned to bust in New England starting in 2002, with little additional capacity built since then despite steady increases in energy demand.

"Last year, New England's total electricity supply increased 11 megawatts, and demand rose 2,700 megawatts," Kelliher said.

Kelliher called such numbers "disturbing." He compared New England's lack of new capacity amid increasing demand to the situation in California and some other western states before they were plagued by rolling blackouts and skyrocketing power prices in 2000 and 2001.

"They're the kind of things that, if left standing, might visit upon New England what happened in the West six years ago," he said.

ISO New England has warned that rolling blackouts could be necessary starting as soon as 2008 absent a significant increase in electrical capacity. Rolling blackouts have never before been imposed in New England to prevent longer and more widespread power outages.

The need for more incentives to spur new electricity production led to last year's Forward Capacity market agreement, which replaced an earlier proposal that was heavily criticized because it would have imposed higher electric rates in areas where demand is greatest.

Under the agreement, ISO New England will project regional power needs three years in advance and hold annual auctions to buy power resources, including new and existing power plants. Incentives would encourage private operators to respond to power system emergencies, and operators that don't make extra capacity available would face penalties.

The agreement is designed to ensure revenue and rate certainty for power generators and consumers before the auction system begins in early 2008. The plan also aims to ease transmission bottlenecks in southwestern Connecticut and northeastern Massachusetts. (AP)

Posted by globebusiness at 8:22 AM | Comments (0)

September 25, 2006

Fanny and Delphine owner set to open boutique at InterContinental

The owner of a boutique inside the Hotel Commonwealth is poised to open another upscale shop inside of the new InterContinental Boston hotel.

Eve Kohlman, who owns Fanny and Delphine, plans to open Leopold, which will sell designer clothing and accessories, inside the $310 million hotel and condominium project on the South Boston waterfront. It is the only retail space currently planned there.

Leopold will occupy 1,000 square feet on the ground floor of the InterContinental, which is slated to open later this year.
(By Keith Reed, Globe staff)

Posted by globebusiness at 4:27 PM | Comments (0)

West Roxbury Stop & Shop to close

Quincy-based Stop & Shop Supermarket Co. plans to close its West Roxbury store on VFW Parkway by the end of this year, making way for a new market to be opened three miles away in Dedham.

Stop & Shop's new store on Providence Highway will open on Jan. 26, and the chain said it wanted to get rid of the smaller, "outdated" West Roxbury location because it would not have been practical to keep both stores open. The company said workers from the West Roxbury store will be offered jobs at other Stop & Shop locations.
(By Keith Reed, Globe staff)

Posted by globebusiness at 2:38 PM | Comments (0)

New England needs new LNG supplies, says top federal energy regulator

The country's top energy regulator said today New England badly needs new supplies of liquefied natural gas, but he's skeptical of calls for regional decision-making about where to put controversial LNG unloading and storage facilities.

Joseph T. Kelliher, chairman of the Federal Energy Regulatory Commission, speaking at a Boston energy conference, noted that the region came very close to having to shut off gas customers involuntarily two winters ago to ration out scarce supplies.

"You were saved last winter by the fact that we had the warmest January in 112 years. You can't base your policy on the assumption that that will recur,'' Kelliher said. "New England does need new energy supplies. You're at the end of the pipeline.''

With nearly a dozen proposals for LNG plants pending from eastern Canada to Rhode Island, many local officials and environmental activists have said Kelliher's agency should get more involved in shaping a region-wide planning process for how many plants need to get built, and where are the best locations.

Many proposals, such as one in Fall River, face fierce opposition over fears a terrorist attack or accident involving an LNG tanker or storage plant could unleash a catastrophic firestorm killing thousands of people.

Kelliher said that "regional siting has some initial appeal.'' But he noted in other examples, such as locating places to store low-level radioactive waste, it has either failed to get anything constructed or led to states that were to get stuck with unpopular facilities reneging on commitments to participate in multi-state regional planning.

"Regional siting is difficult. It hasn't actually worked in other contexts,'' Kelliher said. He added that FERC can't fill the role of regional decision-maker either, because "we're not an economic regulator when it comes to LNG. We are purely a safety regulator.''

Kelliher was speaking at an energy conference at the Marriott Long Wharf Hotel sponsored by Independent System Operator New England, which runs the six-state power grid.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 1:45 PM | Comments (0)

Independence Investments moves

Independence Investments LLC, a downtown firm that manages institutional money in the equity markets, is moving its headquarters from 53 State Street in the Financial District to 160 Federal Street.

The company signed a lease to occupy most of the ninth floor of the 350,000 square-foot office building at that address beginning in January. The Codman Company, a Boston real estate firm, brokered the lease deal.
(By Keith Reed, Globe staff)

Posted by globebusiness at 1:37 PM | Comments (0)

Greenway view goes for $9 million

A development group has snagged a prime parcel of land along the Rose Kennedy Greenway downtown for $9 million.

The group, calling itself Hudson Group North America LLC, bought the 14,447 square foot parcel at 120 Kingston Street from its previous owner, Kingston 2002 Realty Trust. A 55,000 square-foot, six-story building is currently on the site, which is zoned as part of the Chinatown commercial district.

The site, a few blocks away from South Station, is towards one end of the Greenway, which so far has advanced only in fits and starts. The Rose Fitzgerald Kennedy Greenway Conservancy is now playing a growing role in the project in an attempt to bring a more comprehensive approach to the mile-long project. A report from the Conservancy, due Octobert 15, will give citizens an opportunity to guage its success. Today's purchase is an indication that some local real estate players think the Greenway's success is a good bet.

Boston-based CB Richard Ellis/New England, a commercial real estate brokerage, arranged the deal. A statement from the firm gave no details of the buyer's plans for the site.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:27 PM | Comments (0)

Sun Life sells Taunton warehouse

Wellesley-based financial services company Sun Life Financial said today that it sold an 86,400 square-foot Taunton warehouse to the Empire Auto Parts chain. The sale price wasn't disclosed.

Sun Life said it sold the warehouse, which it bought in 2002 and is currently vacant, to garner cash that it could use to strengthen its real estate portfolio in other areas.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:12 PM | Comments (0)

Bertucci's buys Vinny T's

The Vinny T's restaurant chain has a new Massachusetts-based owner.

Bertucci's Corp., the Northborough company famous for its chain of Italian casual restaurants by the same name, has agreed to buy all 11 Vinny T's restaurants from Buca Inc. of Minneapolis for $6.8 million.

Bertucci's will pay $3 million in cash when the deal closes and will issue a promissory note for the remainder of the purchase price, to be paid off by June 15, 2008.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:44 AM | Comments (0)

Joopz enables Web-to-phone text messages

A Boston company has developed what it claims is the first service that allows people to use the Internet to send text messages to any cell phone, regardless of carrier.

MobileSphere Ltd. says its new service, called Joopz, lets computer users send and receive free text messages to and from cell phones using a Web browser. Most cell phone carriers already allow text messages to reach their customers from the Internet, but only if sent from their own Web sites.

To use Joopz, people will call up a Web site (that has yet to be launched), punch in the cell phone number of the person they want to text and their message. The recipient can then either use the Web browser on their phone or other wireless device to receive the message and respond, or they could receive messages as standard SMS text messages.

MobileSphere will unveil the service at a trade show in San Diego tomorrow.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:34 AM | Comments (0)

Whaleback raises $7.5M

Whaleback Systems, a Portsmouth, N.H., voice-over-internet phone company said it has raised a $7.5 million round of financing, led by Castile Ventures of Waltham.
Castile was joined by Ascent Venture Partners, a Boston venture capital firm, in its investment in Whaleback.

The company said it plans to use its new cash to develop new features for its small business calling systems and expand its geographic reach.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:30 AM | Comments (0)

Home prices, sales fall in August

Massachusetts' sales of single-family homes declined in August for a fifth consecutive month, and the median price fell 6 percent, the Massachusetts Association of Realtors said today in its monthly report on sales.

In what the association labeled a housing market "correction," single-family sales tumbled 21.6 percent, to 4,229 sales in August, while the median price fell to $352,000.

The slowdown also affected condominium sales, which had stayed strong as the single-family home market slipped. Condo sales fell 18.5 percent, to 2,103 sales in August, and prices declined 3.3 percent, to $278,000.

In August, it took 109 days to sell a single family and 108 days to sell a condo. A year earlier, the time on the market for each was just 77 days.

"The market has lost some steam simply because many buyers are waiting to see if prices will go lower," David Wluka, president of the Massachusetts Association of Realtors, said in a statement. "Until supply and demand are in better balance, we will continue to see modest price corrections," he said.

Despite declining sales, August sales volume was the third highest on record for any August in state history, the association said.
(By Kimberly Blanton, Globe staff)

Check out the data.

Posted by globebusiness at 11:05 AM | Comments (0)

Raytheon wins $12M Army contract

Military contractor Raytheon Co. said today it received a $12 million contract from the U.S. Army to upgrade its communications systems.

The award for 15 Multiplexer Integration and Digital Communication Satellite Subsystem Automation Systems, or MIDAS, is part of a five-year, $48 million contract awarded in 2004.

MIDAS is designed to provide more efficient data communications switching and routing functions, which allow geographically dispersed users and immediate, automated access to voice, data, and video communications. (AP)

Posted by globebusiness at 9:39 AM | Comments (0)

Staples adds design service

Staples Inc., the Framingham-based chain of office supply and copy center stores, is adding document design to its menu of services.

The company said today that it will offer the service, in which customers can bring in rough drafts of presentations, business plans or any other document, and have a final version designed by its copy center staff. The service will be offered at every Staples copy location.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:27 AM | Comments (0)

Progress Partners raises $8.4M for Tremor Media

Boston investment bank Progress Partners LLC said it arranged an $8.4 million round of funding for Tremor Media, a New York online advertising firm that specializes in video commercials on the Web.

Progress specializes in hooking up new companies with private equity money. The round it arranged for Tremor Media was led by Masthead Venture Partners of Cambridge and Canaan Partners, based in Menlo Park, Calif.

Posted by globebusiness at 9:14 AM | Comments (0)

Athenahealth names new COO

Watertown-based athenahealth Inc. has tapped a new chief operating officer.

James M. MacDonald, who was previously president of Fidelity Investments' human resources unit and chief information officer of its management research and employer services units, is now responsible for the day-to-day operations of athenahealth. The company handles online payment and patient management services for physicians and says it collects nearly $2 billion annually on behalf of its clients.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:04 AM | Comments (0)

September 22, 2006

National Grid residential customers will see rate increase

Residential customers of National Grid USA, the biggest Massachusetts electric utility, face an average rate increase of 13.1 percent, or $10 a month, starting Nov. 1, under new rates National Grid asked state utility regulators to approve today.

For an average household using 500 kilowatt-hours of electricity monthly, the total National Grid bill will rise to $88.48, or by $10.27, from $78.21 currently. Most larger business and institutional customers buy their electricity from competitive energy suppliers such as Constellation or Dominion, pay National Grid only for delivery, and won't see the increase.

National Grid serves 1.3 million customers in 169 Bay State cities and towns.

NStar, which serves Boston and 80 eastern Massachusetts cities and towns, is not due to see a new rate until January 1.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 4:53 PM | Comments (0)

NewStar Financial plans IPO

NewStar Financial Inc., a two-year-old Boston commercial lender said it plans to go public. The company, founded by former executives from FleetBoston Financial, Citigroup, and JP Morgan Chase, filed documents with the Securities and Exchange Commission that will allow it to move ahead with a planned initial public offering.

The date, share price, and number of shares to be sold have yet to be determined. NewStar focuses on commercial real estate, corporate, and structured debt lending.
(By Keith Reid, Globe staff)

Posted by globebusiness at 3:56 PM | Comments (0)

Chicago HR firm sets up Waltham office

Capital H Group, a Chicago-based human resources consulting firm, has opened an office in Waltham to help it expand in New England, the company said. The company has dispatched seven consultants to work in the office, led by managing director Judson DeCew, a former executive with HR firms Weiser Enterprise Advisors and the Hunter Group.

Capital H already has offices in New York, Detroit, Milwaukee, Houston, and Los Angeles, and is using a recently raised $25 million round of investment capital foster its growth.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:50 PM | Comments (0)

Novell raises CEO's salary to $825,000

Novell Inc. said today it increased chief executive Ronald W. Hovsepian's salary to $825,000, retroactive to his promotion to the post in June.

The Waltham corporate software firm also increased Hovsepian's target bonus to 125% of his annual base salary, according to a filing with the Securities and Exchange Commission. Hovsepian's target bonus before his promotion in the fiscal year ended Oct. 31, 2005, was 100% his base salary.

Hovsepian took over the CEO job from ousted former CEO Jack Messman, who was paid $950,150 in salary in the company's 2005 fiscal year.

Hovsepian previously was paid $500,020 in salary as chief operating officer and president during the 2005 fiscal year. He retained his title of president after his promotion to chief executive. (Dow Jones Newswires)

Posted by globebusiness at 3:37 PM | Comments (0)

Hard Rock Cafe moving to Faneuil Hall area from Back Bay

The Hard Rock Cafe is moving. Or so it says.

The problem is that the Rack, the popular downtown pool hall and bar, is in the same space that Hard Rock says it's moving to. And the Rack, says its owner, ain't moving anytime soon.

"They think they're coming here," said Rack owner Paul Barclay. "We renewed our lease months ago."

It is unclear how the lease dispute came about. Hard Rock issued a statement this morning saying that it would move from its current location in Copley Square to a new location at 20 Clinton Street near Faneuil Hall, with 16,000 square-feet of space, a 400-seat restaurant, retail area and a stage for live performances.

The Rack's web site lists its address at 24 Clinton Street, but Barclay confirmed they were the same space.

Deborah Sierchio, a spokeswoman for Hard Rock Cafe, said the space it plans on occupying was previously inhabited by a pool hall and a pizza restaurant.

"All I can say is it’s 20 Clinton Street that we’ve signed the lease for,” Sierchio said.

(By Keith Reed, Globe staff)

Posted by globebusiness at 2:10 PM | Comments (0)

O'Neill leaving Mount Auburn Hospital board

Thomas P. O'Neill III, the former lieutenant governor and son of the late speaker of the US House of Representatives, is stepping down from the Mount Auburn Hospital board of trustees after serving on it for 25 years, including the last seven as chairman. O'Neill will remain chairman of a Mount Auburn capital fund-raising campaign to raise $21 million to help finance an $80 million expansion at the Cambridge hospital.

O'Neill will retain a title as board member emeritus and will be succeeded by biotechnology executive Stephen Chubb. ``It really is somebody else's turn,'' O'Neill said.
(By Christopher Rowland, Globe staff)

During the June dedication ceremony for the Thomas P. "Tip" O'Neill Jr. Tunnel, Thomas P. O'Neill III (right) shakes the hand of then-Massachusetts Turnpike Authority Chairman Matthew J. Amorello while senators Edward M.Kennedy and John F. Kerry watch. (Michele McDonald/Globe staff)

Posted by globebusiness at 1:24 PM | Comments (0)

Hasbro recalls toy workbench after deaths of two children

Hasbro Inc., the nation's second-largest toy maker, is recalling parts of a toy workbench set after two children apparently suffocated on oversized plastic toy nails, company officials said.

Chief Executive Al Verrecchia said the voluntary recall applies to two plastic nails included in the Playskool Team Talkin' Tool Bench, which has sold about 255,000 sets in the last year.

The Pawtucket, R.I. toy company learned in February about the death of a 19-month-old boy from Martinsburg, W.V., who apparently choked on a 3-inch-long plastic nail, Verrecchia said.

Last week, the company learned it was named in a civil lawsuit prompted by the death of a 2-year-old boy from League City, Texas, who also allegedly choked on a toy nail.

"As soon as we heard that, we made the decision to get the product back and find out what's going on," Verrecchia said.

The toy workbench is designed for children three years and older, company officials said. Both victims were younger than that.

Verrecchia said the nail, which is more than an inch wide, meets federal safety guidelines.

Consumers who return the plastic nails will receive a $50 gift certificate for Hasbro products. Verrecchia said consumers can also claim a gift certificate for returning toy plastic screws in the set, although those parts have not been blamed for any deaths and are not part of the recall.

The toy was sold for about $35 at Toys R Us, Wal-Mart Stores Inc., Target Corp., KB Toys stores and various other stores nationwide from October 2005 through this month. (AP)

Posted by globebusiness at 12:25 PM | Comments (0)

Charles River Labs wins Cancer Institute contract

Charles River Laboratories International Inc. said this morning that it won a ten-year deal with the National Cancer Institute worth $111.6 million.

The contract, double the size of the Wilmington company's current deal with the agency, calls for Charles River to build a facility where the agency and Charles River staffers will work together to support cancer researchers in their activities. The new building is slated to finish construction in 2008 and will be in Frederick Maryland, close to NCI's headquarters.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:10 AM | Comments (0)

MTV buys Harmonix

Viacom Inc.'s MTV Networks said today it will buy Harmonix Music Systems Inc., a developer of music-themed video games, for $175 million in cash.

Harmonix, based in Cambridge, developed Guitar Hero and other music games for Sony Corp.'s PlayStation 2. The deal is expected to close in the fourth quarter.

Last year Harmonix and MTV formed a partnership that used the video game title in original programming and competitions on a number of MTV platforms. (AP)

Posted by globebusiness at 10:49 AM | Comments (0)

Clean Harbors names new director

Clean Harbors Inc., a provider of hazardous waste management services based in Norwell, said today that it named Gene Banucci to the company's nine-member board.

Banucci is chairman and founder of ATMI Inc., a supplier of specialty materials to the semiconductor industry. Before starting ATMI, Banucci served as vice president of American Cyanamid's chemical research division. He also spent 10 years with General Electric Co. (AP)

Posted by globebusiness at 9:35 AM | Comments (0)

Regulators seek more data on Oscient antibiotic

Oscient Pharmaceuticals Corp. said today that U.S. regulators would only approve its antibiotic Factive for the five-day treatment of community-acquired pneumonia if the company provided clarification and additional interpretation of data provided in its marketing application.

The drug is already approved as a seven-day treatment for community-acquired pneumonia. The company wants the U.S. Food and Drug Administration to approve it for shorter-term use.

The company said it plans to provide the information sought by the agency within the coming weeks. It said it does not believe any additional clinical trials are required.

Waltham, Massachusetts-based Oscient is also seeking FDA approval of the drug to treat acute sinus infections.

Earlier this month an advisory panel to the FDA voted that company data comparing Factive with similar drugs did not show it effectively fought sinusitis and that the risk of skin rashes and other side effects outweighed potential benefits. (Reuters)

Posted by globebusiness at 9:10 AM | Comments (0)

Cytyc reaffirms offer for Vision Systems

Cytyc Corp., a maker of medical testing products for women, said today that it still intends to buy Vision Systems Ltd., an Australian maker of medical instruments, despite a lawsuit filed against the company.

On Monday, Cytyc offered to buy Vision Systems for about $377 million in cash, or $1.77 per share.

Previously, Ventana Medical Systems Inc. offered $1.60 per share, or about $346 million for the company, a lower offer. On Tuesday, Ventana sued Vision Systems, alleging patent infringement.

Cytyc, which is based in Marlborough, said today that it does not expect the litigation will stand in way of the buyout offer and does not consider the lawsuit to be a material adverse change.

"We are aware that the Australian Competition & Consumer Commission has commenced an informal review of Ventana's proposal to acquire Vision Systems as well as our tender offer. We are pleased to cooperate with the Commission's informal review. Vision Systems shareholders should know that Cytyc remains confident that our tender offer has no risk of antitrust issues because, unlike Ventana, Cytyc is not a competitor of Vision Systems," the company said in a statement. (AP)

Posted by globebusiness at 8:29 AM | Comments (0)

Raytheon lands two contracts

Yesterday Raytheon Co. landed two contracts, one from the Army, the other from the Navy.

The U.S. Army announced a contract modification worth $8.2 million to Raytheon Co. for engineering services support for the Patriot missile program. Contract work is expected to be completed by Jan. 9, 2009.

The U.S. Navy announced Thursday an award nearing $11 million to the Raytheon Co. Space and Airborne Systems unit for services to naval aircraft.The award expands a previous contract for programs used to test electronic components on the F/A-18 Super Hornet and EA-18G Growler fighter planes. Work is scheduled for completion by September 2009. (AP)

Posted by globebusiness at 8:22 AM | Comments (0)

September 21, 2006

Hill Holliday wins AOL creative account

Hill Holliday confirmed today it had won AOL’s creative account.

The Boston advertising agency would not provide details on the deal with the Internet giant. AOL, a unit of Time Warner, spent $422 million in measured media in 2005 and about $150 million over the first half of this year, according to TNS Media Intelligence.

AOL’s media account is expected to remain at Interpublic’s Initiative and Omnicom’s OMD.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 5:11 PM | Comments (0)

ESPN radio affiliate bulks up football programming

The local ESPN radio affiliate is launching a lineup of new programming to better appeal to the Boston football faithful during the NFL season.

The station, 890 ESPN Boston (AM), is adding the slogan "Boston's Football Station" to all of its promotional drops during the season and is adding six new football-related shows to its lineup.

All of the station's programming on Fridays will focus on the New England Patriots, with interviews directly from Gillette Stadium beginning at 4 p.m., a lineup the station is calling "Patriots Friday." On Saturdays, it will air every Northeastern Huskies football game live during the season as well as one of the top college football games from outside the area. Sundays again are dedicated to the Pats, with former Patriots tight end Russ Francis hosting "Countdown", a new pregame show and later, the NFL game of the week aired live.

The station also has a lineup of programming scheduled for Mondays before Monday Night Football games.
(By Keith Reed, Globe staff)

Posted by globebusiness at 4:07 PM | Comments (0)

Oxigene study: Combination therapy fights tumors better

Shares of Waltham-based Oxigene Inc. rose slightly today after the biopharmaceutical company said preclinical results being published in the journal Science show a combination drug process enhances anti-tumor activity.

The combination involves administering an antiangiogenic drug 24 hours before administering one of Oxigene's vascular disrupting agents. The first part is a drug that starves a tumor by cutting off its blood supply. The second also decreases blood flow to the tumor.

The study was conducted on mice.

"We believe the findings from this study are of enormous importance, and will drive the intelligent development of our VDAs going forward," said Dr. Richard Chinn, president and chief executive. (AP)

Posted by globebusiness at 3:59 PM | Comments (0)

BRA's Dudley Square plans advance

The Boston Redevelopment Authority is moving ahead with plans to renovate a long-vacant historic site in the Dudley Square neighborhood, the city said today.

The authority said it has closed on the acquisition of the 33,000 square-foot site that includes the five-story Ferdinand Building, which dates back to 1899, the eight story Guscott Building, circa 1922, and a vacant lot at the intersection of Washington and Warren Streets in Roxbury. The city plans to demolish the Guscott building and renovate the Ferdinand, each of which have been vacant for more than 25 years. Another building on the site was torn down in 1992.

The city plans to move some of its government agencies into the building after a redevelopment project that could cost as much as $80 million, the BRA said in a statement today. It is not clear what agencies would move there.

All told, the project should bring 1,200 jobs and $9,000 in daily spending to the area, the BRA said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:28 PM | Comments (0)

Paul Levy joins board of ISO New England

Paul F. Levy, chief executive of Boston's Beth Israel Deaconess Medical Center and a former top Massachusetts utilities regulator, was named today to the board of directors of Independent System Operator New England, the Holyoke organization that runs the six-state electric power grid and wholesale markets.

ISO chairman Vincent M. O'Reilly said Levy, who was also a former executive director of the Massachusetts Water Resources Authority overseeing the $4.4 billion Boston Harbor cleanup, "will bring a wealth of knowledge and experience" to managing the regional electrical system.

Levy was chairman of the Massachusetts Department of Public Utilities, now called the Department of Telecommunications and Energy, in the mid-1980s. Also named to the 10-person ISO board was Richard A. Abdoo, former chairman and chief executive of Wisconsin Energy Corp.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 3:25 PM | Comments (0)

Bentley offers pro baseball internships

The baseball season is petering out in Fenway Park, but in Waltham Bentley College is just ramping up season three of its internship program to let high school students get their feet wet in the world of sports business.

The Waltham school is sponsoring five one-month internships at Major League Baseball teams in five cities. The students will work in marketing, promotion, media and other front-office areas for the Boston Red Sox, New York Mets, Philadelphia Phillies, Chicago White Sox and San Francisco Giants.

To apply students must submit a 50 to 100-word essay explaining why they want the internship via the teams' individual web sites. Bentley and the teams will jointly judge the essays based on originality, creativity, passion, interest in business and clarity, according to a statement.

Current high school students ages 13 through 18 are eligible. The application deadline is October 15 and winners will be notified next February.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:18 PM | Comments (0)

Attunity to sell more shares

Israeli software company Attunity Ltd. said today that it agreed to sell $1 million of its shares in a private placement.

This brings the total amount of its private placement, first announced in August, to $6 million. The company instituted the sale to meet the Nasdaq listing requirement of a minimum $10 million in shareholder equity. The company faces a hearing on its listing on Sept. 28.

Attunity said it agreed to sell 800,000 ordinary shares at $1.25 per share, and investors will receive three-year warrants to buy 400,000 more shares at $1.25.

The deal is expected to close on Sept. 28.

The company has about 18.4 million shares outstanding. (AP)

Posted by globebusiness at 2:25 PM | Comments (0)

AirTran to resume nonstop service to Sarasota, Fla. from Logan

AirTran Airways is resuming winter non-stop service from Logan International Airport to Sarasota, Fla., a single round-trip each Saturday, on Feb. 17, Logan officials said today.

The flights leave at 10:19 a.m. from Logan, returning from Sarasota at 2:09 p.m. AirTran's Web site today listed total fares of $391.60 counting taxes and fees.

Logan spokesman Phil Orlandella said the service is expected to run through April 14.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 2:00 PM | Comments (0)

Idenix drug approved in Switzerland

Cambridge-based Idenix Pharmaceuticals Inc. said officials in Switzerland have approved the use of its Telbivudine oral treatment for chronic hepatitis B patients.

Telbivudine is a pill that hepatitis sufferers take once daily to prevent the virus from reproducing itself and to quell swelling of the liver. Idenix also has an application pending before the US food and Drug Administration, as well as in the European Union, Canada, Australia, Taiwan, South Korea and China. The drug will be sold under the brand name Sebivo in Switzerland.
(Keith Reed, Globe staff)

Posted by globebusiness at 11:42 AM | Comments (0)

Red Sox's Coco Crisp becomes pitchman for HP Hood

HP Hood is tapping Red Sox Center Fielder Coco Crisp as the spokesman for New England's leading dairy company.

Crisp will support Hood's products and charitable programs, including Kid Nation and The Hood Home Team Advantage, a charitable partnership with 13 children's hospitals throughout New England.

The Boston Red Sox and HP Hood first partnered in 2000 when Hood signed on as a corporate sponsor.

"We look forward to continuing Hood's mission to enhance the lives of children throughout New England with our new Red Sox partner, Coco Crisp," Barry Boehme, HP Hood vice president of marketing, said in a statement.

(By Jenn Abelson, Globe staff)

Posted by globebusiness at 11:42 AM | Comments (0)

Merck KGaA pays $13.3 billion for Serono, including US headquarters in Rockland

Serono Inc., an international biotechnology company with its United States headquarters in Rockland, was bought today for $13.3 billion by Merck KGaA, the German drug and chemical manufacturer.

Merck, which is not related to the US drug maker of the same name, said the takeover will create a new division, Merck-Serono Biopharmaceuticals, with its American headquarters in Massachusetts. A spokeswoman for Serono was unable to provide further details this morning.

Serono is the world's leading manufacturer of fertility drugs. It also sells a top treatment for multiple sclerosis, Rebif, and a human growth hormone. It employs about 500 people in Rockland, where the company researches cancer drugs.

Controlled by the Swiss-Italian Bertarelli family, the company had publicly put itself up for sale in late 2005, but declared in April that it was off the market. The offers it received "did not reflect the true prospects of our company," chief executive Ernesto Bertarelli told the Globe at the time.

The company then embarked on a campaign to stay independent, allocating up to $10 billion for acquisitions to beef up its pipeline of potential drugs.

Under the terms of today's deal, Merck will buy the Bertarelli family's two-thirds stake in the company and launch an offer for the remaining shares.

In separate news, Serono said today US drug regulators granted the company a "fast-track" approval status for its experimental multiple-sclerosis pill, meaning the drug could be put on an accelerated approval schedule if its current human trials yield positive results.
(By Stephen Heuser, Globe staff)

Posted by globebusiness at 11:36 AM | Comments (0)

Governor distributes workforce training grants

The Romney administration is giving out $8.6 million in workforce training grants to 109 companies in the state this morning, money that it says will be used to bolster the skills of more than 13,000 workers.

Companies in the greater region got the most money, with 31 grants totaling $2.7 million being doled out of the state's Workforce Training Fund. Companies in the rest of southeastern Massachusetts got a total of 25 grants worth $1.9 million, while companies in the central and western parts of the state each won 18 grants worth $1.2 million and $1.2 million, respectively.

Northeastern Massachusetts firms landed a total of 17 grants worth $1.5 million.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:13 AM | Comments (0)

Spire catheters get FDA approval

Medical devices firm Spire Corp. said it's new silver-coated catheters approved for use by the U.S. Food and Drug Administration.

The catheters are small devices used in hemodialysis, the process of removing toxins from the blood in the event of kidney malfunction. Spire coats the devices with nanocrystalline, a kind of silver that it says can fend off bacteria build up on the catheters for as long as two months.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:02 AM | Comments (0)

Xebra electric car arrives in Boston

Zero Air Pollution, which claims to manufacture the first "commercially viable electric car", has made its first delivery to Boston.

Doug Hart, a Boston investment manager, took delivery of the first Xebra sedan, a car that runs strictly on electricity, moves at a top speed of 40 miles per hour but produces 98 percent fewer emissions than regular cars, according to a statement from Zero Air Pollution, the company that makes the Xebra.

In the statement, which also does not say exactly when the car was purchased, Hart says he bought one because " I learned one of the best things you can do for the environment is to either drive an electric car or invest in an electric car company."

The Xebra retails for less than $10,000, seats up to four people and must be ordered via Zero Air Pollution's web site.
(By Keith Reed, Globe staff)

Doug Hart in his new electric Xebra sedan

Posted by globebusiness at 9:16 AM | Comments (0)

Questex buys InfoTrends

Questex Media Group Inc., a Newton specialty publishing and media company said it has agreed to merge with InfoTrends Inc., a market research firm in Weymouth. Financial details of the deal, which the companies said should close at the end of this month, were not disclosed.

InfoTrends will become Questex subsidiary when the deal is finalized, and its new parent plans to use the company's research capabilities to serve its clients and land new ones. InfoTrends' research is focused on companies in the documents and digital imaging sectors, while Questex publishes some 23 trade publications and hosts 25 trade shows on behalf of its clients. The company has 400 employees.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:06 AM | Comments (0)

Boston Scientific in talks to settle Guidant lawsuits

Boston Scientific Corp. is in talks to settle hundreds of lawsuits filed against its recent acquisition, Guidant Corp., according to the plaintiffs' lead attorney.

The discussions are aimed at resolving more than 500 cases against Guidant from around the country that have been consolidated for hearing before the U.S. District Court in Minnesota. The lawsuits mostly allege that certain implantable cardiac defibrillators and pacemakers made by Guidant were defective and caused, or had the potential to cause, harm to patients.

Charles Zimmerman, the plaintiffs' attorney and lead negotiator in the settlement talks, said he hopes to settle all the cases at once. "We would think it's in everyone's best interest," he said.

Mr. Zimmerman said he couldn't disclose the contents of discussions with Boston Scientific, including possible settlement figures. He said the cases in settlement discussions represent the "bulk" of civil litigation pending against Guidant.

A spokesman for Boston Scientific, based in Natick, Mass., declined to comment.

Rare defects in Guidant defibrillators have allegedly led to several deaths, spurring litigation and government investigations. Plaintiffs have also alleged mental anguish when their devices had to be replaced due to potential malfunctions. The company also allegedly failed to notify doctors and patients about the risks of defects in its devices.

If the cases are settled, "there will be a sigh of relief" from investors, said Piper Jaffray analyst Thomas Gunderson. "Legal risks are increasingly worrisome to Wall Street, and a settlement is often the least burdensome of the choices."

Boston Scientific acquired Guidant in April for about $27.5 billion. When the deal closed, Guidant already faced hundreds of lawsuits related to its potentially defective devices.

In a recent regulatory filing, Boston Scientific said it had set aside $381 million for legal-defense costs, primarily related to the Guidant lawsuits. The figure didn't include an estimate of the amounts that might be paid in damages, as the company was still assessing those possible costs, the filing said. (Dow Jones)

Posted by globebusiness at 8:18 AM | Comments (0)

Nucryst: drug tests disappointing

Nucryst Pharmaceuticals Corp. said late Wednesday that preliminary midstage study results of its dermatitis drug is not effective compared to a placebo.

The Wakefield, Mass.-based company said the drug, which is a topical cream called NPI 32101, did not meet the goal of the study, which was to have a higher success rate in treating atopic dermatitis compared to a placebo. Analysis of the data is not yet complete, the company said.

Jefferies & Co. analyst Ryan A. Rauch in a client note today said the negative results are actually a near-term positive for the company, since the result will be less research and development spending for later-stage studies. The cost could have been more than $15 million, he wrote.

The company is still considering the drug as a possible treatment for some gastrointestinal disorders, he wrote. In the meantime, the company's third quarter is going well so far, wrote Rauch, who reiterated a "Buy" rating. He reduced his target price to $12 from $16.

However, the news prompted Canaccord Adams analyst Joseph Pantginis to reduce his rating to "Hold" from "Buy," citing the removal of revenue expectations from the proposed application of the drug. He also cited share price for the downgrade. (AP)

Posted by globebusiness at 8:07 AM | Comments (0)

American Superconductor names director

American Superconductor Corp. said today that it named David R. Oliver, Jr. as a director, expanding the board to eight members, seven of which are independent.

Oliver, 65, is chief operating officer of European Aeronautic Defense and Space Co.'s North American division.

With more than $40 billion in annual revenue, EADS is the second largest aerospace firm in the world. Oliver oversees all marketing and business development activities of EADS North America and manages the operational activities of the EADS North America holding company.

Before joining EADS North America, Oliver was stationed in Baghdad as Director of Management and Budget for the coalition forces. Prior to that, he served as U.S. Principal Deputy Under Secretary of Defense for Acquisition and Technology. Oliver also previously held management positions at both Westinghouse Electric and Northrop Grumman.

American Superconductor makes high-power electric motors and high-temperature superconductor wire products used by electric utilities for power cables. (AP)

Posted by globebusiness at 8:03 AM | Comments (0)

September 20, 2006

Alnylam, Biogen Idec to collaborate on treatment for brain disease

Alnylam Pharmaceuticals Inc. of Cambridge said it will collaborate with Biogen Idec Inc. of Cambridge to develop a treatment for a rare brain disease found in three patients taking Biogen Idec's multiple sclerosis drug Tysabri. Alnylam said Biogen Idec would fund research to find a treatment for the disease, progressive multifocal encephalopathy, which is most often seen in AIDS patients. Alnylam will receive $5 million in an upfront payment and could earn as much as $51 million if a drug is developed and sold. Biogen Idec had to suspend sales of Tysabri from February 2005 to this summer after patients who took the drug in trials became ill. Alnylam is developing RNAi, a biological mechanism for silencing specific genes within cells that can potentially disrupt diseases.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 6:14 PM | Comments (0)

Harvard Vanguard, Dedham doctors group to accept Aetna patients

Harvard Vanguard Medical Associates, one of the state's largest doctors groups, and Dedham Medical Associates, will treat patients covered by national insurance giant Aetna Inc. of Hartford, Conn., starting Jan. 1. The medical groups are part of HealthOne Care System Inc. of Newton, which has three other suburban medical groups already serving Aetna members.

Eugene Wallace, HealthOne's chief financial officer, said that as more Boston companies are auired by out-of-state firms, HealthOne doctors need access to patients covered by national insurers.

Dr. Troyen A. Brennan , chief medical officer of Aetna, said the contract is part of Aetna's continuing effort to build membership in Massachusetts, where it has 159,000 members.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 5:58 PM | Comments (0)

Logan's CNG buses log 10-millionth mile

As local officials prepare for the two-day Altwheels Festival on City Hall Plaza promoting vehicles that run on alternative fuels, Logan International Airport officials said they calculated their natural-gas bus fleet logged its 10-millionth mile of operation recently.

The Massachusetts Port Authority, which runs Logan and is co-sponsoring the festival, which starts tomorrow, began in 1995 converting from diesel to compressed natural gas its fleet of buses that convey passengers from the Airport MBTA Blue Line station, ferry terminal, and remote parking lots to Logan airline terminals. Massport currently runs 33 of the CNG-powered buses. Use of CNG slashes emissions of pollutants and soot compared to diesel fuel.

Buses log as many as 4,400 miles monthly, and Massport spokeswoman Lisa Langone cq said the agency calculated that sometime last month, Massport apparently clocked its 10 millionth mile of CNG-fueled operations.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 5:22 PM | Comments (0)

Businesss rebounds at Logan

Air travel and freight business rebounded sharply at Logan International Airport last month, after major disruptions in July caused by the July 10 Big Dig tunnel ceiling collapse, according to the Massachusetts Port Authority, which runs Logan.

Helped by the fourth-busiest August in Logan history, total passenger volume rose 2.2 percent in August over the same month a year earlier. In July, traffic ran 0.8 percent below July 2005 levels.

For the first eight months of the year, Logan's domestic passenger volume is running 4.5 percent ahead of last year, putting Logan on track to finally surpass pre-9/11 levels.

Domestic express and small package shipments last month were down 8.1 percent from a year earlier, compared to a 20.9 percent year-over-year drop in July.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 5:09 PM | Comments (0)

Former Gillette chief to join N.Y. equity advisers

James M. Kilts, the former Gillette chief executive who arranged the Boston company's sale to Procter & Gamble Co., will join the boutique investment advisory firm Centerview Partners as a founding partner.

Centerview said today it would focus investing on consumer companies to capitalize on its expertise in the sector and Kilts' background in consumer products.

Kilts will step down from his role as vice chairman at P&G next month.

Other founders of Centerview, which was started in July, include Stephen Crawford, formerly co-president at Morgan Stanley; Blair Effron, former vice chairman of UBS; and Robert Pruzan, former chief executive of Dresdner Kleinwort Wasserstein North America. (AP)

Former Gillette chief James M. Kilts (Globe staff photo by Tom Landers)

Posted by globebusiness at 4:57 PM | Comments (0)

Simmons names chair for entrepreneurship

Simmons College has named a new head for the entrepreneurship initiative run by its graduate business school.

Teresa Nelson was named the Elizabeth J. McCandless chair in entrepreneurship at the Simmons School of Management, a position that will put her in charge of a program known in business education circles for its curriculum on starting and running new enterprises.

Nelson had been a professor of business and director of technology management at Suffolk University's Sawyer Business School.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:54 PM | Comments (0)

Sovereign CEO assures stockholders on sale

Sovereign bank's chief executive officer assured shareholders on today that a Spanish bank's acquisition of a major stake in the thrift did not weaken their say on a future sale.

Sovereign CEO Jay Sidhu, speaking at the annual meeting at Gillette Stadium, addressed shareholders for the first time since Banco Santander Central Hispano S.A. purchased a 19.8 percent stake in Sovereign in June.

The deal, which gives Santander the right to buy the rest of Sovereign, was criticized by some shareholders, who said it was structured to avoid a shareholder vote while giving Santander substantial control over the company.

Today Sidhu told shareholders that, as part of the agreement with Santander, any deal on a future sale would have to be approved by them.

"Independent, non-Santander shareholders will decide on the future," he said.

Also at Wednesday's meeting, shareholders rejected a plan forwarded by a major shareholder to make Sovereign's board of directors more accountable by requiring directors to stand for election each year.

Santander's $2.4 billion deal with Philadelphia-based Sovereign was announced in October. Shareholders were unhappy it closed before they could vote on it, according to filings with the Securities and Exchange commission.

The New York Stock Exchange requires shareholder approval if a member company issues new shares that equal 20 percent or more of current outstanding shares.

Shareholders accused Sovereign of giving Santander more than 20 percent of its pre-acquisition outstanding shares, but avoiding a shareholder vote by selling Santander a combination of new shares and treasury shares -- which aren't counted by the NYSE -- so they wouldn't break the 20 percent rule.

Since the acquisition, Santander has acquired a 24.9 percent stake in Sovereign on the open market.

Under the agreement, Santander gets the right to buy the rest of Sovereign for more than $40 a share from mid-2008 to mid-2009. Afterward until 2011, Santander still has the right to buy Sovereign, but without a set price in the agreement.

Major shareholders, including the California Public Employees' Retirement System, or CalPERS, have said the Santander deal dilutes their voting rights.

The meeting was the first chance for shareholders to confront the board of directors about the deal, but none did. Sidhu addressed the Santander agreement after one shareholder asked him to elaborate on previous comments that Sovereign could be sold.

Sidhu outlined the terms of a possible sale to Santander, including a provision that gives Santander a "last look" if Sovereign negotiates a sale with another company. But, he emphatically told shareholders, "You will have the absolute last look."

"Our shareholders will be voting on that, not Santander," he said.

Earlier at the meeting, CalPERS proposed that each board member stand for election annually, replacing the board's staggered structure, an anti-takeover measure in which only a portion of its directors stand for election each year.

The board and Sidhu opposed the CalPERS proposal, which was rejected with about 181 million shareholder votes against, compared to about 145 million in favor.

A CalPERS spokesman did not immediately return a call for comment. (AP)

Posted by globebusiness at 1:59 PM | Comments (0)

Avant: Glaxo paid royalties at low rate

Vaccine developer Avant Immunotherapeutics Inc. said today that GlaxoSmithKline PLC has paid royalties on its sales of Rotarix rotavirus vaccine in Australia and certain European countries at the lower of two rates established under the companies' 1997 license agreement.

Avant said Glaxo decided to pay the lower royalty rate -- which is 70 percent of the full rate -- because it claims Rotarix is not covered by the patents it licensed from Avant in Australia and these certain European countries.

Avant said it is evaluating various options to counter Glaxo's claims.

"Although we have sold the bulk of Avant's royalties from sales of Rotarix to Paul Royalty Fund II, and only retain a residual interest, we are of course disappointed in this news. We are determined to take all available steps to enforce our rights under our license agreement with GSK, both regarding the recent sales in Australia and Europe and future sales in the other countries in which we hold patents," said Una S. Ryan, Avant president and CEO.

In May 2005, Avant sold a stake in the royalties to Paul Royalty Fund II for up to $61 million, and to date, has received $50 million. Avant said it doesn't believe the $50 million already paid and the potential $11 million in additional milestone payments are affected by Glaxo's action.

However, Avant said that if it's unable to reverse Glaxo's decision to pay the lower rate, the value of Avant's residual interest in Rotarix royalties will be impacted.

Avant shares fell 12 cents, or 8.5 percent, to $1.30 in morning trading on the Nasdaq. Over the past year, shares have traded between $1.23 and $2.82. (AP)

Posted by globebusiness at 1:46 PM | Comments (0)

Fidelity launches research institute

Fidelity Investments said today that it has created a research institute in Boston to focus on retirement issues such as tax considerations and asset-withdrawal strategies.

Executives of the Boston mutual-fund giant said the group will eventually include 15 to 20 people plus an advisory board it is in the process of naming. It aims to create objective research but also work that will be useful to its business customers, the company said.

Fidelity also hopes the work will influence policy discussions in Washington. On a conference call today Fidelity chief operating officer Robert L. Reynolds said one area of concern is health care costs during retirement, and that the company favors changes to tax rules in this area.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 1:41 PM | Comments (0)

SatCon to close Worcester factory

SatCon Technology Corp. said it plans to close its factory in Worcester by the end of this year so it can spend more money on its renewable energy business.

Boston-based SatCon makes motors and other components for use in alternative energy generation. The company said today that orders for its renewable energy business are at an all time high, with a backlog worth $33 million.

Because of that, the company said, it needs to streamline its manufacturing to focus on meeting the high demand for its core products.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:13 AM | Comments (0)

Who's No. 1 in biotechnology ideas, Harvard or MIT?

When it comes to creating new biotechnology ideas, who's No. 1?

It's Harvard. No wait, it's MIT.

With universities around the world increasingly trying to turn their scientific research into lucrative companies and drugs, a massive new study released this morning takes a look at which schools are really succeeding.

The conclusion: Harvard leads the world in published papers, the coin of the realm for scientific research. But when it comes to converting those ideas into real moneymaking products, it lags well behind its No. 1 neighbor Massachusetts Institute of Technology.

The study by the Milken Institute looked at several years' worth of science-productivity statistics from universities around the world. For North American universities, it measured the number of spinoff companies created, and the amount of money schools earn from licensing their technology.

Both Harvard and MIT missed the top 10 list in total number of ideas patented, where the giant public university systems of Texas and California led the pack.

The issue is a crucial one for Boston, and not just because its universities reap tens of millions of dollars annually from technology licensing. Although California has bigger biotech companies, and New York has more investment capital, Boston's economy depends on its reputation as perhaps the most fertile ground in the world for new biotechnology ideas.

(By Stephen Heuser, Globe staff)


What's your view?

Posted by globebusiness at 10:24 AM | Comments (0)

Monitor Groups adds former Adventis team

Cambridge-based Monitor Group, a consulting and investment, has hired the three-person former management team of defunct technology consulting practice Adventis Corp. in a move designed to bolster Monitor's own strategy practice.

Ford Cavallari, former worldwide head of Adventis' broadband and media practice, Andy Belt, an Adventis co-founder and former enterprise and telecom practice head, and John Ryan, one of the three founders of RHK, Inc. and an expert in technology and networking, were hired by Monitor.

The three had led Adventis from its North American headquarters in the Back Bay until the firm's European parent company abruptly shut it down earlier this year.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:00 AM | Comments (0)

Boston CIOs bearish on hiring

The percentage of information technology honchos at Boston companies who expect to hire new workers in the fourth quarter dropped significantly compared with the previous quarter.

Six percent of chief information officers asked in the quarterly Robert Half Technology IT Hiring Index and Skills Report said they anticipated more hiring in the final three months of 2006, while 2 percent said they expected to make reductions in staff. The resulting 4 percent net of executives who are optimistic about hiring is four percentage points below the net 8 percent of technology executives who said before the third quarter of this year that they'd do more hiring.

Most, though, said they expected no change in their personnel levels. The Half survey is done quarterly by Robert Half Technology, an information technology staffing firm that has tracked hiring in that sector nationally since 1995.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:55 AM | Comments (0)

Boston study: Four emerging nations to lead wealth growth

Wealth in the emerging markets of Brazil, Russia, India and China will grow at almost twice the global rate over the next five years, boosted by high oil prices, exports and booming information-technology sectors, according to a study released Tuesday.

In its "Global Wealth 2006" study, the Boston Consulting Group forecast that wealth in the four nations -- which are often collectively referred to as the BRIC nations -- will rise to $7.1 trillion by 2010 from $4.3 trillion in 2005. That translates to compounded annual growth of 10.6 percent, against 5.6 percent growth in wealth globally.

The Boston Consulting study took listed securities, managed investments, cash deposits and onshore and offshore assets into its calculation of wealth, but excluded money generated from investors' businesses, their residences or luxury goods.

The study said currently a large proportion of the wealth in the BRIC countries was in cash, while only a small proportion was in equities.

"All the BRIC countries are expected to reduce their cash-allocation rates steadily as they gravitate toward more sophisticated investments," it said.

Private banking firms such as Switzerland's UBS and Credit Suisse as well as U.S. banks Citigroup and Merrill Lynch are expanding to serve these high-growth markets.

Global wealth, measured in local currencies, rose 8 percent to $88.3 trillion in 2005 over the previous year, the study said. Europe posted the fastest growth by this measure, up 13.2 percent to $29.2 trillion, driven by strong equity markets, while North America had the slowest growth, up 4.1 percent to $33.2 trillion.

Asia-Pacific wealth rose 9.7 percent to $8.4 trillion, and Japan's grew 5.1 percent to $11.9 trillion, the study said.

But in U.S. dollar terms, global wealth grew at only 1.5 percent due to the strength of the U.S. dollar in 2005, it said.

The United States had the greatest number of households with wealth over $1 million -- 2.96 million, almost four times that of Japan, which was second at 825,000. New York had 490,000 millionaire households, the highest among cities in the world, with Tokyo second with 430,000 households. (Reuters)

Posted by globebusiness at 8:44 AM | Comments (0)

Capital Crossing Bank acquired by Lehman

Capital Crossing Bank, a commercial bank with $1.1 billion in assets, said yesterday that it agreed to be acquired by investment bank Lehman Brothers for $210 million in cash.

Lehman agreed to pay $30 per share in cash for each outstanding share of Capital Crossing, representing a premium of roughly 11.7 percent over Capital Crossing's Tuesday closing price on the Nasdaq Stock Market.

The acquisition is expected to be completed during the first quarter of 2007, pending regulatory approval and other closing conditions. The two companies already have a long-standing partnership covering loan purchase transactions.

Nicholas W. Lazares, chairman and co-chief executive, said Capital Crossing decided to sell itself after management realized it would be harder to achieve "all of our goals as a relatively small, publicly traded bank."

Once the acquisition is complete, Capital Crossing will become a division of Lehman Brothers Bank, FSB. Capital Crossing's headquarters will stay in Boston, MA. (AP)

Posted by globebusiness at 8:21 AM | Comments (0)

September 19, 2006

Marsh exploring sale of Putnam Investments

Putnam Investments parent Marsh & McLennan Cos. said it has begun evaluating whether to sell the large Boston investment company or take other steps with the unit.

In a statement this afternoon, Marsh & McLennan chief executive Michael G. Cherkasky said he has begun to do "a market check'' to see what others would pay for Putnam.

Cherkasky has made a range of comments about his company's intentions toward Putnam, which has experienced a steady outflows of funds as it tries to recover from a market-timing scandal and because of competition from larger mutual-fund firms. According to figures compiled by Bloomberg News and Financial Research Corp., investors have withdrawn a net $106 billion from Putnam's funds since June 2001. Putnam now ranks as the 12th-largest US mutual fund company, down from fourth in 2001.

In a statement today Cherkasky said that in recent months there have been "repeated inquiries from parties interested in either acquiring or partnering with Putnam. Therefore, in consultation with MMC's board, I decided it was in the interest of our shareholders to do a market check to determine the value others would put on Putnam.

"We have just commenced this process and have not decided to take any specific action in regard to Putnam at this time,'' he said.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 5:37 PM | Comments (0)

Executive changes at State Street Global Advisors

State Street Global Advisors, the investment management unit of financial services firm State Street Corp., said it appointed Peter Leahy to the newly created position of chief product officer yesterday.

Leahy, 45, joined the company in 1991 and most recently served as chief operating officer.

Otello Sturino will take over as COO. Sturino, 47, joined State Street in 1990 and will retain his previous responsibility for the group's business in Canada. (AP)

Posted by globebusiness at 4:47 PM | Comments (0)

Raytheon partnership to work with Army

Raytheon Co. said today that its joint cargo aircraft partnership with EADS Casa North America has formed a public-private logistics partnership with the Army's Letterkenny Army Depot in Pennsylvania.

The joint cargo aircraft is a joint Army and Air Force program that will provide ground forces with a lift capability to haul cargo and troops.

The Raytheon and EADS partnership is proposing the C-295 transport aircraft for the program. Under the deal, Raytheon, of Waltham, and EADS will work with Letterkenny to define the Army's maintenance requirements.

The agreement is the first of four that Team JCA expects to sign with the Army and Air Force. (AP)

Posted by globebusiness at 4:38 PM | Comments (0)

New England Securities among MetLife units fined by NASD

The National Association of Securities Dealers said it imposed a $5 million fine against three units of MetLife Inc. -- New England Securities Inc. of Boston, MetLife Securities Inc. of New York, and Walnut Street Securities Inc. of St. Louis.

The companies were fined for providing inaccurate and misleading information to the NASD, allowing late trading of mutual funds, failing to produce e-mails in a timely fashion, and other conduct that violates NASD rules.

In settling these matters, the MetLife firms neither admitted nor denied wrongdoing. (AP)

Posted by globebusiness at 4:31 PM | Comments (0)

Harvard endowment earned 16.7 percent return

There were big changes in the past year at the Harvard University investment arm that manages one of the world's largest endowments. An ability to beat the market wasn't one of them.

Harvard Management Co., which invests the university's $29.2 billion endowment, reported yesterday that it earned 16.7 percent on its portfolio during the fiscal year that ended June 30. Big gains in commodities and foreign stocks were among the endowment's investment highlights.

Those returns outdistanced most investment benchmarks, but will probably fall short of the top tier of performers among leading university endowments. Harvard Management officials said the 16.7 percent gain will be above average among those endowments but probably not rank in the top 25 percent.

Harvard's endowment outperformed the 10.8 percent median advance by a broad measure of other large institutional funds and a gain of 8.6 percent by the Standard & Poor's 500 index during the same period. Another investment benchmark that more closely matches up with Harvard's investment portfolio was up by 13 percent.

Harvard's investment performance took place during a period of dramatic management change. Long-time chief Jack Meyer left Harvard Management last September to form his own hedge fund, Convexity Capital Management, taking two of his top bond managers and about 30 other employees with him. Harvard Management's new chief executive, Mohamed El-Erian, arrived on the job in February.
(By Steven Syre, Globe staff)

Posted by globebusiness at 3:00 PM | Comments (0)

Investor confidence slides

Investor confidence slipped this month in the face of uncertain economic conditions, according to State Street Global Markets, the research and trading arm of State Street Corp. of Boston.

State Street's investor confidence index slipped to 80.8 from 83.5 in August, primarily due to falling confidence in North America. Confidence among North American institutional investors fell to 92.8 from 96 in August, according to the index. Confidence in Asia, however, rose 4 points to hit a 19-month high of 90.6, while in Europe, it increased slightly, to 89.1 from 88.4.

State Street analysts said investors have become cautious as they weigh the impact of the slowing housing market on the economy against recent declines in commodity prices, such as oil.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 2:18 PM | Comments (0)

Online ads surge

Online help-wanted ads rose in New England last month, growing at a pace well above the nation's and leading all other regions, according to the Conference Board, a nonprofit economic research group in New York.

The number of ads jumped 16 percent from July in New England, compared to 10 percent nationally. Following New England were the Pacific and Middle Atlantic regions, each with 13 percent increase in online help-wanted advertising.

Help-wanted advertising is considered a job market indicator. Conference board analysts said the strength of August online advertising suggests the employment outlook, weakening recently under high energy prices and a sliding housing market, might be a little brighter.

The Conference Board has longed surveyed newspaper help-wanted advertising, and last year introduced an online survey to supplement it. Over the past year, online help wanted ads in New England rose 21 percent, matching the national average.

Today's report echoes a survey released earlier today by Monster Worldwide showing a similar trend.

(By Robert Gavin, Globe staff)

Posted by globebusiness at 2:08 PM | Comments (0)

State opens trade office in Sao Paulo, Brazil

State officials are heralding a new economic development outpost in South America.

The Massachusetts Office of International Trade and Investment said it opened a new trade office for the region in Sao Paulo, Brazil.

The office's aim is to help Massachusetts companies increase exports to South America and to attract investment from the region in companies in the state.

(By Keith Reed, Globe staff)

Posted by globebusiness at 12:37 PM | Comments (0)

Irish invest in 265 Franklin Street

Anglo Irish Bank PLC, an Irish lender with US headquarters in the financial district, said it helped to finance the purchase of the building where its Boston office is housed.

Clarendon Properties, another Ireland-based company, is buying 265 Franklin Street, a 21-story tower, from Boston Properties Inc and the New York Common Retirement Fund. Anglo Irish did not disclose how much money it lent Clarendon for the transaction.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:51 AM | Comments (0)

Adidas expands Reebok distribution

German sports apparel maker adidas Group, which last year bought Canton-based Reebok, has purchased the rights to distribute Reebok-branded products in the Czech Republic and Slovakia, the company said today.

adidas did not disclose how much it paid two companies, RBK Sport CZ and RBK Sport SR, for the rights, which they had owned under licensing deals with Reebok prior to its sale. The companies had owned distribution rights since 1995 and 1997, respectively, and will continue to distribute Reebok apparel until the end of this year, after which two adidas Group subsidiaries will take over.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:37 AM | Comments (0)

Progress Software sales up

Progress Software Corp., a maker of infrastructure for business software, said today that fiscal third-quarter sales rose 12 percent but did not disclose earnings due to an ongoing review of its practices related to stock options.

The company, based in Bedford, said revenue grew 12 percent in the third quarter ended Aug. 31 to $111.4 million, up from $99.5 million a year ago. Software license revenue increased 11 percent to $42.3 million from $38 million at the same time. At constant currency, total sales and software license revenue each grew 10 percent.

The company -- whose development tools are used by software vendors and IT departments to create business applications -- announced on Aug. 29 that it would restate past financial reports to correct errors related to its accounting for stock compensation. The company said it expects to book additional costs of $20 million to $30 million from 1995 to February 2006.

As a result, Progress said it would not release its full financial results for the third quarter ended Aug. 31 or file its quarterly report with the Securities and Exchange commission, until it has determined the final costs of its stock compensation program.

For the fourth quarter, Progress forecast revenue of $115 million to $118 million. The company expects sales to range from $440 million to $443 million for the fiscal year ending Nov. 30. (AP)

Posted by globebusiness at 10:34 AM | Comments (0)

Art Technology Group acquires eStara

Art Technology Group Inc., a maker of software and online systems that deploy e-commerce applications, said today that it agreed to acquire eStara Inc., a maker of Voice over Internet Protocol software, for about $48.3 million in stock and cash.

Art Technology will acquire all of eStara's outstanding common stock, preferred stock, vested and unvested stock options for about 15.3 million shares of ATG common stock, $2 million in cash and up to an additional $6 million in earn-out potential.

The deal is expected to close in the fourth quarter and begin adding to Art Technology's earnings in the first full quarter after the close.

Reston, Va.-based eStara makes software that allows users to place phone calls over the Web to an e-business's customer service or sales team, a function called "Click to Call." The company provides technology for brands including Starwood Hotels, DaimlerChrysler, Dell, Apple Computer and Continental Airlines. It had $7.4 million in 2005 revenue. (AP)

Posted by globebusiness at 10:23 AM | Comments (0)

Life is good suffers security breach

Boston-based retailer Life is good is having a bad day -- and so might some of its customers.

The company today disclosed a security breach in which hackers accessed a database containing 9,250 customers' credit card numbers. The company said no other personal information, such as social security or driver's license numbers or dates of birth were included in the database and that all affected customers have been notified.

Life is good sells brightly colored apparel and accessories on its Web site.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:15 AM | Comments (0)

Joslin partners with Walgreens

Joslin Diabetes Center, a Boston research and treatment facility, has formed a partnership with Deerfield, Ill.-based pharmacy chain Walgreens that will see the two collaborate on diabetes education programs for pharmacists and consumers.

The agreement calls for Joslin, a Harvard-affiliated, nonprofit center, to develop training programs to teach druggists working in Walgreens locations how to better deal with diabetics using their services. The center will also design diabetes education programs for Walgreens customers.

As a part of the deal Walgreens will build a new specialty pharmacy on the Joslin campus.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:55 AM | Comments (0)

Foster-Miller wins Coast Guard contract

Waltham-based Foster-Miller Inc. has won a $1 million contract to develop a so-called "boat-trap" net system for the U.S. Coast Guard.

The nets are fired down on boats from helicopters hovering above water, jamming a boat's propeller and forcing it to stop. The Coast Guard wants the nets to be able to stop ships that are considered threats to military vessels and liquefied natural gas tankers, among other targets that terrorists might attack from the sea.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:24 AM | Comments (0)

Raytheon awards $5.5M contract to LaBarge

LaBarge Inc., a maker of electronics for military aircraft and other industries, said today that it received a $5.5 million contract from Raytheon Co.'s Space and Airborne Systems unit for continued production of backplane assemblies for the F-22 Raptor stealth fighter plane.

The backplane assemblies are circuit boards that route electronic and fiber optic signals through the planes' common integrated processor, which turns data into information about combat situations that pilots can use.

LaBarge said it expects production to start in January 2007 and continue through the spring at its Joplin, Mo., facility. The company added that it has manufactured the backplane assemblies for Raytheon, a Waltham, Mass.-based defense contractor, since 2002, and that it expects future orders. (AP)

Posted by globebusiness at 8:15 AM | Comments (0)

Online job postings rise

Online job postings surged in Boston last month as employers sought to fill a variety of technical and professional jobs, according to Monster Worldwide, Inc. Monster's local employment index, based on monthly surveys of job recruitment websites, jumped to 107 in August, from 100 in July, the steepest increase since the index was launched in June 2005.

Help-wanted advertising is considered an indicator of job market conditions, and Monster's index is consistent with recent government data showing improvement in the Massachusetts job market. Over the month, online postings rose in 20 or 22 occupational categories, Monster said.

Key, high-paying sectors have posted particularly strong gains. Online postings grew at double-digit rates over the last year for workers in information technology, management, finance, scientific and creative occupations.

"The Boston metropolitan area remains a hot market for professional job seekers," Monster said.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 8:10 AM | Comments (0)

American Tower to restate earnings

American Tower Corp., an operator of broadcast and communications towers, said today that it will restate certain financial reports to correct accounting for past stock options grants.

The company previously announced that a special committee of independent directors found inconsistencies in actual measurement dates and record grant dates of employee stock options grants.

As a result, American Tower will file an amended 2005 annual report that includes consolidated financial statements for the 2003 through 2005 fiscal years, plus selected financial data from 2001 through 2005, reflecting stock options expenses and related taxes.

The company will also file an amended first-quarter 2006 report, along with its 2006 second-quarter results.

American Tower said its special committee investigation continues, but that it expects to submit all three filings in the next three to five weeks, subject to completion of the investigation. (AP)

Posted by globebusiness at 8:06 AM | Comments (0)

September 18, 2006

Harborside buys 11 Kentucky medical centers

Harborside Healthcare, a Boston hospital operator, said today that it has bought 11 medical centers in Kentucky from Wells Health Systems.

The company did not disclose the purchase price of the facilities, which in have a total of 763 beds and consist of eight rehabilitation and long-term care centers, two Alzheimer's disease centers, and an assisted living facility. The deal is expected to close Oct. 1.

Harborside was founded in 1987 and runs 56 health care centers nationally. It has 9,000 employees.
(By Keith Reed, Globe staff)

Posted by globebusiness at 6:17 PM | Comments (0)

Raytheon wins part of NATO missile-defense pact

RScience Applications International Corp. said its multinational contractor team, which includes two units of Waltham-based Raytheon Co., has been selected to negotiate a contract worth an estimated $95 million to support the integration of the North Atlantic Treaty Organization's active layered theater ballistic missile defense.

NATO is working to tie its weapon systems, sensors, battle management, command, control, and communications into an integrated system. The SAIC-led team will develop and verify proposed architectures using a test bed it will design and operate under the pact.

Raytheon Missile Systems of Tucson, Ariz., and the French firm ThalesRaytheonSystems are part of the team.

Most of the work under the six-year contract will be performed in the Netherlands, according to privately held SAIC. (AP)

Posted by globebusiness at 3:36 PM | Comments (0)

BEZ raises $7.5 million

BEZ Systems, a Boston software company said today it raised a $7.5 million round of financing from various sources. The company plans to use the new cash to further develop its flagship BEZProphet software and on the development of new products.

The funding round, BEZ Systems' third, was led by Ascent Venture Partners and also included money from Brooke Private Equity Advisors, Velocity Equity Partners, all of Boston, JMI Equity of Baltimore and the Massachusetts Technology Development Corp.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:18 PM | Comments (0)

Arnold wins Progressive Direct insurance account

Boston ad agency Arnold has won the national advertising account for Progressive Direct Group of Insurance Cos., an account valued at a reported $250 million annually.

Arnold beat out three other agencies, GSD&M of Austin, Texas, McKinney of Durham, N.C., and Euro RSCG in New York, to win Progressive's business. The last agency to hold the account, Doner, of Southfield, Mich., did not bid this time around.

Progressive sells insurance directly to consumers by telephone and over the Internet, and thus advertises its services heavily in print, television and online ads. Arnold will now be responsible for crafting those commercials.

(By Keith Reed, Globe staff)

Posted by globebusiness at 1:55 PM | Comments (0)

Bay State gas seeks 10.2 percent rate cut for customers

Bay State Gas Co. said customers in the 60 Massachusetts communities where it provides service will see a 10.2 percent rate cut this winter compared to last year, reflecting the drop in natural gas prices since the aftermath of Hurricane Rita last autumn.

A typical residential customer who uses 932 therms of gas during the November-April period will pay a total bill of $1,451, $165 less than last year, Bay State said.

Bay State gas president Stephen H. Bryant said, "Natural gas markets remain volatile, and there is no guarantee that these prices will last through the winter, but we're off to a good start.''

Bay State is asking the Massachusetts Department of Telecommunications and Energy to approve a cost-of-gas rate of $1.19, down from an average of $1.35 last winter.

Delivery fees are holding steady. Last week, NStar Gas sought a 14 percent rate cut, but KeySpan Energy Delivery New England, the biggest Massachusetts gas utility, said it has to raise rates 5.4 percent because of the aftereffects of high-priced gas it bought when prices were still high because of hurricane damage to Gulf of Mexico gas rigs and pipelines.

Bay State serves 40 communities south and southwest of Boston including Attleboro and Brockton; Lawrence and neighboring Andover, Methuen, and North Andover; and Springfield and 15 adjacent cities and towns.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 12:30 PM | Comments (0)

Eaton Vance moving to International Place

Eaton Vance Corp., the Boston asset management firm, has signed a 15-year lease that will see the company moving its headquarters from State Street into the International Place development in the financial district, the development's owner said today.

Eaton Vance will take up 230,000 square feet of space occupying eight floors in Two International Place beginning in 2009, according to the Chiofaro Co., which jointly developed International Place with Prudential Real Estate Investors. Eaton Vance plans on moving all of its employees to the new space.

The company decided to move because of its need for more room after a growth spurt in the past several years, said its president, Tom Faust.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:47 AM | Comments (0)

HPT buying TravelCenters for $1.9 billion

Hotel real estate investment trust Hospitality Properties Trust said today that it plans to buy TravelCenters of America Inc., which owns gas stations and restaurants along interstate highways, from a private equity consortium for $1.9 billion.

Hospitality Properties aims to spin off TravelCenters' 162 hospitality and fuel service areas located largely along U.S. interstate highways, plus one location in Canada, through the transaction. A typical TravelCenters site includes 20 acres of land, parking for about 170 tractor-trailers and 100 cars, a 150-seat restaurant, truck repair facilities and gas and diesel stations, Hospitality said. About 20 of TravelCenters' sites also include a hotel.

The group of private equity firms is led by Oak Hill Capital Partners LP.

Hospitality Properties said the spinoff will include the operating assets and franchise agreements of TravelCenters and will create a separate, publicly traded company. Meanwhile, Hospitality Properties will retain TravelCenters' real estate and lease it to the subsidiary company.

Hospitality expects the purchase to immediately boost funds from operations, a performance measure used by the real estate industry, by 10 to 15 cents per share annually. The deal is expected to close early next year.

The company said it intends to file details of the spinoff with the Securities and Exchange Commission within 60 days.

Hospitality Properties owns 310 hotels, leased to operating companies under the brands AmeriSuites, Courtyard Marriott and others.

Shares of Hospitality Properties trust fell 13 cents to $47.10 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 10:21 AM | Comments (0)

Groove Mobile lands Portuguese carrier

Groove Mobile, a Bedford company that designs and manages music download services for wireless phone providers, said it has closed a deal with TMN Portugal, a carrier with 5 million subscribers.

Groove helps mobile phone companies win access to record labels' catalogs, facilitating legal, wireless downloading to cell phones and other devices. The company also designs software for the phones to enable music downloads and playback and handles other functions like billing and digital rights management. Its biggest customer in the United States is Sprint; the company has never disclosed specific financial details of its deals but has acknowledged that it gets a cut of each download in some instances.

The company said its deal with TMN will give it access to 81 million wireless subscribers worldwide.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:08 AM | Comments (0)

EMC buys Network Intelligence

EMC Corp. of Hopkinton is in a deal to buy yet another local company, it said today. This time the target is Network Intelligence Corp., a Westwood firm that specializes in network and data security, which EMC says has agreed to be acquired for $175 million in cash.

The deal is slated to close today, closely following the close of another EMC acquisition first disclosed in June. EMC's $2.1 billion buyout of RSA Security Inc., based in Bedford, was approved by shareholders last Thursday.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:04 AM | Comments (0)

Analog buys Danish audio firm

Norwood-based Analog Devices Inc. said it bought AudioAsics A/S, a Danish maker of sensitive audio equipment, for $19 million in cash.

Analog Devices plans to use its new unit's technology to help it develop components that produce better sound in devices like MP3 players and portable phones. The acquisition deal could also see Analog paying another $8 million to AudioAsics' investors for meeting certain goals.

Analog Devices, with 8,900 employees worldwide, reported net income of $414.8 million in its most recent fiscal year, which ended last October.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:57 AM | Comments (0)

Rhode Island trails US in new housing

New homes are constructed in Rhode Island at a slower pace than almost everywhere else in the country, according to figures from the U.S. Census Bureau.

The state gained 1,505 homes between July 2004 and July 2005, an increase of 0.3 percent. The Ocean State ranked last of 50 states in the number of new homes created and in the state's rate of housing growth.

Only the District of Columbia, about a tenth the size of Rhode Island, added fewer units.

More recent data suggest the trend continues. The Rhode Island Builders Association reported last month that single-family home construction fell by 8.7 percent during the first six months of the year.

Roger Warren, the association's executive director, said he would have expected the state's housing stock to grow, fueled by several years of low interest rates and high demand.

"From that standpoint, what you would expect to see would be rising production numbers, but instead what we saw were declining numbers," he said. "We haven't kept up with demand and you saw housing prices increase because of that." (AP)

Posted by globebusiness at 8:31 AM | Comments (0)

Cytyc makes offer for Vision Systems

Cytyc Corp., which makes medical testing products for women, said late Sunday it entered a bid of $374 million in cash, or $1.77 per share, to buy Australian-based Vision Systems Ltd.

The proposal tops Ventana Medical Systems Inc.'s offer of $1.60 per share, or $346 million.

Cytyc, which is based in Marlborough, said its proposal is not subject to regulatory approval and is substantially unconditional.

Ventana, which makes tissue and slide preparation systems used in drug discovery, said it will not increase its offer for Vision and plans to file a patent lawsuit against Vision in U.S. federal court.

Ventana anticipates receiving notice from Vision about Cytyc's offer and being given the opportunity to match the bid. It expects Vision to terminate its proposal if it does not match the offer.

Ventana said it will hold off filing the lawsuit until Vision makes a decision on its acquisition offers.

Vision Systems, which develops and makes instruments and reagents for anatomical pathology and research laboratories, is comprised of two units, Vision BioSystems and Invetech. (AP)

Posted by globebusiness at 8:13 AM | Comments (0)

September 15, 2006

Business Class travel tips for road warriors

Late-breaking travel tips from Business Class reporter Peter J. Howe...

It's back: Two pounds of free Dunkin' Donuts coffee when you rent a Budget car twice by Dec. 15. Register online.

Speaking of delicious coffee ... New Englanders have to get to Toronto, John F. Kennedy International Airport in New York, or Dulles International Airport outside Washington, D.C., to fly on Austrian Airlines abroad. But here's something to make the connection worthwhile: Austrian is launching a new 11-flavor Viennese Coffee House for business-class passengers with treats like Grosser Brauner and cognac-laced Wiener Fiaker coffee.

Northwest Airlines launches winter service Feb. 15 out of its Detroit hub -- which gets 8 flights a day from Logan International Airport -- to the Mexican cities of Cancun, Puerto Vallarta and San Jose Del Cabo; Montego Bay, Jamaica; and Grand Cayman.

Look for oom-pah music and tasty beer at Logan's international Terminal E on Thursday sept 21 afternoon and evening, when Lufthansa and airport concessionaire BAA bring a mini-Oktoberfest to Boston.

Marriott Rewards members can get 2,500 MegaBonus free-stay points per visit between now and Jan. 31, up to 10,000 total, when paying for hotel stayed at 2,600 Marriott properties with Visa. Register online.

Also, pig out and fly free: When Delta SkyMiles members register online and spend $300 or more at SkyMiles-eligible restaurants before Oct. 31, they'll get 5 miles per $1 spent at those restaurants through the end of 2007. Register online.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 5:24 PM | Comments (0)

Regal purchases Fenway 13 theater complex

Regal Entertainment Group of Knoxville, Tenn., the nation's largest operator of movie theaters, today purchased the Fenway 13 theaters and five other complexes around the country for $34 million from AMC Entertainment. As part of the deal, AMC also acquired former Regal theaters in Oklahoma City and Fayetteville, Ark.

The deal makes Boston a battleground between the nation's two largest theater chains, with Regal moving into the Fenway location and AMC hanging on to its 19-screen Boston Common theater it took over earlier this year when it acquired Loews Cineplex Entertainment to become the nation's No. 2 theater chain. To obtain regulatory approval for the Loews purchase, AMC was required to sell the 13-screen Fenway complex.

Perry Lowe, a professor of marketing at Bentley College in Waltham and a former theater operator himself, told the Boston Globe earlier this week that moviegoers are unlikely to notice much difference when Regal takes over. He said pricing and theater operations will probably be very similar after the changeover.

"All we're doing here is changing ownership," Lowe said. "We're really just talking about consolidation."

The movie theater industry has been going through a wrenching restructuring the past several years as some chains declared bankruptcy and were then purchased by private equity investors, have tried to bolster their presence in key markets while unloading older, poorer-performing theaters that lack the sound, picture, and seating quality of newer theaters.

Lowe said Regal is purchasing the Fenway theater because it wants to have a presence in one of the nation's largest movie theater markets, one he said is probably growing as affluent residents move into the city.

"For a major player not to be represented in a top 10 market is unusual," Lowe said.

Regal owns 11 other theaters in the state, primarily on Cape Cod and in central Massachusetts. Most were acquired when Regal bought out Hoyts Cinemas.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:59 PM | Comments (0)

KeySpan to raise gas rates 5.4 percent in Boston area

One day after NStar Gas unveiled plans to cut rates 14 percent, KeySpan Energy Delivery New England said it needs to raise rates 5.4 percent for gas customers in metropolitan Boston, despite steep drops since last year in the cost of natural gas.

KeySpan spokeswoman Carmen Fields said a typical residential customer in the KeySpan territory formerly served by Boston Gas Co. using 160 therms of gas monthly will pay about $15 a month more starting Nov. 1 compared to a year earlier.

KeySpan is asking Massachusetts utility regulators to approve a rate of $1.37 per therm, compared to an average of $1.30 over last winter, when KeySpan charged three different rates as international gas prices soared and plunged.

Compared to this time last year, when gas markets were still roiled by the aftereffects of Hurricane Katrina and Hurricane Rita, which wrought havoc on Gulf of Mexico gas rigs and pipelines, wholesale natural gas prices have dropped by 50 percent or more. Currently gas prices are back at lows last seen in September 2004.

But Fields said several factors have combined to force KeySpan to seek a rate increase.

KeySpan buys about one-third of its gas through a financial contract a year ahead of time, to help cushion rate spikes. That helped cushion increases last year, when KeySpan was selling gas it bought in 2004.

But now KeySpan is working down inventories of gas it bought last fall at high post-Katrina prices. Because last winter was mild, KeySpan is stuck with more of that expensive gas to sell off this winter than it expected.

"What was a protection for our customers last winter has not inured to their benefit this year,'' Fields said. "One-third of our gas was bought at Katrina prices.''

Also, KeySpan is carrying about 3 times as much "bad debt" than a year earlier from customers who couldn't pay last winter's high rates, which it has to roll into this winter's bills for all customers, Fields said.

KeySpan is due to file a complete set of rates for all its Massachusetts customers later today. Though it uses one name, the Brooklyn, N.Y., utility company still files different rates for customers formerly served by predecessor companies Boston Gas Co., Essex Gas Co., and the Colonial Gas Co. systems in the Merrimack Valley and on Cape Cod.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 2:42 PM | Comments (0)

Emerson unloads three historic properties

Emerson College, which relocated its campus to Boston's theater district, sold three historic properties -- used as a student union and dormitories -- in the Back Bay neighborhood for a total of $30.3 million in late August.

Connecticut-based TerraMark said today that, in partnership with an unnamed international investor, it has formed BosProp Investors LLC, which paid $17.5 million for 96 and 100 Beacon Street near the Public Garden, said Ronald Braso, principal.

Emerson said it also sold 6 Arlington for $12.8 million to Arlington LLC, which Braso said is unaffiliated with TerraMark. He said his firm would convert 100 Beacon into 20 condominiums, while plans for 96 Beacon may result in five luxury residences or a single-family in the mansion where its 19th-century architect, George M. Dexter, lived.

"It'd be lovely if it were turned into a single-family as he originally intended it," Braso said.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 12:53 PM | Comments (0)

Two grocery chains taking bagged spinach off shelves

Two local supermarket chains have pulled bagged spinach from their shelves after the US Food and Drug Administration warned of a possible outbreak of the deadly E. coli bacteria.

Both Shaw's and Stop & Shop Supermarket Co. of Quincy said today that they had voluntarily recalled bagged spinach and salads with spinach in them from its shelves. Its recall involves about 18 products under the Ready Pac, Dole and State Garden/Pacific brand names. Stop & Shop said anyone who already purchased those products should return them for a full refund.

Stop & Shop said it was also removing spinach from its salad bars, while Shaw's said its recall would extent to all products that contain fresh spinach.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:47 AM | Comments (0)

Foley Hoag opens "Emerging Enterprise" center on Rte. 128

Law firm Foley Hoag LLP has opened a new office in Waltham focused on serving start-up firms in the technology-heavy Route 128 corridor.

Foley dubbed its office the "Emerging Enterprise Center", a nod to its mission of doing more than providing legal advice to companies. Instead, a team of lawyers will also consult companies on copyright issues, venture capital and organize forums with other business groups.

“A lot of times these companies need a lot more than just legal services. They need these connections and a few individuals who wear a few different hats. These companies need to do a lot on a shoestring," said Beth Arnold, a Foley attorney involved with the new office.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:00 AM | Comments (0)

Arnold shines at Hatch Awards

Dunkin' Donuts took home the marketer of the year award at the Ad Club's 46th annual Francis W. Hatch awards, an event held to fete the best creative work and marketing strategies by New England ad agencies and companies.

Boston agency Arnold won Best of Show and landed 89 total awards, more than any other agency. Hill Holliday, also of Boston, won 42 awards, while Mullen took 22, Fort Franklin took 14 and Modernista! won 12.

The ad club also gave out awards in three categories for the first time: its "Just Hatched" honor for the best new creative talent went to Andrea Meola of Staples Inc.; the "Work We Dig" award for creative work particularly appreciated by the staff of weekly alternative tab the Weekly Dig, went to agency Allen & Gerritsen for its work on behalf Newtowne Grill, a Cambridge restaurant. A new honor for the best use of photography went to Connelly Partners.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:27 AM | Comments (0)

Critical Therapeutics reports on heart trial

Biotech drug maker Critical Therapeutics Inc. said today that a mid-stage clinical trial for an anti-inflammatory compound that was stopped early showed no trends that the drug was effective.

The company said the Phase II trial looked at whether compound CTI-01 was effective in reducing complications 14 to 28 days after heart surgery. The study was halted in March after a manufacturing issue arose surrounding the drug's container closure.

Only 102 patients were enrolled, not enough to show statistical significance for efficacy. But even data from these patients did not show a trend toward effectiveness, the company said.(AP)

Posted by globebusiness at 10:18 AM | Comments (0)

Labor Department: inflation moderated in Aug.

Inflation moderated in August as consumer prices rose two-tenths of percent, half the increase in July, the Labor Department reported. Over the year, prices are up 3.8 percent, compared to a 4.1 percent annual increase in July.

Modest increases in energy prices, up three-tenths percent compared to a 2.9 percent increase in July, and housing costs, up two-tenths percent compared to three-tenths in July, helped dampen overall inflation last month. Over the year, however, energy prices rose 15.1 percent and housing 4.2 percent.

Inflation-adjusted weekly earnings, meanwhile, fell in August, dipping a half-percent from July, the Labor Department said. Over the year, average weekly earnings rose 4.2 percent, but when adjusted for inflation, advanced just three-tenths percent.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 9:03 AM | Comments (0)

RSA holders OK $2.1B takeover by EMC

RSA Security Inc., a provider of security software and hardware for networks, said today that its shareholders approved the company's $2.1 billion takeover by data-storage equipment provider EMC Corp.

The acquisition is expected to be complete within two business days. In late June, EMC Corp. said it would acquire RSA for $28 per share.

EMC began amassing companies three years ago to speed its shift from primarily a data-storage hardware vendor to being a multifaceted information manager. Including the RSA deal, which is the largest so far, EMC has spent $7 billion over the past three years on acquisitions.

Based in Bedford, Mass., RSA Security has roughly 220 employees and posted 2005 net income of $42.4 million on revenue of $310.1 million. EMC, with 500 workers, reported 2005 profit of $1.13 billion on sales of $9.66 billion. (AP)

Posted by globebusiness at 8:38 AM | Comments (0)

Vertex prices stock offer

Vertex Pharmaceuticals Inc. priced its public offering of 9.1 million common shares at $33 each, and expects to record gross proceeds of about $300.3 million, before commissions and expenses.

All of the shares are being offered by Vertex, which is based in Cambridge. The biotech firm said late Thursday it also granted underwriters a 30-day option to purchase up to an additional 900,000 shares to cover over-allotments, if any.

Merrill Lynch, Pierce, Fenner & Smith Inc. is acting as sole book-runner, with Morgan Stanley & Co. acting as joint lead manager and UBS Securities LLC acting as co-manager in this offering.

Vertex currently has about 111.8 million common shares outstanding. The company makes HIV drugs Agenerase and Lexiva, and has several cancer drugs and hepatitis C treatments in the pipeline. (AP)

Posted by globebusiness at 8:23 AM | Comments (0)

Zoll pump gets Japan marketing approval

Zoll Medical Corp., whose products include cardiac defibrillators and pacemakers for emergency resuscitation, said late Thursday it received approval to market a cardiac support pump to hospitals and emergency medical services in Japan.

The Auto-Pulse non-invasive pump will be sold through Nihon Kohden Corp., which is Japan's largest distributor of medical equipment. In May, Zoll, which is based in Chelmsford, announced a five-year agreement with Nihon Kohden to market and sell the AutoPulse in Japan.

"This approval allows us access to the world's second largest market for medical devices," President and Chief Executive Richard A. Packer said in a statement.

The AutoPulse is an automated, portable device with a load-distributing LifeBand that squeezes the entire chest in a consistent, uninterrupted "hands-free" manner, delivering maximum blood flow to the heart and brain. (AP)

Posted by globebusiness at 8:10 AM | Comments (0)

September 14, 2006

Homeland security chief announces new air cargo policy

A policy imposed four months ago at Logan International Airport in hopes of keeping bombs off airplanes is becoming nationwide policy, US Homeland Security secretary Michael Chertoff said at Logan today.

The change, involving a loophole that has been assailed by US Representative Edward J. Markey, a Malden Democrat, affects so-called counter-to-counter air cargo, items that are checked in by individuals at airline check-in counters to be shipped in the cargo holds of passenger flights.

In a media briefing at Logan's Terminal A today, Chertoff said he is extending to airports nationwide a new Logan policy requiring all such cargo to undergo the same electronic and X-ray screening as bags checked by passengers.

"We will be screening 100 percent of the counter-to-counter cargo that goes on airplanes,'' Chertoff said. Airlines failing to comply can face thousands of dollars in fines.

Chertoff said he did not know what percentage of cargo shipped on passenger planes is the counter-to-counter kind delivered by individuals to airline check-in desks.

He acknowledged that the vast majority of cargo in passenger plane holds has been collected by shipping companies or freight forwarders, who are required to conduct their own screening or spot checks.

Thomas J. Kinton Jr., chief executive of the Massachusetts Port Authority, which runs Logan, said Logan required electronic screening of all counter-to-counter freight back in the spring. "We found a hole in the system, and it's been closed,'' Kinton said.

George N. Naccara, the top Transportation Security Administration official at Logan, confirmed Kinton imposed the change "well before the federal mandate. I give Logan credit.''

Examples of counter-to-counter shipping include people shipping medical supplies -- even human organs for transplant surgery -- and other valuables that they want someone at the destination to get from the airline as soon as they come off the plane, Naccara said.

There have been no reports of terrorists attempting to smuggle bombs in this kind of cargo, but Markey said today he has complained for weeks it was "a flaring security gap. It is about time.''

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 5:27 PM | Comments (0)

NStar predicts lower gas bills for residential customers

NStar residential gas customers will pay $38 less a month on average than they did last winter, according to new rates the Boston utility filed to take effect Nov. 1.

Caroline Allen, a spokeswoman for NStar, which provides gas service to about 300,000 Bay State homeowners, said for a typical bill would be will be $233 a month , compared with $271 under last year's rates.

NStar asked the state Department of Telecommunications and Energy to approve a rate of $1.19 per therm starting Nov. 1, compared with $1.46 last November. Wholesale gas prices have plunged since last autumn, when the market was roiled by the impacts of hurricanes on Gulf of Mexico production.

For the first time this winter, NStar will also let customers lock in a fixed rate for the whole winter for a premium of two cents per therm. The plan, which is similar to so-called price locks many home heating oil dealers offer, would guarantee that customers pay a maximum of $1.21 per therm all winter, even if wholesale gas prices rise and NStar has to seek a rate increase in January or February.

But if gas rates fall, NStar customers choosing the fixed rate would still have to pay $1.21 all winter.

KeySpan Energy Delivery New England, the state's biggest gas utility with nearly 800,000 customers, is not due to file its winter rate until Friday, KeySpan spokeswoman Carmen Fields said.
(By Peter Howe, Globe staff)

Posted by globebusiness at 4:54 PM | Comments (0)

CBRE lines up $12.8m in financing for $68m real estate deal

CBRE/Melody, the financing arm of real estate brokerage CB Richard Ellis, said its Boston office has lined up $12.8 million in equity financing to help bankroll a $68 million real estate purchase by New York-based Everest Partners.

Everest is buying a portfolio that includes 750,000 square feet in various commercial properties in Boston, Billerica, and Chicopee. CBRE said the investor backing the deal is a publicly traded real estate investment trust, but did not disclose the company's name.

Everest is buying 31 Milk Street, a 90,000 square-foot office building in Boston's financial district; Billerica Business Center, a 450,000-square-foot office and research and development park; and 2189 Westover Road in Chicopee, a 217,000-square-foot warehouse and distribution building.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:35 PM | Comments (0)

Massport's Brennan to leave agency next month

Carole Brennan, director of external affairs for the Massachusetts Port Authority, is leaving the agency next month to pursue undisclosed new career opportunities, Massport said today.

Brennan has been Massport's top marketing, communications, and government-affairs executive for the last three years. Previously she was press secretary to Boston Mayor Thomas M. Menino.

Brennan, at a meeting of the Massport board today, said she was not ready to talk about her next move but told the Massport board how grateful she was for "all I have learned in the last three years working here."

Massport chief executive Thomas J. Kinton Jr. praised Brennan's "seemingly inexhaustible supply of energy to handle some of our really big events," such as the July 2004 Democratic National Convention in Boston.

Kinton had no word on when a replacement for Brennan could be named. Massport runs Logan International Airport, Hanscom Field in Bedford and the Worcester airport, the Boston seaport and major waterfront development parcels, and the Tobin Bridge connecting Charlestown and Chelsea.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 1:22 PM | Comments (0)

Massport to raise landing fees for airlines starting Oct. 1

Reflecting how airlines continue to fly fewer, smaller, fuller planes, Logan International Airport officials decided today -- for the second time in six months -- to increase landing fees assessed on airlines using the airport, by 8 percent starting October 1.

Thomas J. Kinton Jr., chief executive of the Massachusetts Port Authority, which runs Logan, said he doubts the move will have any perceptible impact on ticket prices, because as a rule airport-related fees account for only 5 percent of airlines' costs.

Starting Oct. 1, airlines will have to pay $4.20 per 1,000 pounds of weight of every airplane they land at Logan, up from $3.89 currently. Rates had jumped 11 cents to $3.89 on April 1. Those fees translate to about $500 for every Boeing 737 landing at Logan and $1,600 for a big 757.

The challenge for Logan is that airlines trying to claw back to profitability are handling roughly as many passengers as they did six years ago, but with about 16 percent fewer flights, and many are using more 50- and 70-seat regional jets to replace full-sized jets on routes. With fewer, lighter planes landing, Logan has to charge more per pound of aircraft landing to cover the airfield expenses.

Massport's board also approved a host of other aircraft parking and terminal fee increases, mostly in the range of 3 to 5 percent.

Closures of the Massachusetts Turnpike and Ted Williams Tunnel since the July 10 Big Dig tunnel ceiling collapse that killed Milena Del Valle depressed parking revenue by 9 percent in July and August compared to a year earlier, Kinton said.

But since a lane of eastbound I-90 reopened earlier this month, making it easier for people to drive to Logan, the year-over-year drop in total parking revenue has improved to just 4 percent.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 1:14 PM | Comments (0)

Former Marine gets Holliston company's `bionic' arm

WASHINGTON -- Claudia Mitchell's thought-controlled artificial hand did what natural fingers are prone to do: It lost its grip, letting a bottle of water tumble to the ground.

Blame the mishap on the dozens of photographers who crowded around the 26-year-old today as she showed off a "bionic" arm produced by Liberating Technologies Inc., a company based in Holliston.

Mitchell, a former US Marine Corps officer, became the first woman to test the experimental arm a month ago after her left arm was severed in a motorcycle accident.

If she thinks "close," her replacement hand forms a fist. She is also able to tie her shoes with both hands or peel a banana. When she thinks "move," the engineered arm moves as smoothly and swiftly as her right arm.

That's because nerve tissue that tells her brain what her phantom limb should be feeling has been surgically rerouted.

The National Institutes of Health has invested $3 million toward the basic research aimed toward improving artificial limbs.

The military's research-and-development wing, the Defense Advanced Research Projects Agency, is contributing another $50 million for a network of labs working on high-tech artificial limbs.

Some 411 military personnel in Iraq and 37 in Afghanistan have suffered wounds that cost them at least one limb.
(By Diedtra Henderson, Globe staff)

Posted by globebusiness at 12:38 PM | Comments (0)

Owner of Boston's Channel 7 to buy Channel 56 for $113.7 million

Miami media mogul Ed Ansin, who owns WHDH-TV (Channel 7) in Boston, said today he plans to buy WLVI-TV (Channel 56) from Tribune Co. $113.7 million.

The deal with Ansin's Sunbeam Television Corp. still requires approval from Tribune's board and will give NBC affiliate WHDH ownership over two local news broadcasts, which will be consolidated at WHDH's Boston headquarters, according to an official involved in the deal.

The sale of Channel 56 is part of Tribune's "performance improvement plan" laid out earlier this year that involves at least $500 million in asset sales. About $420 million have been identified so far. Last month, Tribune completed the sale of Channel 36 in Atlanta for $180 million, and it disclosed the sale of WCWN-TV Albany for $17 million in June.

The deal comes just days before Channel 56 launches the new CW programming, a network that resulted from this year's merger of struggling youth-oriented networks UPN and WB. The CW will carry many programs now popular on the WB and UPN, including "America's Next Top Model," "7th Heaven," and "Smallville."

The WB and UPN television networks will both cease independent operations Monday.

Several weeks ago, Ansin and Thomas Leach, Tribune's senior vice president of development, visited Channel 56's headquarters in Dorchester, according to the official, who requested anonymity because the deal has not been announced.

Channel 56 employs about 150 people, including about 50 in the news operation. But the official said Sunbeam will likely use its existing staff at WHDH to run Channel 56, including its 10 p.m. nightly news broadcast.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 12:20 PM | Comments (0)

Raytheon will monitor threats in orbit

Raytheon Co. has been given a $950,000 contract with the U.S. Air Force to study ways to improve its system for monitoring potential threats in orbit.

Raytheon will spend the bulk of the next two years conducting simulations to evaluate the Air Force's surveillance systems and then report its findings back to the military. Based in Waltham, Raytheon has 80,000 workers worldwide and reported $21.9 billion in sales next year.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:55 AM | Comments (0)

Mass. unemployment rate climbs in August

The state's unemployment rate climbed to 4.9 percent in August as Massachusetts lost 1,000 jobs, partly because of a statistical revision to the previous month's estimated jobs total.

The state's jobs total stood at 3.207 million in August as the unemployment rate climbed two-tenths of a percentage point from July, when the rate was 4.7 percent, the state Department of Workforce Development said Thursday.

The agency attributed the loss of 1,000 jobs in part to a new estimate of the state's jobs gain in July, based on a survey of state employers. The state revised upward its original estimate of 4,000 jobs gained in July to 4,600.

The August report bumps the state's unemployment rate back above the national figure, which fell from 4.8 percent in July to 4.7 percent in August. The state's figure exceeded the national rate from February through June -- the first time in more than a decade the state had higher unemployment -- before briefly dipping below the national number in July.

However, the state has added 21,600 jobs since January, and had 29,000 more jobs last month compared with August of 2005.

An economic sector that includes both education and health care gained the most new jobs in August, while the manufacturing and financial sectors fell back to their June jobs levels.

A household survey used to calculate the state's unemployment rate found a 3,000-person August increase in the labor force -- the sum of employed and unemployed workers in the state -- to 3.37 million. (AP)

Posted by globebusiness at 11:50 AM | Comments (0)

NYT chairman, vice chairman forego options

The chairman and vice chairman of The New York Times Company will forego their stock options this year and in 2007, and have asked the company to create a pool from which rank and file employees can be given bonuses, the pair said in an e-mail to employees today.

Arthur Sulzberger Jr., whose grandfather bought The New York Times newspaper in 1896, and Michael Golden, will give up options worth about $2 million. That money will be put into a pool to be distributed among employees who are not part of the company's executive bonus plan, at the discretion of top managers at Times units.

The New York Times Co. owns the Boston Globe, and the stock option announcement comes at a time of upheaval for the company. Revenues across the newspaper industry are declining, though the Times' most recent quarterly revenues and profits increased compared with the same quarter a year ago.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:08 AM | Comments (0)

New Balance to open first Mass. store

New Balance Athletic Shoe Inc., the Boston-based athletic shoe maker, said it will open its first company store in the state on Friday in Burlington.

The 3,050 square-foot store, which will exclusively stock New Balance merchandise, will be in the Wayside Commons shopping center. New Balance had $1.54 billion in sales last year and has 2,800 employees worldwide.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:01 AM | Comments (0)

Retail sales slow in August

Retail sales in August posted the weakest showing in two months as worried consumers curbed their spending habits.

The Commerce Department reported that the nation's retailers saw a tiny 0.2 percent increase last month following a much bigger 1.4 percent rise in July. It was the weakest performance since sales had actually fallen by 0.5 percent in June.

Much of the August weakness reflected a sharp slowdown in auto sales, which edged up just 0.4 percent last month after having surged by 4.3 percent in July.

In another report, the Labor Department said that the number of Americans filing claims for unemployment benefits fell to 308,000 last week, down by 5,000 from the previous week. The drop pushed claims to a seven-week low.

The tiny 0.2 percent rise in retail sales was slightly better than analysts had been expecting. They were forecasting an outright decline in sales of 0.1 percent.

Consumer spending, which has been the driving force in this economic expansion, slowed dramatically in the spring as consumers were battered by soaring gasoline prices, rising interest rates and a cooling housing market, which made homeowners feel less prosperous and less inclined to spend money.

The overall economy grew at an annual rate of just 2.9 percent in the April-June quarter after turning in a sizzling pace of 5.3 percent in the first three months of the year.

While the sharp slowdown had raised concerns of a possible recession, economists have grown less concerned about that possibility because of a retreat in oil prices, which have declined significantly from their mid-July highs.

The decline in gasoline prices is expected to show up in stronger retail sales in coming months as consumers have more to spend on other items because they will be paying less to fill up their tanks.

For July, the weakness in retail sales showed up not only in the slowdown in car sales but in a 0.3 percent drop in sales at furniture stores, which have been hurt by the cooling housing market.

Sales at gasoline stations fell a sharp 1 percent, but this decline reflected the retreat in gasoline prices from levels above $3 per gallon in many parts of the country.

Sales at department stores fell by 0.2 percent while sales at general merchandise stores, the category that includes department stores, showed a 0.4 percent increase. Sales at specialty clothing stores dropped by 0.3 percent in August.

Sales at grocery stores, hardward stores and electronics and appliance stores all posted gains. (AP)

Posted by globebusiness at 9:45 AM | Comments (0)

Biogen in deal with mondoBIOTECH

Biogen Idec of Cambridge is in a new drug development deal with a Swiss pharmaceuticals company that could be worth as much as $37.5 million.

Biogen and mondoBIOTECH AG agreed to collaborate on bringing Aviptadil, a treatment for hypertension, to market. Under the deal, Biogen gets $7.5 million in cash up front and could earn as much as $30 million more in payments for reaching specific goals during the drug's development.

The deal also calls for Biogen to invest $5 million in mondoBIOTECH in the event that company goes public.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:41 AM | Comments (0)

Coldwell Banker launches online real estate magazine

The local office of Coldwell Banker Residential Brokerage, a national real estate firm, is launching its own online "magazine" from its website to showcase high-end homes that its agents are selling.

The company said its new "Gallery of Homes" site will feature only properties exclusively offered by Coldwell Banker brokers, and that listings there will contain double the normal amount of information about a home.

The Waltham-based brokerage said listings in the magazine will come at no additional costs to its clients, and will include more information, videos and photos of houses for sale.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:41 AM | Comments (0)

September 13, 2006

New Filene's draws customers, protesters

Hundreds of lunchtime shoppers streamed into Filene's Basement on Boylston Street today as workers from the downtown store handed out leaflets criticizing the new bargain basement because of its nonunion status.

"We're going to send out notices to union workers throughout the city asking them not to shop here," said Ed DeBaggis, a union steward with United Food & Commercial Workers Local 1445.

DeBaggis, who has worked at Filene's Basement for 16 years, said the new store should be covered by the local's union contract. Workers are also worried about losing their jobs. Pat Boudrot, public relations representative for Retail Ventures Inc., the parent company of Filene's Basement, said "their jobs are not in jeopardy."

The Boylston Street store has natural light, video screens with vintage photos, and crown molding. Said shopper Maria Monsalve, 25, "It's bigger; it's better." But Barbara Gallagher, 69, of South Boston, said: "It should be union."
(By Diane E. Lewis, Globe staff)

Posted by globebusiness at 5:13 PM | Comments (0)

Massport unveils Sept. 11 memorial that will open in 2008

Five years after two jets from Logan International Airport were commandeered in the worst terrorist attack in US history, airport officials unveiled plans today for a two-acre, $3.5 million memorial park commemorating Sept. 11, 2001, and its aftermath.

The park, to be constructed starting next year and open by the summer of 2008, will be in a long sliver of land alongside the Hilton Hotel and west parking garage that now contains parking spaces.

The centerpiece of the park will be a so-called place of remembrance, a glass cube 20 feet on each side suspended about eight inches off the ground, with two glass panels listing the names of all the passengers and flight crews on American Airlines Flight 11 and United Airlines Flight 175, which were crashed into New York's World Trade Center.

That spot will be at the peak of the site, about seven feet higher than the entrance, creating a sense of ascent. At the top of the glass cube, a prism of reflective panels are intended to create a sense of "the sky being fractured,'' said architect Robert Linn of Moskow Architects Inc. of Boston, which led the design team.

The Massachusetts Port Authority, which runs Logan, is funding the $3.5 million project budget. The Hilton Boston Logan Hotel owners agreed to turn over about 30,000 square feet of land they lease from Massport to help assemble the parcel, Massport officials said.

The Moskow Architects design was selected from among 38 proposed memorial park designs submitted.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 4:34 PM | Comments (0)

Acambis's loss widens

British drugmaker Acambis PLC said today that its second-quarter loss widened and that it had won a $30 million contract to supply the US government with smallpox vaccine.

The loss for the three months ended June 30 came to $22.8 million, compared with $8.8 million a year earlier, said the company, which bases its US operations in Cambridge.

The US Centers for Disease Control and Prevention agreed to buy 10 million doses of smallpox vaccine. Acambis, which expects to supply the agency from its existing inventory this year, has already supplied 182.5 million doses under an existing contract. (AP)

Posted by globebusiness at 4:23 PM | Comments (0)

BAE Systems profit climbs 28 percent

Defense contractor BAE Systems PLC reported a 28 percent increase in first-half profit Wednesday, with a boost from its expanding US operations.

Chief executive Mike Turner also defended the timing of the sale of the company's 20 percent stake in jet maker Airbus and said BAE was considering legal action over Airbus's surprise announcement in June that its flagship A380 program was running over costs and behind schedule.

BAE reported that profit for the six months ended June 30 rose to $758 million, from $594.9 million a year earlier. Sales rose 21 percent to $15.3 billion.

The results were helped by BAE's $4.2 billion acquisition last year of United Defense Industries Inc., maker of the US Army's Bradley Fighting Vehicle. (AP)

Posted by globebusiness at 4:20 PM | Comments (0)

Verizon Wireless adds Dorchester cell tower

Verizon Wireless said it added a new rooftop antenna on Algonquin Street in Dorchester, a move it said will give its customers there and along the Southeast Expressway better reception and fewer dropped calls at busy times of day.

The company, which says it spends $1 billion every quarter on upgrades to its network, added the new Dorchester "cell site" so that its customers along busy Washington Street and Talbot Avenue in Dorchester would have stronger signals, and to give it capacity to handle more calls during rush hour along Interstate 93 and Routes 1 and 3.

Last year, Boston Mayor Thomas M. Menino met with executives of several wireless carriers after complaining publicly that he regularly lost cellphone calls in many neighborhoods.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:47 PM | Comments (0)

Calpine to sell Dighton power plant

A San Jose, Calif. power company under bankruptcy protection got court approval to sell its power plant in Massachusetts for $90.2 million to a British firm.

Calpine Corp. now plans to proceed with the sale of the plant to BG Group PLC, using the proceeds to pay off its creditors, according to a Bloomberg News report. The Dighton, Mass., plant can produce enough electricity for about 136,000 homes.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:31 PM | Comments (0)

Egenera loses top executive

Egenera, a Marlboro-based technology firm, is losing its top executive to a company in Florida.

Bob Dutkowsky the firm's chief executive officer, is leaving to accept the chief executive's post at Tech Data Corp. of Clearwater, Fla. He'll be replaced by Mike Thompson, Egenera's chief operating officer, effective Oct. 1.

Dutkowsky will retain his post as the company's chairman.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:09 PM | Comments (0)

Moonlight Graham to Newbury Street

Moonlight Graham Inc., a Chicago-based retailer that sells men's and children's sportswear, plans to open a new store on Newbury Street by November.

The company makes T-Shirts, sweatshirts and other gear that features retro logos from Major League Baseball teams and popular brand names like Anheuser-Busch beer, General Motors cars, Universal Studios movies and Cadbury-Schweppes candies.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:04 PM | Comments (0)

AT&T buys Bain portfolio company

Telecommunications giant AT&T Corp. said today that it is buying USinternetworking Inc., an Annapolis, Md.-based company that is a portfolio firm of Boston's Bain Capital LLC.

AT&T will pay $300 million in cash and assumed debt for the firm, though it is unclear if that money will all go to Bain or be split with other private equity firms or investors. USinternetworking hosts and manages software for its clients. The company was founded in 1998 and has 3 data centers worldwide.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:42 AM | Comments (0)

Home Properties adds some Mass. properties

Real estate investment trust Home Properties Inc. said today that it purchased two apartment complexes in Marlborough, Massachusetts for $83 million from an affiliate of General Investment & Development Cos.

Including these two acquisitions, which have a combined 612 units, Home Properties owns a total of seven properties with 2,143 units in the Boston area.

During the first few years of ownership, the company said it expects to spend a total of $1.4 million to upgrade bathrooms and improve landscaping, signage and parking lots to improve the property's appeal. (AP)

Posted by globebusiness at 11:10 AM | Comments (0)

Study's advice to drug companies: Speed it up!

Getting drugs to market quickly makes for lower expenses and more revenues for pharmaceuticals firms, according to a new study from the Tufts Center for the Study of Drug Development.

Companies typically save $37,000 in development expenses and bring in an additional $1.1 million in prescription revenues for every day they can shave off their development times, the report said. The study, which looked at the development processes of 104 approved drugs from 29 companies between 2000 and 2005, also found that the fastest of those firms averaged $1.1 billion in additional prescription revenues and saved $30 million in development costs compared with slower companies.

And the firms that bring their drugs to market quickly and consistently are also faster to pull the plug on trials for drugs that are going nowhere, the study said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:03 AM | Comments (0)

AmericanAmerican Science gets federal orders worth up to $71.2M

American Science & Engineering Inc., maker of X-ray inspection machines, said today that it received a government order for 36 mobile X-ray systems worth $42.4 million, more revenue than the company booked in its last quarter. The company also disclosed a separate government order worth $28.8 million, to develop a system for scanning cargo for possible hidden nuclear weapons.

The first order includes training, service and labor warranty for so-called Z Backscatter Van units, which are installed in a delivery van and are capable of X-raying the contents of a vehicle as the van drives past. That deal, the Billerica company said, is its largest from the U.S. government.

The second deal guarantees American Science will make a minimum of $4.3 million and as much as $28.8 million over two years in the initial phase of development for the system. After testing and deployment of the product, subsequent orders could increase the value of the contract to as much as $450 million, the company said.

American Science reported revenue of $29.9 million in the quarter ended June 30.

The stock has traded between $36.03 and $93.86 in the past year.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:51 AM | Comments (0)

Report: RCN for sale

RCN Corp., the Herndon, Va.-based cable and broadband provider that services 22 suburban Boston communities, has put itself up for sale, according to a Bloomberg News story this morning.

The story, citing unnamed sources "with knowledge of the plans" said RCN has hired Blackstone Group LP to advise it on a possible deal, which could see the company sold to either private equity investors or another telecommunications firm. RCN has a market value of $965 million and roughly 400,000 customers.

The company went into and emerged from bankruptcy protection in 2004. This year it started offering service in Newton, the first local community RCN has moved into since the bankruptcy filing. The company had a $136 million loss last year on sales of $561 million.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:42 AM | Comments (0)

R.I. tourism leaders reject Harrah's center

The Rhode Island Hospitality and Tourism Industry has rejected an offer by Harrah's Entertainment to build a center in its proposed casino to promote Rhode Island destinations.

Harrah's, which is partnering with the Narragansett Indian Tribe to try to build a casino in West Warwick, sent a letter to tourism leaders last week proposing a "Gateway Center," which would provide information on local restaurants, hotels and other tourist attractions in the state.

"Harrah's is committed to marketing the entire state of Rhode Island as a destination," the letter said.

But tourism leaders, who have said the casino would hurt local businesses, called the move disingenuous.

"Let's call a spade a spade: this Gateway Center is just another tool for Harrah's to lure visitors away from the region's attractions and into your casino," read a letter by Brian Casey, chairman of the hospitality association, and Dale Venturini, president of the hospitality association.

Voters will decide in November whether to approve a constitutional amendment that would allow the casino to be built. (AP)

Posted by globebusiness at 8:15 AM | Comments (0)

September 12, 2006

MIT developing device to prevent epilepsy

Researchers from the Massachusetts Institute of Technology said today that they are close to developing a device that could detect and prevent epileptic seizures.

The treatment includes using a device called a vagus nerve stimulator, which is used on people with epilepsy who don't respond to drug treatment. The device is implanted under a person's collarbone and stimulates a nerve every five minutes to help reduce seizures.

MIT and Beth Israel Deaconess Medical Center researchers want to add to that treatment a new kind of detector that would predict when seizures are imminent and trigger the nerve stimulator to prevent them before they happen.
(By Keith Reed, Globe staff)

Posted by globebusiness at 5:37 PM | Comments (0)

New York Times Co. to sell broadcast TV stations

The New York Times Co. said today that it intends to sell its group of nine network-affiliated TV stations in order to concentrate on its newspaper and digital businesses.

Chief Executive Janet L. Robinson said in a statement that while the stations were profitable and well-run, the sales would "allow us to sharpen our focus on developing our newspaper and rapidly growing digital businesses, and the synergies between them."

The stations that comprise the Broadcast Media Group are: WHO-TV in Des Moines, Iowa (NBC); KFSM-TV in Ft. Smith, Ark. (CBS); WHNT-TV in Huntsville, Ala. (CBS); WREG-TV in Memphis, Tenn. (CBS); WQAD-TV in Moline, Ill. (ABC); WTKR-TV in Norfolk, Va. (CBS); KFOR-TV in Oklahoma City, Okla. (NBC); KAUT-TV in Oklahoma City, Okla. (MyNetworkTV); and WNEP-TV in Scranton, Penn. (ABC).

The stations accounted for 4 percent of the company's revenue last year, the company said. The New York Times Co. is the owner of The Boston Globe. (AP)

Posted by globebusiness at 4:56 PM | Comments (0)

Iridesse to open Copley Place jewelry store

A New York-based jeweler is hoping its newest location, at the Copley Place mall in the Back Bay, will be a pearl of a store.

Iridesse, a 12-shore chain owned by Tiffany & Co. that specializes in pearls, said it plans to open the Copley store this winter, though it didn't give a firm date. The jeweler is expanding nationwide.

The store will sell pearl jewelry that ranges from $100 to $50,000.
(By Keith Reed, Globe staff)

Posted by globebusiness at 4:31 PM | Comments (0)

Bristol-Myers Squibb: plans for $660 million plant not affected by CEO's ouster

Today's ouster of Bristol-Myers Squibb Co. chief executive Peter Dolan won’t affect the company’s plans to build a $660 million drug plant in Massachusetts, a spokesman said.

Despite the uncertainty hovering over the troubled New York pharmaceutical giant, which will be run by an interim chief, the company still expects to break ground on the site of the former Fort Devens later this year.

“The announcement doesn’t alter our plans in Devens -- the capital expenditure was approved by the board several months ago, and the departure of the CEO doesn’t affect it,” said spokesman Jeff Macdonald.

State political and business leaders are closely watching the progress of the plant, which was announced in June. During a bidding war with several other states, Massachusetts agreed to amend its tax rules for the company and make more than $30 million in site improvements.

With the potential to employ 550 people and expand to an investment of $1 billion or more, the plant marked a triumph of the Romney administration’s efforts to court new businesses.

Bristol-Myers Squibb applied for its construction permit with the Devens Enterprise Commission last week. A public hearing is scheduled for Oct. 25, and final approval could come as soon as a month after that.
(By Stephen Heuser, Globe staff)

Posted by globebusiness at 4:30 PM | Comments (0)

Borque buys into sports apparel company

Former Boston Bruin Ray Bourque is now part-owner of a Wilmington-based sports apparel company.

The National Hockey League hall of famer bought a stake in stayMAD Sportswear Inc. for an undisclosed amount, becoming the principal owner of the company, said Steve Borseti, the company's president and one of Bourque's two partners. The company plans to immediately launch a new line of caps, sweatshirts and T-shirts called RB77 after Bourque's initials and Bruins jersey number.

"Clearly we're using his likeness, his image. He's going to play a significant role in taking the company forward," Borseti said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:49 PM | Comments (0)

Watertown battery maker A123 Systems hit with countersuit

Four months after launching a pre-emptive lawsuit, A123 Systems Inc., a Watertown maker of rechargeable batteries, was hit late Monday with a federal patent-infringement countersuit by a University of Texas professor and Canadian utility Hydro-Quebec.

The Texas scientist, John Goodenough, and Hydro-Quebec also sued Black & Decker Corp., which makes DeWalt brand 36-volt power tools that use the A123 batteries. He's seeking unspecified damages.

Goodenough claims in a suit filed in US District Court in Dallas the A123 batteries violate two patents he holds on use of a chemical compound, lithium iron phosphate, as a component of rechargeable batteries.

Hydro-Quebec bought a license to the patents in 1997. But in April, privately-held A123 sued Hydro-Quebec in federal court in Boston after the utility began threatening a lawsuit, asking a judge to declare the patents aren't valid and aren't being infringed anyway.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 3:32 PM | Comments (0)

American Airlines blasts ABC-TVs "Path to 9/11"

American Airlines has issued a statement blasting ABC-TV's "Path to 9/11" show for what American calls an "inaccurate and irresponsible" portrayal of suspected Sept. 11, 2001, terrorist ringleader Mohammed Atta checking in for Flight 11 that day at Boston's Logan International Airport.

The program depicts a warning flashing on the computer screen of an American agent at Logan's Terminal B when Atta checks in. She calls over a supervisor asking whether Atta should be searched, but the supervisor responds that American should only hold his luggage until he boards the plane.

The scene has been widely interpreted as suggesting American could have thwarted the 9/11 attacks but failed to detain Atta. In fact, no such incident ever occurred. The warning actually flashed on the screen of a US Airways agent in Portland, Maine, when Atta and accomplices boarded a US Airways flight from Portland International Jetport to Logan before getting on Flight 11 in Boston later in the morning of Sept. 11, 2001.

At the time, federal aviation security rules did not mandate passengers whose names were flagged be searched, only that their bags be held until they boarded the plane. American in a statement distributed Monday evening said, "The Disney/ABC television program, "The Path to 9/11," which began airing last night, is inaccurate and irresponsible in its portrayal of the airport check-in events that occurred on the morning of Sept. 11, 2001.

A factual description of those events can be found in the official government edition of the 9/11 Commission Report and supporting documents. This misrepresentation of facts dishonors the memory of innocent American Airlines employees and all those who lost their lives as a result of the tragic events of 9/11.”

ABC officials could not immediately be reached for response to the American statement and have not responded to other media outlets reporting on the American statement.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 3:22 PM | Comments (0)

Dell and EMC extend collaboration

Computer maker Dell Inc. said today that it has extended its five-year-old development relationship with data storage company EMC Corp.

The companies began the collaboration in 2001 to develop networked storage storage systems. The new collaboration extension runs through 2011.

Since the relationship began, more than 34,000 Dell/EMC branded systems have been shipped to more than 10,000 customers worldwide, Dell said in a statement. EMC is based in Hopkinton.

"From the outset, Dell and EMC implemented a unique model of sales, marketing, engineering and manufacturing collaboration to leverage each other's strengths to deliver compelling value to customers," the statement said.(AP)

Posted by globebusiness at 1:31 PM | Comments (0)

Mass. governor resolves not to rejoin CO2 pact

Massachusetts Governor Mitt Romney will not rejoin a regional pact to regulate greenhouse gases despite the urging of the state's congressional delegation, a spokesman said today.

Massachusetts helped form the pact, the Regional Greenhouse Gas Initiative, with governors from states in the U.S. Northeast, in the absence of federal policy to regulate the gases scientists link to global warming.

But late last year Romney, a Republican, pulled out of the agreement which seeks to cut carbon dioxide emissions at power plants 20 percent by 2019. Romney, who is expected to run for U.S. president in 2008, said the pact would boost power prices for consumers and businesses.

Interest in regional regulation of greenhouse gases has grown after California Gov. Arnold Schwarzenegger, a Republican, and the state legislature passed a bill recently seeking to cut greenhouse emissions by about 25 percent by 2020.

Seven states including New York, whose Republican Governor George Pataki initiated RGGI, agreed on a model rule last summer and hope to start freezing emissions at power plants beginning in 2009. The states say that the agreement could push power prices up a very small amount initially, but would eventually cut power prices as plants became more efficient.
(Reuters)

Posted by globebusiness at 1:17 PM | Comments (0)

Berkshire Hills files to sell mixed securities

Berkshire Hills Bancorp Inc. today registered with the Securities and Exchange Commission to sell from time to time up to $125 million in debt securities, common stock and preferred stock.

The Pittsfield bank holding company said it intends to use the net proceeds from the sale of the securities for general corporate purposes.

No underwriters were listed in the filing. (Dow Jones)

Posted by globebusiness at 12:11 PM | Comments (0)

ITA Software signs deal with Air Canada

ITA Software Inc., a Cambridge company that makes large software systems for airlines and online travel booking services, said it closed a multi-year contract worth several million dollars with Air Canada.

The airline plans by late next year to deploy an ITA system to handle reservations, seat assignments, and check-in and airport operations functions.

Precise terms of the deal were not disclosed. Air Canada, which flies to 150 destinations, is the 14th biggest airline in the world, carrying about 30 million passengers annually.

ITA in January closed a $100 million round of venture capital funding, the biggest software VC deal in Massachusetts in five years. It has also sold software systems to Continental Airlines, US Airways, Kayak.com and Orbitz.com. ITA is currently in the process of expanding to 300 employees by year's end, up from 175 in January.

(By Peter J. Howe, Globe staff)

Posted by globebusiness at 12:04 PM | Comments (0)

Sycamore vice president resigns

Sycamore Networks Inc. said it will pay $429,756.74 to its former vice president of worldwide sales, Araldo Menegon, following his resignation Sept. 6.

Sycamore, the Chelmsford optical-networking company that is among scores of companies facing investigations of its stock-option practices by federal regulators, didn't immediately respond to questions about why Menegon has resigned.

In a securities filing dated this morning Sycamore said it replaced Menegon with John B. Scully, previously an executive at Eastern Research Inc., which Sycamore acquired Sept. 6.

In the filing, Sycamore said it approved a transition agreement for Menegon under which he will get an immediate payment of $200,000; another $29,756.74 for unused vacation time, commissions, and in lieu of receiving career transition services; and the payment of his $200,000 base salary over the next 12 months. Menegon's stock options also will continue to vest over the next twelve months, the filing states, though it did not provide a value for these.

In return, Menegon will be available for consulting services, agreed not to compete with the company, and agreed to a general release of claims against Sycamore, the filing states.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 11:29 AM | Comments (0)

TA buys warranty firm

Boston private equity firm TA Associates said today that it bought a majority stake in Professional Warranty Service Corp., a Chantilly, Va., company that sells new home warranties to homebuilders.

TA did not disclose how much it paid or exactly what percentage of the company it bought. Professional Warranty Service provides warranties for new homes via insurance policies that homebuilders take out through Zurich Financial Services, a partner company. Professional then acts as the administrator of the warranty program. The company counts 75 of the top 200 US homebuilders among its clients.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:28 AM | Comments (0)

Curis creates Chinese subsidiary

Drug developer Curis Inc. said today that it formed a wholly foreign-owned subsidiary in China in an effort to broaden the company's pipeline of treatment candidates.

The subsidiary is called Curis Pharmaceuticals Co. Ltd., or Curis Shanghai. In a statement, the company said it is a move to "leverage China's mature, cost-efficient medicinal chemistry industry as a means of broadening Curis' pipeline of drug programs." It stems from a contractual agreement with contract researcher Shanghai ChemPartner. The agreement will be expanded.

The company, which is based in Cambridge, said it has been developing several classes of new small molecule drug candidates, with the goal of attacking cancer from several molecular pathways.

"Curis anticipates that its multi-targeted pathway inhibitors may improve efficacy, prevent the emergence of drug resistance, and/or decrease the dose-limiting toxicities, possibly by virtue of the ability to reduce dosing frequency or amount," the company said in a statement.

The programs are still in preclinical testing and the company expects cost efficiencies from its Chinese operations to allow continued development.

The subsidiary will initially provide oversight to the services being conducted at Shanghai ChemPartner. The mix of the personnel from the subsidiary and Shanghai ChemPartners comprise a nearly non-stop drug discovery and development operation, the company said, with chemistry costs reduced possibly between 65 percent and 75 percent.

The Shanghai subsidiary will cost between $1.5 million and $1.6 million in expenses in 2007. (AP)

Posted by globebusiness at 11:14 AM | Comments (0)

Mass. exports rise

Massachusetts exports rose at a solid pace in July, keeping the state's manufacturers on pace for another record year, according to the World Institute for Strategic Economic Research, a non-profit research organization at Holyoke Community College.

Through July, Massachusetts companies have exported $13.7 billion in goods, 7 percent more than the same period last year. Exports hit a record $22 billion in 2005, breaking the previous record of $21.8 billion in 2004.

Boosting state exports is strong global demand for technology products. Overseas sales of semiconductor test equipment, for example, more than doubled to $435 million in the first seven months of 2006 from year earlier. Exports of other semiconductor equipment surged 83 percent from the previous year, while telecommunications equipment jumped 67 percent.

China and Singapore, meanwhile, both centers of consumer technology manufacturing, have emerged as Massachusetts' fastest growing markets among major trading partners. Exports to China in the first seven months of 2006 jumped nearly 60 percent from a year ago, while those to Singapore rose 44 percent.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 9:37 AM | Comments (0)

Rx for doctors: brush up your math skills

Listen up, docs: it's time to go back to math class.

A study by two researchers from Smith College in Northampton suggests that physicians may be sorely lacking in the math skills needed to understand the most up-to-date medical research. A two-year analysis of articles published in the New England Journal of Medicine -- a widely-read publication in which the latest trends and reports on medical studies and methods are distributed -- showed that the statistical methods used in the studies are advancing at a rate that outpaces that at which many doctors are learning new mathematical skills.

Most of the reports in the journal would require at least two semesters of college-level statistics courses to sufficiently understand, while many docs have only taken one such course. One reason the studies may be getting too complex for doctors: increasingly powerful statistical software that makes many calculations that used to be nearly impossible now a routine part of medical research, the Smith researchers said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:08 AM | Comments (0)

33 Restaurant buys Bomboa

The owners of the 33 Restaurant & Lounge in the South End have bought neighboring French/Latin fusion eatery Bomboa.

Greg Den Herder, Igor Blatnik and general manager Steve Carreiro announced the purchase this morning in a statement, providing no financial details about the transaction. They said Bomboa will remain the same for now, but next year will be transformed into a new concept.
Anthony Dawodu, 33's executive chef, will now run both kitchens, while Carreiro will manage both spots.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:43 AM | Comments (0)

British agency to review Biopure drug

Biopure Corp. said today that Britain's regulatory board agreed to review the company's application to market anemia treatment Hemopure for acutely anemic orthopedic surgery patients.

Hemopure is an intravenous drug that boosts oxygen levels in tissue to combat anemia, eliminating the need for a transfusion.

The review can take a year or more, during which the company said it expects to receive questions from the board. If marketing authorization is granted, the company could seek registration of the product in other countries that are members of the European Union and the wider European Economic Area. (AP)

Posted by globebusiness at 8:13 AM | Comments (0)

September 11, 2006

Mass. School of Law exploring undergrad offerings

The Massachusetts School of Law at Andover, an 18 year-old institution that prides itself on charging significantly less than fees than many other colleges, has asked that state's higher education board to approve its plan to start a similarly affordable undergraduate program.

If all goes well, the school -- which would charge $6,000 a year in tuition and fees and offer only history and legal history as majors -- could welcome a freshman class as early as next Fall, dean Lawrence Velvel said.

"We’re doing this because 18 years of experience in providing very rigorous but low-cost education in law school gives us the ability to do that in undergraduate schools and there’s a crying need," for affordable higher education he said. The law school charges $13,000 in tuition and fees annually.

Velvel said the undergraduate program, if approved, would "forbid" lecturing in favor of a discussion method of learning in its classrooms, and would be housed in the same space as the law campus.
(By Keith Reed, Globe staff)

Posted by globebusiness at 4:19 PM | Comments (0)

Suit claims Aspen Technology falsified options data

Aspen Technology Inc. of Cambridge has been sued on behalf of shareholders who claim they were misled in statements about stock options granting by the company's management and board.

Schatz & Nobel PC, a Hartford law firm, said today that it filed the suit in US District Court in Massachusetts seeking unspecified damages on behalf of people who bought Aspen shares between Feb. 6 and Sept. 6.

The suit, which seeks class action status, claims the company made false statements regarding backdated stock options given to executives and falsified its financials between 2002 and the first three quarters of this year.

Aspen officials could not immediately be reached for comment.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:49 PM | Comments (0)

Vermont Power company, state settle on rate increase

Vermont has reached a settlement with Central Vermont Public Service Corp. that would allow the state's largest electric utility to raise its rates by 3.73 percent effective Jan. 1.

The agreement between the Rutland-based company and the Department of Public Service would have to be approved by the Public Service Board before taking effect.

Under the settlement, a residential customer using 500 kilowatt-hours per month would see a monthly bill increase from $68.01 to $70.56. The same customer would pay up to $106.90 elsewhere in New England, CVPS said.

Long-term power purchase agreements with the Vermont Yankee nuclear plant and the provincial utility Hydro-Quebec have enabled Vermont utilities to avoid very steep rate increases seen by many other power companies in the Northeast that rely heavily on power plants fueled by natural gas.

Some of those steeper increases are starting to seep into Vermont, with recent rate increase requests by other Vermont utilities ranging from nearly 10 percent to 23 percent.

CVPS serves more than 152,000 customers in several areas of Vermont. (AP)

Posted by globebusiness at 3:30 PM | Comments (0)

Lazear: pay raises ahead

The US job market remains strong, and that should translate into bigger pay raises for workers, whose wages have risen only sluggishly during the current economic expansion, said a top economic adviser to President Bush.

Edward P. Lazear, chairman of the Council of Economic Advisers, will make the case that wages are poised to accelerate when he comes to Boston tomorrow to address the National Association for Business Economics, holding its annual meeting here. Responding to concerns that US workers have significantly increased productivity, but not their pay, Lazear said in a telephone interview that the lag in wages has followed the same pattern of earlier expansions.

It took about five years after the recession of the early 1990s for wage growth to pick up, Lazear said. The current expansion is at about the same point, and evidence is gathering that an acceleration is underway.

Wages haven't kept up with inflation, but that's primarily due to soaring energy costs, Lazear said. With oil prices retreating and unemployment below 5 percent, workers should experience real gains.

"We are optimistic of a very good year in terms of compensation,'' he said.
(Robert Gavin, Globe staff)

Posted by globebusiness at 1:46 PM | Comments (0)

FDA questions Oscient antibiotic

Data for Oscient Pharmaceuticals Corp.'s Factive antibiotic show a higher risk of skin rashes compared with other similar drugs, U.S. regulatory staff said in documents released today.

Oscient is seeking Food and Drug Administration approval of the drug for the five-day treatment of acute sinus infections. It is already approved to treat community-acquired pneumonia in seven days and certain cases of chronic bronchitis in five days.

Oscient filed with the FDA last year seeking approval to market the antibiotic for sinus infections as well as five-day treatment of pneumonia.

On Tuesday, the FDA is scheduled to ask a panel of outside experts for guidance on the safety and efficacy of Factive for treating sinusitis. The agency usually follows its panelists' advice.

In documents released ahead of the advisory panel, FDA staff expressed concern about the higher incidence of rash, adding that the agency had concluded in earlier applications that the risk did not outweigh the benefit of Factive to treat sinus infections. (Reuters)

Posted by globebusiness at 1:42 PM | Comments (0)

Diomed cleared of patent infringement

Andover-based Diomed Holdings Inc. said this morning that a federal judge dismissed a patent infringement lawsuit against the company, ending litigation that had been brought by rival AngioDynamics.

The latter filed suit in January claiming Diomed violated its patent for the use of a particular laser treatment for varicose veins. Diomed claims that the patent was issued on the same day the lawsuit was filed.
Diomed specializes in using laser technologies to treat vein ailments.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:30 PM | Comments (0)

Philip Morris disputes Mass. study

The nation's largest cigarette maker is disputing a study by the Massachusetts Department of Public Health that found nicotine in cigarettes has risen about 10 percent in the past six years.

Philip Morris USA, which manufactures Marlboro cigarettes, said when it reviewed nine years of data they have provided to Massachusetts about their cigarettes, they found fluctuations up and down in nicotine levels, but not a steady increase.

"There are variations in the nicotine yield for different Marlboro packings, both up and down from year-to-year, but there is no general trend up or down," the company said in a written response.

The health department study released last month examined nicotine levels in more than 100 brands over a six-year period. The study showed a steady climb in the amount of nicotine delivered to the lungs of smokers regardless of brand, with overall nicotine yields increasing by about 10 percent, according to state health officials.

The study also found the three most popular cigarette brands with young smokers -- Marlboro, Newport and Camel -- delivered significantly more nicotine than they did years ago.

Massachusetts is one of three states to require tobacco companies to submit information about nicotine testing according to its specifications and the only state with data going back to 1997.

Philip Morris said when it looked at all the data they sent to the state there were only year-to-year variations that "occur as part of the normal processes of growing tobacco and manufacturing cigarettes."

Donna Rheaume, a spokeswoman for the Department of Public Health, defended the report, which concluded that the higher nicotine levels made it easier to get hooked on cigarettes and harder to quit.

"We stand by our study which was based on data supplied by the tobacco companies," Rheaume said.

Philip Morris also said the use of machines to determine nicotine level is flawed, saying other health organizations have argued against the practice. Massachusetts health officials say the machine method used in the Massachusetts report closely mimics the way real smokers use cigarettes. (AP)

Posted by globebusiness at 12:24 PM | Comments (0)

Schwartz stable grows by 10

Waltham-based public relations firm Schwartz Communications said this morning that it has landed deals with 10 new clients.

The company's new partners are: a la Mobile, Inc., a San Ramon, Calif. mobile phone software company; Aldata Solution, an Atlanta software retailer; AtheroGenics, an Alpharetta, Ga., drug developer; Authentium, a Palm Beach Gardens, Fla., software company; Westborough-based xaGrid Systems, Inc., a data security firm, Burlington-based Intrusic also in the data security business; Boston-based investment banking firm McNamee Lawrence & Co.; Surgient, an Austin, Texas software testing company; uXcomm, a Portland, Ore., systems management firm; and WhitePages.com, of Seattle. No details of any of the deals were revealed.

Schwartz is a 16-year-old firm started by Steve and Paula Mae Schwartz. It has 200 employees and claims 170 clients served by offices here, in San Francisco and is slated to open a Stockholm, Sweden, office Nov. 1.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:17 AM | Comments (0)

Novelos wins patent

Novelos Therapeutics Inc., a Newton company developing treatments for cancer and hepatitis, said today that it won preliminary approval for a patent for NOV-002, its new cancer drug.

The treatment, currently in phase three testing, is designed as a companion treatment to chemotherapy that is supposed to enhance the effectiveness of radiation in killing cancerous cells while helping protect patients from some of its toxic effects. Novelos' patent will cover the way in which NOV-002 is used and its ingredients.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:13 AM | Comments (0)

Fed's Minehan says economy will grow, but slowly

The US economy should slow in coming months from roughly 4 percent growth to an expansion in the high 2 percent range, which should slowly ease inflationary pressures, Federal Reserve Bank of Boston President Cathy Minehan said today.

Still, she cautioned that inflation remains a risk, and that the Fed should remain "quite vigilant" in containing that risk.

"As near as we in Boston can tell, the best baseline forecast is that US growth will moderate ... to something slightly below its potential of a bit less than 3 percent over the next year or so," Minehan said.

Minehan's forecast suggests that the central bank can continue to keep rates unchanged while it surveys the economic scene. The Fed last month kept the federal funds rate at 5.25 percent, the first pause since the Fed began its credit-tightening campaign in mid-2004. The Fed is widely expected to hold rates steady when it meets next week as well.

One "obvious concern" to the economic outlook, Minehan said, is housing. While she's "comfortable" with forecasts for a "moderate downturn" in residential building, Minehan cautioned that recent data, including "gloomy assessments" by home builders, "remind me that this assessment could well be optimistic." (Dow Jones)

Posted by globebusiness at 9:02 AM | Comments (0)

IBasis reviews its stock options grants

IBasis Inc. became the latest company to begin reviewing its handling of stock-option grants.

The Burlington wholesale carrier of international long-distance phone calls said it hired independent legal counsel to work with a board committee conducting a voluntary review of the company's historical grants.

IBasis said it will file a preliminary proxy related to its previously announced share purchase and sale agreement with Royal KPN NV after the internal review is complete.

A broadening number of companies have begun examining the dating of stock-option grants, which in some cases appeared to be timed artificially to coincide with lower share prices, maximizing profits for the options' owners. (Dow Jones)

Posted by globebusiness at 8:21 AM | Comments (0)

September 8, 2006

State finalizes contribution requirement for employers under healthcare reform law

Employers who pay at least one-third of a worker's health insurance, or who enroll 25 percent of their employees in a health plan can avoid a $295 per employee annual assessment under the state's new healthcare reform law.

The state Division of Health Care Finance and Policy today finalized its definition of a "fair and reasonable" contribution to health insurance by businesses with 11 or more full-time employees. Companies that meet the standard won't be subject to the annual assessment under healthcare reform regulations that are set to take effect Oct. 1.

The new law also requires individuals to purchase insurance, but it exempts those who do not purchase medical insurance because of their religious preferences, such as Christian Scientists.

“We received a lot of excellent testimony that helped us make important clarifications to this regulation,” said Amy Lischko, Division of Health Care Finance and Policy commissioner.

According to a statewide health insurance survey released last month, 83 percent of people under 65 with health insurance in Massachusetts get coverage through their employers compared with 79 percent two years ago.

The agency postponed a final decision on another key regulation: how much to charge companies whose workers receive health care services through the state's "free care" pool for the uninsured.

The agency has temporarily withdrawn a third proposal that would require employers to file information about the health insurance status of each of its employees. The agency wants to eliminate the risk of identity theft before approving the final regulations.

Under the landmark health care law, everyone in Massachusetts will be required to have health insurance by July, 2007, or face increasing tax penalties. Poor and lower income residents will have access to government subsidized plans.

Material from the Associated Press was used in this report.

Posted by globebusiness at 4:34 PM | Comments (0)

Game on: Schilling starts online game company

Baseball isn't the only game Boston Red Sox pitcher Curt Schilling loves. The hurler is also a video game fan and today announced that he started his own Boston-based firm, Green Monster Games, to try to profit from that passion.

Green Monster will specialize in so-called massive multiplayer online games, or MMOs, which are computer games that allow tens of thousands of users to participate via broadband Internet connections. The company's first game is already in production, it said in a statement, but it did not release details.
(By Keith Reed, Globe staff)

Curt Schilling

Posted by globebusiness at 3:20 PM | Comments (0)

O'Brien & Levine Court Reporting buys Liberty Legal

O'Brien & Levine Court Reporting, a Boston company that handles depositions for law firms, said today that it bought Liberty Legal Resources, a Springfield company that is in the same business. The companies did not disclose a purchase price.

Liberty Legal's name will disappear as a result of the deal.
(By Keith Reed, Globe staff)

Posted by globebusiness at 1:16 PM | Comments (0)

How do you attract top law schools grads? Try podcasts

Recruiting the top law school grads is a highly competitive endeavor, so Boston law firm Goulston & Storrs is turning to a new tool to reach them: the podcast.

The company is casting some of its current associates as stars in the short, downloadable video clips, talking about how they balance their work and personal lives and why the firm is a good option as a place to start a career.

The podcasts, produced by Wellesly-based Legal Insight Media Inc., are posted on Goulston & Storr's web site.

(By Keith Reed, Globe staff)

Posted by globebusiness at 1:08 PM | Comments (0)

First Marblehead creating $1.6 billion bond offering

First Marblehead Corp., a Boston company that creates bond securities out of portfolios of student loans from private banks, is putting together a deal worth $1.6 billion involving loans from several such banks.

The company notified the Securities and Exchange commission that it plans to create bonds from a portfolio of loans that its client, The National Collegiate Student Loan Trust 2006-3, purchased from the banks. As is customary in such transactions, First Marblehead will package the loans together as fixed-income securities which the trust can then sell to investors. Student loans are attractive as the basis for such securities because payments from former students provide a steady stream of interest income for investors who buy them.

First Marblehead's deal is expected to close by Sept. 28.

In morning trading on the New York Stock Exchange, First Marblehead shares were up $1.68, or 3.3 percent, to $53.16.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:55 AM | Comments (0)

Bank of America huddles with Patriots for new checks

Bank of America Corp. unveiled a new check design today with the logo of the New England Patriots, in its first step to put into its banking practice the concepts of ''affinity marketing'' pioneered by credit-card issuer MBNA Corp. before it was purchased by the Charlotte, N.C., bank earlier this year for $35 billion.

A Bank of America spokesman said the bank will also introduce new checks with the logos of three other NFL teams soon -- the Washington Redskins, the Carolina Panthers, and the Dallas Cowboys.

By early next year the bank also plans to introduce a broad ''affinity banking'' platform that will include rewards and other concepts similar to those already in use by credit-card programs, said spokesman Joe Goode.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 10:55 AM | Comments (0)

Former workers of R.I. card maker file claims against company

More than 180 former US employees of the failed Paramount Cards, once the nation's third-largest greeting card maker based in Pawtucket, are seeking about $844,000 worth of claims from the company.

But Allan Shine, Paramount's court-appointed receiver, said the workers may never see the claims they've filed for sales commission, bonuses, vacation and sick pay because Citizens Bank, the company's lender, is seeking its own claim for more than $42 million.

A Superior Court judge on Monday will decide if all the proceeds from the sale of Paramount's assets should go to repaying its bank debts.

The sale is expected to be less than $42 million, Shine said.

The Pawtucket plant, built in the late 1800s, became increasing difficult to operate efficiently as the company is pressed by competition from Asia, company officials said last year when Paramount moved production to Canada.

However, the move cost the company more than anticipated, Shine said. It ran out of cash and closed in July.

More than 1,200 employees were left stranded, including 127 at its Pawtucket headquarters and 550 in Canada. (AP)

Posted by globebusiness at 8:46 AM | Comments (0)

Smith & Wesson should continue to grow, analyst says

Strong sales in Smith & Wesson Holding Corp.'s first quarter should continue as the gun maker releases new products and enters new markets, according to an analyst at Merriman Curhan Ford & Co.

Smith & Wesson, based in Springfield, said yesterdayday its fiscal first-quarter sales grew 50 percent from the year-ago period, while its earnings per share beat analysts' estimates by a penny, according to a poll by Thomson Financial. The company also boosted its full-year profit and sales guidance.

Merriman's Eric Wold reiterated his "buy" rating on the stock and wrote yesterday in an investor note that Smith & Wesson's expansion into new markets from its tried-and-true handgun market is fueling growth and should continue to do so.

"We believe the entry into military and law enforcement channels coupled with new product extensions should drive increasing sales and profitability," he wrote.

Smith & Wesson began shipping a new "military and police" gun in December and a tactical rifle in February, and orders for the new products are promising, according to Wold. The company plans to introduce new long guns -- possibly hunting rifles or shotguns -- in 2007, he added.

Shares of Smith & Wesson fell 53 cents, or 5.1 percent, to $9,96 on the Nasdaq Stock Market yesterday. (AP)

Posted by globebusiness at 8:36 AM | Comments (0)

September 7, 2006

TJX names its president as permanent CEO

Carol Meyrowitz, president of TJX Cos., will take over as chief executive of the Framingham-based retailer next January as part of a succession plan approved today by the company's board.

Meyrowitz, 52, will succeed Bernard Cammarata, who has been acting chief executive since Ted English abruptly resigned from his post at the helm of the company last fall. Cammarata will continue as chairman of the board.

Meyrowitz, who joined the company in 1983, was named president of the off-price discounter last October and will retain that title.

"Carol’s knowledge of TJX and her proven, successful track record, along with her leadership abilities and creative talent, make her far and away the right choice for CEO," Cammarata said in a statement. "Carol has been responsible for some of our most successful initiatives, such as the jewelry/accessories and footwear expansions at The Marmaxx Group.”
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 6:05 PM | Comments (0)

Lopez to lead Community Development

Andres J. Lopez, a long-time business consultant, was named to lead the Massachusetts Community Development Finance Corp., the organization said today.

Lopez succeeds Milton J. Benjamin, Jr. who led the quasi-public corporation for 18 years before leaving earlier this year to head Initiative for a New Economy, a coalition of corporations, community groups and the city of Boston aiming to expand opportunities for minority business.

The Community Development Finance Corp., overseen by directors appointed by the governor, helps finance small businesses that might not have access to capital through traditional lenders. It has invested more than $70 million in Massachusetts firms during its 31-year history.

Lopez, 56, founded the consulting firm, Wellesley Square Associates, Ltd. of Wellesley, and operated it 20 years before becoming president of Community Development Finance Corp. He holds a bachelor's degree from the University of Puerto Rico, and an MBA from Boston College.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 1:33 PM | Comments (0)

Abt wins $125 million USAID contract

Abt Associates, a Cambridge economic and social sciences research firm, has won a five year, $125 million grant from the U.S. Agency for International Development to help the agency in its work with health care systems in other countries.

Under the deal, Abt will support countries being helped under USAID's Health Systems 20/20 program, in which the federal agency helps developing nations build or rebuild their healthcare infrastructure.
(By Keith Reed, Globe staff)

Posted by globebusiness at 1:21 PM | Comments (0)

Former Staples VP charged with fraud

A former marketing executive for Staples Inc. has been charged with bilking the company out of nearly $600,000 and trying to steal another $600,000.

James Y. Dorman, 39, was vice president of marketing for a division of the office supply retailer when he and unnamed cohorts collected on fraudulent invoices that totaled $584,826, according to claims by U.S. Attorney Michael J. Sullivan. Sullivan charged Dorman with eight counts of wire fraud, three counts of mail fraud and three counts of money laundering.

He faces as much as 20 years in prison and $250,000 in fines for each fraud count and 10 years in jail and $250,000 for each money laundering count.
(By Keith Reed, Globe staff)

Posted by globebusiness at 1:13 PM | Comments (0)

Mass. goes down under for tourists

The state-run company responsible for drumming up tourism business has hired a consultant in Australia to help it crack into what it thinks is a wide-open market there.

Tourism Massachusetts said today that it hired Sydney, Australia-based Gate 7 Pty Ltd., an advertising and marketing agency, to lure more tourists from the island continent and neighboring New Zealand. Visits to Massachusetts by Australians grew 28 percent in 2005 compared with the prior year, but the bulk of Australian travelers to the US -- some 30 percent -- visit New York. Only five percent of Aussies who come to the states annually come here, according to Tourism Massachusetts.
(By Keith Reed, Globe staff)

Posted by globebusiness at 1:11 PM | Comments (0)

Globe publisher Richard Gilman to retire

Richard H. Gilman said this morning that he will be stepping down as publisher of the newspaper and head of the parent New York Times Co.'s New England Media Group.

Gilman, in a memo to Globe staff members, said he will be succeeded by Steve Ainsley, currently the head of the parent company's Regional Media Group, effective Tuesday. Gilman said he will remain at the Globe as an adviser to Ainsley until the end of the year. Mary Jacobus, president of the Globe, will replace Ainsley as head of the regional group, Gilman said.

Gilman, who has been publisher of the Globe since 1999, led the company through a period of journalistic enterprise, including three Pulitzer Prizes and the launching of new products and sections. He also navigated serious business challenges to the newspaper industry, including the growth in Internet advertising. In his memo, Gilman said he sought to retire from his corporate responsibilities early enough in life to pursue a series of writing projects.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 10:57 AM | Comments (0)

Implant Sciences gets Army pact

Implant Sciences Corp., a Wakefield medical technology company that also develops devices to detect explosives, said today that it received a $3.6 million contract from the Army for three explosives detection systems.

The systems, which can detect trace amounts of explosives from a short-range standoff distance, are expected to be used in fixed locations or in remote areas with the assistance of a mobile robot-mounted system. (AP)

Posted by globebusiness at 10:30 AM | Comments (0)

Dyax licenses library to Serono

Biopharmaceutical company Dyax Corp. said today that it will license its antibody phage display libraries to Switzerland-based Serono SA for the discovery and development of therapeutic antibodies.

Under the terms of the agreement, Dyax, which is based in Cambridge, will receive license fees and full-time employee payments from Serono, as well as milestone payments and royalties based on net sales from any products developed from Dyax' libraries.(AP)

Posted by globebusiness at 9:06 AM | Comments (0)

Bostonians, city dwellers, trust doctors more than rural patients

Bostonians trust their doctors more on average than people in many other major cities, according to a new study from HealthGrades, a Golden, Colo., company that rates doctors and hospitals.

The company surveyed more than 41,000 adult patients who had visited their primary doctors between July 2005 and July 2006, and found that on average, city dwellers trusted their doctors' advice more than people in rural communities. Patients in Houston put the most faith in their physicians; Boston ranked third on the list out of the 20 cities surveyed.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:38 AM | Comments (0)

Report: Boston Scientific says data show increased risk of clots

Boston Scientific Corp. says a new internal analysis of its clinical data confirms an increased risk of blood clots with its drug-coated cardiac stent, The Wall Street Journal reported today.

The company said there is a statistically significant difference in the rates of blood clots appearing in a stent months after implantation, when comparing its Taxus stent with earlier-generation, bare-metal stents, the newspaper reported.

The Journal said the acknowledgment was the first by a stent maker of an increased risk of the side-effect and that it came just days after experts meeting at the World Cardiology Congress in Barcelona, Spain, expressed concerns that drug-coated heart stents may in rare instances lead to potentially fatal blood clots.

The drug-coated stents-- metal-mesh tubes used to prop open coronary arteries -- were introduced in 2000 as an improvement on bare-metal stents.

Nearly 6 million people worldwide now have the drug-lined versions from the two dominant drug-coated stent makers, Boston Scientific, which is based in Natick, and New Jersey-based Johnson & Johnson. The devices are intended to keep arteries open after having been cleared of fatty deposits and are often credited with saving patients from future heart attacks or bypass surgery.

"The right thing for us to do as responsible manufacturers is, when we have evidence of an issue, to go forward with regulators," Donald Baim, Boston Scientific's chief medical officer, told the Journal.

The company says it believes the clot problem, known as "late stent thrombosis," isn't unique to its product and that recent studies suggest that both its Taxus brand of stent and J&J's Cypher stent have a similar additional risk of late blood clots. The Journal said J&J has said it sees no statistically significant risk of late thrombosis in Cypher.

According to Boston Scientific, its internal analysis was done June 24 and the "significant finding" of added clotting risk prompted officials to seek a meeting with the Food and Drug Administration, which took place Aug. 1. The findings were also shared with European regulators last week, Dr. Baim said.

An FDA spokeswoman said in an e-mail to the Journal that the agency couldn't "confirm or discuss or even acknowledge confidential discussions with regulated firms." (AP)

Posted by globebusiness at 8:33 AM | Comments (0)

September 6, 2006

Fed: New England economy has soft spots, but strong overall

Economic conditions softened a bit in New England over the past six weeks but remained solid overall, the Federal Reserve reported.

In its periodic survey of business conditions, both regionally and across the nation, the Fed found New England's technology and software sector doing particularly well, with firms reporting double-digit growth in revenues from the previous year. Tech firms are hiring aggressively and boosting wages in what is becoming an increasingly tight labor market. Wages for some highly skilled jobs are up as much as 15 percent, according to the the Fed.

Most retailers and manufacturers reported increases in sales and revenues, while commercial real estate continues to improve. Office vacancy rates slipped, and investment in commerical real estate rose. On the other hand, the slowing housing market appears to be creating some drag. For example, a lumber and home improvement store reported same-store sales falling nearly 20 percent from a year ago, according to the Fed.

The Fed publishes the Beige Book eight times a year, compiling anecdotal information from businesses in anticipation of meetings in which policy makers consider interest rates. The next rate-setting meeting is Sept. 20. In August, policy makers held benchmark rate steady at 5.25 percent, after 17 consecutive quarter-point rate increases.

Posted by globebusiness at 6:59 PM | Comments (0)

Artisan Pharma gets $39 million in financing

Artisan Pharma Inc., a four-person Framingham company, said today it had won $39 million in venture-capital financing to develop a Japanese company's experimental drug to reduce blood clotting and inflammation. The drug, made by Asahi Kasei Pharma Corp., is awaiting approval in Japan.

Artisan, formed by venture investors a month ago to license the drug from AKP, plans to hire several employees and begin conducting clinical trials in the United States starting next year.
(By Stephen Heuser, Globe staff)

Posted by globebusiness at 6:04 PM | Comments (0)

HUD settles gift case

The US Department of Housing and Urban Development today disclosed two agreements totaling $19,000 with Worcester lawyer R. Norman Peters and his law firm and with Burlington-based Grasso Appraisal Services to settle claims they provided Red Sox tickets or restaurant gift certificates in return for loan-closing business from the Peabody-based mortgage lender, East-West Mortgage Co.

Neither Peters nor Anthony Grasso, principal of Grasso Appraisal, returned calls this afternoon. Starting in December 2002, according to HUD, Peters provided tickets and gift certificates in exchange for referrals. Federal law prohibits closing lawyers and other parties in mortgage transactions from making gifts that can drive up the closing costs paid by homebuyers for legal and other mortgage services.

Peters agreed to pay $15,000, the government said; Grasso agreed to pay $4,000. The agreement follows a $150,000 penalty paid by East-West in November for the alleged kickbacks, the Massachusetts Division of Banks said.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 6:03 PM | Comments (0)

Delta to start service between Boston and Trenton, N.J.

Delta Air Lines Inc.'s new daily service from Boston to Trenton, N.J., will begin Dec. 18 and initially cost $198 round-trip, not counting taxes and fees, the airline said today.

The move follows a vote by Mercer County, N.J., officials to begin service from the Trenton-Mercer airport to Boston and a fourth flight to Atlanta. Delta commuter affiliate Comair will operate the service with 50-seat jets, beginning with two daily flights and offering a third starting Jan. 8.

When service is fully rolled out then, the 70-minute flights will go from Boston to Trenton at 8:30 a.m., 5:35 p.m. and 8:15 p.m., with flights from Trenton to Boston about one hour earlier than each of those, Delta said.

The $198 fares last through Sept. 19. Delta's Web site showed fares of $278 in February and March. Delta is the second carrier to offer direct service to Trenton from the Boston area. Boston-Maine Airways' Pan Am Clipper Connection currently offers service to Trenton from Hanscom Field in Bedford.
(By Peter J. Howe, Globe staff)

Posted by globebusiness at 4:14 PM | Comments (0)

Rx for Hubbard hospital: More money

Hubbard Regional Hospital in Webster, the second-smallest hospital in the state with just 22 beds, is looking for a partner. Hospital board chairman Christopher Robert said the most immediate need is for money to remodel the emergency room or build a new one.

``We're looking for a capital partner, somebody that would be willing to work with us,'' Robert said. Hubbard would sell or lease the right to operate the hospital and its equipment, but still own the building and property in such a deal. Robert declined to say how much money the hospital was seeking.

Hubbard sent about 15 copies of a ``request for proposal'' to hospitals and hospital chains in Massachusetts and outside the state.

Hubbard's recent history has been tumultuous -- it nearly went into bankruptcy in 2004 and was mired in controversy over major leadership changes in 2004 and 2005.
(By Christopher Rowland, Globe staff)

Posted by globebusiness at 3:24 PM | Comments (0)

Dover man charged in alleged "pump and dump" scheme

Massachusetts Secretary of State William F. Galvin today charged a Dover man with illegally promoting stocks at the same time he was selling them, known as a "pump and dump'' arrangement.

In a civil complaint Galvin's office seeks to recover proceeds it estimated at more than $4.5 million from Geoffrey Eiten and his companies. The complaint charges Eiten offered investment advice through newsletters, emails and websites, but also was hired by companies as an investor relations consultant, and subscribers weren't told of his conflicts of interest.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 1:35 PM | Comments (0)

Boston and Massachusetts high on "Nest Egg Index"

Boston-area residents are among the best in the nation when it comes to building a nest egg, according to financial services firm A.G. Edwards' annual "Nest Egg Index" released today.

But while the Boston metropolitan area and the state of Massachusetts both ranked high on the list, their status was largely propelling by gains in the housing market and wages that are relatively higher than in the rest of the country, two factors that are both eroding.

The Boston metropolitan area ranked 13th out of 500 cities, while Massachusetts ranked fifth among all states on the list, which considered 12 factors in determining how well residents of specific areas were accumulating assets for retirement.

Among those factors are homeownership, home values, mortgage values, ownership of investment and savings accounts and average incomes.

Boston's status was actually hurt because of the rate of homeownership here, which was lower than the national average because of the area's staggering cost of housing. It was helped, however, by home values for the same reason -- houses in Boston are worth more than elsewhere, giving many homeowners more equity than they would have in other regions.

Sophie Beckmann, a financial planning specialist for A.G. Edwards, said the rankings were important because they point out the parts of the country where people have better saving habits and those where conditions are tough for people to get ahead.

“Our goal here is to get people talking about saving because its so important to get people talking about building a nest egg. Really it’s more important than ever that people start saving for themselves, to start taking advantage of that 401k plan or IRA" because many employers no longer offer pension or other retirement plans, she said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 12:32 PM | Comments (0)

Advanced Cell Technology, Geron settle patent infringement lawsuit

Advanced Cell Technology, a firm that focuses on embryonic stem cell research and has a major laboratory in Worcester, said today that it settled a patent infringement lawsuit with Geron Corp. The company, along with its partner in the research, the University of Massachusetts, agreed to allow Geron to retain the rights to some patents for work on humans, while Advanced Cell Technology retains the rights to conduct the same research for animals.
Geron, which is based in San Francisco, also agreed to pay Advanced Cell Technology $500,000. as well as much as $750,000 in so-called milestone payments based on future results of the research.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:44 AM | Comments (0)

John Hancock Tower up for sale

The iconic John Hancock Tower in the Back Bay, designed by I.M. Pei and perhaps Boston's most widely known building, is going up for sale, about 3 1/2 years after Boston-based Beacon Capital Partners LLC bought the complex for $910 million.

Beacon Capital Partners, a rapidly expanding private real estate investment fund, confirmed yesterday that the company is selling a 10-building portfolio including buildings in Boston, Washington, D.C., Los Angeles, and Denver.

The buildings are hitting a market that appears to continue to be strong for top-quality properties that are well-leased, as the Hancock Tower is.

The Boston buildings for sale include 501 Boylston St. -- like the Hancock, a former insurance company's headquarters -- which the company purchased in 2002 and redeveloped.

The buildings being sold now are the remaining holdings in Beacon Capital Strategic Partners II, a fund that opened in December 2001 and raised $740 million from investors. Beacon Capital has developed two additional funds since Fund II, the last one generating about $2 billion for investment.

Beacon Capital will still have several buildings in Boston and the Boston area, though none with the prominence of the Hancock. Those include One Beacon Street and 200 State Street.

The Hancock complex, on Clarendon and Berkeley streets in the Back Bay, included the tower, two other office buildings, and a 900-car parking garage. It totaled more than a million square feet.

The mirrored, 60-floor Hancock Tower, built in the 1970s, was initially plagued by windows that fell out. But after that and other mechanical problems were resolved the building took its place at the top among Boston's office towers, literally and figuratively.

It is the tallest building in Boston, and some argue its most handsome, reflecting historic Trinity Church at Copley Square on its angled north side.

Beacon Capital is engaging the financial firms Eastdil and Morgan Stanley to market the portfolio. No asking price is expected to be set.
(By Thomas C. Palmer, Globe staff)

Posted by globebusiness at 11:40 AM | Comments (0)

Boston Scientific says data proves drug-coated stents are best

Boston Scientific Corp. is at the center of a debate in the medical community after it released new data it says proves its drug-coated stents -- tiny devices used to keep arteries open after surgery -- work better than uncoated ones, according to a Bloomberg News report today.

Boston Scientific, based in Natick, released the results of a study in which 536 patients in 15 countries were studied for their responses to bare and drug-eluting stents. Those who used the company's Taxus drug-eluting stents had lower incidences of heart attacks and blood clots compared with the other group, the company said.

But experts discussing the topic at the World Congress of Cardiology in Barcelona were sharply divided over the results, a development that could lead to confusion among doctors, Bloomberg said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:33 AM | Comments (0)

Blackwell Publishing buys college textbook company

Blackwell Publishing, a Malden company that prints books and journals for professional and academic societies, said today that it bought textbook publisher Brandywine Press for an undisclosed amount.

Brandywine, based in Maplecrest, N.Y., specializes in college textbooks on American history and literature. Blackwell said it will add Brandywine's 55 history textbooks to its portfolio.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:41 AM | Comments (0)

Macy's launches new mega brand campaign

The Macy's department store chain is launching a national advertising campaign this week, hoping to win over the hearts and wallets of consumers -- including some in Boston -- who used to shop at about 400 stores that are being converted to the Macy's name.

Federated Department Stores Inc., Macy's Cincinnati-based parent, needs to "introduce our brand to new shoppers," Ann MacDonald, Macy's chief marketing officer said in a statement. That's because of the company's acquisition last year of May Department Stores, its chief competitor for middle-class mall department store shoppers. In buying May, Macy's picked up several regional department store names, including Boston-based Filene's.

Many of those stores are being converted to the Macy's name on Saturday, in an effort to get the entire chain integrated under the same identity in one fell swoop. To boost that push, Macy's plans a spate of television, radio and print ads, as well as billboards and a 54-page "magalog" that it plans to send to 3.8 million homes in new markets. The campaign will carry the theme "The Way to Shop" and kicks off tomorrow.

Macy's is also planning ribbon-cuttings and block parties at the new stores -- including some in Boston -- on Saturday and is giving away $10 and a few $1,000 gift cards to the first 500 or 1,000 customers to arrive at each location.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:10 AM | Comments (0)

Stride Rite puts on Canadian booties

Lexington-based Stride Rite Corp. has bought a Canadian company that makes shoes for toddles and youth, the companies announced this morning.

Stride Rite paid $27.5 million for Robeez Footwear Ltd., a 12-year-old company based in Burnaby, a city in Canada's British Columbia province. The company's shoes and soft-soled "booties" for babies sell in Nordstrom, Saks Fifth Avenue, Bloomingdale's and Neiman Marcus, as well as 350 Stride Rite retail locations. It is projected to rake in $27 million in sales in the fiscal year that ends Aug. 31.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:59 AM | Comments (0)

Fairchild raises revenue forecast

Chip maker Fairchild Semiconductor International Inc. today raised its third-quarter sales projections due to "healthy" seasonal sales levels and fewer canceled orders.

The company, which is based in South Portland, Maine, and which makes power chips used in products ranging from computers to digital cameras to automobiles, said sales could rise as much as 2 percent from the second quarter, compared with its previous forecast for flat sales. That puts Fairchild's projections in a range of $406.3 million to $414.4 million.

"Order rates have continued at a healthy seasonal level resulting in lower than expected cancellation rates," said President and Chief Executive Mark Thompson, adding that the "higher guidance reflects some smoothing of demand between the third and fourth quarters, as we better match our sales into the distribution channel with end market demand."

The company is scheduled to report third-quarter results on Oct. 19 before the market opens. (AP)

Posted by globebusiness at 8:27 AM | Comments (0)

September 5, 2006

Anne Klein to open accessory store in Hub

Fashion label Anne Klein New York plans to open a new store in the Copley Plaza mall next month, one of 15 new stores focused on women's accessories the company plans to open between now and the end of the year.

Designer handbags will take up about half the space in the new store, with the rest being dedicated to belts, jewelry, sunglasses, scarves, and watches. The store is slated to open Oct. 20.
(By Keith Reed, Globe staff)

Posted by globebusiness at 4:19 PM | Comments (0)

Study ranks Rhode Island number one for wireless investment

Rhode Island, the nation's smallest state, is tops in the country when it comes to public investment in wireless technology, according to a new study released today.

Massachusetts' neighbor to the south is listed as the country's only "lead investor" in wireless technology, in a study commissioned by CDW-G, a company that sells technology components to governments. The study ranks 24 states as either lead investors, early investors or "early majority" in terms of their spending on wireless technologies such as municipal WiFi networks.

Rhode Island earned its position for an initiative it started in 2004 to create a statewide wireless network, the study said. Massachusetts, by comparison, ranked among the "early majority" states, which tend to be more conservative with their wireless investments.
(By Keith Reed, Globe staff)

Posted by globebusiness at 3:53 PM | Comments (0)

Boston.com's Hanafin named to new post as editor of community publishing

Teresa Hanafin was named editor of a newly-created position, editor of community publishing for Boston.com, Boston Globe Editor Martin Baron said today.

Succeeding Hanafin as editor of Boston.com will be David Beard, currently assistant managing editor for the paper's five regional editions. Boston.com is a regional web portal and the online partner of the Globe. Hanafin has been Boston.com's editor-in-chief since 1999; during her tenure, traffic to Boston.com has increased 600 percent.

As editor of community publishing for Boston.com, Hanafin will work with the website and the Globe to develop web pages for local communities that feature news, information, and opinion from residents and local organizations. The sites will also have local bloggers, bulletin boards, user-submitted photos, local sports, and debates on community issues.

"Through our regional editions, the Globe is deep into community journalism," Baron wrote in a note to staff. "The online community publishing initiative will get the public involved in an unprecedented way."
(By Keith Reed, Globe staff)

Posted by globebusiness at 2:39 PM | Comments (0)

Mass. company gets approval to sell artificial hearts

A Massachusetts company received federal approval today to sell up to 4,000 artificial hearts a year, though the number of devices implanted annually will likely be far smaller.

The hearts would be used only in patients who are close to death and have no other treatment options.

The Food and Drug Administration granted Danvers, Mass.-based Abiomed Inc. a humanitarian exemption allowing it to sell the devices, agency spokeswoman Susan Bro said. The actual number of the devices, called the AbioCor, to be implanted likely will be small -- between just 25 and 50 a year, Bro said.

So far, the artificial heart has been tested in only 14 men. Two died from the operation, and another never regained consciousness. The rest survived only an average of five months, with one exception: a man who lived 17 months, until the mechanical heart wore out.

The company said earlier that it would begin implanting the artificial hearts at five hospitals around the country, once doctor training is complete. The devices are fully contained within the chest, with no outside wires.

Abiomed is targeting men -- but not precluding women -- with heart failure who are too sick for a heart transplant, have exhausted other options and are likely to die within a month. The current device is too large for about 90 percent of U.S. women and many men. The company is developing a smaller version.

In 2005, an FDA panel of outside experts voted against recommending Abiomed be given permission to sell the device in limited numbers. At the time, the experts expressed concern that many AbioCor recipients suffered severe strokes, some fatal, that compromised their final weeks.

The company has since redesigned the design of the cuff of the device to prevent two bars from coming into contact with human tissue. That contact was believed to be the cause of the strokes in the first test patients, said Michael R. Minogue, the company's president and chief executive officer.

The company also hopes to implant the hearts in patients who can be treated with blood-thinning drugs, further reducing the risk of stroke, Minogue said in a recent interview.

"We want to focus on getting the right patients and getting them home, so whatever that number is, that is what it will be," Minogue said.

The implant is expected to cost about $250,000. It is unclear whether insurance would cover it.

Abiomed eventually hopes 10 medical centers would be equipped to implant the hearts.

The devices themselves now last about 18 months, or longer than the patients receiving them can be expected to live.

On Tuesday, Minogue said the first surgeries to implant the artificial hearts would take place in six to eight months.

"It's allowed us to move forward, to make science fiction 'science fact,"' Minogue said of the FDA action. "We have a product called AbioCor that allows us to remove a person's heart and keep them alive."

The electrical current to power the device passes through the skin, without the need for wires, from a battery belt worn by the patient. The belt also can be plugged in. The device's internal batteries can go more than an hour without recharging, allowing patients to shower.

Posted by globebusiness at 2:27 PM | Comments (0)

Business confidence in Mass. rises for second month

Business confidence rose for the second consecutive month in August as Massachusetts employers expected economic conditions to remain solid in coming months, Associated Industries of Massachusetts reported. AIM's business confidence index rose to 57.1 from 55.4 in July and 53.2 from June. Last month's reading was down nearly a point from August 2005, when it stood at 58.

Confidence is considered an key indicator because business are more likely invest and hire when they are optimistic about conditions. In AIM's index, any reading above 50 is considered optimistic. AIM's survey, in fact, found employers reporting stronger sales and hiring in August.

Massachusetts employers' assessment of current business conditions improved 1.1 points from July to 57.3 while their expectations for the next six months showed a steeper rise, up 2.8 points to 57.4, according to the sub-indices measuring these outlooks. Their view of the Massachusetts economy also improved, to 50.7 from 50.1 in July, although the view of the national economy fell to 55.7 from 57.4
(By Robert Gavin, Globe staff)

Posted by globebusiness at 2:20 PM | Comments (0)

Bruschi to replace former Patriots' kicker Vinatieri in Papa Gino's ad

Tedy Bruschi is taking former New England Patriots' kicker Adam Vinatieri's spot in the advertising lineup for the Dedham-based Papa Gino's pizza chain.

Bruschi, a star linebacker for the Patriots is taking over as the pitchman for Papa Gino's -- a role previously occupied by Vinatieri, who was signed by the Indianapolis Colts in the off-season -- and will star in two ads promoting the chain's "crowd pleaser" meals. Commercials and print ads featuring Bruschi will run through Dec. 3.

As part of the deal, Papa Gino's is donating $20,000 to Tedy's Team, a charity set up by Bruschi to raise money for stroke awareness and prevention. Bruschi suffered a stroke after the Patriots' 2004 season, but recovered in time to play with the team in 2005.

(By Keith Reed, Globe staff)

Posted by globebusiness at 1:31 PM | Comments (0)

401(k) plans underperform traditional pension plans, research shows

Investments in 401(k) retirement-savings plans underperformed the investments of traditional pension plans by one percent from 1988 to 2004, according to research released today.

Researchers at Boston College's Center for Retirement Research found the traditional plans known as "defined benefit,'' managed by professionals, did better even though the individual 401(k) plans now favored by many employers held a higher portion of their assets in equities during the bull market of the 1990s.

One reason might be that 401(k) plans carry higher fees, the authors wrote. But the one percentage point figure understates the typical problems of 401(k) accounts, since most participants don't prudently diversify their holdings, the authors wrote.

Finally, the report found that individual retirement accounts , which now have even more money than either of the other two kinds of accounts, produce even lower returns than 401(k)s. If true, the finding "implies trouble ahead given the massive amount of money that is being rolled over into these accounts,'' wrote the authors, led by center director Alicia H. Munnell.

(By Ross Kerber, Globe staff)

Posted by globebusiness at 12:49 PM | Comments (0)

Andover's MobileSecure buys Highwall Technologies

MobileSecure Inc., an Andover company that makes software to keep companies' wireless data secure, said today that it acquired Highwall Technologies LLC , a Sarasota, Florida company in the same business. A sale price was not given.

MobileSecure plans to use technology developed by its new unit to add new products to its current offerings.
(By Keith Reed, Globe staff)

Posted by globebusiness at 11:00 AM | Comments (0)

Plymouth Rubber bounces out of bankruptcy

A Canton company that makes rubber and vinyl parts for carmakers and other industries is coming out of Chapter 11 bankruptcy protection.

Plymouth Rubber Co. Inc., along with subsidiary Brite-Line Technologies Inc., went into bankruptcy protection in 2005 after they couldn't reach a payment arrangement with a lender, Pension Benefit Guaranty Corp. The two sides reached a settlement that was accepted by a bankruptcy court judge Aug. 31, but it came at a price for some former Plymouth Rubber workers: the company is terminating its pension plan.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:50 AM | Comments (0)

Sales rise at CVS

Drugstore chain CVS Corp. reported today that sales in stores open at least one year -- a closely watched performance gauge called same-store sales -- rose 8.9 percent in August, helped by a strong increase in pharmacy sales.

That compares with a 6.2 percent increase in same-store sales in the same month last year.

Total August sales rose 23.4 percent to $3.4 billion, from $2.8 billion last year. CVS is based in Woonsocket.

In the fiscal year to date, sales rose 15.2 percent to $27.4 billion, while same-store sales rose 7.9 percent over the same period. (AP)

Posted by globebusiness at 9:43 AM | Comments (0)

Reebok's new ad campaign asks: When Did I Know?

Canton athletic apparel maker Reebok International is readying a new advertising campaign that will premier during the National Football League's first regular season game and feature some of the sport's star players.

"When Did I Know" is the theme and tagline of Reebok's new ad push, in which NFL stars will be seen describing the exact moment they knew they were talented enough to become football heroes. The first commercial will air during this Thursday night's NFL kickoff game between the Pittsburgh Steelers and the Miami Dolphins, and the campaign will include online advertising and print ads as well.

Reebok also said it will make a foray into interactive advertising with the new campaign. Its commercials will run only on the Dish Network satellite system during Monday Night Football broadcasts, and Dish Network subscribers will be able to use their remote controls to order NFL team jerseys when the commercials run.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:46 AM | Comments (0)

Abbott Labs study says its stent superior to Boston Scientific's

Diversified health care products maker Abbott Laboratories Inc. said today that a study showed that its Xience V drug-coated stent was more effective than the market-leading device made by Boston Scientific Corp.

The 300-patient clinical trial showed that the Xience showed significantly less late loss after six months compared to Boston Scientific's Taxus stent.

Stents are tiny wire mesh tubes that act like scaffolding inside plaque-congested arteries to keep them open. The drug coating helps prevent the artery from reclogging by keeping tissue from growing through the mesh. Late loss is the amount the vessel wall has narrowed where the stent is placed.

The study showed that the Xience stent showed an average 0.11 millimeter late loss, while the Taxus stent showed about 0.36 millimeters.

Abbott acquired the Xience line in its purchase of Guidant's cardiology assets from Boston Scientific Corp. in April.

The Xience V, which is not approved for U.S. sale, has been approved by European regulators. (AP)

Posted by globebusiness at 8:13 AM | Comments (0)

September 1, 2006

Boston Scientific offers details about new stent planned for 2008

Boston Scientific Corp. today revealed some new details about the experimental drug-eluting stent it bought from Guidant Corp. earlier this year. The device will be called Promus, and the Natick medical-device maker expects to start selling it in 2008.

Promus would be the second significant product line to emerge from the company's $27 billion acquisition of Guidant. The first, Guidant's implantable pacemakers and defibrillators, are already on the market, but have also been subject to recalls and Food and Drug Administration warnings, and sales have been slower than some analysts expected.

The FDA has not yet approved the Promus for sale. It's approval will depend on the results of clinical trials that compare the new stent's performance to that of stents already available. Boston Scientific will be releasing data from those trials at a European cardiology conference next week.

Stents are the fastest-growing medical device in history, and their high profitability has transformed Boston Scientific from a low-profile catheter manufacturer to one of the world's largest medical-device companies.

Sales of the firm's Taxus drug-eluting stent already reach several billion dollars annually. Taxus is a small mesh tube coated with a chemical to keep coronary arteries open after heart procedures. The new stent, Promus, is coated with a different chemical. Its approval would make Boston Scientific the first company to offer stents with two different coatings.
(By Stephen Heuser, Globe staff)

Posted by globebusiness at 11:59 AM | Comments (0)

The Donald wants to help you buy your dream home

Donald Trump, a self-styled celebrity legend known for building office towers and starring in a reality TV show that made famous the line, "You're fired!" is getting into the mortgage business in Massachusetts and 14 other states.

Trump's press agents disclosed today that Trump Mortgage LLC has acquired mortgage licenses in such states as Rhode Island, Connecticut, Maine, and New Hampshire as well as in Massachusetts.

"The company is expanding at a very rapid rate, and I anticipate we will be awarded many additional state licenses in the very near future," Trump said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:55 AM | Comments (0)

Ten N.E. colleges make top list for African-Americans

Going to college in New England seems to be a good choice for African-American students, according to the latest issue of Black Enterprise Magazine.

Ten schools in the region made Black Enterprise's fourth ranking of the top 50 schools in the US for African-Americans, which was published in this month's issue of the glossy. Black Enterprise is a 30 year-old New York publication that covers business and personal finance for blacks.

On this year's list: Harvard University in Cambridge ranked fourth; Wesleyan University in Middletown, Conn. ranked 10th; Smith College in Northampton was 15th; Brown University in Providence, R.I., came in at number 19; Yale University in New Haven, Conn., ranked 20th; Babson College at number 23, Williams College in Williamstown ranked 24th, Mount Holyoke College in South Hadley at number 36, Simmons College in Boston at number 44 and Dartmouth College in Hanover, N.H., ranked 47th.

Black Enterprise compiled the list after tapping a board of black administrators and academics to evaluate the social and academic climates of 1,423 colleges and universities with black student enrollments of at least 3 percent of the student body. Tanesha Sykes, an editor at the publication, said it did not sort the ranking by geography. But the high number of New England schools that showed up this year might have been because the cast of evaluators changed this year from rankings past and the criteria was also changed to give greater weight to graduation rates among African-Americans.

"We just wanted to make sure we had a fresh set of eyes on it," because many schools had shown up repeatedly on prior lists, Sykes said.
(By Keith Reed, Globe staff)

Posted by globebusiness at 10:53 AM | Comments (0)

Healthcare publisher HCPro adds to its stable

HCPro Inc., a Marblehead company that publishes newsletters for the healthcare industry, said today that it bought National Health Information LLC, an Atlanta firm in the same business.

The companies did not disclose financial details of the transaction.

In buying National Health Information, HCPro picked up 13 newsletters and related businesses, which it plans to use to target the managed care market. The company also said it planned to create new publications for the same audience over the next year.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:44 AM | Comments (0)

Southern New England leads in union membership

Union membership in southern New England, including Massachusetts, outpaced that of most states in the country last year, according to the latest report from the US Bureau of Labor Statistics.

But the government agency that gathered the data was unable to say whether the 2005 numbers represented an increase or a decrease in unionization here because a change in methodology made a comparison with previous years invalid, it said.

The three southern New England states -- Massachusetts, Rhode Island and Connecticut -- all had levels of union membership above the national average of 12.5 percent for all salaried and hourly-wage workers, the report released today. Massachusetts had the highest number of unionized workers in New England at 402,000, or 13.9 percent, making it the most unionized state in New England and ranking it 11th nationally.

In both Rhode Island and Connecticut 15.9 percent of the workers were union members last year. Only 19 states in the country had unionized percentages of their workers above the national average.
(By Keith Reed, Globe staff)

Posted by globebusiness at 9:30 AM | Comments (0)

Curis drops out of cancer drug development

A Cambridge pharmaceuticals company said today that it is ending its work to develop a new skin cancer drug.

Curis Inc.'s decision came after the company found in early stage trials that the drug was less effective than anticipated. One possible reason was that the drug, a topical treatment that was applied to the skin in trials, did not penetrate the skin well enough to effectively attack cancerous cells.

Curis said it had spent $8.4 million on its work in Phase I trials.
(By Keith Reed, Globe staff)

Posted by globebusiness at 8:31 AM | Comments (0)