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January 31, 2008

adidas committed to Bay State, CEO says

On the two-year anniversary of his company’s $3.8 billion acquisition of Reebok International Ltd., adidas AG’s chief executive, Herbert Hainer, said the company remains committed to its Bay State presence.

But he revealed that his Super Bowl loyalties are split.

‘‘From a sports side, I do believe the Patriots will win because they have a tremendous season behind them,’’ Hainer said. ‘‘From a commercial aspect, the New York market is bigger than the Boston market.’’

But since both teams will wear Reebok uniforms, he said, ‘‘one team will win — adidas Group.’’

Hainer, speaking at Boston College’s Chief Executives Club, said adidas plans to expand its Canton campus, contingent on Reebok increasing its business. He did not offer specifics.

Reebok expects declining US sales this year but is aggressively expanding its international presence and by 2010 expects to have more than 2,000 stores in India, China, and Russia.

Hainer said the company plans to bring the Reebok brand back to its roots, calling it an ‘‘American-inspired sports brand’’ that helped to establish the athletic shoe market for women and casual exercisers.

And if the Patriots win the Superbowl, he added, he will give coach Bill Belichick — known for wearing the same slouchy grey sweatshirt — a new one.
(By Carolyn Y. Johnson, Globe staff)

Posted by globebusiness at 6:24 PM | Comments (0)

Patrick to address life sciences summit tomorrow

Governor Deval Patrick is scheduled to speak at 12:30 p.m. tomorrow during a life sciences summit with industry leaders at the University of Massachusetts Boston.

In addition, researchers from the UMass Donahue Institute plan to present preliminary findings from a $200,000 study of "current and future needs talent needs of the life sciences industry" in Massachusetts.

According to a draft of the report, UMass researchers found local employers have found it difficult to fill some highly skilled positions. For instance, the vacancy rate is 12 percent for medical scientists and 10 percent for biochemists.

Also, the report says about 38 percent of medical scientists and 22 percent of computer engineers are foreign citizens, compared to 7 percent for all occupations. The final version of the UMass report is due in June and some of the numbers could be revised for tomorrow's presentation.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:24 PM | Comments (0)

Kairos Shen named Boston's chief planner

Mayor Thomas M. Menino today named Kairos Shen, director of planning at the Boston Redevelopment Authority, as the city’s new chief planner.

Shen will work with BRA director John F. Palmieri to create a comprehensive long-term vision to guide economic and physical changes in the city, Menino said in a news release. His annual salary will be $156,000.

The position had been vacant since Rebecca Barnes left in May 2005.

‘‘Kairos is a proven leader and has the experience to articulate, illustrate and implement a comprehensive long-term vision for Boston,’’ Menino said in the release. ‘‘We must be more proactive in envisioning and creating economic growth — and I know Kairos is the right person to lead this effort.’’

Shen will lead a new subcabinet for planning and development to coordinate agencies throughout city government. He will also continue to head the BRA’s planning division, with expanded duties at the authority.

Shen often speaks for the city about development issues at public meetings and has been involved with multiple planning efforts, including guidelines for the Longwood Medical Area, plans for Fenway neighborhoods, and shaping the emerging South Boston Waterfront and Fort Point Channel areas.
(By Thomas C. Palmer Jr., Globe staff)

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

Raytheon gets $58.4 million Navy order

A division of defense contractor Raytheon Co. has won a $58.4 million contract boost to supply cockpit and radar parts for Navy helicopters, the Defense Department said late Wednesday.

Raytheon Integrated Defense Systems business will supply spares for the common cockpit and multi-mode radar system for the Navy's MH-60R helicopter.

Work will be performed in Portsmouth, R.I., to be completed by October 2010.

Shares of Raytheon, based in Waltham, Mass., fell 49 cents to $63.43. (AP)

Posted by globebusiness at 10:52 AM | Comments (0)

Haemonetics profit falls on restructuring charges

Health care products and services provider Haemonetics Corp. said today that its fiscal third-quarter profit fell 15 percent on hefty restructuring charges, but adjusted earnings and sales topped Wall Street expectations.

For the quarter ended Dec. 29, the company earned $14.4 million, or 54 cents per share, compared with $16.9 million, or 62 cents per share, a year ago. Adjusted earnings, excluding restructuring charges, totaled 57 cents per share in the latest period.

Revenue rose 19 percent to $134.6 million from $113.5 million, benefiting from international sales, which jumped 15 percent to $73.1 million.

The results beat estimates by analysts polled by Thomson Financial who expected profit of 53 cents per share on revenue of $124.6 million.

"I am also pleased to announce that our geographic growth was strong. In the quarter, Asia, a $32 million business, grew 21.2 percent and Europe, a $135 million business, grew 26.5 percent," said Chief Operating Officer Brian Concannon in a statement.

Shares rose $1.65, or 3 percent, to $56.90 in morning trading. (AP)

Posted by globebusiness at 10:43 AM | Comments (0)

84 to lose jobs at Fall River textile plant

A Fall River textile plant will end manufacturing operations in March, resulting in the loss of 84 jobs.

The plant -- which makes curtains -- is owned by Charlotte, North Carolina-based CHF Industries. The company said in a statement that there was no longer a demand for the product made at the Fall River plant.

CHF will continue to operate a distribution facility at the site.

In 1995, the company closed a plant that employed 225 people in New Bedford. (AP)

Posted by globebusiness at 10:41 AM | Comments (0)

Evergreen Solar swings to profit

Evergreen Solar Inc. said Wednesday it swung to a fourth-quarter profit, boosted by income from a joint venture and sharply lower costs.

The maker of wafers used in solar cells posted profit of $788,000, or a penny per share, compared with a loss of $5.5 million, or 8 cents per share, in the year-ago period.

Revenue fell 31 percent to $22.2 million from $32.4 million.

Analysts expected a loss of 4 cents per share and revenue of $20 million, according to a Thomson Financial poll.

Evergreen Solar, which is based in Marlboro, Mass., booked a $3.4 million profit from its stake in a joint venture called EverQ, which contributed only $495,000 to Evergreen earnings in the year-ago quarter.

Cost of revenue fell about 40 percent to $16 million from $25.7 million.

For the year, the company's loss narrowed to $16.6 million, or 19 cents per share, from $26.7 million, or 41 cents per share, the year before. Revenue fell to $69.9 million from $102.3 million.

The company forecast first-quarter revenue of $21.5 million to $22 million and a net loss of $7 million to $8 million.

Analysts expect a net loss of $3.7 million and revenue of $20 million, according to Thomson Financial.

Separately, the company said it signed a supply contract for polysilicon, the key material needed to make its wafers. Evergreen said all of its silicon requirements are met for its planned expansion through 2012.

In electronic aftermarket trading, Evergreen shares rose 42 cents, or 3.5 percent, to $12.40. They earlier lost 57 cents, or 4.5 percent, to $11.98 in the regular session. (AP)

Posted by globebusiness at 10:33 AM | Comments (0)

AMAG Pharma cites positive treatment results

Biotechnology company AMAG Pharmaceuticals Inc. said Wednesday mortality rates for patients taking the experimental iron deficiency treatment ferumoxytol were lower compared with those taking oral iron pills.

In December, the company asked the Food and Drug Administration to approve intravenous ferumoxytol as an iron deficiency treatment for chronic kidney disease patients with anemia. Shares plunged to their lowest point in more than a year at one point during trading Wednesday as investors worried about the drug candidate's chances of receiving FDA approval.

On Friday, the FDA will discuss the safety of a similar drug, called Injectafer, made by Daiichi Sankyo Co. The committee set to review that drug released a list of questions on possible safety risks.

Late Wednesday, AMAG said there were 31 deaths out of 2,074 patients in multiple studies for its lead drug candidate ferumoxytol. Still, AMAG said the mortality rates are consistent with data previously reported and are not considered related to the experimental treatment.

The company also said fewer patients receiving ferumoxytol in several studies experienced adverse events compared with oral iron treatment.

Shares of AMAG rose 98 cents, or 2 percent, to $51 in after-hours trading after falling $5.64, or 10.1 percent, to close at $50.02 during regular trading. (AP)

Posted by globebusiness at 9:11 AM | Comments (0)

Earnings rise at Affiliated Managers Group

Investment-management firm Affiliated Managers Group Inc. said Wednesday its fourth-quarter earnings rose 24 percent due to growth in international management.

Net income increased to $60.9 million, or $2.15 per share, from $49 million, or $1.79 per share, during the same period the previous year.

Revenue increased to $383 million, from $328.8 million during the final quarter of 2006.

"Highlights of the quarter included the strong investment performance of our global and international managers, such as Tweedy, Browne and Genesis," Sean Healey, Affiliated Managers president and chief executive, said in a statement.

Affiliated Managers opened a distribution office in Sydney, Australia, and is planning to open an office in London in the near future.

Assets under management increased to $274.8 billion as of Dec. 31 from $241.1 billion a year earlier. Assets under management declined slightly from the end of the third quarter, when Affiliated Managers managed $276.8 billion.

For the full year, Affiliated Managers earned $182 million, or $4.58 per share, compared with earnings of $151.3 million, or $3.74 per share, in 2006. (AP)

Posted by globebusiness at 8:59 AM | Comments (0)

BladeLogic forecasts loss

BladeLogic Inc., a provider of data center automation software, forecast a second-quarter loss on Wednesday, and said increased investments in sales during the second half of 2008 will hurt full-year results.

BladeLogic shares plunged $2.75, or 15.5 percent, to $15 in after-hours trading and fell 48 cents, or 2.6 percent, to $17.75 during the regular session. The stock has traded between $16.70 and $31.71 since the company's initial public offering priced at $17 in late July.

For the second-quarter, BladeLogic expects loss in the range of 5 cents to 6 cents per share. Excluding stock-based compensation and one-time charges, the company predicts adjusted earnings per share in the range of 1 cent to 2 cents.

BladeLogic expects second-quarter revenue between $20 million and $21 million.

Analysts surveyed by Thomson Financial, who typically exclude one-time items, forecast second-quarter earnings of 3 cents per share on revenue of $20.2 million.

BladeLogic Chief Financial Officer John Gavin said that the company plans to accelerate investments in its sales organization during the second half of the year, which will contribute to a full-year loss.

For the full fiscal year, BladeLogic expects loss in the range of 8 cents to 12 cents per share. On an adjusted basis, the company expects profit of 8 cents to 12 cents per share for the year.

The company expects 2008 revenue between $86 million and $90 million

Analysts forecast full-year earnings of 17 cents per share on revenue of $87.7 million.

Also Wednesday, BladeLogic said first-quarter loss widened as rising operating expenses, particularly sales and marketing costs, outpaced revenue growth. (AP)

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

Buxton to close Chicopee operations

A leather goods manufacturer plans to close its warehouse and distribution center in Chicopee, resulting in the loss of 65 jobs.

The Buxton Co. informed employees Wednesday that all distribution functions are being moved to Long Beach, California. The company said the workers would retain their jobs for at least two months and be given a severance package.

Buxton president and CEO Russell Whiteford says the company does plan to keep its corporate headquarters in the Springfield-area, with about 40 employees.

Buxton has had a presence in western Massachusetts since 1898. It moved all of its manufacturing operations to China 25 years ago. (AP)

Posted by globebusiness at 8:34 AM | Comments (0)

Hologic to split stock 2-for-1 ratio on April 2

Medical devices maker Hologic Inc. on Wednesday announced a two-for-one stock split.

Pending shareholder approval, the split would occur April 2 for shareholders of record on March 21. The move would double the number of shares outstanding to 255.4 million and halve the share price. (AP)

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

Tax gain boosts Raytheon profit

Raytheon Co. today said fourth-quarter earnings jumped 64 percent, due in part to a $214 million gain from a tax benefit, as well more streamlined operations and lower interest and pension expenses.

The world's fifth-largest defense contractor also raised its earnings expectations for 2008.

Waltham, Mass.-based Raytheon said net income for the October-December period rose to $598 million, or $1.37 per share, up from $365 million, or 81 cents per share, in the previous year's fourth quarter. Sales rose 8 percent to $6 billion, up from $5.56 billion in the year-ago period.

The latest quarter included a $214 million gain from a previously disclosed refund involving research and development tax claims stemming from the 1984 to 1990 period.

The quarter also included an after-tax loss of $36 million, or 8 cents per share, from discontinued operations.

Excluding that charge, Raytheon's income from continuing operations was $634 million, or $1.45 per share, compared with $344 million, or 76 cents per share, in the year-ago period.

The company attributed the increase to operational improvements, lower net interest and pension expenses, as well as tax-related benefits.

The 72,000-employee company also updated its financial outlook for this year. Raytheon now expects earnings from continuing operations to total $3.65 to $3.80 per year on sales of $22.4 billion to $22.9 billion. In October, Raytheon had forecast a 2008 profit of $3.45 to $3.65 a share on net sales of $22.1 billion to $22.6 billion. (AP)

Posted by globebusiness at 8:25 AM | Comments (0)

January 30, 2008

RCN: cable rate hike broader than first reported

RCN Corp.’s price increase last November was broader than the company first reported. The cable television provider, which has 75,000 television customers in Massachusetts, raised monthly cable TV prices by $2.99 last November.

But a company executive initially said customers wouldn’t be affected if they also had a bundle with phone or Internet service.

This week, RCN said some customers with such packages were hit with the price increase as well. RCN spokeswoman Lisa Barder declined to say how many customers were affected “for competitive reasons.”
(By Todd Wallack, Globe staff)

Posted by globebusiness at 5:38 PM | Comments (0)

Go2 Media helps UCLA create mobile website

Boston's go2 Media Inc. said today that it has partnered with the athletic department of the University of California, Los Angeles to create a website designed to provides mobile users with UCLA sports information.

The go2UCLA Bruins mobile site, available free to consumers, includes features for fans to purchase tickets, get updated scores, schedules, read UCLA sports news, obtain directions to stadiums, view rosters, and more, go2 Media said.

Go2 Media describes itself as a mobile media company that provides consumers with information fine-tuned for their mobile devices.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:52 PM | Comments (0)

Citibank opens financial center in Harvard Square

Citibank said today it held a ribbon-cutting ceremony for its full-service financial center in Harvard Square.

Citibank, a unit of Citigroup Inc., said its Harvard Square Financial Service includes the wealth management services of Smith Barney Financial Advisors within the bank branch; Smith Barney is another Citi brand.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:40 PM | Comments (0)

ArQule chief executive will leave for Solvay

Woburn biotechnology company ArQule Inc. said today its president and chief executive is leaving the company for a new job at Solvay Pharmaceuticals Inc.

ArQule said that Stephen A. Hill has been appointed as the new president and chief executive of Solvay, which according to its website is a Georgia-based company focused on patient health management.

Hill will remain at in his position at ArQule through the end of March, ArQule said.

ArQule said the appointment follows its Jan. 7 announcement that it has initiated a search for a successor to Hill, who had previously communicated to ArQule's board of directors his intention to leave the company.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:23 PM | Comments (0)

Smiths Medical gets an FDA clearance

Smiths Medical ASD Inc. said today it has obtained a regulatory clearance for a blood-collection system.

The medical device company, which has offices in Rockland, announced that it has received 510(k) clearance from the US Food and Drug Administration for its Saf-T Closed Blood Collection System for use in syringe blood draw and transfer applications.

"We have designed our new Saf-T Closed Blood Collection System to safely meet the needs of patients that require a controlled syringe draw for blood collection and transfer," Regina McIntosh, vice president of sales and marketing of Smiths Medical Critical Care, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:17 PM | Comments (0)

Report: Mass. defense sector worth $14.7b

A new Patrick administration report estimated the value of the Massachusetts defense economy at $14.7 billion.

Massachusetts ranked eighth among all states in the dollar amount of federal defense dollars it attracted, according to the study, which added that the defense sector of the Massachusetts economy supported 71,000 jobs.

Federal contracts for defense-related goods and services supported 32,240 direct jobs in the state while defense-related activity generated an additional 39,187 jobs statewide, the report said.

The report based its findings on an analysis of data from the federal government's 2005 fiscal year, the latest year for which figures are fully available.

According to the report, the dollar value of those contracts, plus salaries paid to in-state military personnel and retirees, was $9.2 billion, and 2,435 Massachusetts companies received federal contracts for defense-related goods and services.

The contracts generated an additional $5.5 billion in related economic activity, resulting in a total of $14.7 billion in direct and indirect spending, the report said.

The report, conducted by the University of Massachusetts Donahue Institute, was released by the state's Executive Office of Housing and Economic Development and MassDevelopment, the state's finance and development authority.

Here is a link to the study on MassDevelopment's website: www.massdevelopment.com/massachusettsdefenseindustry.pdf.

(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:30 AM | Comments (0)

Palomar launches 2 handheld products

Palomar Medical Technologies Inc. announced today that it will unveil two new handheld products next week at a dermatology conference in Texas.

According to the Burlington-based developer of light-based systems for cosmetic treatments, the new Lux2940 fractional ablative laser handpiece is a sophisticated, single-treatment skin resurfacing device that allows practitioners to tailor the level of skin tightening based on patient needs.

Palomar's other new handpiece, the Lux1440, is a fractional, non-ablative skin resurfacing handpiece that operates much like the company's Lux1540, but with faster treatment times; with the new product, licensed practitioners are performing effective full-face treatments in about 12 minutes, the company said.

Company chief executive Joseph P. Caruso said in a statement, "We are very excited about these new product introductions, which not only reflect the advancement of Palomar technology, but complement our existing suite of products."
(By Chris Reidy, Globe staff)

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

Staples hires Sears executive

Staples Inc. today announced the appointment of Mark Mettler to senior vice president, general merchandising manager, consumer technology, and seasonal supplies.

The Framingham-based office-supply retailer said that Mettler reports to Jevin Eagle, Staples' executive vice president of merchandising.

Mettler previously served as vice president, general merchandise manager at Sears Roebuck and Co., Staples said.
(By Chris Reidy, Globe staff)

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

J.P. Licks expands late night deliveries

Ice cream is essential to fueling the first half of all-nighters for college students, local ice cream purveyor J.P. Licks believes, so it has expanded its delivery options in neighborhoods with high concentrations of students.

The seven-store chain of ice cream cafes just announced that it recently teamed up with the Night Owl delivery service to offer added delivery options for J.P. Licks customers.

Students and other folks craving an ice cream snack can place an order on the Night Owls website up to 15 minutes before the closing time of a nearby J.P. Licks cafe, said the chain, which noted that many of its cafes are open until midnight.

For the past few years, J.P. Licks has been offering delivery in some neighborhoods from a service called Dining In.

By adding a second delivery service, J.P. Licks said it can now cater to most of the college campuses and many of the hospitals in the area.

Using the Night Owl delivery service, an ice cream lover can order such items as the All-Nighter and the Sticky Gooey Brown Thing; delivery minimum is $10, J.P. Licks said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:52 AM | Comments (0)

Giesecke & Devrient lands new MBTA contract

Giesecke & Devrient said today the Massachusetts Bay Transportation Authority has awarded it a new contract for the T's CharlieCard program.

This is an exclusive multiyear contract for delivery of five million contactless smart cards to MBTA in the next three years, said G&D, a technology company that has US offices in Virginia.

As G&D noted, the CharlieCard is a contactless smart card for electronic ticketing that is used in MBTA's Automatic Fare Collection system; the MBTA introduced the CharlieCard for revenue service in December 2006 and over two million cards were distributed in the first year.

G&D said it had completed the first major milestone of the new contract, production and delivery of 500,000 printed and encoded smart cards, ahead of schedule in December 2007.

Under the base contract, G&D said it is delivering an additional 1.5 million cards in 2008 and approximately five million cards over the next three years.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:46 AM | Comments (0)

Refinancings up, new mortgages down

Mortgage refinancing activity increased while applications for new mortgages declined in the latest weekly survey from the Mortgage Bankers Association, which represents the real estate finance industry.

For the week ending Jan. 25, the survey's market composite index, a measure of mortgage loan application volume, was 1054.9, an increase of 7.5 percent on a seasonally adjusted basis from one week earlier, the association said.

On an unadjusted basis, the index was up 70.7 percent compared with the same week one year earlier, the association said.

The survey's refinance Index increased 22.1 percent to 5103.6 from 4178.2 the previous week, and the seasonally adjusted purchase index decreased 17.7 percent to 362.0 from 439.9 one week earlier, the association added.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Women: Manning will top Brady in HD looks

Eli Manning (left) tops Tom Brady (right) as the ladies choice (both photos Reuters)

It may be hard to believe but a survey has found that women think Giants quarterback Eli Manning will look better on High-Definition TV than Patriots quarterback Tom Brady - despite Brady's beefcake credentials as a certified hunk.

The survey is from Comcast Corp., the cable TV company, and the survey purports to shed light on Super Bowl viewing habits.

When asked who would look best in HD during Sunday's Super Bowl game, Brady was the most popular choice among six players, with 27 percent of the vote, Comcast said.

But when the results were broken down by gender, Manning edged out Brady among women respondents, 24 percent to 23 percent, Comcast said.

Brady is apparently a man's man; among male respondents, Brady topped Manning 31 percent to 23 percent, Comcast said.

Not that Pats fans care much about who wins the pretty-boy sweepstakes, just so long as Brady leads the locals to victory with a lights-out performance Sunday night and beats the Giants handsomely.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:24 AM | Comments (1)

Millennium gets priority review at FDA for Velcade

Cambridge biopharmaceutical company Millennium Pharmaceuticals Inc. said today that the Food and Drug Administration granted priority review for the injection Velcade in patients with newly diagnosed blood cancer multiple myeloma.

Velcade is approved in the United States for the treatment of patients with multiple myeloma or mantle cell lymphoma who already have received at least one prior therapy.

Multiple myeloma is the second most common blood cancer, according to Millennium. Mantle cell lymphoma is a rare type of cancer whose cause is unknown.

Millennium is seeking an additional approval for Velcade as an initial treatment for multiple myeloma. The priority review status puts the drug on track for potential approval in mid-2008.

Priority review is granted by the FDA for a treatment that addresses an unmet medical need and shows an improvement over existing therapies. The FDA expedites the approval process for applications granted priority review from 10 to six months.

Velcade is being codeveloped by Millennium and Johnson & Johnson Pharmaceutical Research & Development L.L.C.

"Priority review designation puts us on track for a potential label expansion decision by June 20," said Chief Medical Officer Dr. Nancy Simonian. "The rapid action by the FDA puts us one step closer to establishing Velcade based therapies as a standard of care for patients with newly diagnosed multiple myeloma." (AP)

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

Event will fete top local lawyers

Massachusetts Lawyers Weekly and the Massachusetts Bar Association said they plan to salute a number of lawyers and judges at their annual Excellence in the Law celebration at the Westin Waterfront in Boston on Tuesday.

Among those who will be honored at the event are Attorney General Martha Coakley, for her handling of Big Dig cases, and Andy Tarsy, whose bold stances as head of the Anti-Defamation League led to his dismissal and rehiring, the weekly and the association said.

According to stories in the Globe data base, Tarsy broke ranks with the national ADL in August, demanding that it acknowledge that an Armenian genocide had occurred in Turkey; the ADL's head fired Tarsy and then rehired him two weeks later, after acknowledging the massacres from 1915 to 1920 in the Ottoman-Turk empire were "tantamount to genocide."

Tarsy, the regional director of the Anti-Defamation League New England office, announced his resignation several months later, a Globe story in December noted.
(By Chris Reidy, Globe staff)

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

January 29, 2008

Nordstrom is ready to hire for Burlington Mall store

Fashion retailer Nordstrom Inc. said it plans to hire 340 local employees for a Nordstrom store that is scheduled to open at the Burlington Mall in late March.

Positions are available in all areas of the store, including sales in women’s, men’s, and children’s apparel, said Nordstrom, which added that hiring sessions are scheduled to begin next Monday.

For more information on Nordstrom Burlington Mall employment opportunities or to apply online, visit careers.nordstrom.com, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:30 PM | Comments (0)

Agfa Graphics plans to close Wilmington plant

Agfa Graphics disclosed plans today to close down a factory in Wilmington that makes computer-to-plate equipment, a move expected to impact 150 employees.

The decision is part of a strategy to improve operational efficiency, said Agfa Graphics, a unit of the Agfa-Gevaert Group, a Belgian company that, according to its website, develops, produces, and distributes a range of analog and digital imaging systems and information-technology solutions.

The company said in a press release on its website: "After having considered all options, Agfa Graphics has now informed its employees that it intends to phase out the Wilmington's factory workload. A redundancy plan has been developed for the approximately 150 employees involved, mainly in R&D, production, and related departments. Other Agfa Graphics operations in the US such as service, IT, sales, and marketing will continue to operate from the Wilmington site."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:51 PM | Comments (0)

Smoke-free rental complex begins leasing push

On-site leasing is about to begin at Parkside Commons, a smoke-free Chelsea rental community that has adopted green construction principles, its developer said.

The developer for the project, which is still under construction, is John M. Corcoran and Co. of Braintree.

An on-site leasing office is scheduled to open Friday at 100 Stockton St., the developer said.

The 238-apartment complex is set to open in the spring, and rents range roughly from $1,100 for a studio apartment to $1,950 for a large three-bedroom apartment, John M. Corcoran and Co. said.

Green elements to the complex include some recycled elements as well as low VOC paint, carpet, and adhesives; roof-top solar panels will meet a portion of the complex's energy needs, the company said.

Posted by globebusiness at 2:20 PM | Comments (0)

Logan adds Milwaukee, Adirondack flights

From the Globe-trotting blog....

If my heart had cockles, I am sure they would be warmed by the mere thought of Milwaukee. It's like a Mecca of culture (It might rival Scranton, fictional home of our beloved "The Office'' ).

Think of it. You got your pop culture: Laverne, Shirley, the Cunninghams, The Fonz, Joanie, Chachi. And then, your high culture: the Pabst Mansion, Milwaukee Beer Museum as well as the virtual Museum of Beer and Brewing, which like Pinnochio hopes to someday be real. And don't get me started about the International Clown Hall of Fame.

Now that I've got you hot to go, you should know that AirTran is planning to add two nonstops a day from Beantown to Beerville starting May 21, with one departing at 6:30 a.m. and the other at 5:30 p.m. and arriving about and hour and a half later.

Wait, you say that Big City Life is not your cup of decaf and you really would rather head to the country? Well, my friend, Cape Air will commence three daily nonstops from Logan to the New York burgs of Plattsburgh as well as to Saranac Lake.

Hey, I like Saranac Lake. It's pretty, and they make a Saranac Black and Tan there, right?

Wait, you mean it's actually made in Utica? Does Cape Air fly there?
(By Paul Makishima, Globe staff)

Posted by globebusiness at 11:01 AM | Comments (0)

1-800-Flowers to open first Mass. store

Flower retailer 1-800-Flowers.com announced the impending grand opening of its newest franchise, a 1-800-Flowers store in Boston, the chain's first in Massachusetts.

According to the Carle Place, N.Y.-based company, a ribbon-cutting ceremony has been scheduled for Saturday at 10:00 a.m.

The store is located at 361 Hanover St. in Boston, and grand opening festivities include free-one dozen long-stem roses for the first 25 customers after the ribbon-cutting as well as food, refreshments, and raffles for floral arrangements and other items, the company said.

A second give-away of roses to the first 25 customers is set for 2 p.m., the company added.

There are more than 100 franchise- and company owned stores nationwide, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:43 AM | Comments (0)

Diet.com launches mobile nutrition service

Diet.com, a four-year-old Brookline-based health portal, said it has just launched a free text messaging service for cellphone users called "Nutrition on the Go."

Suppose a cellphone user is standing in line at a Starbucks Corp. cafe and wants to know nutritional information about a Starbucks Grande White Chocolate.

By texting Starbucks Grande White Hot Chocolate to the mobile phone number DIET1 (34381), that consumer would receive a return text message from the "Nutrition on the Go" service noting that this particular beverage has 480 calories and 18 grams of fat, among other nutritional data, Diet.com said.

According to a Diet.com spokeswoman, the service has data on 36,000 menu items from 1,700 restaurant and chains, including McDonald's Corp. and Dunkin' Donuts.

The initial business goal of "Nutrition on the Go" is to raise awareness for the Diet.com website, which is ad-supported, the company spokeswoman said, and eventually plans call for "Nutrition on the Go" to be linked to Diet.com.

Diet.com also generates revenues from membership fees, she said.

Although there is a free membership, consumers can opt for a premium membership; in return for monthly fees ranging from about $9 to $18 a month, premium members can get such services as customized diets and online help and support, Diet.com said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:11 AM | Comments (0)

Global Partners opens Providence terminal

Global Partners LP today announced the opening of its new distillate and biofuels terminal in Providence.

Global Partners, a Waltham-based wholesale distributor of refined petroleum products in the Northeast, said the terminal has the capacity to store 244,000 barrels of refined petroleum products.

The terminal is part of the company's new deepwater marine terminal project being developed at the Port of Providence, Global Partners said.

"The Port of Providence serves the energy needs of residents and businesses throughout Rhode Island as well as southeastern and central Massachusetts," Eric Slifka, Global's president and chief executive officer, said in a statement.
(By Chris Reidy, Globe staff)

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

Patriots push Web streaming frontier

The New England Patriots, which seek to make football history in their bid to play a 19-game perfect season, claim they made Internet history on Sunday.

According to the Pats, the team’s official website, Patriots.com, broke new ground by presenting a never-before-seen live streaming event to Internet users.

After arriving in Arizona to begin preparing to play in Super Bowl XLII, Patriots head coach Bill Belichick and five players held simultaneous press conferences at the team’s hotel in Scottsdale, the Patriots said.

Patriots.com presented a live feed from each of five speaking podiums simultaneously on its home page, and the dynamic presentation allowed Patriots.com users the effect of a television control room; as a result, the user became the director, choosing which press conference they wanted to highlight and switching between them, the Patriots said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:52 AM | Comments (0)

American Superconductor harvests $3m in new orders

American Superconductor Corp. today announced that it has received more than $3 million in orders for its wind turbine core electrical components and systems.

American Superconductor, a Devens-based company focused on energy technologies, said the orders came from two customers: China’s CSR Zhuzhou Electric Locomotive Research Institute and Canada’s AAER, Inc.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:48 AM | Comments (0)

Cognos lands Canadian hospital contract

Cognos Inc., a Canadian software company with nearly 400 employees in Massachusetts, announced today that one of Canada's largest teaching hospitals is rolling out Cognos business-intelligence software.

The hospital is University Health Network, said Cognos, which added that its business-intelligence software will enable the network to have more timely performance reporting and analysis when it comes to measuring the success of its healthcare delivery.

In November, technology giant IBM Corp. disclosed plans to buy Cognos, whose US headquarters is in Burlington, for nearly $5 billion.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:25 AM | Comments (0)

Toronto software firm relocates to Waltham

Data virtualization software company xktoto Inc. said it has relocated its corporate headquarters from Toronto to Waltham.

The move comes as xkoto reported revenue growth of more than 150 percent in the fourth quarter over the same period in 2006.

In a statement, xkoto president and chief executive David Patrick attributed much of that growth to increasing demand for the company's products and services.

“Customers and prospects in virtually all data intensive segments require high performance, highly reliable, scalable access to data for mission-critical systems," he said. "As a result, we’re witnessing the rapid adoption of xkoto’s proven data virtualization technology.”

A Globe story from November noted that an increasingly common scenario is for Greater Boston venture firms to hunt for high-tech investments north of the border and, then, replant the headquarters of Canadian portfolio companies such as xkoto in Massachusetts; the trend is likely to accelerate with the weakening of the US dollar, which makes it cheaper for Canadian technology companies to expand in the United States.

Grand Banks Capital of Newton is one of xkoto's major backers, that story noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:20 AM | Comments (0)

Verizon FiOS coming to Norfolk

Verizon Communications Inc. said that the board of selectmen in Norfolk granted the company a cable franchise yesterday for its FiOS TV service.

According to Verizon, the action makes the FiOS TV service an available option for about 2,700 households.

The Board of Selectmen in Norfolk granted a cable franchise to Verizon Monday (Jan. 28), paving the way for video choice for approximately 2,700 more Massachusetts households.

The board’s vote brings to 65 the total number of Massachusetts communities where Verizon’s FiOS TV is or will soon be available, Verizon said.

Headquartered in New York, Verizon delivers broadband and other wireline and wireless services to mass market, business, government, and wholesale customers.
(By Chris Reidy, Globe staff)

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

Average Valentine's tab: $122.98

US sweethearts are projected to spend $17.02 billion this year on purchases related to Valentine's Day, but a survey from the National Retail Federation shows that recipients of those gifts also want quality time lavished on them by their significant others.

According to the federation’s 2008 Valentine’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, the average consumer plans to spend $122.98 on Valentine’s Day, compared with last year's total of $119.67.

As fears about a possible recession mount, it won't be just about the money and box of chocolates this Valentine's Day.

“Consumers are expected to invest time and money on gifts of experience this year, in addition to staple Valentine’s Day gifts,” Phil Rist, vice president of strategy for BIGresearch, said in a statement. “Whether it’s a weekend getaway or a night out on the town, consumers are looking for quality rather than quantity.”

And don't forget puppy love.

According to the survey, 17.2 percent of celebrators also plan to spend on their pets this Valentine’s Day, with spending on pets for the holiday estimated to reach $367 million.
(By Chris Reidy, Globe staff)

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

EMC profit jumps 35 percent

EMC Corp.'s fourth-quarter profit jumped 35 percent, beating Wall Street expectations, as the seller of data storage hardware and software posted double-digit percentage gains across all its major business segments.

The Hopkinton-based firm also forecast a 14 percent revenue increase for 2008.

EMC said today its net income for the October-December period was $525.7 million, or 24 cents per share, compared with a profit of $388.8 million, or 18 cents per share, in the same period a year earlier. Revenue rose 19 percent to $3.83 billion from $3.21 billion a year ago.

The quarterly revenue performance beat the expectations of analysts surveyed by Thomson Financial, who forecast revenue of $3.66 billion, on average.

The 24-cent-per share profit performance beat analysts' expectations for a per-share profit of 22 cents.

EMC's fourth-quarter revenue from software licenses jumped 20 percent, outpacing the 15 percent growth in the storage systems business at EMC, whose rivals include IBM Corp., Hewlett-Packard Co., and Network Appliance Inc. Revenue from professional services and systems maintenance, a smaller business segment than the other two, grew by 27 percent.

EMC's North American business posted a 16 percent sales gain, compared with 23 percent growth overseas.

EMC offered its initial financial forecast for 2008, with expectations for revenue growth of 13 percent to $15 billion, and 14 percent profit growth to $1.04 per share, excluding one-time items and gains. Analysts forecast a 13 percent revenue gain to $14.7 billion, and a profit of 82 cents per share. (AP)

Posted by globebusiness at 8:02 AM | Comments (0)

January 28, 2008

ZINK Imaging leases Bedford office space

ZINK Imaging Inc. has leased 80,000 square feet of office space at Bedford Business Park in Bedford, a broker involved in the transaction said today.

The broker is Grubb & Ellis Co., a real estate services and investment management firm, which said it represented ZINK Imaging in the transaction.

According to a December story in the Globe, ZINK Imaging is a spin-out from Polaroid Corp. that has developed an inkless printing process that allows small handheld printers to spit out full-color photographs; the company plans to make a special paper that changes color when exposed to heat.

According to its website, ZINK Imaging is based in Waltham.

In a statement included in the Grubb & Ellis press release, ZINK Imaging chief executive Wendy Caswell said, "We are thrilled with the new home for ZINK Imaging."

Bedford Business Park is owned by Boston Properties Inc., a Boston-based real estate investment trust that owns and develops office properties, Grubb & Ellis said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:03 PM | Comments (0)

Sirtex gets OK to start production in Wilmington

Sirtex Medical Ltd. said today that it has received approval from the US Food and Drug Administration to begin production at a newly built facility in Wilmington.

The facility can now start to supply the company's SIR-Spheres microsphere doses to US treatment centers that will use them to offer Selective Internal Radiation Therapy, or SIRT, said Sirtex, which also has a production facility in Australia.

SIRT is a treatment for inoperable liver cancer that delivers high doses of radiation directly to the site of tumors, the company noted.

"Local US product supply will provide doctors with more flexibility in scheduling SIRT procedures and also enable an increase in the number of treatment days per week,” Sirtex chief executive Gilman Wong said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:22 PM | Comments (0)

Deadline looms for filing property tax abatements

Massachusetts Secretary of State William F. Galvin today reminded property owners that Friday is the deadline to file for an abatement of their property taxes in 232 Bay State communities.

Challenges to a tax bill can be made on grounds that the assessed value is too high in relation of similar neighboring properties; that the classification is improper; or that a property is exempt from taxation by law, Galvin's office noted.

“There is recourse for homeowners who believe they are entitled to an abatement, but they have to act in time,” Galvin said in a statement. “This is especially important now when reassessed property values may not reflect sharp declines in home values.”

Citizen Information Service, a division of Galvin's office, has available a brochure of tips that will assist those seeking an abatement; the brochure is on-line at www.sec.state.ma.us/cis and may be obtained by calling this toll-free number 1-800-392-6090, Galvin's office said.
(By Chris Reidy, Globe staff)

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

Two supermarket chains join GreenChill partnership

The US Environmental Protection Agency said two supermarket chains with stores in New England are among the founding members of the EPA's GreenChill Partnership, which aims to reduce refrigerant emissions.

The chains are Hannaford Bros. Co. of Maine, a unit of Belgium's Delhaize Group, and Whole Foods Market Inc. of Texas, and together they operate nearly 200 stores in New England, the EPA said.

The EPA described the new GreenChill Advanced Refrigeration Partnership as a partnership of the agency, supermarket chains, and the refrigerant equipment and chemical refrigerant industries.

The partnership is a voluntary program designed to promote green technologies, strategies, and practices that protect the stratospheric ozone layer, reduce greenhouse gases, and save money, the EPA said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:47 PM | Comments (0)

Mass. gas prices dip below $3 mark

Gas prices in Massachusetts have fallen below the $3 per gallon mark for the first time in two months.

A statewide survey by AAA of Southern New England found an average price of $2.98 per gallon of regular, self-serve gas. That's down 4 cents from last week, and 7 cents less than two weeks ago.

Gas prices had remained at or above the $3-a-gallon mark since eclipsing that level on November 26, when the price topped $3 for the first time in six months.

The Massachusetts average is currently the same as the nation's $2.98 average. (AP)

Posted by globebusiness at 11:55 AM | Comments (0)

State Street gets new Columbia fund account

State Street Corp. said today that it has been appointed to provide a range of custody, accounting, and fund administration services to Columbia Management's Excelsior Funds, which have approximately $20 billion in assets.

Boston-based State Street is a provider of financial services to institutional investors.

With the new mandate, State Street said now services a total of approximately $320 billion in assets for funds sponsored by Columbia Management, Bank of America Corp.'s asset management arm.

The new win expands upon State Street's long-standing relationship with Columbia Management, said State Street, which noted that in 2005, Columbia Management chose State Street to provide fund administrative services for $224 billion in assets.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:41 AM | Comments (0)

MocoSpace raises $4 million

MocoSpace announced the completion of its Series B financing that secured $4 million in additional funds.

MocoSpace of Boston is a mobile community that says it has nearly one billion page views each month.

A September Globe story described MocoSpace as a social network with blogs, instant messages, and forums centered on the phone.

The Series B financing was led by General Catalyst Partners, a Cambridge-based venture capital firm that invests in technology companies, said MocoSpace, which added that the new funding will be used to support new product initiatives and scaling infrastructure.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:07 AM | Comments (0)

Gloucester Pharmaceuticals names Colowick chief

Gloucester Pharmaceuticals Inc. announced today that it has appointed Alan Colowick as chief executive and as a member of the company’s board of directors.

Cambridge-based Gloucester Pharmaceuticals is a privately held, venture-backed company that is focused on oncology and that develops and commercializes innovative products for the treatment of cancer patients.

A medical doctor, Colowick was previously the president of oncology for Geron Corp., a California biopharmaceutical company, Gloucester Pharmaceuticals said.

The company also announced that Jean Nichols has been promoted to president and chief operating officer; Nichols previously served as executive vice president and chief scientific officer.

In addition, Donald Hayden, formerly an executive vice president and president, Americas, at Bristol-Myers Squibb Co., has been named chairman of Gloucester’s board of directors, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:08 AM | Comments (0)

Smith & Wesson holsters Colorado order

Smith & Wesson Holding Corp. announced today that it has received an order from the Colorado State Patrol for 850 of the its Military & Police (M&P) series of advanced-design polymer pistols.

Smith & Wesson Holding Corp. is the Springfield-based parent company of Smith & Wesson Corp., the legendary 156-year old company in the global business of safety, security, protection, and sport.

The Smith & Wesson M&P40 will be issued to each officer of the Colorado State Patrol to replace early-model Smith & Wesson pistols that have served as the primary duty firearms for the department, the company said.

The contract with the Colorado State Patrol represents the fourth state police department order that Smith & Wesson has received for the M&P pistols, said Smith & Wesson, which added that other full-conversion state police departments that have selected the M&P pistol for use in duty include the Iowa State Patrol, the New Mexico State Police, and New Hampshire State Police.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:00 AM | Comments (0)

BioSphere gets China clearence

BioSphere Medical Inc. reported that it has received clearance to sell one of its products in the People's Republic of China.

The Rockland medical device company focuses on bioengineered microspheres to treat uterine fibroids, hypervascularized tumors, and vascular malformations by a minimally invasive, image-guided medical procedure called embolotherapy.

The company said that Chinese regulators have approved its Embosphere Microspheres for clinical use for vascular embolizations, arteriovenous malformations, hypervascularized tumors, and symptomatic uterine fibroids.

BioSphere said it expects to commence shipments of Embosphere Microspheres to China in the first quarter of 2008.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:57 AM | Comments (0)

Diversified Project completes children's center

Diversified Project Management announced that it has completed Connecticut Children's Medical Center's new pediatric specialty center in Glastonbury, Conn.

Diversified Project Management is a construction consulting firm with offices in Newton.

Diversified said it provided project management and coordination services on behalf of the medical center in overseeing the build-out of this new facility.
(By Chris Reidy, Globe staff)

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

Synta, Glaxo skin drug gets orphan status

Synta Pharmaceuticals Corp. and British partner GlaxoSmithKline PLC said today that the Food and Drug Administration granted orphan drug status to their experimental skin cancer drug elesclomol, and Synta's stock soared in premarket trading.

Shares of Lexington, Mass.-based Synta jumped $1.15, or 17.6 percent, to $7.69 in premarket trading.

Orphan drug status is designed to encourage biotechnology and pharmaceutical companies to develop drugs for rare diseases, which affect fewer than 200,000 people in the United States.

The designation also entitles the companies to seven years of market exclusivity for elesclomol for this disease.

In November 2006, elesclomol received "fast track" designation from the FDA for development in metastatic melanoma, or skin cancer. Because the drug was fast tracked, the company can submit clinical trial data to the agency as it becomes available, and receive feedback, rather than having to wait to submit it all at once.

Elesclomol is being developed under a global collaboration agreement between Synta and Glaxo.
(AP)

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

Mass. housing market ends year on down note

Massachusetts single-family home sales fell 23.3 percent in December on a year-to-year basis, and the median price of a single-family home sold in December saw the largest drop all year, falling 10.5 percent to $276,568, the Warren Group reported today.

A Boston-based provider of real estate data, the Warren Group issued one of two reports out today on the Massachusetts housing market, with numbers covering both activity in December and for all of 2007; the Massachusetts Association of Realtors also issued a report on the Bay State housing market.

During December, sales continued the sharp decline that has been evident in every month since September, with sales falling from 4,074 in December 2006 to 3,123 in December 2007, the Warren Group said.

During December, condo sales were down 27 percent from 2,365 in December 2006 to 1,727 in December 2007, and the December 2007 median price for a condo declined 8.5 percent from $271,000 in December 2006 to $247,900, the Warren Group said.

Because of the rapidly rising rate of foreclosures, the Warren Group has opted to also calculate data that excludes the effects of foreclosures deeds; using this method, the median price of single-family homes in in December was down 5.6 percent from $320,000 in December 2006 to $302,000.

When the effect of foreclosure deeds is eliminated, the December 2007 condo price declined 4.7 percent from $275,000 to $262,000, the Warren Group said.

“2007 started with a surprising bang – a 5.8 percent increase in single-family home sales in January – but it has ended on a much more dismal note,” Timothy Warren Jr., chief executive of the Warren Group, said in a statement. “The large drop in sales and median prices in December signal more woes ahead, and it remains to be seen when Massachusetts will pull out of this slump. Indeed, when you look at month-by-month numbers, it seems to be getting a little worse.”

Meanwhile, in a separate report that uses a different methodology, the Massachusetts Association of Realtors said there were 2,532 single-family homes sold in the state during December 2007, a 20 percent decrease compared to the year before when 3,166 homes sold in December 2006.

In December 2007, the median selling price for single-family homes was $323,000, a decrease of 3.6 percent compared with $335,000 in December 2006, the association said.

The state's condominium market experienced a large decrease in the number of units sold this December, with a 28.3 percent drop compared with December 2006 - from 1,544 units sold in 2006 to 1,107 units sold in 2007, the association said.

The median selling price of a condo in December 2007 was $270,000, unchanged from December 2006, the association said.

“There is no question that 2007 was a challenging year for the real estate market for many reasons, yet people continued to buy and sell homes on a daily basis, contributing $25.7 billion to the Massachusetts economy,” said association president Susan M. Renfrew said in a statement. “When you take a step back and look at the year in historical context, it was actually pretty good. In fact, it was the eighth best year on record for sales, and median residential prices remained essentially unchanged.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:33 AM | Comments (0)

Weber launches Internet radio show

Larry Weber, Internet marketing guru and head of the Waltham-based marketing firm W2 Group Inc., said he is launching a new Internet radio show tomorrow at noon on www.WebmasterRadio.FM.

Titled “Market Edge with Larry Weber,” the Tuesday show will be a series of weekly, half-hour conversations with technologists, analysts, entrepreneurs, marketers and others, Weber wrote in an e-mail.

The show's topics will include the future of marketing, media, and technology, noted Weber, who added that WebmasterRadio.FM is a free, 24/7 Internet business radio network focused on the B2B marketing.

Tomorrow's scheduled guest is Paul Gillin, a marketing consultant and author of “The New Influencers," who will discuss the future of media and blogging, Weber said.
(By Chris Reidy, Globe staff)

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

Inverness Medical buys Matria Healthcare

Waltham-based medical testing company Inverness Medical Innovations Inc. said today it has agreed to buy Matria Healthcare Inc.

The total transaction consideration will be approximately $1.18 billion, consisting of approximately $900 million to acquire the Matria shares of common stock and assumption of approximately $280 million of Matria's indebtedness outstanding, Inverness said.

Matria, headquartered in Georgia, is a provider of health enhancement, disease management, and high-risk pregnancy management programs and services.

Inverness said it has agreed to acquire all outstanding shares of common stock of Matria for $39.00 per share, payable $6.50 in cash plus $32.50 in convertible preferred stock of Inverness (convertible at $69.32, a premium of 30% over the prior five day closing average price of Inverness shares) or, at the election of Inverness, in cash.

Inverness has been embarked an expansion strategy as part of plan to become a powerhouse in the field of point-of-care diagnostics.

Commenting on the proposed transaction of Matria, Inverness chief executive Ron Zwanziger said in a statement: "We view the acquisition of Matria as an important part of our overall health management growth strategy. In addition to Matria's substantial position in the disease management, productivity enhancement and informatics markets, Matria brings specialized expertise in women's health which will complement our rapid diagnostics in that area."
(By Chris Reidy, Globe staff)

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

Icahn nominates 3 for Biogen board

Cambridge biotechnology company Biogen Idec Inc. today announced that it has received notice from Icahn Partners LP and certain of its affiliates for the nomination of three individuals to the company's board at its 2008 annual meeting.

The individuals are Alexander J. Denner, Richard C. Mulligan, and Anne B. Young, the company said.

Biogen Idec said that its board "will review the notice and consider it in light of the best interests of all shareholders of the company."

According to Globe stories, billionaire investor Carl Icahn helped push Biogen Idec to put itself up for sale in October. As of September, Icahn owned about 4 percent of the company's shares.

Biogen Idec later called off its search for a buyer, saying it didn't receive a single offer, but Icahn has said he still believes the company could be sold, the Globe later reported.
(By Chris Reidy, Globe staff)

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

January 25, 2008

Hotel brings new look to old Holiday Inn

The Hotel Indigo Riverside, opening today in Newton between the MBTA station and Route 128, has 191 rooms, about the same as the old Holiday Inn had in the same building.

The similarities end there.

Indigo, the 12th to open in North America, is a hybrid — one of a new ‘‘boutique brand’’ being rolled out by InterContinental Hotels Group.

The Newton hotel, owned by Normandy Real Estate Partners of Morristown, N.J., and Bluehawk Investments LLC of Newton, is the first Indigo in New England.

Other than the concrete floors and walls and the wine-red brick of the 43-year-old structure, little of the old hotel exists.

A year of renovation included replacement of kitchen, heating, and air-conditioning systems, and installation of energy-saving cogeneration equipment. Bathtubs have glass doors and teak benches; floors are of dark wood; windows that were once floor-to-ceiling and later partially blocked off have been replaced with full-length insulated glass.

There’s WiFi throughout the hotel, and rooms have 32-inch flat-screen TVs, MP3 docking stations, Indigo’s Curl Up brand bed furnishings, and wall murals that are rotated with the seasons. Phi Bistro is there for a quick bite, and a large fitness center overlooks the pool area, which will be outfitted with fire pits and wind protection.

‘‘We recognize Newton will never be South Beach,’’ said Justin Krebs, a principal of Normandy Real Estate Partners, ‘‘but why have to go to Boston to get a high-quality experience?’’

The hotel’s design has a sophisticated look that appeals to an academically oriented clientele, said Jacqueline McGee, senior associate at CBT Architects of Boston, which redesigned the building.

The rooms are small, and an average rate for one with a king-size bed on a weekend night is $229, a little lower than business folks will pay during the week.

InterContinental, with almost 4,000 hotels worldwide, also owns the Holiday Inn brand.
(By Thomas C. Palmer Jr., Globe staff)

Posted by globebusiness at 8:30 PM | Comments (0)

Here's the scoop: Toscanini's reopens

Ice-cream starved fans need whine no more. Toscanini's is back in business.

The Central Square sweet spot got the keys back from the Massachusetts Department of Revenue today after handing over more than $30,000 it raised from fans over the last five days. The revenue department shut down the popular dessert destination a week ago because the owners failed to pay more than $167,000 in taxes dating back to 2000.

An ice cream maker threw up a website last week, savetosci.com, to help raise funds for a down payment so that the Toscanini's owners Gus and Mimi Rancatore could open the shop again while paying back those delinquent taxes.

Bob Bliss, a spokesman for the revenue department, said Toscanini's "paid a substantial amount on the taxes owed and came up with a solid repayment plan which we'll be closely monitoring."

Mimi Rancatore said all of the money raised has been turned over to the state, and even though the website surpassed its fundraising goal of $25,000, she plans to keep it going for awhile. The site drew praise from fans, lots of donations, and a number of critical comments from people upset at a business asking customers to pay for delinquent taxes.

"I'm incredibly grateful," Rancatore said. "I certainly understand people's issues with helping us because we're a for-profit business. We're not denying we made a mistake."

For now, Rancatore said she plans to post a list in the shop of all the people who made donations and go back to the business of serving up ice cream. When the weather gets warmer, Toscanini's hopes to do a larger customer appreciation event.

Free ice cream day, perhaps?
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 4:00 PM | Comments (0)

Sun Life Retirement plans move to 31 St. James Ave.

Sun Life Retirement Services has signed a sublease for 70,765 square feet of office space at 31 St. James Ave. in Boston, the broker that represented Sun Life in the transaction said today.

The broker is Grubb & Ellis Co., a real estate services and investment management firm.

Sun Life Retirement Services, which is currently located at 500 Boylston St., plans on relocating to its new offices in the spring of 2008, Grubb & Ellis said.

Sun Life is subleasing the space from First Marblehead Corp., Grubb & Ellis said.

Based in Boston, First Marblehead provides private education loan services.

The Codman Company, a Boston real estate firm, represented First Marblehead in the transaction, Grubb & Ellis said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:21 PM | Comments (0)

Hospital won't be part of next AbioCor implants

A Kentucky hospital that was a pioneer in testing a Danvers company's self-contained replacement heart says it won't participate in the next round of implants.

Jewish Hospital in Louisville is citing the expense of the AbioCor implants as a reason for not partnering with the device's maker, Abiomed Inc. of Danvers.

Chief medical officer Dr. Lynn Simon says it costs the hospital about $1 million for each surgery. Simon says that money can be used to take care of many more patients.

Jewish Hospital gained worldwide attention when the first two AbioCor implants were done there.

Abiomed has received federal approval for up to 4,000 annual implants of an updated version of the AbioCor. (AP)

Posted by globebusiness at 1:00 PM | Comments (0)

Covidien chief's compensation pegged at $28.4 m

The president and chief executive of Covidien Ltd. received compensation valued by the company at about $28.4 million in fiscal 2007, according to a proxy statement filed yesterday with the Securities and Exchange Commission.

The Mansfield healthcare products company awarded Richard J. Meelia $905,163 in base salary and $1.2 million in non-equity incentive plan compensation.

Covidien, which spun out from Tyco International Inc. last year, also granted Meelia restricted stock and option awards that had an estimated value of $20.9 million on the days they were awarded.

Meelia also received $5.3 million in other compensation, which included tax reimbursements, insurance premiums and a one-time fee of $5 million related to the termination of his retention agreement with Tyco.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation, and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and may differ from totals supplied by companies.

In June 2007, Tyco's health care unit began trading separately as Covidien. The compensation earned in fiscal 2007 is for services rendered to Tyco and its subsidiaries prior to the separation and services rendered to Covidien following the separation. The fiscal year ended Sept. 28. (AP)

Posted by globebusiness at 12:03 PM | Comments (0)

Wyeth cutting 5,000 jobs; impact on Mass. unclear

Wyeth said it is considering eliminating about 5,000 jobs, or 10 percent of its worldwide workforce, over the next three years to reduce costs. The New Jersey drugmaker has 50,000 employees, including 2,800 in Massachusetts.

But company spokesman Doug Petkus said Wyeth is still in the early stages of considering several options for cutting costs. “Nothing is etched in stone,’’ Petkus said, adding that it is premature to say how Massachusetts might be impacted. The company plans to release more details about the job reductions in late March.

In September, Wyeth pledged to add at least 100 jobs at its Andover biotech research center in exchange for nearby highway improvements.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 11:57 AM | Comments (0)

Parexel shares hit all-time high

Shares of Waltham's Parexel International Corp. rose to an all-time high yesterday after the company reported better-than-expected fiscal second-quarter earnings and revenue, driven by demand for its clinical research services.

The pharmaceutical services company's stock rose $7.37, or 14.7 percent, to close at $57.63 on the Nasdaq Stock Market, having hit a high of $58.38 earlier in the day. The stock has been trading near record highs all month. Previously, the stock traded between $30.19 and $54.88.

Parexel said after the close Wednesday that its fiscal second-quarter profit rose 26 percent and said it expects third-quarter profit growth on higher service revenue. Second-quarter revenue grew 32 percent and backlog rose 41 percent to just under $1.78 billion.

In a note to clients, Lehman Brothers analyst Douglas Tsao expressed strong enthusiasm about the company's results and raised his price target to $50 from $42.

"Only a surprisingly high tax rate prevented the quarter's result from being even better," said Tsao.

He also noted the volume of new business the company recorded after the first quarter's lackluster performance, saying, "We certainly expected improvement since the industry backdrop remains very good, but the magnitude of the improvement was impressive."

He has an "Equal weight" rating on the stock.

Parexel's strong results will likely restore investor confidence in the stock, Jefferies & Co. analyst David Windley said in a note to investors yesterday.

For the quarter, Parexel won $487 million in gross bookings, which exceeded Windley's estimate by $114 million.

In addition, Windley pointed out, "revenue growth has accelerated for several quarter now." And due to favorable foreign currency exchange rates, the company is also well-positioned to benefit from its high exposure to foreign regions.

Windley kept a "Buy" rating and $60 price target on Parexel. (AP)

Posted by globebusiness at 11:55 AM | Comments (0)

Profit rose 26 percent at PerkinElmer

Health and industrial sciences company PerkinElmer Inc. said yesterday that its fourth-quarter profit rose 26 percent on higher sales of health science products, which include laboratory and diagnostic equipment.

The Waltham company earned $52.6 million, or 44 cents per share, compared with profit of $41.7 million, or 34 cents per share, during the same period in 2006. Revenue rose 20 percent to $511.5 million from $427 million.

Analysts polled by Thomson Financial expected profit of 43 cents per share on revenue of $487.4 million.

During the quarter, life and analytical sciences revenue rose 19 percent to $382.1 million while optoelectronics revenue rose 22 percent to $129.4 million. In all, revenue from health sciences products, which made up 84 percent of the total, rose 19 percent. The growth was driven by genetic screening, medical imaging, and analytical science devices.

"The solid fundamentals across our portfolio of businesses reflect the investments that we have made in new products, services and geographic expansion," chairman and chief executive Gregory L. Summe said in a statement.

Those investments include the buyout of ViaCell during the quarter. The company processes and stores stem cells taken from umbilical cord blood.

For the full year, PerkinElmer earned $131.7 million, or $1.09 per share, compared with profit of $119.6 million, or 95 cents per share, in 2006. Revenue rose to $1.79 billion from $1.55 billion.

Looking ahead to the first quarter, the company expects profit of 18 cents or 19 cents per share -- 26 cents or 27 cents per share, excluding charges. Analysts forecast profit of 24 cents per share, on average. (AP)

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

Brigham's salutes Pats with free cherry-on-top bars

Brigham’s Ice Cream said it is celebrating the appearance of the New England Patriots in the Super Bowl by offering 42,000 free “cherry on the top” bars at all Brigham’s locations.

Arlington-based Brigham's said the good luck cherry bars are wrapped in true New England team colors - red, white, and blue - and will be available to fans of all ages beginning today through Super Bowl Sunday.

Why 42,000 bars? Presumably, because this is Super Bowl XLII.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:17 AM | Comments (0)

BC ranks first in reputation survey

Boston College placed first in the latest Massachusetts Corporate Reputation Survey as the institution that Massachusetts business leaders respect most.

The annual survey is conducted by Morrissey & Company, a Boston-based reputation-management and public relations firms, and it ranks the reputations of the state's leading private and public organizations based on the opinions of 200 Massachusetts business leaders, the firm said.

The respondents rate each institution on such attributes as overall reputation, products and services, workplace environment, and degree of social responsibility, Morrissey & Company said.

While BC has placed in the top 10 in each of the five years the survey has been conducted, this year marks the first time the university has been ranked first, BC said.

Rounding out the top five were United Parcel Service, Children's Hospital, Blue Cross Blue Shield of Massachusetts, and the Massachusetts Institute of Technology, Morrissey & Company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

Verizon Wireless expands islands coverage

Verizon Wireless today announced the expansion of wireless broadband service to Martha’s Vineyard and Nantucket through a recent network enhancement.

Now Verizon Wireless customers on Martha’s Vineyard and Nantucket can access e-mail and the Internet on their laptops and PDAs, and download video and music to their wireless phones, the company said.

Verizon Wireless is a New Jersey-based joint venture of Verizon Communications Inc. and Vodafone Group.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:43 AM | Comments (0)

Consortium buys assets of Alpha Omega Jewelers

A US bankruptcy court judge in Boston this morning approved the sale of the assets of Alpha Omega Jewelers to a consortium of investment partners.

With debt of about $30 million, the company filed for bankruptcy protection earlier this month after owner Raman Handa unexpectedly left the country, prompting the company's bank, the LaSalle Business Credit arm of Bank of America Corp., to seize Alpha Omega assets and temporarily close its stores just before Christmas.

The consortium of investors is made up of Tiger Capital Group LLC of Boston; SB Capital Group of Great Neck, N.Y.; and the Gordon Co. of Fort Lauderdale, Fla.

The consortium planned to sell off the company's inventory and find other parties to assume the leases at four Alpha Omega stores in the Boston area, a spokesman for the consortium said.

Upon successful completion of the liquidation sale, Alpha Omega stores at the Natick Collection shopping mall and at Prudential Center will be completely re-merchandised and will be re-opened as part of the Rhode Island-based Ross-Simons jewelry chain, the consortium said in a statement today.
(By Robert Weisman and Chris Reidy, Globe staff)

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

Dunkin' Donuts will open first Shanghai shop

Dunkin' Donuts said today it plans to open its first shop in Shanghai this spring, with a total of 100 new shops planned over the next decade.

It will be the first Dunkin' Donuts on mainland China, said the Canton-based chain of coffee-and-baked goods shops, which is embarked on an aggressive expansion plan following its 2006 acquisition by a trio of private equity firms.

Dunkin' Donuts, which is part of Dunkin' Brands Inc., announced last year it greater China expansion strategy and entry into Taiwan.

The company said it recently granted the franchise rights for Shanghai, and provinces of Jiangsu, Zhijiang, in the People's Republic of China to Mercuries & Associates, which is the franchise partner for Taiwan.

Mercuries opened its first Dunkin' Donuts shop in Taiwan in January 2007 and currently operates 10 shops there, Dunkin' Donuts said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:20 AM | Comments (0)

SensAble ships 6,000th haptic device

SensAble Technologies Inc., a Woburn developer of touch-enabled systems for 3D modeling, today announced that it has shipped its 6,000th PHANTOM haptic device.

SensAble Technologies develops haptic devices that allow people to perform computer tasks with sensory feedback, such as practice laparoscopic surgery on a computer-driven simulator, sculpt a 3D computer model of a partial set of teeth, or help a veterinarian palpate a cow's fetus.

"Haptics applications have moved into the mainstream, and our 2007 performance proved it," company chief executive Curt Rawley said in a statement. "We're seeing strong growth in medical and dental markets, where haptic feedback and 3D modeling are enabling many breakthrough applications such as surgical simulation for training, surgical planning, and modeling of patient specific prosthetics and implants."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:49 AM | Comments (0)

Boston Common Garage is set to raise rates

The Massachusetts Convention Center Authority said today that its board of directors has voted to increase daily and monthly parking rates at the Boston Common Garage for the first time in three years.

The garage, which is operated by the authority, has been charging $6 for up to one hour of parking; the new rate, set to go into effect March 1, is $8 for up to one hour of parking, said the authority, which added that the monthly rate for 24-hour access to the garage will increase on March 1 from $340 to $360.

Rates were last raised in February 2005, and the new structure will keep Common Garage rates below the prices currently charged in the Boston parking garage market by an average of 23.5 percent, according to the authority.

“After three years, it became necessary to raise the Boston Common Garage rates by a slight amount in order continue upkeep and security of the garage," James E. Rooney, executive director of the authority, said in a statement. "Even with the new rates, this is the best parking deal in town.
(By Chris Reidy, Globe staff)

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

Hainer of Adidas will address BC lunch

Boston College said that Herbert Hainer, chairman and chief executive of German athletic footwear giant Adidas AG, is scheduled to be the keynote speaker at its Chief Executives' Club of Boston lunch next week.

At the Thursday event at the Boston Harbor Hotel, Hainer is expected to address the 2006 acquisition of Reebok International Ltd. of Canton and the resulting challenges of integrating two large companies as well as the changing consumer/retail market in today’s economy and the company’s commitment to Reebok and the Greater Boston community, Boston College said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:02 AM | Comments (0)

Manley will oversee Converse premium products

Converse Inc., the North Andover-based athletic apparel and footwear brand, announced the appointment of Chris Manley as general manager of premium products.

Manley will oversee sales, design, merchandising, and production for premium apparel and footwear, including the Converse by John Varvatos men’s and women’s collections, said Converse, which added that Manley will work out of its New York City office.
For the past seven years, Manley was the president of menswear at Theory, overseeing sales, design, production, and merchandising, Converse said.
Converse is a wholly owned subsidiary of Nike Inc., the Oregon athletic footwear giant.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:42 AM | Comments (0)

Converted Organics announces acquisitions

Converted Organics Inc. announced today that it has acquired the assets of two California companies, United Organic Products LLC and Waste Recovery Industries LLC.

Converted Organics of Boston, whose press release did not include financial details of the transactions, is a development stage company dedicated to producing all-natural, organic soil amendment or fertilizer products through food waste recycling.

These acquisitions make Converted Organics the exclusive owner of the proprietary technology and process known as the High Temperature Liquid Composting system, which processes various biodegradable waste products into liquid and solid organic-based fertilizer and feed products, said Converted Organics, which added that it also acquires a leading liquid fertilizer product line, as well as a state-of-the-art production facility that services a strong West Coast agribusiness customer base.

"The acquisition of United Organic Products and Waste Recovery Industries' assets catapults Converted Organics into a leadership position within the organic fertilizer industry and facilitates our immediate entry into the liquid fertilizer market," Converted Organics president Edward J. Gildea said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:24 AM | Comments (0)

January 24, 2008

Globe's newsstand price rising to 75 cents

The Boston Globe’s newsstand price will increase to 75 cents from 50 cents on Feb. 4, according to a company statement.

The increase applies to newspapers sold in Greater Boston. The daily Globe is already priced at 75 cents at locations beyond 30 miles from the city.

The price increase does not affect home delivery copies of the paper, nor does it affect the price of the Sunday Globe.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 5:54 PM | Comments (0)

Fallon: stolen computer had members' information

Fallon Community Health Plan said a laptop computer was stolen containing personal information for all the members of its Fallon Senior Medicare Advantage and Summit ElderCare plans. The computer contained claims data for about 30,000 people, or about 15 percent of Fallon's overall membership.

The insurer said the computer belonged to a third-party vendor in Boston, which it declined to identify, and was stolen from that firm's offices.

Fallon is offering free credit monitoring -- which would alert members or their families to any unusual activity in their financial accounts -- to anyone whose personal information was stolen. Chief executive Eric H. Schultz said Fallon is working with law enforcement officials to recover the computer.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 5:43 PM | Comments (0)

Patrick pledges support for rental housing

The Patrick-Murray administration said today that it has pledged more than $100 million in various public and private sector resources to support two dozen developments that will yield 908 new rental apartments in 21 cities and towns across the state.

Of that total, 771 of those apartments will offer long-term affordable rents for low- and moderate-income families, the administration said.

Funding will support developments in Amherst, Ayer, Beverly, Boston, Charlton, Everett, Framingham, Franklin, Gardner, Gloucester, Lowell, Lunenburg, Lynn, Pittsfield, Quincy, Sharon, Spencer, Wareham, Westfield, Weymouth, and Worcester, the administration said.

“Building new housing that is affordable to those across all income levels is the best way to boost business and job growth in Massachusetts,” state Department of Housing and Community Development Undersecretary Tina Brooks said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:51 PM | Comments (0)

Specialist discusses mortgages and real estate

Holden Lewis, a senior reporter at Bankrate.com, held an online chat with visitors to Boston.com earlier today. The subject: How economic and political developments affect mortgage rates and real estate.

To read a transcript of that chat, please click this link.

Posted by globebusiness at 2:17 PM | Comments (0)

e-Dialog agrees to be sold for $157 million

GSI Commerce Inc., which provides online commerce services for customers including retailers and manufacturers, said today that it agreed to acquire e-Dialog Inc., a Lexington-based e-mail marketing company, for $157 million in cash and stock.

Under terms of the deal, GSI of Pennsylvania will pay $147.8 million in cash and $9.2 million in stock. It will also make cash payment of $750,000 in fiscal 2009 if revenue targets are made in fiscal 2008.

The deal is expected to close in 30 days. GSI said the acquisition will expand its marketing services portfolio. (AP)

Posted by globebusiness at 1:52 PM | Comments (0)

New tenants sign up for Wayside Commons

KeyPoint Partners LLC said today it has negotiated four new leases at Wayside Commons, a lifestyle shopping center in Burlington.

Retailers joining the tenant mix at Wayside include New York & Company, which opened at the center in November; Relax The Back and Massage Envy, both of which are under construction; and the Ginger Pad Asian Bistro, an existing restaurant that will be expanding, said KeyPoint Partners, the Burlington-based retail real estate services firm that has managed Wayside Commons since its opening in the fall of 2006.

Existing tenants at the 196,000-square-foot center include Ann Taylor Loft, the Capital Grille, Coldwater Creek, and L.L. Bean, noted Keypoint Partners, which added that there are three remaining leasing opportunities at Wayside Commons.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:58 PM | Comments (0)

Mullen wins Kingsdown mattress account

Mullen, the Wenham-based advertising agency, said today that it is the new agency-of-record for Kingsdown Inc., a North Carolina manufacturer and distributor of Kingsdown mattresses and sleep systems.

Mullen said the agency will handle brand planning, advertising, media, digital, design, and public relations for Kingsdown.

Media budgets will be determined as part of a collaborative strategic planning process between Kingsdown and Mullen, the agency said.

Mullen is owned by the Interpublic Group of Cos. of New York, and Mullen said its client portfolio includes General Motors Corp., XM Satellite Radio, the T.J. Maxx retail chain, and the Panera Bread casual restaurant chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:17 PM | Comments (0)

Akamai sees traffic surge to social networking sites

Akamai Technologies Inc. today announced that traffic on its platform related to its social media customers saw significant growth over the past year.

Akamai of Cambridge company is a global service provider for accelerating content and applications online.

According to the company, Akamai consistently delivers more than 1 million requests per second for businesses in the social media space, and according to data released by Hitwise for December 2007, Akamai supported seven of the top 10 most trafficked social networking sites and 92 percent of social networking site visits in the United States.

Akamai said it works with dozens of leading social media destination sites, as well as key technologies and applications that form this global ecosystem, including Bebo, Facebook, Friendster, Metacafe, MySpace, RockYou, Slide, and Tagged.

"The social media industry recently witnessed a massive tidal wave of adoption, and many companies realized their technology infrastructure would not be able to handle the unplanned, dramatic growth, and turned to Akamai," Akamai said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:35 AM | Comments (0)

CombinatoRX projects narrower-than-expected loss

Cambridge biotechnology company CombinatoRx Inc. narrowed its expected 2008 loss because of higher-than-forecast revenue for this year.

The company expects a loss between $49 million and $55 million on revenue between $15 million and $20 million in 2008. Analysts polled by Thomson Financial expect a loss of $64.5 million on revenue of $13.7 million.

Continued development of several drug candidates will further drain the company's funding, though CombinatoRx said it has enough capital to follow through on the programs. It expects to end 2008 with between $58 million and $64 million in cash and cash equivalents. The company previously said it would end 2007 with between $103 million and $113 million.

CombinatoRx said it will continue searching for development partners.

Previously, the company said it expects a 2007 loss between $48 million and $53 million on revenue between $13 million and $15 million. Wall Street has forecast a loss of $53.1 million on revenue of $15 million.

The company said it plans to present midstage study data on CRx-102, aimed at treating osteoarthritis and rheumatoid arthritis, in 2008. Other midstage studies with results planned for this year include CRx-191 for psoriasis, CRx-197 for dermatitis and CRx-401 for type-2 diabetes.

Shares of CombinatoRx rose 21 cents, or 4.8 percent, to $4.61 in morning trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 11:25 AM | Comments (0)

JetBlue adds Hub Super Bowl flight

I told you not to wait. The Pats were bound for Phoenix; the stars were aligned; it was in the cards; the fung was all shui-ed. Now you've got the Golden Ducats but can't find a flight (cue the sound of quiet manly sobbing in the distance).

Well, JetBlue is trying to save your bacon. The folks at JetBlue Airways Corp. have added a flight from Logan to Phoenix especially for the Bowl crowd. It will go out Friday Feb. 1 at 7 our time and arrive at 11 their time -- no reason not to make last call in the watering hole of your choice.

You must have great karma because don't deserve this. You really must have suffered in another life.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

John Hancock Funds launches new product

John Hancock Funds said that it has launched the John Hancock Floating Rate Income Fund.

According to the firm, the new fund is the first high-yield short-term bond fund in John Hancock's product line, and the fund will invest in one-year paper rated below Baa or BBB.

 John Hancock Funds is the Boston-based mutual fund business unit of John Hancock Financial Services, which in turn is a unit of Manulife Financial Corp., a Canadian-based financial services group.

The new fund will be provided with portfolio management services by Western Asset Management, which is marking its first time serving as a sub-adviser for John Hancock Funds, the firm said.

The Floating Rate Income Fund will also be available to investors as an underlying fund in John Hancock's target date Lifecycle Funds and target risk Lifestyle Funds, the firm added.
(By Chris Reidy, Globe staff)

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

BG Medicine cancels plans for public stock offering

Diagnostic test maker BG Medicine Inc. of Waltham said yesterday it will no longer proceed with its planned initial public offering because of current market conditions.

In its withdrawal request filed with the Securities and Exchange Commission, the company said it may consider a subsequent private offering.

BG Medicine had planned to raise about $35.1 million from an IPO of 4.5 million common shares, according to filings with the SEC.

BG Medicine originally filed for an IPO in November, but a month later slashed the expected price range of the offering to between $8 and $10 per share from a range of $14 to $16 per share.

The company had planned to use proceeds from the IPO to develop and launch its molecular diagnostic product candidates, to establish a commercial and laboratory infrastructure, to build a marketing and distribution team, to repay some debt and for other general corporate purposes.

BG Medicine designs molecular diagnostic tests to predict a patient's response to a drug therapy, identify patients likely to develop a specific disease and monitor disease progression or drug response.

For the nine months ended Sept. 30, BG Medicine posted a wider loss, after paying preferred dividends, of $5.9 million, compared with $4.7 million in the prior-year period. During the same period, the company nearly doubled its revenue to $6.6 million, from $3.3 million in the first nine months of 2006.

Cowen & Co. and Leerink Swann were listed as underwriters.

BG Medicine had planned to list its shares on the Nasdaq under the symbol "BGMD." (AP)

Posted by globebusiness at 10:05 AM | Comments (0)

Haemonetics promotes Nutter to chairman

Haemonetics Corp., a Braintree company that makes systems that process blood, said today its chief executive Brad Nutter has been promoted to the expanded role of chairman of the board.

Nutter, 55, replaces former chairman Ronald Matricaria, who retired in April.

Ron Gelbman will continue as Haemonetics' lead director. (AP)

Posted by globebusiness at 9:34 AM | Comments (0)

AT&T expands upgraded network in Mass.

AT&T Inc. announced that it has turned on more than 100 "3G" cell sites to cover key southeastern New England communities, including New Bedford; Newport, R.I.; and New London, Conn.

Partly as a result, customers traveling along the northeastern corridor between Boston and New York City "can now experience more of the blazing-fast third-generation (3G) mobile broadband network," AT&T said.

Along the South Coast of Massachusetts, 3G coverage is available along Route 195 from Mattapoisett through Fall River and into Providence, AT&T said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:23 AM | Comments (0)

Vermont Teddy Bear taps Somerville ad agency

FUSE/ideas, an advertising and interactive marketing agency in Somerville, said the Vermont Teddy Bear Co. has chosen it as its agency of record.

Billings were not disclosed. FUSE/ideas said its first assignment is to work with Vermont Teddy Bear's in-house marketing team to create a television commercial for Vermont Teddy Bear's biggest holiday - Valentine's Day.

FUSE/ideas said it will also support Vermont Teddy Bear's marketing efforts with online, direct response, and print advertising.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:59 AM | Comments (0)

Modiv Media secures additional funding

Modiv Media announced today that it has closed $8 million in additional funding.

The company, which has offices in Quincy, specializes in what it calls retail interactive media delivery solutions.

One recent project involves the Modiv Shopper, a "scan-and-bag" handheld device that features targeted ads and offers; the device is deployed at about 100 Stop & Shop supermarkets, Modiv Media said.

As for the funding round, it includes participation from current investors Ignition Partners, Oak Investment Partners, and SeaPoint Ventures, Modiv Media said.

Modiv Media said it will use the new financing to accelerate its technology development, expand its retail footprint, increase its professional service offerings, and accommodate a growing staff.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:37 AM | Comments (0)

American Superconductor gets federal contract

American Superconductor Corp. announced today that it has received a Department of Homeland Security contract for a project that aims to improve Manhattan's power delivery network.

American Superconductor, or AMSC, is a Devens company focused on energy technologies.

The company said it is working on Project Hydra, which focuses on the development and deployment of AMSC's "secure super grids" technology in the power delivery network in Manhattan operated by Consolidated Edison Company of New York Inc.

According to AMSC, this technology is a proprietary, system-level 'smart grid' solution that utilizes high temperature superconductor power cables and ancillary controls to deliver up to 10 times more power through the grid while at the same time suppressing power surges, or fault currents, that can disrupt service.

Under the terms of the final contract, the Department of Homeland Security will provide up to $25 million in total funding for the $39 million project, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:04 AM | Comments (0)

Tech council taps Hopcroft as director

The Massachusetts Technology Leadership Council, which focuses on issues of importance to the state's software and technology companies, named Tom Hopcroft as executive director.

Hopcroft will take over management of the day-to-day operations of the council from council president Joyce Plotkin, the council said.

Plotkin remains council president, and responsibilities are being shifted to allow her to focus more on the external activities of the organization, said the council, which added that it was also responding to Plotkin's desire to reduce her work load and move to a four-day work week.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:47 AM | Comments (0)

Zoll Medical announces licensing deal

 Zoll Medical Corp. and Laerdal Medical AS, a Norwegian medical device maker, announced today that they have entered into a technology licensing agreement.

  Zoll Medical of Chelmsford is focused on developing technologies that help advance the practice of resuscitation, and Zoll is a manufacturer of resuscitation devices and related software solutions.

  Under the agreement, which includes Laerdal's US subsidiary, Zoll is licensing to Laerdal non-exclusive worldwide rights under patents owned by or licensed to Zoll covering feedback in connection with cardiopulmonary resuscitation, and Laerdal is granting to Zoll options to license similar rights under patents owned by Laerdal, the companies said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:25 AM | Comments (0)

Wayland approves Verizon's FiOS TV

The board of selectmen in Wayland granted a cable franchise to Verizon Communications Inc. Tuesday, Verizon said.

The action will make Verizon's FiOS TV service available to about 2,000 additional households, Verizon said.

The board’s vote brings to 64 the total number of Massachusetts communities where Verizon’s FiOS TV is or will soon be available, Verizon said.

Headquartered in New York, Verizon delivers broadband and other wireline and wireless services to mass market, business, government, and wholesale customers.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:07 AM | Comments (0)

January 23, 2008

Covidien opening new headquarters tomorrow

Covidien Ltd., the healthcare products giant, plans to officially open its new United States headquarters building in Mansfield tomorrow.

The 160,000-square-foot building is Covidien's fifth in Mansfield, giving the company 510,000 square feet of offices and 1,300 employees in the town.

Covidien is formally incorporated in Bermuda, but operates out of Mansfield. US Representative James McGovern, Democrat of Worcester, is scheduled to speak at the ribbon-cutting event.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:59 PM | Comments (0)

Dorchester woman's eviction called off

A Dorchester woman facing eviction following the foreclosure of her home won a last-minute reprieve this morning after dozens of activists gathered outside to impede law enforcement officials from entering.

Melonie Griffiths-Evans defaulted on a mortgage loan arranged by a broker who has since been barred from working in Massachusetts. Facing a 9 a.m. eviction, Griffiths-Evans had refused to pack, saying that God was on her side.

Her supporters were gathered by City Life/Vida Urbana, an advocacy group that has pledged to prevent evictions following foreclosure. Two city councilors, Chuck Turner and Sam Yoon, also showed up to support Griffiths-Evans.

Shortly after 9 a.m., a City Life organizer said the eviction had been postponed and celebration erupted. Some people chanted, "We fight, we win." Griffiths-Evans repeatedly thanked her supporters.

"The bankers need to know we're going to do the same thing for everyone," she said.

City Life has pledged to defend about 75 residents of other foreclosed buildings against eviction. This is the second time the group has mobilized in response to a formal 48-hour notice of a pending eviction. The other eviction also was postponed.

The building is owned by a mortgage investment pool. US Bancorp is the trustee. A second company, Ocwen Financial Corp., services the loans and filed the eviction notice. Ocwen could file a new notice immediately. But Yoon said he had spoken with executives at U.S. Bancorp and that they had promised to look into the situation.
(By Binyamin Appelbaum, Globe staff)

Posted by globebusiness at 4:32 PM | Comments (0)

Foundation received $155 million in new 2007 gifts

The Boston Foundation said it received more than $155 million in new gifts in the 2007 calendar year, more than double the amount in the previous year.

The foundation describes itself as Greater Boston's community foundation, and its website says its grant-making and other activities are designed to promote innovation across a broad range of community issues, including educational excellence, affordable housing, work force development, and the arts.

In a press release, the foundation said the value of its assets rose to $964 million, up from $830 million at the start of the year.

More than $92 million in grants, the largest distribution in the foundation’s history, were made to nonprofit organizations during calendar 2007, the foundation said.
(By Chris Reidy, Globe staff)

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

Westfield Financial to repurchase shares

Westfield Financial Inc. today said its board approved a plan to repurchase up to about 3.2 million shares of common stock.

Under the plan, the community bank would be able to buy back 10 percent of outstanding stock.

Based on Tuesday’s closing price of $8.95, it would cost about $28.6 million to repurchase the stock.

Shares of Westfield Financial rose 57 cents, or 6.4 percent, to $9.52 in afternoon trading.
(AP)

Posted by globebusiness at 3:03 PM | Comments (0)

Starbucks test-markets a $1 coffee

Heads up, Dunkin’ Donuts: Faced with growing competition from cheaper rivals, Starbucks Corp. is test-marketing small cups of drip coffee for $1 — with free refills — in its hometown.

That’s about 50 cents less than the Seattle-based coffee retailer normally charges for an 8-ounce cup of joe, though prices vary from store to store.

Small cups of premium coffee at Canton-based Dunkin’ Donuts and other lower-cost competitors typically cost just over $1.

Starbucks spokeswoman Bridget Baker said the test ‘‘is not indicative of any new business strategy.’’

Starbucks would not say how many stores are part of the test, whether it’s considering a similar promotion for any other brews, or whether any new test markets are on the horizon.

‘‘Testing is a way of life for us,’’ a company statement said.

Starbucks in July raised the average price of its coffee and other freshly made drinks in most of its US stores by 9 cents, citing the rising cost of dairy products and other essentials. A 5-cent increase had taken effect in October 2006.

Starbucks is the world’s largest chain of coffee houses, with more than 15,000 worldwide.

Dunkin’ Donuts calls itself ‘‘the number one retailer of hot regular coffee by the cup’’ in the United States; it has 7,200 franchised restaurants in 31 countries.
(AP)

Posted by globebusiness at 2:55 PM | Comments (0)

Vertex shares tumble on plans for drug studies

Shares of Vertex Pharmaceuticals Inc. fell sharply today to a two-year low, as some analysts said the start of an additional late-phase trial for the Cambridge company’s hepatitis C drug candidate, telaprevir, creates uncertainty.

Vertex said it will start enrolling patients in March for 24-week and 48-week trials of the drug, testing it on hepatitis patients who have not previously received treatment. The announcement of the smaller second study for 48-week telaprevir took some analysts by surprise.

In November, Vertex reported mixed results from a midstage trial of telaprevir. And already the drug is facing competition, with rivals Schering-Plough Corp. and Johnson & Johnson trying to reach the market with similar drugs.

In addition, Wall Street has expressed concern over the side effects, the dropout rate, and the possibility telaprevir could turn out to be only as effective as the current standard of treatment.
In a note to investors, Robert W. Baird & Co. analyst Thomas Russo said the telaprevir update brings both good and bad news.

On the upside, the trial means the Food and Drug Administration approved Vertex’s preferred Phase III trial design.

However, the FDA also required an additional study, the 48-week regimen, which could create a new source of uncertainty, Russo said. The design of this second study is still being finalized.

The company said this second study is planned, in part, to confirm the results from the Phase II studies.

The analyst rates the stock at ‘‘neutral,’’ with a $25 price target.

Vertex’s stock fell $2.92, or 13.1 percent, to $19.44 during afternoon trading, having dropped to $19.13 earlier in the day. Previously, the stock traded between $20.71 and $41.42.
(AP)

Posted by globebusiness at 2:36 PM | Comments (0)

State Street will sponor baseball series in Japan

State Street Corp. today announced that it will sponsor baseball’s Ricoh Japan Opening Series 2008.

The World Champion Boston Red Sox will open the regular season against the Oakland A’s on March 25 in Tokyo, and State Street said it will sponsor the two-game series as well as two prior exhibition games against Japanese teams.

State Street, a Boston-based provider of financial services to institutional investors, said it employs more than 400 professionals in Japan where it has had operations in range of businesses including investment servicing, asset management, and research and trading since 1988.

In 2006, State Street noted that it partnered with the Red Sox in an arrangement through which State Street received naming rights to the new State Street Pavilion at Fenway Park.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:15 PM | Comments (0)

Smail will retire from Pyramis

Boston mutual funds giant Fidelity Investments today announced the retirement of Peter J. Smail as president of Pyramis Global Advisors, its institutional investment management business.

In a press release, Fidelity president Rodger A. Lawson said that Smail will remain in his current position through the end of the first quarter while a search for a successor is conducted.

After a successor is appointed, Smail will continue as a consultant to the company and as a member of the Pyramis Global Advisors Trust Company board of directors, Lawson added.

Smail, 55, joined Fidelity in 1987 as vice president of operations for its 401(k) business and was instrumental in its growth, Fidelity said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:03 PM | Comments (0)

Architectural design firm picks president

ARC/Architectural Resources Cambridge announced today that it has named Philip L. Laird as president of the company.

The Cambridge-based architectural design firm specializes in educational, sports, science, corporate, biotechnology and R&D facilities.

Laird is succeeding founding principal Henry S. Reeder, who will continue on as chairman, the firm said.

Laird joined the firm in 1979 and has been primarily involved with college, university, and independent school work, the firm said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:33 PM | Comments (0)

Galvin issues subpoenas to two insurers

Massachusetts Secretary of State William F. Galvin has subpoenaed two major insurers of municipal bonds to determine if they informed Massachusetts communities and investors of the insurers’ exposure to highly risky securities, such as collateralized debt obligations, Galvin's office said today.

The securities division of the secretary’s office sent subpoenas last week to MBIA Inc. and Ambac Financial Group asking for a list of Massachusetts public issuer bonds issued since January 2006 for which the companies have insured repayment of principal or interest, and all documentation and disclosure associated with those bonds, said Galvin's office, which added that it expects replies by Feb. 1.

As a matter of policy, Ambac does not comment on legal actions, a spokesman said.

An effort to get comment from MBIA was not immediately successful.

The two bond insurers are under review by rating agencies for possible downgrade due to their exposure to mortgage-backed securities, Galvin's office noted.

“Cities and towns rely on these companies in order to quickly and cost-effectively raise money for such needs as public safety, buildings and schools,” Galvin said in a staement. “The market relies on the insurance provided by these companies to price the bonds and to insure that investors get paid in the event of a default. If the credit quality of these companies comes into question, the impact on cities and towns is enormous, raising costs to municipalities and increasing investors’ risk.”
(By Chris Reidy, Globe staff)

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

State Street names new treasurer

State Street Corp. today announced the appointment of executive vice president David J.
Gutschenritter to treasurer.

State Street of Boston is a provider of financial services to institutional investors

Gutschenritter, 50, will be responsible for oversight of State Street’s balance sheet,
investment portfolio, liquidity, and interest rate risk management activities worldwide, the company said.

In this capacity he will continue to report to Edward J. Resch, State Street’s chief financial officer, the company said.

Gutschenritter joined State Street in 2004 as the director of capital planning, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:39 AM | Comments (0)

Dunkin' Donuts unveils YouTube contest

Dunkin' Donuts said today that it recently launched a Dunkin' Donuts brand channel on YouTube, the online community that allows people to discover, watch, and share originally created videos.

Through March 1, US consumers are invited to create videos to share on YouTube; the Canton-based coffee-and-baked goods chain is asking consumers to answer the question, "How Do You Keep America Running?"

A panel of judges will evaluate the submissions, and visitors to the site will rate the videos to determine 50 winners who will receive a year's supply of Dunkin' Donuts coffee, said the chain, which added that the top 10 videos may also be featured on www.DunkinDonuts.com and other web sites.

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

Alnylam reports positive data for midstage drug trial

Biopharmaceutical company Alnylam Pharmaceuticals Inc. said today that midstage study results of its experimental therapy ALN-RSV01 for the treatment of a respiratory disease showed it is safe, well-tolerated and worked against the virus.

Shares of Cambridge-based Alnylam jumped $3.50, or 11.5 percent, to $34 in premarket trading; Alnylam shares trade on the Nasdaq Stock Market.

In the study of ALN-RSV01 versus placebo, 88 adult subjects were experimentally infected with a clinical strain of RSV.

Respiratory syncytial virus, or RSV, is the most common cause of bronchiolitis and pneumonia among infants and children under 1 year of age, according to the Centers for Disease Control and Prevention.

The subjects received ALN-RSV01 or placebo in a nasal form for five consecutive days.

The company said the drug candidate showed "statistically significant" anti-viral activity related to symptoms and the drug's effects on the infection.

"We are very pleased with the results of GEMINI (the study) and look forward to advancing this program to its next stage of development, a Phase II study in naturally infected adult patients which we expect to initiate in the first half of this year," chief executive John Maraganore said.

ALN-RSV01 is a gene-silencing technology, which is aimed at switching off genes at the root of a condition.

The complete results of the study are to be presented at the International Symposium on Respiratory Viral Infections meeting Feb. 28- March 2 in Singapore. (AP)

Posted by globebusiness at 9:56 AM | Comments (0)

Study: Fans will splurge on Super Bowl spending

Recession? What recession?

"Though Americans may be watching their pennies on everyday items, millions of consumers refuse to cut corners for the Super Bowl," said the National Retail Federation, which projects that Super Bowl-related spending this year should reach $9.5 billion.

And, presumably here in the Hub, where the New England Patriots are the current cynosure of local sports buffs and one of the teams playing in the big game, consumer spending could be even more brisk.

Citing a Super Bowl Consumer Intentions and Actions Survey, the National Retail Federation said that sales on televisions and furniture will increase over last year in anticipation of football’s biggest day.

This year, consumers plan to purchase 3.9 million televisions for Super Bowl Sunday, up more than 50 percent from 2.5 million last year, the federation said.

In addition, viewers plan to purchase 1.8 million pieces of furniture, up from 1.3 million last year, the federation noted.

Consumers plan on spending an average of $59.90 on Super Bowl-related merchandise, up from last year’s $56.04, the federation added.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:47 AM | Comments (0)

Parametric earnings beat expectations

Product-development software maker Parametric Technology Corp. said today its fiscal first-quarter profit declined, hurt by a restructuring charge and other items, but adjusted earnings surpassed Wall Street's expectations.

For the quarter ended Dec. 29, the Needham company earned $9.9 million, or 8 cents per share, down 35 percent from $15.2 million, or 13 cents per share, in the same period a year earlier.

Excluding restructuring charges, stock-option costs and other items, the company earned $31.1 million, or 26 cents per share, in the latest quarter.

Revenue rose 9 percent to $241.2 million from $221.7 million.

Analysts, on average, were expecting a profit of 23 cents per share on sales of $240.8 million, according to a poll by Thomson Financial.

The company said its acquisition of CoCreate Software GmbH helped boost the quarter's margins. Revenue grew 23 percent in Europe and declined 2 percent in North America.

Parametric's products include design, manufacturing and engineering software.

Shares rose 58 cents, or 4.1 percent, to $14.65 in premarket electronic trading. Parametric shares trade on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 9:33 AM | Comments (0)

IBM buys another Mass. company

IBM Corp. today announced it is expanding its business event processing software portfolio by acquiring AptSoft Corp., a tiny privately-held Burlington software company.

Financial details were not disclosed.

A Globe story from earlier this month noted that technology giant IBM of Armonk, N.Y., had acquired nine Massachusetts software companies and has nearly 5,000 employees in the BAy State; in November, IBM announced plans to buy Cognos Inc., a Canadian company with 390 employees in Massachusetts, for nearly $5 billion.

AptSoft, which does not disclose revenues, has 11 employees, an IBM spokeswoman said.

  AptSoft technology helps businesses uncover the cause-and-effect relationships among seemingly disparate business events that occur in milliseconds or throughout defined periods of time, said IBM, which added that AptSoft's business event processing software further illustrates IBM's commitment to pursuing the service oriented architecture (SOA) market opportunity and will complement IBM's existing SOA software and related services offerings that span the WebSphere, Information Management and Tivoli brands as well as RFID and Web 2.0 capabilities and industry-specific solutions.
(By Chris Reidy, Globe staff)

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

Aveksa raises $12 million in funding

Aveksa Inc. announced today that it has raised $12 million in Series B funding.

Waltham-based Aveksa provides enterprise access governance solutions.

The Series B round was led by FTVentures, a growth capital investor with offices in San Francisco and New York City.

The capital will be used to fuel the market expansion of Aveksa's access governance solutions as well as scale general operations to support recent customer wins and a growing sales pipeline, Aveksa said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:14 AM | Comments (0)

Red Cross blood donors motivated by free joe

The American Red Cross said blood donations so far in January have increased, due in part to a partnership with Dunkin' Donuts, the Canton-based coffee-and-baked goods chain.

A program called "Pound for a Pint" offers a coupon for a free pound of Dunkin' Donuts coffee to all presenting blood donors at American Red Cross blood drives.

As of mid January, more than 45,000 free pounds of coffee had been given away, said the American Red Cross, which added that it was at 111 percent of goal for the first two weeks of January, with over 4,300 additional units of blood over the same period last year.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:55 AM | Comments (0)

Interleukin Genetics names new chief executive

Interleukin Genetics Inc. announced today that it has appointed Lewis H. Bender chief executive.

Interleukin Genetics of Waltham is a genetics-focused health company that develops preventive consumer products and genetic tests for sale to the emerging personalized health market.

The company said it expects to add Mr. Bender to its board of directors before the board's next regularly scheduled meeting and added that Thomas R. Curran, Jr., who served as interim chief executive since July, will continue to serve as a member of Interleukin's board of directors.

Previously, Bender was chief technology officer and interim chief executive of Emisphere Technologies Inc, a biopharmaceutical company, Interleukin Genetics said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:38 AM | Comments (0)

Report: Mortgage refinancings are up

Refinancing drove an increase in mortgage applications in the most weekly survey from the Mortgage Bankers Association, a group that represents the real estate finance industry.

For the week ending Jan. 18, the survey's market composite index, a measure of mortgage loan application volume, was 981.5, an increase of 8.3 percent on a seasonally adjusted basis from the previous week's reading, the association said.

On an unadjusted basis, the index was up 63.7 percent compared with the same week one year earlier, the association said.

"Refinance applications are up 92 percent since the beginning of November, and purchase applications are up 7 percent," association vice president Jay Brinkmann said in a statement. "With tighter credit conditions, we do not know how many of these applications will become loans, but it is clear that borrowers are responding to the 40-80 basis-point drop we have seen since Nov. 2 across all products."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:26 AM | Comments (0)

January 22, 2008

Property firm settles discrimination case

A property management firm has agreed to pay as much as $158,000 to settle allegations that it discriminated against Cambodian-Americans who tried to rent apartments, the US Department of Justice said today.

Pine Properties Inc. and six affiliate companies would pay up to $114,000 to compensate victims under the settlement, which is subject to approval by a federal judge in Boston. The settlement also requires Pine Properties to pay a $44,000 fine and take steps to ensure it doesn’t practice further discrimination.

The defendants, who own and operate 13 rental properties in Lowell, refused to show available apartments to Cambodian-Americans who didn’t have appointments, while white people were shown apartments immediately without appointments, the department said.

A phone message seeking comment from Pine Properties was not immediately returned.

The government sued in September, alleging violations of the Fair Housing Act. The Justice Department said the lawsuit was the first the agency has ever filed alleging discrimination against Asian-American based on its fair housing testing program.

The case grew out of Operation Home Sweet Home, an initiative to enforce fair housing laws using people who pose undercover as prospective tenants or homeowners.

(AP)

Posted by globebusiness at 4:24 PM | Comments (0)

Artificial heart's upgrades win FDA approval

The Food and Drug Administration has approved system upgrades for Abiomed Inc.’s AbioCor implantable replacement heart.

The device replaces severely damaged hearts in patients who are not eligible for a transplant or other treatments.

Danvers-based Abiomed announced the approval today.

AbioCor will be made available to a maximum of 4,000 people in the United States each year.

Abiomed has selected four sites so far as AbioCor centers: Johns Hopkins Hospital in Baltimore; Robert Wood Johnson University Hospital in New Brunswick, N.J.; Texas Heart Institute at St. Luke’s Episcopal Hospital in Houston; and St. Vincent’s Hospital in Indianapolis.

The company said it expects to charge $250,000 per AbioCor unit.
(AP)

Posted by globebusiness at 1:58 PM | Comments (0)

Talbots brand hires new merchant

Talbots Inc. said today it has named Lizanne Kindler to the post of senior vice president of merchandising and general merchandise manager of the Talbots brand.

The Hingham-based retailer primarily known for selling apparel to women 35 and older is looking to reinvigorate its brand; earlier this month, it unvelied plans to exit its Talbots Kids and Talbots Mens businesses as well as plans to down-size its work force by about 5 percent.

  Kindler, 38, was most recently senior vice president and general merchandising manager of Ann Taylor Loft, a unit of Ann Taylor Stores Corp., said Talbots, which also markets the J. Jill clothing brand.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:32 PM | Comments (0)

Urban condo sales, prices fall

The volume of condominium sales in many Boston neighborhoods fell 12 percent in the fourth quarter, as the median sales price for a condo dipped 4.1 percent to $465,000 from the same period a year ago, Listing Information Network reported today.

The firm, known as LINK, tracks condo sales activity in many Boston neighborhoods including the Back Bay, Beacon Hill, and Charlestown.

During the fourth quarter, 638 condos were sold in the neighborhoods that LINK follows, down from 725 condos that were sold in the fourth quarter of 2006, according to LINK.

In an e-mail, LINK president Debra Taylor Blair attributed the sales decline to the impact of sub-prime mortgage lending crisis on the economy.

For all of 2007, the number of urban condos sold in its territory was 3,466, down 0.03 percent from 3,467 condos sold during 2006, according to LINK.

The 2007 median selling price for an urban condo was $460,000, up 2.7 percent from the 2006 median selling price for 2006, LINK figures showed.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:08 PM | Comments (0)

PAR Capital invests in AirTran

Boston-based investment fund PAR Capital Management has taken a 5.1 percent passive stake in AirTran Holdings Inc., the parent company of AirTran Airways, according to a Securities and Exchange Commission filing today.

PAR Capital reported owning 4.7 million shares of the Orlando, Fla.-based company.

PAR Capital disclosed the stake in a Schedule 13G filing, which indicates the investment is passive, and notes that the shares weren't acquired to change or influence control of the company.

PAR Capital Vice President Edward L. Shapiro holds a seat on US Airways Group Inc.'s board.

AirTran shares rose 2 cents to $7.36 in morning trading.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:51 AM | Comments (0)

Whole Foods sacks plastic bags

Whole Foods Market Inc. announced today it will end the use of disposable plastic grocery bags at the checkouts at its stores with the goal to be plastic bag-free by Earth Day, which is April 22 this year.

Whole Foods Market is a Texas-based chain of 270 supermarkets with a focus on natural and organic foods; Whole Foods acquired the Bread & Circus chain in 1992 and now has 18 stores in Massachusetts.

“Central to Whole Foods Market’s core values is caring for our communities and the environment, and this includes adopting wise environmental practices,” A.C. Gallo, company co-president and chief operating officer, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:49 AM | Comments (0)

Local firms make best to-work-for list

Two law firms with Boston offices - Bingham McCutchen and Nixon Peabody LLP - were among companies with local ties that landed on Fortune magazine's annual list of 100 best companies to work for.

Google Inc. topped the list, and familiar names on the 100 best included Starbucks Corp. (7) and righteous greengrocer Whole Foods Markets Inc. (16).

Local firms cited by Fortune, in addition to the two law firms, included Boston Consulting Group (11) and Bright Horizons Family Solutions, the Watertown company that provides such services as day-care to employers (89).

On Fortune's list, Bingham McCutchen punched in at 41 and Nixon Peabody at 66.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:40 AM | Comments (0)

Mass. lands labor convention

The Massachusetts Convention Center Authority today announced that the American Federation of State, County, and Municipal Employees will hold its 39th international convention at the Boston Convention & Exhibition Center in 2010.

The event for one of the country's largest labor unions is scheduled to take place from June 21 through July 2, 2010, and is expected to attract more than 5,000 attendees, the authority said.
(By Chris Reidy, Globe staff)

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

Shake-up planned at Metro Boston

Metro International S.A. is shaking up its struggling Metro Boston newspaper, with the abrupt departure of the paper's publisher and staff cuts planned at the free daily, according to several Metro employees briefed on the matter.

In Boston, Metro plans to eliminate its Gameday Sox section, a sports editor, the T-Time editor, and about eight sales positions, said the employees.

Stuart Layne, who was hired as Metro Boston's publisher in December 2006, said his departure last night was a resignation. Several employees said Layne resigned under pressure.

The New York Times Co., which owns the Boston Globe and has a 49 percent stake in Metro Boston, is likely to take a larger role in running the Metro Boston operation, the employees said. A New York Times spokeswoman and Boston Globe spokesman declined comment.

"The Globe and the Metro were taking a different direction than what I was brought in for. I was brought in to grow the business. It didn't grow was fast as the joint venture had hoped," Layne said today in a phone interview.

No replacement for Layne has been named.

Rob Patterson, chief executive of the US Metro properties, met in Boston yesterday and today with the publishers of the three papers. Other cuts and leadership changes are expected at the Metro newspapers in Philadelphia and New York. All three US Metro papers are up for sale. Patterson, who could not be reached for comment, is expected to announce the changes today.

The US newspapers -- Metro Boston, Metro New York, and Metro Philadelphia -- have been a drag on the company's earnings in recent years, losing more than $10 million in the past 12 months, according to company filings. In October, Metro International said it began a strategic review of its underperforming operations.

Representatives from billionaire Philip Anschutz's newspaper company, which publishes free daily papers under the Examiner name, were approached by the company handling the sale of the papers. But Anschutz, who owns free newspapers in San Francisco, Baltimore, and Washington D.C., was not interested, according to a spokesman.

Metro's US papers are free newspapers published Monday through Friday targeting young professionals. The papers, handed out at city subway stations, are designed for a 20-minute read during morning commutes.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 10:12 AM | Comments (0)

Hologic sells rights to preterm birth drug

KV Pharmaceutical Co. said today that it is buying the rights to Hologic Inc.'s Gestiva drug for the prevention of preterm birth, in an $82 million cash deal.

Gestiva is pending approval from the Food and Drug Administration. The drug's proposed indication is for women with a history of at least one spontaneous preterm delivery who are pregnant with a single fetus.

The FDA issued an "approvable" letter for Gestiva in October 2006, and final approval is expected in late 2008.

The FDA has granted Gestiva an orphan drug designation, given to drugs that treat underserved diseases and conditions. Companies generally receive tax breaks, clinical-trial help and years of marketing exclusivity if approved.

St. Louis-based KV Pharma develops, acquires, makes and markets branded and generic prescription drugs. Bedford, Mass.-based Hologic makes diagnostic and medical imaging systems. (AP)

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

Waters profit disappoints analysts

Waters Corp., which makes analytical instruments, said today that fourth-quarter profit rose 24 percent, but fell below analysts' expectations.

The company reported net income of $98.9 million, or 96 cents per share, compared with $79.9 million, or 78 cents per share, in the year-ago period.

Fourth-quarter 2006 results include restructuring and other expenses related to a cost-reduction plan implemented in February 2006, as well as an impairment charge of $5.8 million. On an adjusted basis, fourth-quarter per-share earnings rose 17 percent to 98 cents from 84 cents.

Total sales rose 13 percent to $437 million from $386.9 million in the fourth quarter of 2006.

Analysts polled by Thomson Financial, on average, estimated earnings of $1.06 per share on sales of $437.2 million.

For the full year, Waters' net income rose 21 percent to $268.1 million, or $2.62 per share, from $222.2 million, or $2.13 per share, in 2006.

Total sales for 2007 jumped 15 percent to $1.47 billion from $1.28 billion.

The company said fourth-quarter results fell below its expectations as a result of weaker sales in Japan and a higher-than-anticipated tax rate for 2007. (AP)

Posted by globebusiness at 9:26 AM | Comments (0)

Smith & Wesson suspends guidance

Legendary Springfield gunmaker Smith & Wesson Holding Corp. announced today that it has suspended providing financial guidance for the balance of fiscal 2008, which ends April 30, 2008.

In a statement, company president and chief executive Michael F. Golden said: "We, like many other companies doing business today, find ourselves now in an uncertain business environment. We remain firmly convinced that our established strategy to grow our core firearms business and to continue to look for opportunities to diversify the company into new areas of safety, security, protection, and sport is the correct strategy. What has changed, and it has changed profoundly, is the fact that the current business and economic environments are extremely unsettled. As a result, we do not confirm the financial guidance we gave on December 6, 2007, nor are we giving any financial guidance at this time. We intend to remain focused on our long term strategy and we hope to be able to resume providing financial guidance when trends in our environments become clearer."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:21 AM | Comments (0)

Abiomed heart gets regulatory approval

Danvers medical device company Abiomed Inc. today announced that it has received supplemental regulatory approval for its AbioCor artificial heart.

Abiomed said the US Food and Drug Administration has granted a Humanitarian Device Exemption supplement approval on the system.

The company said the AbioCor is intended to replace the severely damaged native heart for patients who are not eligible for a transplant and have no other treatment alternative; the AbioCor is a completely self-contained artificial heart that may allow patients more time at home, without wires or tubes piercing through their skin, the company said.

According to Abiomed, its technology provides patients with complete mobility and remote diagnostics.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:34 AM | Comments (0)

iRobot issues preliminary results

Burlington robot-maker iRobot Corp. announced today that it anticipates revenue for the fourth quarter of 2007 in the range of $98 million to $100 million and revenue for the full year 2007 in the range of $248 million to $250 million.

The company makes military robots designed to scout battlefields as well as robots for consumers such as the Roomba, which can do home vacuuming chores.

In a statement, iRobot chief executive Colin Angle said: "I am extremely pleased to report that we anticipate fourth quarter and full year revenue to be in line with our expectations following a successful holiday season for our new iRobot Roomba 500 Series robot, despite widely reported weakness in general retail. The company's Government & Industrial Robots business also made a strong contribution to the quarter. There also were two one-time events in the fourth quarter that impact fourth quarter and full year profitability: an anticipated income tax valuation reversal of at least $8 million and estimated litigation and settlement costs of approximately $1.6 million associated with the resolution of a lawsuit against Robotics FX that we announced last month."

Angle also said: "On a GAAP basis, we are expecting pre-tax profit between $12.1 million and $12.6 million for the fourth quarter and a pre-tax profit for the full year between $500,000 and $1 million. These results reflect the litigation settlement costs and lower than expected gross margins."

The company said it will announce its fourth quarter and full year 2007 financial results after close of market on Feb. 19.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Stop & Shop donates $110k to Boston Food Bank

Stop & Shop Supermarket Cos. said its president and chief executive Jose Alvarez has presented a check worth $109,994 to representatives of the Greater Boston Food Bank.

Headquartered in Quincy, Stop & Shop operates nearly 400 grocery stores in much of the Northeast.

The funds are part of what was raised during the 2007 “Food for Friends” campaign, which brought in a total of more than $1.24 million during the holiday season, said Stop & Shop, which added that the total represents the most the campaign has raised in its 18-year history.
(By Chris Reidy, Globe staff)

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

Green Mountain joins global warming effort

Green Mountain Coffee, a division of Green Mountain Coffee Roasters Inc, said it has joined a nationwide effort to raise awareness and generate solutions surrounding global warming issues.

Green Mountain Coffee of Waterbury, Vt., said it has signed on as a sponsor of Focus the Nation, a national teach-in on global warming that includes more than 1,000 universities, colleges, high schools, faith groups, civic organizations, and businesses.

"Protecting the environment is one of our core corporate values," Paul Comey, Green Mountain Coffee's vice president of environmental affairs, said in a statement. "We've been working to reduce our carbon footprint for years, but there's always more we can do."
(By Chris Reidy, Globe staff)

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

BAE Systems to open Lexington facility

British defense conglomerate BAE Systems said it will open a new electro-optics and infrared design center in Lexington tomorrow that employs 96 people.

The center will expand the company's ability to deliver such products as night-vision goggles to US military forces around the world, BAE Systems said.
(By Chris Reidy, Globe staff)

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

Comverse product earns magazine award

Comverse announced today that Internet Telephony magazine has named its MyCall Converged Communications solutions for VoIP-based fixed-mobile convergence services as a recipient of its 2007 Product of the Year Award.

Comverse of Wakefield is a provider of software and systems enabling network-based messaging and content value-added services, converged billing, and IP communications.

According to Comverse, its MyCall Converged Communications enables operators to deliver consumer telephony and messaging across users' PCs, home phones, and mobile devices with a single, unified customer interface and address book.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:17 AM | Comments (0)

Boston Scientific gets approvals

Boston Scientific Corp. announced CE Mark approval for its Cognis cardiac resynchronization therapy defibrillator and Teligen implantable cardioverter defibrillator.

According to the Natick-based medical device company, these devices represent entirely new platforms to treat heart failure and sudden cardiac death and are the result of a multi-year research and development effort to provide physicians enhanced clinical options for their patients.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:12 AM | Comments (0)

Art Technology Group buys CleverSet

Art Technology Group Inc. announced today that it has agreed to buy CleverSet for about $10 million in cash, less closing adjustments of approximately $1 million.

Cambridge-based Art Technology Group, or ATG, provides software and on-demand solutions that companies use to power their e-commerce websites, attract prospects, and convert them to buyers and loyal, repeat customers.

CleverSet of Seattle is focused on the rapidly growing field of automated personalization engines that are used to optimize e-commerce experiences by presenting visitors with relevant recommendations and information.

The transaction is subject to customary closing conditions, including the approval of CleverSet's stockholders, and is expected to occur in the current quarter, said ATG, which added that the transaction is expected to be accretive on a non-GAAP diluted per share basis in 2009.
(By Chris Reidy, Globe staff)

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

January 21, 2008

Cable TV rates on the rise

The price of watching CNN, ESPN and other pay-television networks is going up -- again. Comcast, RCN, Verizon and satellite providers are all increasing their rates.

Comcast Corp., the state's largest cable TV provider with about 1.6 million customers in Massachusetts, plans to raise rates an average of 4 percent next month.

In Somerville, for instance, on Feb. 1 Comcast plans to raise the rates for standard cable by $2.59 to $46.44. Comcast plans to raise the cost of its digital starter package by $2.59 to $50.43.

The exact prices vary by town and package. Comcast noted that it does not plan to increase rates its $99 "triple play" package, which includes cable TV, Internet and telephone service.

Consumer advocates have complained for years that cable TV prices around the country have risen much faster than inflation. But the cable industry says it has also provided customers provided with a growing array of channels and services, such as high-definition signals and video on demand, which drive up the cost of service.

“Price adjustments reflect the increased value of our services,'' said Comcast spokesman Jim Hughes. "Additionally, we have hired more than 1,000 new employees, the vast majority of whom directly support customers in their homes, on the telephone and online.

Cable and satellite TV providers also cited increasing programming costs -- the fees they pay for access to channels like MTV and ESPN.

Comcast isn't the only cable company charging more. RCN Corp., which has about 75,000 TV customers in Massachusetts, said it raised rates about 5 percent for some customers in November. The company said it increased rates for basic and expanded cable TV service by $2.99 to nearly $60. But the cable provider said it decided to freeze prices for popular packages that also include Internet or phone service.

"Most customers didn't see an increase," said Richard Wadman, RCN's vice president and general manager for the Boston market, noting the company is continuing its efforts to gain market share. Wadman said RCN decided to raise rates for TV-only customers because it is facing higher costs for programming.

Verizon Communications Inc. plans to raise rates for its most popular package by 12 percent on Feb. 17. Spokesman Phil Santoro said it will hike prices for its main television package, FIOS premier, by $5 to $47.99 for new customers. Current customers will not be affected, he said, because their rates are locked in for two years from the time they signed up for service. The phone giant reported it had nearly 12,000 TV-only customers in Massachusetts at the end of 2006, but declined to give a updated figure.

The country's two largest satellite TV operators, DirecTV and EchoStar Communications Corp.'s Dish Network, also are boosting prices for some packages.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:09 PM | Comments (0)

January 18, 2008

MassMEDIC program wins grant

The John Adams Innovation Institute today announced that it has awarded a $150,000 grant to a business-coaching program of MassMEDIC, the state's medical-device industry council.

The John Adams Innovation Institute is the economic development division of the Massachusetts Technology Collaborative, and its investment programs aim to foster and grow industry clusters in the various regions and sectors of the knowledge-based economy in Massachusetts.

MassMEDIC calls its business-coaching program MedTech IGNITE, and the program's mission is to link start-up companies with industry mentors.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:07 PM | Comments (0)

E Ink hires two new vice presidents

E Ink Corp. today announced the addition of Sriram Peruvemba as vice president of marketing and Paul Apen as vice president of business development.

E Ink, a Cambridge-based developer and marketer of electronic paper display technology, has attracted attention recently because its technology is used in Kindle, the much ballyhooed new e-book gadget from Amazon.com.

Most recently, Peruvemba was associate director of display products at Sharp Electronics; before joining E Ink, Apen was the global business manager for Honeywell International Inc.'s electronic polymers business, E Ink said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:43 AM | Comments (0)

Report: Global entrepreneurship is key to growth

Encouraging global entrepreneurship is vital to improving economic growth worldwide, according to the ninth annual Global Entrepreneurship Monitor Global Report.

Released today, the report was directed by Babson College of Wellesley and London Business School.

In high-income countries, between 10 and 40 percent of early-stage entrepreneurs expect 25 percent or more of their customers to come from outside their country, said the report, which also found that the more burdensome a country's business regulations, the lower the entrepreneurs' expectations for growth.

The report recommends that entrepreneurs organize to achieve political influence to liberalize trade and investment policies on an international level. Babson College and London Business School said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:17 AM | Comments (0)

Boston pay is higher than national average

For many occupations, 2006 average pay was 12 percent higher in the Greater Boston than the national average, the Bureau of Labor Statistics said today.

Part of the US Department of Labor, the bureau issued a report on "occupational pay relatives" in major metro areas in New England, and the pay relatives of workers in both the Boston-Worcester-Lawrence and the Hartford metropolitan statistical areas was 112, meaning that pay, on average, was 12 percent higher in those areas than it was for the nation as a whole, the bureau said.

According to the bureau, occupational pay relatives are a calculation of pay that includes wages, salaries, commissions, and production bonuses to facilitate comparisons of occupational pay among metropolitan areas and the United States as a whole.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

National Grid debuts new electricity bill

National Grid PLC said that starting this month its 1.7 million New England electric customers will receive newly designed bills that aim to improve readability and provide more information.

According to the company, the new bill has a cleaner appearance, is more user friendly, and easier to understand than the current bill; improvements include placement of the bill amount, due date, account number, and billing period at the top of the page, and the bill also features an electric usage graph that shows the customer’s twelve-month usage history.

National Grid delivers electricity to about 3.3 million customers in Massachusetts, New Hampshire, New York, and Rhode Island.

Last year, National Grid acquired KeySpan Corp. of Brooklyn, N.Y., for $7.3 billion. As of November, the utility giant also had 3.4 million natural gas customers in Massachusetts, New Hampshire, New York, and Rhode Island.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:57 AM | Comments (0)

Decision Biomarkers unveils biomarker work station

Decision Biomarkers Inc. announced today the launch of the Avantra biomarker workstation, along with its Max Biochip 8-plex cytokine immunoassay.

The privately held Waltham company provides technology that helps biotech and pharmaceutical companies examine drug candidates and bring new medicines to market more quickly.

The workstation system's ease-of-use enables users to generate data in real-time, accelerating decision making and improving project productivity, said Decision Biomarkers, adding that the Avantra biomarker workstation is the first multiplexed immunoassay system that enables nonspecialized technicians to perform complex protein biomarker analyses in both the lab and directly at clinical trial sites.

According to Decision Biomarkers, its system eliminates the need to send samples out to a specialized lab.
(By Chris Reidy, Globe staff)

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

IBM upgrades outlook

Stellar performance overseas prompted IBM Corp. to upgrade its outlook for 2008 despite economic uncertainty at home, raising the question of whether an increasingly diverse IBM still should be considered a bellwether for other U.S. tech companies.

Investors responded to yesterday's report by sending IBM shares up $4.34, more than 4 percent, to $105.44 in morning trading today on the New York Stock Exchange.

According to a Globe story last week, IBM has nearly 5,000 employees in Massachusetts, and it agreed in November to buy Cognos Inc., a Canadian company with 390 employees in Massachusetts.

While many companies are warning of a recession in the U.S. and issuing cautious guidance, IBM advised analysts to increase their expectations. Chief Financial Officer Mark Loughridge said earnings should be $8.20 to $8.30 per share this year, well ahead of the $7.94 analysts had been forecasting.

The optimism was striking because of the cloudy economic backdrop and IBM's reliance on the troubled financial-services industry for more than one-fourth of its revenue. Plus, IBM is typically conservative on such predictions.

"They certainly defied conventional wisdom," said Shaw Wu, an analyst with American Technology Research.

Loughridge acknowledged that "we have an uncertain economic environment that we're working through along with the rest of the business world." But he expects IBM to be carried by its aggressive investments to expand its sales efforts in developing markets. He said the chance to help establish computing networks in such places as Eastern Europe, Vietnam and China amounted to "the gold rush of the 21st century."

Analysts were particularly struck by Loughridge's revelation that more than one-fifth of IBM's revenue now comes from countries where IBM's sales are growing better than 10 percent. In comparison, IBM's U.S. revenue rose just 2 percent.

And many analysts expect worldwide spending on information technology overall to grow at the low end of its usual range this year.

In other words, IBM's optimism reflects the particulars of its size and ever-more international focus -- and might not say much about the prospects for most other tech companies. Even Intel Corp., which gets 75 percent of its revenue outside the U.S. -- more than IBM's 65 percent -- issued financial guidance this week that was cautious because of U.S. economic pressures.

IBM is "kind of a unique case," Wu said. "There's not a lot of guys having this capability. IBM might not be the best barometer anymore."

In the last three months of 2007, IBM earned $3.95 billion, or $2.80 per share, on revenue of $28.9 billion. The net profit rose 12 percent from a year earlier, when IBM made $3.54 billion, $2.31 per share, on revenue of $26.3 billion.

IBM's 10 percent revenue gain would have been 4 percent if not for weakness in the dollar. Payments in other currencies now translate into more dollars.

IBM had released the per-share and revenue figures Monday because the numbers were well beyond Wall Street's forecasts. Analysts surveyed by Thomson Financial had been expecting $2.60 per share on revenue of $27.8 billion.

Thursday's report revealed IBM's net numbers and segment details, showing that the company continues to increase its reliance on software, its most profitable product line.

The software division's revenue rose 12 percent to $6.3 billion. The gain would have been 6 percent if not for weakness in the dollar.

Services revenue leaped 17 percent to $14.9 billion. The increase would have been 10 percent at constant dollar values.

In another closely watched measure, IBM services unit signed $15.4 billion in new contracts in the fourth quarter, down 13 percent. Those signings reflect revenue that will flow to the company in the coming years.

The hardware division's revenue dropped 4 percent to $6.8 billion. The revenue figure would have been flat from a year earlier if not for IBM's 2007 sale of its printing division.

A weak spot was IBM's crucial mainframe business, which saw a 15 percent sales decline. Loughridge said customers appeared to be waiting for a new mainframe model being released this winter.

For all of 2007, IBM earned $10.4 billion, $7.18 per share, on revenue of $98.8 billion. Those figures all rose from 2006, when IBM made $9.5 billion, $6.11 per share, on revenue of $91.4 billion. The revenue gain of 8 percent would have been 4 percent at constant currency values.
(AP)

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

Emcor says annual profits may exceed expectations

Emcor Group Inc., which provides electrical and mechanical construction services, said today its full-year 2007 earnings could exceed its previous expectation, citing a focus on stable divisions that remain strong through economic downturns.

The Norwalk, Conn., company said it expects earnings from continuing operations to meet or exceed a range of $1.75 per share to $1.80 per share.

Emcor said nearly half of its contract backlog is in sectors that aren't as vulnerable in an economic downturn, including healthcare, water and wastewater treatment, refinery maintenance, and transportation.

Emcor said it will offer 2008 guidance when it releases 2007 results in late February. (AP)

Posted by globebusiness at 8:40 AM | Comments (0)

Partners+Simons offers new service

Boston ad agency Partners+Simons said that Stephanie Rogers has joined the agency as senior director of its new contact planning department.

This new service helps clients navigate through the rapidly changing marketing landscape by looking at all available channels equally – from paid to unpaid, experiential to broadcast to digital, Partners+Simons said.

According to the agency, this approach provides objective analysis about which channels best reach a target audience; contact planning looks at everywhere constituents come into contact with a brand, and seeks to enhance those connections.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:55 AM | Comments (0)

UPC Wind says Hawaiian wind facility beats target

UPC Wind, a Newton-based wind power company, said that its Kaheawa Wind Power facility in Hawaii exceeded its production targets during 2007 commercial operations.

As Hawaii’s largest wind energy facility, the project known as KWP generated more than 125,000 megawatt-hours of clean electricity in 2007, UPC Wind said.

During the past year, KWP also continued to implement its Habitat Conservation Plan, designed to ensure a net conservation benefit for local endangered species, UPC Wind said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:44 AM | Comments (0)

MMWEC general manager is leaving the agency

The general manager of the Massachusetts Municipal Wholesale Electric Co. told MMWEC officials he has accepted a position as director of a consumer-owned utility in California, MMWEC said.

Headquartered in Ludlow, MMWEC is the joint action agency for consumer-owned municipal utilities in Massachusetts.

MMWEC said general manager Glenn O. Steiger has informed the agency that he will take a job at Glendale Water & Power in California, effective Feb. 22.

MMWEC chairman Michael J. Flynn announced that chief operating officer Ronald C. DeCurzio will be assuming the general manager’s responsibilities during the interim period, while the MMWEC will take whatever actions are appropriate to ensure a smooth management transition.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:40 AM | Comments (0)

Elixir may delay public stock offering

Elixir Pharmaceuticals, the Cambridge biotechnology company that was
expected to go public this week, has postponed its initial public
offering, according to IPOScoop.com.

A new date has not been publicly announced.

The eight-year-old company, which is developing drugs to
treat diabetes, obesity, and other diseases, has said it expects to
raise as much as $92 million.

As of Nov. 30, the company had 31 full-time and three part-time employees.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 7:31 AM | Comments (0)

January 17, 2008

Gillette Stadium will host NCAA lacrosse in 2009 too

The NCAA Men’s Lacrosse Championships will return to Gillette Stadium in 2009 and again be hosted by Harvard University, the National Collegiate Athletic Association announced today.

The 2008 championships, to be held on May 24 through May 26 of this year, were previously awarded to Harvard and Gillette Stadium, said the NCAA, which noted that the 2008 championships will mark the first time this NCAA event will be played in New England, one of the fastest growing lacrosse markets in the country.

The 2009 championships will also be played at Gillette, the NCAA said today.

Home to the New England Patriots and the New England Revolution soccer team, Gillette Stadium in Foxborough has a capacity of 68,756.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:57 PM | Comments (0)

Akamai shares rise on analyst's report

Shares of Akamai Technologies Inc. rose today after a Pacific Crest analyst said Akamai is delivering content for Apple Inc.'s new online movie rental service.

Shares of Cambridge-based Akamai, which provides services and technologies for distribution and storage of digital media, added $1.05, or 4.1 percent, to $26.93 in midday trading on the Nasdaq Stock Market. In the past year, the stock has traded between $25.13 and $59.69.

In a client note, Pacific Crest analyst Chad Bartley said that Akamai had refuted rumors that it lost business from Apple, but worries continued that the company might not provide delivery for future iTunes services.

But an analysis of network traffic data gleaned from renting a movie from Apple's new iTunes movie rental service showed Akamai is in fact delivering content for it, he said.

"This should be a positive for Akamai after the recent weakness in the shares," he said.

Bartley also estimated that work with Apple's rental service may generate incremental revenue of about $6 million and earnings of about 1 cent per share for the company in 2008, and even more in 2009.

Bartley rates Akamai shares "Outperform" with a 12-month price target of $45. (AP)

Posted by globebusiness at 12:50 PM | Comments (0)

IRobot accelerates new robot project

Burlington robot-maker iRobot Corp. said today that the Army has accelerated testing schedules for its program to develop a small unmanned ground vehicle, or SUGV.

The updated plan calls for iRobot to deliver 25 of these robots by April, iRobot said.

Modeled after iRobot's battlefield PackBot robot, the SUGV is a 30-pound tactical reconnaissance robot designed to assist soldiers in obtaining intelligence in dangerous or otherwise inaccessible areas.

The Army Evaluation Task Force will begin evaluation and testing of the robots in May; this effort is intended to provide an early capability of SUGV to soldiers in the field, iRobot said.

These evaluations will support the Army's production decision, which is expected in September, iRobot said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:03 PM | Comments (0)

Boston Scientific shares bounce on broker upgrades

Shares of Boston Scientific Corp. jumped to their highest price in about a month today after at least two brokerages upgraded the stock.

The shares, up over the last few sessions, advanced 53 cents, or 4.4 percent, to $12.58 in morning trading on the New York Stock Exchange as the broad market faltered.

Over the past 12 months, stock in the Natick-based medical device company has lost about a third of its value.

Citing attractive valuation, Morgan Stanley analyst Glenn Reicin this morning raised his rating to "overweight" and increased his year-end share price target to $15.

"We think the stock is trading close to a worst-case scenario," he wrote in a research note.

"Simply put, we think the market is discounting additional downside risk to earnings and is not giving the company much credit for recent strategic moves to improve profitability, the potential for additional cost-cutting moves or the possibility of its worldwide stent share holding up better than expected," Reicin said, adding that there could be further restructuring toward the end of the year.

Yesterday, Bank of America analyst Glenn Novarro upgraded his rating to "buy" and held his 12-month share price target at $15.

"We believe that a combination of restructuring, new product flow and valuation supports a more favorable risk/reward profile," he wrote in his Jan. 16 note. (Reuters)

Posted by globebusiness at 11:26 AM | Comments (0)

Agion earns some approvals

Agion Technologies Inc. announced today it has secured additional regulatory approvals for some of its silver-based antimicrobial solutions from government agencies in the United States and Switzerland.

The Wakefield company provides silver-based antimicrobial solutions that inhibit the growth of bacteria, mold, and fungus; Agion's antimicrobial technology has been incorporated into a variety of products including cell phones, water filters, and medical catheters.

The US Environmental Protection Agency has approved the Agion formulation for use in medical devices, equipment, and supplies, clearing the path for the Agion antimicrobial technology to be incorporated into various materials including plastics, fibers, coatings, films, and laminates that are used in the healthcare industry, the company said.

In addition, Agion announced that it has obtained approval for indirect food contact by the European Food Safety Authority; that approval opens the door for further development in Europe of Agion-protected antimicrobial products for food packaging, preparation, and storage, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:03 AM | Comments (0)

Perini casino project hits snag

Perini Corp., a building and civil construction company, said today that the developer of a Las Vegas casino-resort project it is working on received a loan default notice.

The company's Perini Building Co. division is the general contractor for the Cosmopolitan Resort and Casino, which is part of a $3 billion mixed used, urban high-rise development being built on the Las Vegas Strip.

Perini said it is currently in talks with 3700 Associates, which is led by real estate developer Ian Bruce Eichner, and Deutsche Bank so that the project's construction can continue. The company said its payments under the contract are current and that it is unable to assess what potential financial impact the loan default notice may have.

Approximately $1.4 billion in construction work is left as of Dec. 31, according to Perini.

The complex is set to be completed in December 2009. (AP)

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

Cognex names head of Japanese subsidiary

Electronic equipment maker Cognex Corp. said today that it appointed Dr. Makoto Inoue as president of its Japanese subsidiary, Cognex K.K.

Dr. Inoue began his new job Jan. 15 and oversees five offices and more than 100 Cognex employees. He replaces Hiro Ohgusu, who will remain on the company's board.

Dr. Inoue worked for more than 30 years with industrial machinery and equipment maker Komatsu Ltd. He has been a Cognex K.K. board member for 7 years.

Cognex, which has its headquarters in Natick, Mass., makes robotic eyes that can detect passing objects at high speeds. Its products are used by microchip and car and health care companies. (AP)

Posted by globebusiness at 10:42 AM | Comments (0)

Dunkin' hires muliticultural director

Dunkin' Brands Inc. today announced that Cirabel Lardizabal Olson will join the company in the newly created position of senior director of community relations and multicultural initiatives.

Dunkin' Brands is the Canton-based parent company of quick service brands Dunkin' Donuts, known for coffee and baked goods, and Baskin-Robbins, known for ice cream.

Olson will work closely with senior management to ensure organizational alignment on multicultural initiatives, while also leading the company's outreach efforts to national, state, and community-based organizations that represent important constituencies, including franchisees and an increasingly diverse consumer base, the company said.
(By Chris Reidy, Globe staff)

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

Papa Gino's, D'Angelo go trans fat free

Papa Gino’s Pizzeria and D’Angelo Grilled Sandwiches announced today the unveiling of a completely artificial trans fat-free menu at their more than 370 restaurants.

The restaurant chains, operated by the Papa Gino’s Holdings Corp. of Dedham, began working to eliminate artificial trans fat more than three years ago by replacing their cooking oil for fried foods, the company said.

Working with suppliers, Papa Gino’s and D’Angelo eliminated artificial trans fat in every facet of the menu from appetizers to desserts, and now guests at any Papa Gino’s or D’Angelo can order any product on the menu, including desserts, soups, and chips, with the assurance that zero artificial trans fats are in their selections, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:35 AM | Comments (0)

Kaspersky hires Duffy & Shanley

Providence ad agency Duffy & Shanley Inc. today announced the addition of a new client, Kaspersky Lab, a producer and distributor of Internet security software.

Kaspersky Lab has its US headquarters in Woburn, and its product portfolio contains a full range of security solutions for home users, small- and medium-sized businesses, and large corporations, Duffy & Shanley noted.

Kaspersky Lab awarded the account to the agency following a competitive review handled by Pile and Company, a Boston company whose services include conducting ad agency reviews.

Other Duffy & Shanley clients include such brands as Eurosocks North America, Narragansett Beer, and CVS, the agency said.
(By Chris Reidy, Globe staff)

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

EveryScape debuts interactive Cambridge

EveryScape Inc., in partnership with the Harvard Square Business Association, said it has debuted today an online interactive 3D replica of Cambridge that offers users a virtual tour of the city's landmarks, streets, and businesses.

EveryScape of Waltham is creating what it calls "The Real World Online" through a visual platform for local search that creates a virtual experience of all metropolitan, suburban, and rural areas; EveryScape will ultimately let users share their stories and opinions about real-life daily experiences against a backdrop ranging from streets and cities, communities, restaurants, schools, real estate, and the like.

In the case of Cambridge, Everyscape visitors to Cambridge can virtually walk through Harvard Square or tour the MIT campus in full detail at the company's Cambridge page.

Cambridge isn't the only community to get the Everyscape treatment; Aspen, Boston, Miami and New York are currently online at http://www.everyscape.com, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:36 AM | Comments (0)

Mass. unemployment rises

Massachusetts employers shed 2,700 payroll jobs in December, and the unemployment rate rose to 4.5 percent from 4.3 percent in November, the state Department of Workforce Development reported.

Massachusetts added about 24,000 jobs in 2007, a marked slowdown from nearly 35,000 added in 2006. After a strong start, job growth in the state slowed steadily in the face of rising energy costs, a slumping housing markets and a struggling national economy. Massachusetts added an average of about 5,000 jobs a month in the first quarter the year; in the last quarter months, the state lost an average of more than 1,000 a month.

In December, job losses were spread across most sectors. Construction, retail sales and manufacturing -- sectors vulnerable to energy costs, the housing market and slowing consumer spending -- all lost jobs.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 8:37 AM | Comments (0)

Bookings rise at Aspen Technology

Supply chain management software maker Aspen Technology Inc. said Wednesday its license bookings for its fiscal second quarter grew 10 percent to $66 million from $60 million in the prior-year period.

The company released only selected financial data for the quarter ended Dec. 31, as it is restating past finances.

The company ended the quarter with $131 million in cash, up 42 percent from $92.5 million in the prior-year period. Aspen said the second-quarter increase is due to strong license bookings as well as managing costs and expenses. However that was offset by a $4 million payment in December to pay off a loan, the company said.

Aspen also said it has requested the Nasdaq Listing Qualification Panel for an extension until Feb. 8 to file financial statements for the fiscal first quarter, which ended Sept. 30, 2007, and related reports with the Securities and Exchange Commission.

The company said if the panel fails to grant the extension it, its stock will most likely be delisted from the Nasdaq.

Aspen also said its accountant, Deloitte & Touche LLP, has decided not to audit the fiscal 2008 finances, but will complete review of the company's financial statements for prior years. Aspen said there was no disagreement between the two regarding any accounting principles or practices, financial statement disclosures or auditing procedures.

In June 2007, Aspen said it would restate additional financial results covering more recent periods due to accounting errors.

Aspen shares added 11 cents to $13.35 in after-hours trading after it gained 9 cents to close at $13.24 in the regular session. (AP)

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

Outcome names Campion medical director

Outcome Sciences Inc. announced today that it has appointed Dr. Francis X. Campion as medical director of provider programs.

The Cambridge company is a provider of clinical patient registries and quality improvement initiatives for evaluating and improving real-world outcomes.

As medical director, Campion will work with hospitals and physician professional societies to deliver clinical outcomes programs to improve clinical quality and patient safety, the company said.

In addition to his role at Outcome, Campion is the director for the complex chronic care disease management program at Harvard Vanguard Medical Associates, Outcome said.
(By Chris Reidy, Globe staff)

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

Lexington condo development breaks ground

Nauset Construction Corp. said it has broken ground on Lexington Place, a 30-unit condominium development "in the heart of historic Lexington."

The building will include "green features" as well as an array of amenities for residents such as a virtual concierge, fitness facility, living/club room for resident social and screening events, landscaped courtyards and heated, elevator accessed garage, said Needham-based Nauset.

The project will stand where the Battle Green Inn was located, and the condos have a suggested price range of $800,000 to $1.3 million, Nauset said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:20 AM | Comments (0)

Aylouche elected to Mass. Mortgage board

MassHousing, the state's affordable housing bank, said that its Mounzer M. Aylouche has been elected to a three-year term to the Massachusetts Mortgage Bankers Association Board of Directors.

As a relationship manager for MassHousing's Homeownership and Mortgage Insurance divisions, Aylouche, a Swampscott resident, works with MassHousing-approved lenders in Essex, Middlesex, Norfolk and Suffolk counties to increase awareness and expand the availability of MassHousing's affordable homeownership products, MassHousing said.

The Massachusetts Mortgage Bankers Association provides comprehensive member services to more than 400 corporate members.
(By Chris Reidy, Globe staff)

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

Mass. AG files for Fitchburg rate reduction

Attorney General Martha Coakley’s office said it filed for a $2.4 million reduction to a rate increase being sought by Fitchburg Gas and Electric Light Company’s electric division.

The request was made in connection with a petition filed by Fitchburg with the Department of Public Utilities to increase its distribution rates by $3.3 million this past fall, Coakley's office said.

If Fitchburg’s petition were allowed by the DPU, a typical residential or small business customer would see a 7.7 percent increase on their annual electricity bill, said the attorney general’s office, which added that it is seeking to limit this increase to no more than 2.2 percent.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:12 AM | Comments (0)

Converted Organics earns tax advantage

Converted Organics Inc. said today that a recycling facility it is building in New Jersey will be exempt from a new tax that will be levied on the majority of the state's solid waste facilities.

Based in Boston, Converted Organics is a development stage company dedicated to producing valuable all natural, organic soil amendment or fertilizer products through food waste recycling.

The New Jersey Recycling Enhancement Act, signed into law this week, levies a tax on most solid-waste recycling facilities in the state, noted the company, which added that the recycling facility it is building in Woodbridge, N.J., will not be subject to this law.

"Implementation of the Recycling Enhancement Act is positive news for Converted Organics and, we believe, has the potential to enhance our ability to attract customers," Edward J. Gildea, president of Converted Organics, said in a statement. "This new law provides additional motivation for waste haulers to contract with Converted Organics to recycle food waste that traditionally winds up in solid waste facilities."

When fully operational, the Woodbridge facility is expected to process approximately 78,000 tons of organic food waste, which will be diverted from landfills, and produce approximately 7,500 tons of dry fertilizer product and 6,700 tons of liquid fertilizer annually, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:04 AM | Comments (0)

January 16, 2008

Computer sales continued growing in 4th quarter

The rapid growth of computer shipments in 2007’s third quarter extended into the year’s final months, two research firms reported today.

Hewlett-Packard Corp. maintained its slight edge over Dell Inc. as the world’s largest computer maker.

The fourth quarter’s increase was roughly in line with the third quarter’s, when shipments rose at the fastest rate in nearly two years.

Framingham-based IDC said shipments in October through December rose 15.5 percent, to 77.4 million units, up from 67 million a year earlier.

Gartner Inc., of Stamford, Conn., pegged the growth at a slightly slower 13.1 percent, with 75.9 million units shipped, up from 67.1 million in last year’s fourth quarter.

In the third quarter, IDC reported year-over-year growth of 15.5 percent, while Gartner estimated 14.4 percent.

IDC said US computer shipments grew at a stronger-than-expected 8.8 percent in the fourth quarter, while Gartner put the US gain at 7.2 percent.

IDC said US and global gains were driven by growing popularity of mobile computers as well as shifts into new sales channels by Dell and Taiwan-based Acer Inc. Dell has recently begun selling through large retail chains such as Wal-Mart and Staples, in a departure from its direct-to-customer business model.

But IDC said it does expect the growth in PC shipments to slow.

IDC reported that 269 million PCs shipped in 2007, for annual growth of 14.3 percent.
Gartner counted 271.2 million units shipped last year, a 13.4 percent increase.
(AP)

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

NitroMed cuts jobs as drug faces more studies

NitroMed Inc. said it’s suspending the sales force for its drug to treat heart failure in black patients, BiDil, and cutting 70 jobs while it conducts additional studies to gain approval of a once-daily form of the medicine.

NitroMed will have restructuring charges of $2.5 million to $3 million in the first quarter and may cut additional jobs in the next several months, according to a statement on Business Wire. Cowen & Co. is advising the company on strategic alternatives.

BiDil, introduced in June 2005, was the Lexington company’s first approved drug and the first medicine that targets people of one race. At the time, a JP Morgan analyst, Corey Davis, said sales could exceed $500 million by 2010.

Prescriptions rose as much as 9 percent in the fourth quarter from the prior one, but a larger sales and marketing force than NitroMed can muster would be needed ‘‘for BiDil to achieve its full potential,’’ chief executive Kenneth M. Bate said in the statement.

BiDil’s key components are two generic medicines already sold in the United States. They failed to provide a clear benefit for the general population in earlier testing. A trial of the drug in African-Americans showed that those taking BiDil in addition to other heart-failure therapy had a 6 percent death rate, compared with 10 percent for those taking a placebo.

The drug has been criticized for its price, as much as $10.80 a day depending on the dose, and for possibly triggering lupus, a painful immune system disorder.
(Bloomberg)

Posted by globebusiness at 3:43 PM | Comments (0)

Larson will chair Greater Boston Chamber

The Greater Boston Chamber of Commerce announced today that Gloria Cordes Larson, president of Bentley College, has been chosen to serve as the new chair of the chamber.

Her two-year term will begin May 14, the chamber said.

Larson, who was the Massacusetts secretary of economic affairs from 1993 to 1996, will succeed Ralph Martin, a partner at the law firm of Bingham McCutchen LLP who has served as chamber chair since 2006, the chamber said.

Posted by globebusiness at 3:08 PM | Comments (0)

Reebok's Kaigler is moving to Nintendo

A long-time executive at Reebok International Ltd. is leaving the Canton-based athletic footwear and apparel brand to join the San Francisco Bay Area office of Nintendo of America, Nintendo said.

Denise Kaigler, a 16-year veteran of Reebok, will join Nintendo's new office in Redwood City, Calif., next month, said Nintendo, a Japanese interactive entertainment company known for such products as Wii.

Kaigler's current title at Reebok is head of global corporate communications and corporate citizenship; at Nintendo of America, her title will be vice president of marketing and corporate affairs, Nintendo said.

Kaigler also serves as head of corporate communications in the United States for the Adidas Group, the German sporting goods giant that bought Reebok in 2006 for $3.8 billion, Nintendo noted.
(By Chris Reidy, Globe staff)

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

Dunkin' unveils organizational realignment

Dunkin' Brands Inc. today announced a realignment of its organizational structure by combining the US and international teams for its Dunkin' Donuts and Baskin-Robbins brands.

Previously, US and international operations were under separate leadership, said the Canton-based company, which named two of its long-time executives to lead each brand.

The company, which was purchased by new owners in 2006, is embarked on major expansion plans that seek to turn Dunkin' Donuts, a stalwart in the Northeast, into a national powerhouse for coffee and baked goods.

Will Kussell, 49, was named president and chief brand officer for Dunkin' Donuts Worldwide; he formerly was Dunkin' Brands chief operating officer, a position that has been eliminated due to the realignment, the company said.

Srinivas Kumar, 45, previously vice president of international for Dunkin' Brands, will now assume the position of chief brand officer for the company's ice cream chain, Baskin-Robbins Worldwide, said the company, which added that Robert Rodriguez, president of Dunkin' Donuts US, was offered an opportunity to stay with the company but chose to leave to pursue other interests.

"This new alignment will result in a flatter and more streamlined organizational structure, while enhancing our ability to share innovations and best practices around the world," Jon Luther, Dunkin' Brands chairman and chief executive, said in a statement.

Dunkin' Brands said that at the end of 2006, there were 7,293 Dunkin' Donuts franchised restaurants and 5,838 Baskin-Robbins franchised restaurants and that those restaurants had system-wide sales of about $6.4 billion.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:14 PM | Comments (0)

Plans for One Kenmore development filed

After more than a decade of planning and major changes in size, use and even location, the developer of One Kenmore yesterday again filed plans with the city – this time reducing the number of residential units and adding a substantial amount of office space.

John Rosenthal, whose previous plans for a mixed-use development over the Turnpike between Kenmore Square and Fenway Park emphasized residential, with more than 600 planned condos or apartments, yesterday bent with the current market winds that are strong for commercial development but weak for housing.

He told the city he now wants to build almost 340,000 square feet of office space plus 100,000 square feet of retail shops and restaurants – and only 282 residences. Condos or rental apartments – that too will be determined by the market, but later, Rosenthal said yesterday.

The architect is Carlos Zapata Studios of New York.

Rosenthal’s project has evolved from the idea of a hotel and entertainment complex 10 years ago, to a $300 million complex with 29- and 23-story residential towers in 2003, to a more modest proposal that in recent iterations has been well received by the community and the powerful neighboring Boston Red Sox organization.

In 2005, One Kenmore was “moved,” from east of the Brookline Avenue bridge spanning the Turnpike to just west of it. With the support and partnership of the Red Sox, it will now be located along Beacon Street over the MBTA’s Yawkey Commuter Rail station, on land and air space previously designated for team owners’ use.

Rosenthal called it “smart-growth, transit-oriented development” and said he has presented a “dramatic site plan change,” with the tower closest to low-rise Audubon Circle reduced to seven floors.

The One Kenmore plans, which must undergo Boston Redevelopment Authority scrutiny over the next year or so, before construction can begin, call for less square footage in total than were in Rosenthal’s other recent proposals.

In its current proposal, One Kenmore would have a total of almost 1.3 million square feet – but about half of that would be parking. The plans call for towers of 22, 10, and 7 floors. Most recently, Rosenthal had proposed towers of 20 and 17 floors; his 2003 proposal for the location closer to Kenmore Square was for towers of 29 and 20 floors and five smaller buildings.

The plans still include two large parking garages, with a total of 1,360 parking spaces. About 660 of those would be for use by One Kenmore residents, tenants, and visitors. A public garage with about 700 spaces would serve the surrounding community, including workers in the nearby Longwood Medical Area.
(By Thomas C. Palmer, Jr., Globe staff)

Posted by globebusiness at 12:39 PM | Comments (0)

Harvard Pilgrim partners with Sovereign Bank

Harvard Pilgrim Health Care and Sovereign Bank today announced a joint marketing and operational partnership to provide businesses and their employees a bundled healthcare insurance offering.

According to the two companies, the offerings feature lower-premium, high-deductible health plans along with triple tax advantaged Health Savings Accounts, or HSAs.

One Harvard Pilgrim plan, the Best Buy HSA PPO, offers members the opportunity to save money on their annual premium by as much as 50 percent.

Meanwhile, the HSA offers individuals the opportunity to save for health expenses with pre-tax dollars; because there is no “use-it-or-lose-it” rule with HSAs, funds can be saved from year to year to accumulate tax free into a health savings “nest egg” for use later in life, the two companies said.

Based in Wellesley, Harvard Pilgrim is the state's second largest health insurer.

Sovereign Bank is owned by Sovereign Bancorp Inc. of Pennsylvania.
(By Chris Reidy, Globe staff)

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

Epix revises drug trial data and stock falls

Lexington biopharmaceutical company Epix Pharmaceuticals Inc. said today that its experimental treatment for Alzheimer's disease improves cognitive function but less than previously reported, based on revised midstage clinical trial data.

The stock fell sharply in midday trading.

Epix said it released the revised results from an 80-patient Phase IIa trial of PRX-03140 to correct previously undetected errors included in the earlier trial results.

The company said a third-party contract research organization had provided Epix with the prior data, which was subsequently reported in a recent press release.

The trial was designed to assess the effects of PRX-03140 following two weeks of treatment as a single therapy and separately in combination with donepezil, which is marketed by Eisai Inc. and Pfizer Inc. as Aricept. The company announced initial findings on Dec. 18.

On Wednesday, Epix said the revised data continued to show "statistically significant improvements" for the 150 milligram dosage, compared with placebo, in the cognitive function. The drug also still carried a favorable safety profile.

However, the company said the magnitude of the mean improvement at the higher 150 mg dosage declined.

Consistent with the earlier results, patients taking the 50 mg dosage of PRX-03140 by itself or in combination showed an improvement, but it was not significant.

In a note to investors, Cowen and Co. analyst Ian Sanderson brushed aside the importance of both the initial and revised results.

"Too much is being made of a short, small study," he said, noting the 150 mg single therapy group included only nine patients. "A transcription error for only one to two patients could have had a significant impact on the overall results."

Sanderson said longer and larger trials are needed to confirm PRX-03140's clinical effect. The company does plan to launch a Phase IIb trial early this year with its development partner GlaxoSmithKline PLC.

"This trial is useful for what it is, a proof-of-concept and dose-finding study for PRX-03140. But because results for one to two patients can swing the data, we would not be relying upon the data to assess the efficacy of, or prospects for, PRX-03140," Sanderson said.

Shares of Epix dropped 57 cents, or 16 percent, to $3 in morning trading on the Nasdaq Stock Market. Over the past 52 weeks, the stock has ranged between $2.89 and $7.28. (AP)

Posted by globebusiness at 12:19 PM | Comments (0)

Raytheon unit wins $37.5 million Air Force contract

A unit of Waltham defense contractor Raytheon Co. has won a $37.5 million Air Force contract to support communications network upgrades for the Minuteman intercontinental ballistic missile system.

According to a Defense Department notice released late yesterday, Raytheon Network Centric Systems will upgrade terminal control functions and other satellite systems for the Minuteman Minimum Essential Emergency Communications Network Program.

On the New York Stock Exchange, shares of Raytheon rose 36 cents to $63 this morning. (AP)

Posted by globebusiness at 11:03 AM | Comments (0)

Minarelli joins Hill Holliday as Boston art director

Boston ad agency Hill Holliday announced that Leandro Lens Minarelli has joined its Boston office as art director.

In this capacity, Minarelli will join in developing creative work for Chili’s, Dunkin’ Donuts, and agency new business efforts, Hill Holliday said.

Minarelli joins Hill Holliday from the Detroit office of the ad agency Leo Burnett, where he worked on campaigns for such automotive brands as Pontiac and Cadillac, Hill Holliday said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:07 AM | Comments (0)

SupplyScape lands pharma customer

SupplyScape Corp. today announced that ANI Pharmaceuticals Inc. has selected its E-Pedigree data management solution to comply with pedigree regulatory requirements and provide supply chain security for its prescription drug products.

SupplyScape of Woburn is a provider of software to secure the safety and value of the pharmaceutical supply chain, and ANI Pharmaceuticals of Baltimore is a specialty pharmaceutical company focused on generics and over-the-counter drug products.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:02 AM | Comments (0)

"Green" venture investments on the rise

Venture capital investment in renewable energy reached an unprecedented level of $3.4 billion in 2007, according to newly released data from Greentech Media Inc.

Greentech Media of Cambridge is an integrated online media company designed to deliver industry content such as research, news or critical networking events.

Investment in solar power led the charge with more than $1.05 billion invested in more than 70 VC financing rounds, the firm said.

Also winning record amounts of renewable energy funding was investment in battery technology at $433.9 million and in the energy efficiency/smart grid sector at $419.1 million, Greentech Media said.

Venture firms continue to invest in biofuels such as cellulosic ethanol and biodiesel, with more than $750 million directed towards these new feedstocks and technologies, Greentech Media said.

"VC investment in renewable energy in 2007 was up 50 percent over the previous year with more than 220 funding rounds across the entire spectrum of renewable energy - from solar to batteries to energy efficiency," Eric Wesoff, senior analyst at Greentech Media, said in a statement. "Investors are looking for 2008-2010 to be the years of renewable energy exits."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:58 AM | Comments (0)

FTC approves Teradyne purchase of Nextest

Microchip testing company Teradyne Inc. said Tuesday the Federal Trade Commission has approved its $325 million purchase of competitor Nextest Systems Corp.

On Dec. 21, 2007, Teradyne subsidiary NAC Equipment Corp. offered to buy all outstanding Nextest shares for $20 each following an agreement with Nextest management.

Teradyne said the FTC granted an early end to the required acquisition waiting period under federal antitrust laws.

Teradyne is one of the world's largest microchip testing equipment makers, with sales of $1.36 billion in 2006.

Nextest also makes testing equipment and had sales of $87.7 million in 2006. Most of its sales are in the Asia/Pacific region. (AP)

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

Genzyme buys lung cancer research

Biotech drug maker Genzyme Corp. said Tuesday it plans to work with researchers in Florida to develop a test to help guide the treatment of patients with a type of lung cancer.

The company said it has bought the rights to research conducted at the Moffitt Cancer Center in Tampa, Fla., involving two proteins. Scientists there have shown the proteins, RRM1 and ERCC1, may predict whether patients will respond to the leading drug treatments for non-small-cell lung cancer, which represents about 30 percent of all lung cancers.

Terms of the agreement were not disclosed. (AP)

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

Profit doubles at Century Bancorp

Century Bancorp Inc., the holding company for a bank serving Boston and nearby areas, said Tuesday its fourth-quarter profit more than doubled as expenses declined.

Net income for the period ended Dec. 31 was $2.4 million, or 43 cents per share, compared with $1 million, or 20 cents per share, in the same period last year.

Net interest income slid to $20.5 million from $21.2 million in the year-ago period. Interest expenses fell to $10.4 million from $12.3 million in 2006.

Full-year net income grew 68 percent to $7.9 million, or $1.42 per share, compared with net income of $4.9 million, or 84 cents per share in the same period last year. The recent quarter's earnings include a $1.3 million gain from the sale of one of Century Bancorp's office buildings.

Shares of Century Bancorp fell 32 cents to close at $19.68. (AP)

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

Analyst upgrades Boston Scientific

With shares of Boston Scientific Corp. trading near five-year lows, a Banc of America analyst upgraded the stock today, saying the medical device maker's restructuring plans and new products will lift profits and the share price.

Boston Scientific's stock has declined steadily for more than three years. It has lost almost 75 percent of its value since June 2004 due to declining sales of stents, or wire devices that prop open clogged arteries, and debt from its 2006 buyout of Guidant Corp.

The shares reached a five-year low of $10.76 last week, and finished at $11.51 Tuesday.

Glenn Novarro upgraded the stock to "Buy" from "Neutral," and kept a price target of $15 per share.

"We believe that a combination of restructuring, new product flow and valuation supports a more favorable risk/reward profile," he said.

Boston Scientific's restructuring moves should allow its profits to grow steadily from 2009 onward, he said. New products will improve sales of implantable heart devices, and can keep the company's losses in the drug-coated stent market to a minimum.

Novarro added that Boston Scientific's cardiac rhythm management business provides almost half of its total sales, and provides predictable profit and revenue.

The analyst is fair more optimistic about the Natick, Mass., company's profit than his peers. Novarro forecasts a profit of 72 cents per share for Boston Scientific in 2007, and 78 cents per share in 2008.

On average, analysts polled by Thomson Financial expect profits of 38 cents per share and 61 cents per share, respectively. (AP)

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

Compete launches ad tracking service

Compete, a Boston Web analytics company, said today that it has launched Ad Analyzer, a service that seeks to track online advertising performance beyond simple impressions and click-through metrics.

The new service, which also analyzes the ad effectiveness of competitors, lets marketers measure the impact of ads on consumer behavior within target customer segments and across channels to maximize the effectiveness of online advertising, the company said.

Marketers are shifting an increasing portion of their advertising budget online, and they need precise and detailed information about how their campaigns impact engagement, loyalty, and online and offline retail sales, Compete said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:41 AM | Comments (0)

Nordblom promotes Olivier

Nordblom Co., a local real estate firm headquartered in Burlington, announced the promotion of Adele Olivier to senior vice president, director of commercial property and asset management.

Olivier will oversee the team responsible for the management of over 6 million square feet of downtown and suburban commercial real estate and has direct asset management responsibility of over 2 million square feet at Network Drive and Northwest Park in Burlington, Nordblom said.
(By Chris Reidy, Globe staff)

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

Survey: teens have tech confidence

American teens are confident they can invent solutions to some of the world's pressing challenges, including protecting and restoring the natural environment, but more than half feel unprepared for careers in technology and engineering.

Those are key findings from this year's Lemelson-MIT Invention Index, which seeks to gauge Americans' attitudes toward invention and innovation.

The index is compiled by the Lemelson-MIT Program, which was founded in 1994 at the Massachusetts Institute of Technology by prolific inventor Jerome H. Lemelson and his wife, Dorothy; the program is funded by the Lemelson Foundation, a philanthropy that celebrates and supports inventors and entrepreneurs in order to strengthen social and economic life in the U.S. and developing countries.

In this year's Lemelson-MIT Invention Index, nearly three out of four American teens believe technological inventions or innovations can solve some of our pressing environmental issues within the next decade, including global warming, water pollution and fossil fuel depletion.

Nearly two-thirds of teens are confident they could invent some of these solutions, and this contrasts with only 38 percent of adults who believe they could invent something to help protect and restore the natural environment, the index found.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Icahn: Biogen could still be sold

Billionaire investor Carl Icahn said Tuesday he still believes Biogen Idec Inc. could be sold.

Icahn, who owned 4 percent of Biogen Idec shares as of September, helped push the Cambridge biotechnology company to put itself up for sale in October, sending the stock soaring. But shares cratered after Biogen Idec announced last December that it didn't receive a single serious offer and planned to remain independent.

Even so, Icahn told CNBC: "I still have belief that it is a great company and that somebody will buy them. We are still looking at that and are still in contact on that."

Biogen Idec's stock is currently worth more than $17 billion, though a buyer would likely have to offer a significant premium to persuade the company's board and shareholders to agree to a deal.

Last week, Biogen Idec Chief Executive Jim Mullen told the Boston Globe that he thought large drug makers, who could potentially have bought Biogen Idec, decided against making a solid offer last year because they thought the acquisition was too risky. Mullen noted that large pharmaceutical companies tend to be more risk adverse than biotech companies, like Biogen Idec and Cambridge neighbor Genzyme Corp.
(By Todd Wallack, Globe staff)

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

Thomson adds Contact Networks to portfolio

Thomson Corp.announced the addition of Boston-based Contact Networks and its enterprise relationship management product, ContactNet, to its portfolio of business intelligence and relationship management services for legal and other professional markets.

Information-services provider Thomson said the addition has established a strategic presence in the emerging business-to-business social networking space.

ContactNet, a networking application built specifically for corporate environments, automatically uncovers, aggregates, and prioritizes a firm’s internal relationships with external business contacts; now, determining “who knows whom” is as simple as doing a Google-like search, with no data entry or ongoing database maintenance, Thomson said.

Contact Networks will retain its headquarters and team in Boston and operate as an independent business unit of Thomson West, Thomson said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:09 AM | Comments (0)

Au Bon Pain changes hands

Boston-based Au Bon Pain said today it has agreed to be acquired by management and LNK Partners, a private equity firm, as it looks to accelerate expansion of a chain with 226 bakery cafes.

Along with affiliates, LNK, whose founding partners include Henry J. Nasella, who engineered the purchase of the local Star Market Co. grocery chain in the 1990s, will invest more than $100 million of equity in Au Bon Pain, Au Bon Pain said, and Compass Group PLC, a global foodservice company that owned the company from 2000 to 2005, will remain an equity and strategic partner.

An investor group led by PNC Mezzanine Capital, which structured and arranged financing support for management's 2005 acquisition of Au Bon Pain, and including AlpInvest Partners N.V., will sell its interest in the company, Au Bon Pain said.

Founded 30 years ago, Au Bon Pain was something of an urban sensation in its salad days; offering some of the convenience of fast-food, yet at a higher quality, it was ideally suited to ground-floor locations in high-rent office buildings filled with affluent workers.

Over the years, though, the chain has had ups and downs as it looked to expand beyond urban office buildings and into the suburbs.

Today Au Bon Pain said LNK's investment will support Au Bon Pain's expansion strategy in the United States and in selected global markets.

Au Bon Pain added that it generated sales revenue of almost $300 million systemwide in 2007.

In the recapitalization transaction, which is expected to close in the first quarter, LNK and Au Bon Pain management will acquire a majority ownership interest in the company, the two entities said.

"Au Bon Pain is poised for significant growth, building on the brand's 30
years of success in the U.S. and internationally," Nasella said in a statement. "The company's management team, which will continue to be led by CEO Sue Morelli, has delivered extraordinary financial results over the past several years, including 33 consecutive quarters of positive comparable store sales and outstanding guest count growth - qualities that distinguish Au Bon Pain as one of the most successful fast casual operators in the restaurant industry."

LNK Partners is based in White Plains, N.Y.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:05 AM | Comments (0)

January 15, 2008

Pervasis secures additional funding

Pervasis Therapeutics Inc. today announced that it has secured $9.75 million in additional financing.

The Cambridge company focuses on regenerative cell-based therapies and devices,

Investors in the financing round include Flagship Ventures of Cambridge; Polaris Venture Partners, which has offices in Waltham; and Highland Capital Partners, which has offices in Lexington.

Pervasis said the new investment will support further development of its Vascugel blood vessel repair therapeutic, presently in two Phase II clinical trials.

The investment will also support continuing research into expanding the product’s projected uses into additional vascular and non-vascular applications, Pervasis said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:35 PM | Comments (0)

Boston-area consumer prices rise

Boston-area consumer prices rose 3.4 percent in 2007, the largest gain since 4.0 percent in 2002, the Bureau of Labor Statistics reported today.

Nationally, consumer prices rose 4.3 percent in 2007, the highest annual gain since 1990, said the bureau, which is part of the US Department of Labor.

Boston’s increase was primarily due to a 16.8-percent increase in the cost of energy, which was substantially higher than the 0.3- percent gain recorded in 2006, the bureau said.

Boston area motorists saw gasoline prices rise 39.7 percent in 2007, and grocery store prices rose 3.8 percent in 2007, the bureau said.

With energy costs removed, the Boston consumer price index would have risen 2.2 percent, the same rate posted a year earlier, the bureau said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:06 PM | Comments (0)

Genzyme obtains license for cancer diagnostic

Cambridge biotechnology company Genzyme Corp. announced today a license agreement for exclusive rights to a lung-cancer diagnostic.

The agreement is with Moffitt Cancer Center of Florida.

Under the agreement, Genzyme said it will obtain exclusive diagnostic testing rights to the discovery of the relationship of two proteins to patient response to non-small cell lung cancer treatment.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:53 AM | Comments (0)

Analyst: Amag could be ripe for takeover

Amag Pharmaceuticals Inc. is a possible takeover candidate in the next two years, Bear Stearns analyst Mark Schoenebaum wrote in an industry presentation this week.

The Cambridge company, which has a market value of roughly $1 billion, is seeking approval in the United States to launch its first drug, ferumoxytol, in the first half of 2009. The drug treats iron-deficiency anemia in patients with chronic kidney disease.

Schoenebaum noted that Amag lacks "commercial know-how," which might make it a good partner for a larger drug company.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 11:45 AM | Comments (0)

George Foreman will pitch Naddaff's UFood

George Naddaff of Boston Chicken fame is teaming up with boxing icon George Foreman.

Naddaff is currently chairman and chief executive of UFood Restaurant Group Inc., a franchisor and operator of fast-casual food service restaurants with offices in Newton.

In a press release, UFood today announced that Foreman has recently agreed to become the spokesperson for the UFood brand through an exclusive agreement with George Foreman Enterprises Inc.

Foreman, who achieved legendary pitchman status for selling grills, will initially work to create publicity aimed at selling franchisee licenses and will provide advertising and marketing support through public appearances and public relations campaigns, UFood said.

According to stories in the Globe data base, former executives at the Blockbuster video chain bought the then wildly popular Boston Chicken chain from an investor group led by Naddaff in the early 1990s.

The chain subsequently went public, changed its name to Boston Market, wound up under bankruptcy protection, and was later bought by McDonald's Corp.

In a statement, Naddaff sees a boom ahead for UFood and indicated that UFood could have no better spokesman than Foreman for the UFood concept of "feel great, eat smart."

UFood said it is currently launching a growth plan to franchise nationwide.

The company's local stores currently operate under the nameplate of KnowFat Lifestyle Grille, but they will shortly be converted to the UFood Grill brand name, the company said.
(By Chris Reidy, Globe staff)

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

MIT and Eni announce energy research partnership

The Massachusetts Institute of Technology and the Italian energy company Eni announced a major energy research partnership today.

The centerpiece of this collaboration will be a program focusing on the development of advanced solar technologies, from novel photovoltaic materials to the design of solar power plants, the two entities said.

Eni will also become a founding member of the MIT Energy Initiative, or MITEI, supporting a portfolio of diverse energy research projects at the institute.

Total funding for the partnership will be $50 million over five years, the two said; of those funds, $25 million will establish the Eni-MITEI Solar Frontiers Research Program, and the remainder will support Eni's founding membership in MITEI.

"Eni's commitment to meeting the world's energy needs through new technologies is inspiring, and we're honored by Eni confidence in MIT as a partner," MIT president Susan Hockfield said in a statement. "We look forward to working with Eni on the science, technology and analysis critical to advancing energy security and environmental stewardship."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:30 AM | Comments (0)

BJ's promotes Sen to president

BJ's Wholesale Club Inc. announced today that Laura Sen has been named president and chief operating officer and elected to the company's board of directors.

Sen, who will be responsible for all day-to-day operations, is a 15-year BJ's veteran who is currently executive vice president of merchandising and logistics, said the Natick-based operator of a chain of 177 club stores.

While BJ's reported a 3 percent increase in December sales at stores open at least a year, the chain has been seemingly under pressure from larger rivals such as Costco Wholesale Corp. and Sam's Clubs, part of Wal-Mart Stores Inc.

In late 2006, BJ's previous chief executive abruptly resigned.

According to the company, Sen, 51, played key roles in growing BJ's from an early stage business to a Fortune 500 company; she joined BJ's in 1989 and served as executive vice president of merchandising and logistics from 1997 to 2003, and she returned to the company in January 2007.

  Herb Zarkin, BJ's 69-year-old chairman and chief executive, retains a number of key responsibilities, including leading the company's strategic planning, management succession, and chain expansion efforts, said BJ's, adding that he will continue to work closely with Sen and the senior management team.

  "Laura Sen has been an important part of BJ's success through most of its history, and she has broad experience that will be tremendously important to its future," Zarkin said in a statement. "I look forward to working with Laura as she assumes additional responsibilities through an orderly transition of leadership. She is surrounded by an outstanding team with a proven record of success."

BJ's also announced several other management changes today.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:56 AM | Comments (0)

Tufts study: Drug trials are getting longer, harder

More complex clinical trial protocols for new drug candidates are leading to longer trials and increasing difficulty in recruiting and retaining patient volunteers, according to a new study.

The study is from the Tufts Center for the Study of Drug Development, an independent, academic nonprofit research group affiliated with Tufts University, and results from the study were released today.

"During the past decade, there has been a steady increase in the number and frequency of procedures per protocol, and a similar rise in the number of enrollment eligibility criteria and pages per case report form," Ken Getz, a senior research fellow at the Tufts Center and lead investigator on the study, said in a statement. "These protocol design changes are largely due to the nature of diseases currently under investigation and intensifying competition among drug developers."

Getz noted that the increasing complexity of protocol designs is contributing to the growing time, cost, and risk of drug development.

"The rise in protocol complexity represents a significant challenge for drug developers," he said in his statement.

According to the Tufts center, its study is the first ever to quantify the impact of changes in protocol design on clinical trial performance.

Among reported results is that the annual growth rate of unique procedures per protocol grew 6.5 percent between 1999 and 2005.

Clinical trials are also taking longer, the study found.

Between 1999-02 and 2003-06, total time from protocol design readiness to database lock rose from 460 to 780 days, or 69.6 percent, the Tufts center said.

Meanwhile, volunteer enrollment rates dropped from 75 percent for the 1999-to-2002 period to 59 percent in the 2003-to-2006 period, the center said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:31 AM | Comments (0)

Concord Group leases space in the Financial District

The Concord Group, a boutique real estate consultancy, has signed a three-year office lease for space at 87 Summer St. in Boston's Financial District, a broker involved in the transaction said today.

The broker is Boston real estate firm NAI Hunneman, which represented the landlord, Centurion Realty of New York.

The Concord Group is leasing 2,800 square feet of space in a roughly 25,000-square foot office building that was built in 1877 and renovated in 1982, NAI Hunneman said.

The Concord Group was represented in the transaction by Cushman & Wakefield, NAI Hunneman said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:01 AM | Comments (0)

Cognos offers colleges faculty management solution

Cognos Inc. announced today the launch of a new performance solution designed to help colleges and universities drive more efficient faculty salary and position planning.

A Canadian software company with US headquarters in Burlington, Cognos said it is looking to continue to extend its presence in the higher education market; Cognos' software is designed to give clients business intelligence and performance management solutions.

According to Cognos, tracking higher education faculty salaries can be a complicated process, as many college and university professors draw their salary from a number of funding pools that either supplement or replace the base salary paid by their institution.

Cognos said its Salary Planning and Position Control Blueprint offers colleges and universities a complete performance management framework that delivers enhanced visibility into the ever-changing demographics of their faculties.

In November, technology giant IBM Corp. disclosed plans to buy Cognos for nearly $5 billion as IBM aims to keep up with competitors in the rapidly expanding market for business intelligence software, a Globe story reporting on the announcement noted.

At that time, Cognos said it employed 390 people in Massachusetts.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:37 AM | Comments (0)

Progress Software taps Wilmes

Progress Software Corp. today announced the appointment of John Wilmes as chief technical architect of its communications sector.

Progress Software of Bedford is a global supplier of application infrastructure software used to develop, deploy, integrate, and manage business applications.

Before joining Progress, Wilmes served as chief technology officer of Ceon Corp. of California, where he oversaw the direction and design of next-generation product lifecycle management solutions.
(By Chris Reidy, Globe staff)

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

State Street reports a drop in profit

Boston financial-services company State Street Corp. reported lower fourth-quarter net income today after it set aside millions for legal costs tied to mortgage securities losses.

State Street, the world's biggest institutional asset manager, said net income was $223 million, or 57 cents per share, down from $309 million, or 91 cents, a year earlier.

On an operating basis, earnings rose to $1.38 per share from 86 cents a year earlier.

The net figure includes an after-tax charge of $279 million, or 71 cents per share, to cover costs for lawsuits that allege State Street made poor mortgage investments for clients. The company announced the charge earlier this month. (Reuters)

In a separate story, the Associated Press reported that State Street said today that it plans a public offering of about $500 million non-dilutive securities.

The proposed offering, which is expected to start on Thursday, will be made through a prospectus. The offering allows the securities to be treated as tier 1 regulatory capital, which includes equity capital and disclosed reserves, the AP said.

The bank plans to use proceeds from the offering for general corporate purposes.

Goldman Sachs & Co. is the underwriter, AP said.

Posted by globebusiness at 7:46 AM | Comments (0)

Nauset completes Quincy hospital renovation

Nauset Construction Corp. said it recently completed the renovation and conversion of the Long Term Acute Care Hospital at Quincy Medical Center.

The 20,700 sq. ft., 38-bed private-room project began in the spring, Needham-based Nauset Construction said.

The renovation included upgrades to both the facility's electrical and HVAC systems; patient rooms and common areas also received new upgrades and finishes, and Nauset reconfigured existing spaces and installed new partitions, walls, ceilings, floors, doors, and lighting throughout the patient and medical staff areas, Nauset said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:37 AM | Comments (0)

Number of telecommuters is rising

A day after a snow storm socked in many Boston-area workers, IDC reported that it expects nearly 75 percent of the US work force will be mobile by the end of 2011 - "mobile" as in having the ability to telecommute from home or just about anywhere else.

The current generation of workers is demanding more flexibility and mobility in their schedules, said IDC, a Framingham-based market intelligence research firm. This generation of workers also has a higher comfort level with technology in general, including remote access technologies and mobile devices, and the proliferation of high speed networks, widespread public Wi-Fi hotspots, and fixed-mobile convergence technology now allows employees to work effectively from almost anywhere, IDC said.

In addition, a mobile work force allows employers to reduce corporate space and leasing requirements and enjoy a competitive advantage over competitors "who have not invested in integrating mobility into their cultural roadmap," IDC said.

"Although mobility deployments can bring a number of benefits to companies, they also bring risks associated with sensitive data sitting on small devices that can be easily lost," Stephen Drake, IDC's program director of Mobile Enterprise Services, said in a statement. "Developing a plan around managing and securing devices should be part of any large mobility deployment."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:17 AM | Comments (0)

January 14, 2008

Health insurer ordered to stop advertising in state

Insurance Commissioner Nonnie S. Burnes today ordered an unlicensed health insurance company to stop advertising healthcare policies in Massachusetts that she said are fraudulent.

The company, based in Blackwood, NJ, has done business under the names Healthcare Alliance, National Alliance of Associations, Association Healthcare and Promotion Healthcare, and offers coverage for individuals for $199 a month.

Burnes said it solicits business with faxes urging rapid action from consumers, who are sometimes asked to provide credit card information or copies of checks by fax. She said her office has received numerous complaints in recent days.

Kevin Fredericks, a supervisor at a company's call center, said, "This is not a bogus policy and there is no fraud. This is a very serious matter. If there's been a cease and desist order, we'll have to comply."
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 5:51 PM | Comments (0)

Government OK's drug for Crohn's disease

The government today approved Biogen Idec Inc.’s and Elan Corp.’s Tysabri as a treatment for a severe intestinal disorder.

The drug, already used to treat multiple sclerosis, showed positive results in preventing inflammation of the intestinal wall in patients with Crohn’s disease, which afflicts about 1 million people worldwide.

The Food and Drug Administration’s approval represents a comeback for Tysabri, which was temporarily pulled from the market in 2005 after three patients using it developed a rare nervous system disorder.

The FDA decided to put the drug back on the market the following year, but with tighter limits on prescribing.

The drug is expected to compete with Remicade, the leading Crohn’s treatment, made by Johnson and Johnson.

Biogen Idec is a Cambridge company; its partner Elan is based in Ireland.
(AP)

Posted by globebusiness at 4:17 PM | Comments (0)

IBM issues bullish earnings preview

The fourth quarter usually is the best time of the year for IBM Corp., but rarely does it look this good.

The technology company said today that its earnings per share in the quarter blew past analysts' expectations by 20 cents. IBM's executives felt the numbers were too good to sit on, so they released a peek at the results in advance of Thursday's full report for the quarter.

The news sent IBM shares up 5.9 percent to $103.44 in afternoon trading.

The results were especially surprising given that economic conditions are not considered favorable. Recessionary fears loom. Hesitation on technology purchases by financial services companies -- IBM's largest customer segment -- hurt its third-quarter results.

So how did IBM stun analysts? Partly by betting big overseas, where most of the company's revenue comes from.

IBM would not elaborate on the quarterly results until Thursday's detailed report. But the company has made clear that it has been increasing its investments in developing countries with high growth rates, like China, India, Russia and Brazil.

IBM disclosed last month that its employee head count in those countries is nearly 100,000, up from 70,000 a year ago. The Indian market alone was expected to contribute nearly $1 billion in revenue to IBM in 2007, up from $700 million the prior year.

To better serve emerging markets and find higher pockets of growth domestically as well, IBM has been retooling its operations to focus more on sales to small and medium-sized companies. Annex Research analyst Bob Djurdjevic thinks those moves showed a payoff in the fourth quarter.

"It's kind of like an end-around play," he said. "You don't go head on into where the crisis is."

Weakness in the dollar also helped boost revenue, because deals done in other countries translate into more greenbacks. IBM said its revenue in the fourth quarter rose 10 percent to $28.9 billion, beating analysts' forecasts of $27.8 billion. The revenue rise would have been 6 percent if not for currency fluctuations.

IBM said its fourth-quarter earnings per share amounted to $2.80, easily beating the $2.60 expected by analysts polled by Thomson Financial. Taking out discontinued lines of business, IBM earned $2.26 per share in same period a year earlier, which means per-share profit rose 24 percent.

Until Thursday's complete report, however, it will be unclear how much of that gain came from business improvements and how much is due to the company's aggressive share repurchases. IBM expects buybacks to be a big reason it can drive earnings per share to $11 by 2010.

IBM said in Monday's release its full-year earnings were $7.18 in 2007, up from $6.11 a year earlier, or $6.06 on a continuing basis. Revenue rose 8 percent to $98.8 billion.

"They're on a roll," said Bobby Cameron, a Forrester Research analyst who credits IBM with doing a better job in recent years of integrating its operations in software, services and computer servers.

Djurdjevic believes that Wall Street analysts underestimated that trend and overestimated the effect that IBM would feel from problems in the financial industry.

"It's the most visible part of the economy, but it's not THE economy," he said. "The market is now correcting itself on IBM."

IBM employs about 5,000 people in Massachusetts, where it has bought nine software companies in the past decade. (AP)

Posted by globebusiness at 1:28 PM | Comments (0)

Perini wraps up $590m in new contracts

Construction services company Perini Corp. said today that it has received new contracts totaling $590 million.

Perini's civil division was awarded a $139 million contract by the State of New York Metropolitan Transportation Authority for a construction project in Queens, N.Y. The Harold Structures Project involves excavation and tunneling services and the construction of a new electrical power substation, as well as access bridges and retaining walls. The project is set to be complete by September 2010.

Perini's Cherry Hill Construction subsidiary recently began work on an $86.8 million project for Maryland Transportation Authority, set to be complete by December 2010.

Rudolph and Sletten, a Perini subsidiary, added $365 million of new projects to its backlog during the fourth quarter of 2007, the company said. Projects include a $15 million upgrade at the University of California San Diego; and a $120 million heart center and hospital expansion project and a $230 million office complex project, both in northern California.

Additionally, Perini Management Services received a task order contract from the U.S. Air Force. The selected contractors will compete for task orders under the Air Force's $4 billion Sustainment/Restoration & Modernization Acquisition Task Order Contract program that provides construction support at bases around the world.

Perini shares jumped $1.31, or 3.6 percent, to $37.76 in midday trading. (AP)

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

Hanover Insurance to acquire Verlan Holdings

The Hanover Insurance Group Inc. said today that it has agreed to acquire chemical company insurer Verlan Holdings Inc., further expanding its insurance-product offerings.

Worcester-based Hanover, which offers a range of insurance products and services, did not disclose financial terms of the agreement. The company is expanding through acquisitions to broaden its offerings and capabilities, Chief Executive Frederick Eppinger said in a statement.

"This latest acquisition is one more example of the product and service investments we have made -- and will continue to make -- to be the best partner for growing independent agents," he said.

Hanover also acquired law-practice insurer Professionals Direct Inc. in September. It expects its purchase of Silver Spring, Md.-based Verlan Holdings to close within the first quarter.

Hanover shares rose 35 cents to $43.83 in afternoon trading. (AP)

Posted by globebusiness at 1:16 PM | Comments (0)

Netezza tech powers Gander Mountain

Netezza Corp. announced today that outdoor gear retailer Gander Mountain Co. has selected the Netezza Performance Server analytic appliance as its enterprise data warehouse solution.

Netezza of Framingham is a provider of analytic appliances.

With Netezza, Minnesota-based Gander Mountain will be able to run analytics for merchandising, supply chain management, and financial planning faster and use the resulting reports to make better business decisions, Netezza said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:12 PM | Comments (0)

States, MySpace agree to child-predator measures

ALBANY, N.Y. -- MySpace.com has agreed with more than 45 states -- including Massachusetts -- to add extensive measures to combat sexual predators.

An official familiar with the multistate agreement said MySpace, the huge online social networking Web site, has agreed to include several online protections and participate in a working group to develop age-verification and other technologies.

The official said MySpace also would accept independent monitoring and changes to the structure of its site.

The agreement is scheduled to be announced today in Manhattan by attorneys general from New Jersey, North Carolina, Connecticut, Pennsylvania, Ohio, and New York.

The official spoke on condition of anonymity because the agreement hadn't yet been announced.

The attorneys general have been seeking greater controls for online networking sites to prevent sexual predators from using those sites to contact children.

There was no immediate comment from MySpace, a unit of News Corp.

Investigators have increasingly examined MySpace, Facebook.com and similar social networking sites that allow people to post information and images on the Web and invite contacts from others.

Last year, New York investigators said they set up Facebook profiles as 12- to 14-year olds and were quickly contacted by other users looking for sex.

A multistate investigation of the sites -- announced last year -- was aimed at putting together measures to protect minors and remove pornographic material, but lawsuits were possible, officials said.

"We have to find the best way to make sure parents have the tools ... to protect their children when they're on social networking sites," North Carolina Attorney General Roy Cooper said in September. (AP)

Posted by globebusiness at 12:44 PM | Comments (0)

Fidelity to reopen flagship Magellan fund

Fidelity Investments plans to reopen its flagship Magellan mutual fund to new investors tomorrow. Magellan, once Fidelity's biggest fund and still one of its best known, has been closed to new investors for 10 years after the mutual fund giant grew concerned that it was getting too big to manage effectively. Magellan, with $45 billion in assets, is now less than half the size it was at its peak, in 1999.

Magellan's performance has improved dramatically under fund manager Harry Lange, who took over in November 2005. Magellan returned 18.8 percent last year, while the overall market, as measured by the Standard & Poor's 500 index, returned 5.5 percent. It was the fund's best performance since 2003.

Magellan is best known as the fund that made Peter Lynch a star stock-picker when he managed the fund in the 1980s. During his 13 years at the helm of Magellan, the fund posted annual average returns of 29.1 percent. (Ross Kerber)

Posted by globebusiness at 11:55 AM | Comments (0)

Mass. Convention Center breaks booking record

The Massachusetts Convention Center Authority said today that December bookings for its two Boston venues set a single month record, breaking the previous record for the number of hotel rooms booked by 38 percent.

The authority said December sales bookings for the Boston Convention & Exhibition Center and John B. Hynes Veterans Memorial Convention Center combined to establish a new a single month record for booking 450,000 future hotel room nights into the city of Boston.

The authority also said that its sales team set records for the month of December in the categories of number of events booked (46) and number of expected future attendees (400,000).

According to the authority, these events will generate approximately $282 million in 2007 dollars in future economic impact in and around the city of Boston.

The new hotel room nights record surpassed the previous single month record of December 2005 with a 38 percent increase in bookings, the authority said.

According to the authority, December is one of the busiest months for convention planning and contract activity.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:46 AM | Comments (0)

US Air debuts nonstop service to Cayman Islands

From the Globe-trotting blog:

So, I hear it's snowing. Yeah, yeah, nobody has it tougher than us. Well, my friend, remember how the woeful tale of the man with no shoes compares unfavorably with that of him with no feet. I'll have you know that residents of the Cayman Islands this very day are struggling with partly cloudy skies. All day. And it could continue through tomorrow. And the temps. A high of 82 with lows plunging (!) to the mid-70s.

If you are as moved by their plight as I am, you should know that US Airways has started nonstop service between Logan and Grand Cayman Airport on Saturdays. Flights depart Beanville at 8 a.m. and land at 12:19 p.m., with a return of 1:05 in the afternoon touching down at 5.

Yes, I know. You feel ashamed for basking in self pity. Feel free to head over to my place with your show shovel if you feel the need to indulge in a little extra penance. And since you're heading over can you grab an extra bag of salt?
(By Paul Makishima, Globe staff)

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

CRA International adds six new vice presidents

CRA International Inc. today announced the addition of six new vice presidents, including two in its Boston headquarters office.

CRA International is a provider of economic and financial expertise and management consulting services

The vice presidents have joined the firm’s chemicals and petroleum, financial accounting and valuation, financial economics, and transfer pricing practices, the company said.

Joining the Boston office are vice presidents Mark Bronson in the transfer pricing practice and Bala Dharan in the financial accounting and valuation practice, the company said.

Other new vice presidents are joining company offices in Houston, London, and Washington, D.C., CRA International said.
(By Chris Reidy, Globe staff)

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

Dunkin' ups the chocolate content

Dunkin' Donuts, the Canton-based coffee-and-baked goods chain that is looking to expand nationally, said today it has launched a chocolate offensive.

The chain, part of Dunkin' Brands Inc., said it has introduced three new chocolate menu items: a Milky Way Chocolate, an M&M's Donut, and a Triple Chocolate Muffin.

Dunkin' Donuts said it has partnered with Mars Inc. in creating two of these new treats featuring Mars' signature confections, Milky Way and M&M'S Chocolate Candies.
(By Chris Reidy, Globe staff)

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

Bain acquires Bright Horizons

Bright Horizons Family Solutions Inc. of Watertown today announced it has signed a definitive merger agreement to be acquired by an affiliate of Bain Capital Partners LLC, a global private investment firm based in Boston.

Bright Horizons, now a publicly traded provider of employer-sponsored child care, early education, and work/life solutions, said the transaction is valued at about $1.3 billion.

Under the terms of the merger agreement, Bright Horizon stockholders will receive $48.25 in cash for each share of Bright Horizons common stock they hold, representing a 47 percent premium over Bright Horizons’ closing share price on January 11 on the Nasdaq Stock Market.

The transaction is expected to close in the second quarter.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:28 AM | Comments (0)

Staples to donate $10,000

Staples Inc. today announced it will present the New York chapter of the National Foundation for Teaching Entrepreneurship with a $10,000 donation.

Staples, a Framingham-based retailer of office supplies, said the donation will be made Wednesday at the official opening of its new Copy & Print Shop in Manhattan.

According to Staples, the Copy & Print Shop is an entirely new store format designed to meet customers' high-quality copy and print needs, while providing a fast shopping experience for essential office supplies.

This year, Staples said it plans to open eight Copy & Print Shops near business hubs throughout Manhattan, as well as a traditional Staples store in Manhattan and several in the boroughs; by the end of 2008, Staples will have more than 50 stores in Manhattan and the boroughs, significantly increasing its presence in New York City.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:22 AM | Comments (0)

Saudi ID program taps CoreStreet tech

CoreStreet today announced that the Saudi Arabian government will be using CoreStreet's validation technology as a key component in its new national ID card initiative.

With offices in Cambridge, CoreStreet is a software company focused on smart credential and convergence programs.

The CoreStreet Validation Authority provides a complete solution that enables digital certificate validation for secure, legally-binding communications, physical access, and other transactions, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:53 AM | Comments (0)

New name for Nu Visions: OnCore

OnCore Manufacturing Services LLC is the new name of Nu Visions Manufacturing LLC, the Springfield company announced today.

The company delivers electronics manufacturing services to customers in the defense, aerospace, medical, and industrial industries.

"The OnCore identity reflects our strategic focus on providing exceptional manufacturing and supply chain services, which in turn allow our customers to focus their resources on their core activities -- product design, marketing, and market share growth," Daniel Perez, president and chief executive of OnCore, said in a statement. "Our 900 employees are organized around each of our customers' requirements and act as an extension of their organizations."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:39 AM | Comments (0)

Parametric powers Chinese parts catalog

Parametric Technology Corp. said a joint venture in China specializing in motorcycle development and manufacturing is using Parametric's Arbortext dynamic publishing software to reduce publishing time for its part catalog.

The Needham-based company, which refers to itself as PTC, provides product lifecycle management, content management, and dynamic publishing solutions to more than 50,000 organizations worldwide.

The joint venture - the Grand River Group - is also able to use Arbortext to distribute its parts catalog online.

Arbortext allows companies to create reusable components of content, both text and illustrations, and configure and publish the content for specific audiences to a variety of media types in multiple languages, PTC said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:32 AM | Comments (0)

Cabot declares dividend

Specialty chemicals company Cabot Corp. said Friday its board declared a regular quarterly dividend of 18 cents.

The company said the dividend is payable March 14 to shareholders of record Feb. 29. (AP)

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

Report: Turbulent year ahead for life sciences

This will be a year of continued turbulence for life science companies, according to a report from Healthy Industry Insights, a unit of IDC, a Framingham-based global market intelligence company.

While mergers and acquisitions, continued cost cutting (including layoffs and offshoring), and a limited number of new drug approvals will highlight 2008 news, several more profound organic changes will occur that should strongly impact the industry over the long term, Health Industry Insights said.

Many of these changes have information-technology components and will require both high-level organizational buy-in as well as behavioral change to succeed, Health Industry Insights said, and the use of business intelligence/analytics tools to more efficiently manage the life science industry will increase rapidly in 2008.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:04 AM | Comments (0)

BladeLogic teams up with CyberTrails

BladeLogic Inc. said today that CyberTrails has selected it to be the automation platform for server and application infrastructure-related services for its clients.

Lexington-based BladeLogic is a provider of data center automation software, and CyberTrails of Arizona provides information-technology services.

Before selecting BladeLogic, CyberTrails used a mix of ad-hoc, manual, and scripting-based approaches to managing its clients' server and application infrastructure, BladeLogic said.

By leveraging BladeLogic as its standard server and application management platform, CyberTrails can now automate all server lifecycle management functions, BladeLogic said.
(by Chris Reidy, Globe staff)

Posted by globebusiness at 8:00 AM | Comments (0)

Danish telecommunications firm taps iBasis

Burlington's iBasis Inc. and TDC, a Danish telecommunications company, today announced that they have agreed to make iBasis the exclusive provider of international voice services for TDC for a five-year period.

A wholesale carrier of international long distance telephone calls, iBasis is also a provider of retail prepaid calling services and enhanced services for mobile operators.

IBasis said it will pay TDC about $10 million in cash, while the outsourcing arrangement is expected to generate about $80 million in new annual revenue for iBasis.

"Carriers are increasingly recognizing that they can focus more effectively on meeting the challenges and opportunities of their core retail business by outsourcing the commoditized international voice business to specialized wholesale providers like iBasis," Ofer Gneezy, president and chief executive of iBasis, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:56 AM | Comments (0)

January 11, 2008

Idenix shares rise on analyst report

Shares of Idenix Pharmaceuticals Inc. edged higher this morning, as a Susquehanna Financial Group analyst praised the company's strong cash position and "promising" early-stage drug development pipeline.

Cambridge, Mass.-based Idenix, which is majority-owned by Novartis, develops drugs to treat hepatitis C and HIV. Analyst Jason Kolbert upgraded his rating on Idenix to "Positive" from "Neutral," saying the stock is priced attractively and carries limited risk.

In a note to clients, Kolbert said the company's current stock price in the $4-range ignores Idenix's pipeline potential. He thinks upcoming HIV data in February and other results due in April will provide positive catalysts for the stock, estimating that clinical progress could easily justify a valuation between $5 and $10.

Shares rose 12 cents, or nearly 3 percent, to $4.20 in morning trading.

Last year, the company's shares plunged from $10.80 to $2.10 following the demise of Idenix's lead hepatitis C candidate valocipitabine, but in October, the company changed its Tyzeka/Sebivo arrangement with Novartis from a joint development to a royalty stream arrangement, and restructured to focus on their hepatitis C and HIV pipeline.

Kolbert said data Idenix presented Tuesday on its second-generation polymerase and protease inhibitor compounds for hepatitis C indicates this R&D focus is beginning to bear fruit. He noted that the compounds could be free of the systemic side-effects that plagued valopicitabine but still be effective at low doses.

Finally, Kolbert noted that the company's strong cash balance contributes to a lower risk profile. The company on Monday reaffirmed it expects to report ending fiscal 2007 with between $100 million and $110 million of cash, cash equivalents and marketable securities. (AP)

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

Metrostyle partners with "Top Model"

Metrostyle, the women’s apparel catalog and Web site, will soon have its clothing worn by celebrity models.

Winners of the CW reality show “America’s Next Top Model” will be shown on metrostyle.com and in the Spring 2008 catalog that will be released Jan. 14. Jaslene Gonzalez, the season eight winner of “America’s Next Top Model,” and Danielle Evans, season six winner, will be the featured models.

Metrostyle is a division of the home shopping company Redcats USA. Redcats is based in New York but has several divisions, including production, merchandising and marketing, in West Bridgewater and Taunton.
(By Ashley Traupman, Globe staff)

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

Sovereign promotion will offer $100 in gas

Sovereign Bank is launching a new campaign aimed at consumers looking for relief at the gas pump.

The new promotion, set to debut on Monday, Jan. 14, offers anyone opening a personal checking account $100 in gas. Boston advertising agency PARTNERS+simons created the campaign for Sovereign.

Through March 14, customers who open a checking account and use a Visa CheckCard six times in 60 days will receive $50 in "Gas Rewards". The other $50 will be obtained when setting up direct deposit.

Sovereign is the 18th largest banking institution in the United States and offers 750 community banking offices in nine states.
(By Ashley Traupman, Globe staff)

Posted by globebusiness at 10:06 AM | Comments (0)

Spire says expanded factory will generate $200m

Spire Corporation announced yesterday that its expanded manufacturing facility is on track to gross annual revenue of $200 million.

Spire is a solar company located in Bedford that provides energy manufacturing equipment to produce photovoltaic modules, which convert light energy into electricity.

The company forecasts 2008 total revenues to be approximately $80 million, mostly coming from the sale of turnkey solar factories and solar capital equipment.
(By Ashley Traupman, Globe staff)

Posted by globebusiness at 10:00 AM | Comments (0)

Former "$100 laptop" designer starts company

The scientist who designed a notebook computer for poor children that is being produced and sold by a nonprofit foundation has set up a company to commercialize the technology with a goal of producing a $75 laptop computer.

Mary Lou Jepsen, who left her post as chief technology officer of the One Laptop per Child Foundation at the end of last year, said on the company's Web site that she has founded the company, called Pixel Qi, and described it as "a spin-out" from the nonprofit group.

Jepsen invented a low-cost, low-power sunreadable screen while at the foundation from 2005 to 2007. She also co-invented its power management system.

Pixel Qi will commercialize the screen technology, offering it to makers of notebook computers, digital cameras, cell phones and other mobile devices, she said on her Web site.

The high-resolution display that she invented lets users switch from color to black-and-white when it is in direct sun.

The company will work closely with the foundation, providing the products it develops to the nonprofit group at cost, according to the Pixel Qi Web site.

Prior to joining the OLPC Foundation, she was the chief technology officer of the display division of Intel Corp . (Reuters)

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

Berkshire Hills to record $2.5 million charge

Regional bank Berkshire Hills Bancorp said Thursday it now expects to post fourth-quarter core earnings of about 36 cents per share as a result of an impairment charge.

The bank, which is based in Pittsfield, had previously predicted a profit of 50 cents per share for the quarter. Excluding the $2.5 million impairment charge, Berkshire said core earnings would still be about 50 cents per share.

Analysts polled by Thomson Financial expect a profit of 50 cents per share for the quarter. Analysts typically exclude one-time charges in their forecasts.

Core earnings for the full-year 2007 are expected to be about $1.90 per share, or $2.06 per share before the impairment charge. Analysts, on average, expect a profit of $2.07 per share for 2007.

Unadjusted earnings per share are expected to be about $1.44 and include net noncore charges of about 46 cents per share.

Berkshire shares fell 40 cents to $23.87 in aftermarket trading, after rising 19 cents to $24.27. (AP)

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

Ze-gen lands $2.5m in financing

Boston-based energy company Ze-gen has raised $2.5 million from Pinnacle Ventures, a private venture capital fund located in California that provides debt and equity financing to early-stage companies.

Ze-gen is a clean energy company that develops and deploys waste gasification into synthesis gas with nearly zero emissions.

Since its founding in 2004, Ze-gen has raised more than $8 million. The money will be used to design and construct the first commercial size synthesis gas clean energy generator.
(By Ashley Traupman, Globe staff)

Posted by globebusiness at 8:49 AM | Comments (0)

Bank of America buys Countrywide

Bank of America Corp. said today that it has agreed to buy Countrywide Financial for $4 billion in stock, a deal that both rescues the country's biggest mortgage lender and expands the financial services empire of the nation's largest consumer bank.

The acquisition will make Charlotte-based Bank of America the nation's biggest mortgage lender and loan servicer.

"Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers," Bank of America chief executive Ken Lewis said in a statement.

The buyout come less than five months after Bank of America plugged $2 billion in Countrywide Financial Corp. during the height of the summer's global credit crisis, and just weeks after Ken Lewis vowed that making a deal in the mortgage industry would require him "to eat about seven years of my words."

It also places Lewis, an aggressive dealmaker, in the position of a market savior. By buying Countrywide, he's keeping the industry and regulators from the messy task of figuring out who would take on the responsibility of collecting payments for the millions of U.S. home loans serviced by the Calabasas, Calif.-based lender.

"There's still plenty of risk involved," said Bart Narter, senior analyst at Celent, a Boston-based financial research and consulting firm. "He's brave to do it. But I think that it's very likely down the road to be profitable, maybe not immediately, but long-term."

Shareholders of Countrywide will receive 0.1822 of a share of Bank of America stock in exchange for each share of Countrywide. The deal is expected to close in the third quarter and to be neutral to Bank of America earnings per share in 2008 and lift earnings per share in 2009, excluding buyout and restructuring costs.

Bank of America expects $670 million in after-tax cost savings in the transaction, or 11 percent of the expense base of the two companies' mortgage operations.

The agreement has been approved by both companies' boards and is subject to regulatory and Countrywide's shareholders approval.

Shares in Countrywide hit record lows in recent days on persistent rumors that a bankruptcy was imminent, a condition brought on by the widespread spike in mortgage defaults and foreclosures, especially in subprime loans -- those made to borrowers with weak credit.

Countrywide shares plunged more than 18 percent, or $1.42, to $6.33 in premarket trading after soaring $2.63, or 51.4 percent, to close at $7.75 Thursday on reports of a possible deal. Bank of America shares fell 2 percent, or 80 cents, to $38.50.

Countrywide shares have plunged 57 percent since Bank of America made its $2 billion deal in August at $18 per share,

As of yesterday's close the deal is worth $4.14 billion and represents a 7.6 percent discount to Countrywide's closing price.

Along with the $2 billion investment from Bank of America, Countrywide was forced to draw on an $11.5 billion line of credit to steady itself in August. It also tightened its credit guidelines and stopped selling some types of adjustable rate loans. But analysts said it wasn't enough, with one noting this week that Countrywide needed an infusion of $4 billion in capital within the next two weeks to save itself.

Lewis' bank holds $1.5 trillion in assets and is the nation's largest bank by market capitalization.

"Their balance sheet can take a shock much better than Countrywide," said CreditSights senior analyst David Hendler. "When you take the shocks at Countrywide, they have a big, busting consequence that's negative."

While Lewis downplayed the prospect of a major deal last month, it fits with an established pattern of building Bank of America through acquisition. In the past few years, Lewis has expanded the bank's retail operation with multibillion purchases of FleetBoston Financial Corp., bolted on a credit card business by adding MBNA Corp., and grabbed a wealth-management business in U.S. Trust Co.

The result of all the dealmaking is a widely diversified financial services company that does business with nearly one out of every two American households.

In the past year, Bank of America has boosted its market share of prime mortgages, or those offered to borrowers with a solid credit history, and was the top retail mortgage originator in the U.S. during the first nine months of 2007.

"We are aware of the issues within the housing and mortgage industries," Lewis said. "The transaction reflects those challenges. Mortgages will continue to be an important relationship product, and we now will have an opportunity to better serve our customers and to enhance future profitability."

In Countrywide, Lewis gets the "best, total mortgage-banking company in the U.S. by far," Hendler said. Countrywide's sophisticated back office is a valuable asset that makes Bank of America a much bigger competitor with Wells Fargo & Co., Washington Mutual Inc. and others, he said. In 2007, Countrywide had $408 billion in mortgage originations and has a servicing portfolio of about $1.5 trillion with 9 million loans.

"The technology platform, the people who run it, the hedging, the facilities, the mortgage servicing rights, the origination platform, you know, they are all state of the art," Hendler said.

While there are some regulator hurdles to close the deal, they are hardly insurmountable. The buyout would require approval from the Federal Reserve, and possibly other agencies, but analysts believe regulators are more concerned about a Countrywide collapse than industry consolidation.

A Countrywide failure would be a huge blow to government-sponsored mortgage finance companies Fannie Mae and Freddie Mac, which are major buyers of Countrywide's loans.

Federal law also bars banks from acquisitions that would increase market share above 10 percent of U.S. deposits, a limit that Bank of America is nearing. Experts disagree about whether deposits held by Countrywide's federally regulated thrift would count toward that limit, and Hendler said Bank of America could also get a waiver from regulators.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by decreasing interest rates and shedding deposits. (AP)

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

January 10, 2008

Drew Bledsoe endorses parental control software

Former Patriots quarterback, four-time NFL Pro Bowler and father of four Drew Bledsoe announced yesterday that he is endorsing SearchHelp, Inc., a developer of Web-based parental control software.

SearchHelp’s Sentry Parental Controls programs are designed to protect children from inappropriate Web content and sexual predators by providing information to parents allowing them to monitor their children’s online activity.

Bledsoe plans to incorporate the Sentry Parental Controls software into the curriculum of his foundation, Parenting with Dignity.

Parenting with Dignity, which Bledsoe established with his parents Mac and Barbara in 1996, is used in schools, prisons and community youth organizations around the country. The curriculum, which has reached an estimated 1.75 million American families, explains to parents how to teach family values to their children while teaching their children to make decisions using these values.
(By Ashley Traupman, Globe staff)

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

Citibank opens South End financial center

Citibank, which is expanding its presence in Boston, opened a full-service financial center in the South End yesterday.

The South End Financial Center, located at 1365 Washington St., includes the wealth management services of Smith Barney’s financial advisors within the bank branch.

As part of the opening, Citibank presented a $75,000 grant to Washington Gateway Main Street. The grant, which will be distributed during a three-year period, will help support the revitalization of Washington Street in the South End and Lower Roxbury.

The branch also offers continuous banking opportunities through two onsite ATMs, online banking and telephone banking services.

Citibank is a unit of Citi, the leading global financial services company, which serves more than 200 million customers in more than 100 countries.
(By Ashley Traupman, Globe correspondent)

Posted by globebusiness at 10:29 AM | Comments (0)

TJX raises outlook

Discount retailer TJX Cos. raised its fiscal fourth-quarter outlook today citing strong profit margins in December and better-than-expected sales in November.

The company now expects earnings from continuing operations of 60 cents to 63 cents per share. In November, TJX forecast earnings of 58 cents to 60 cents per share.

Analysts, on average, are predicting a profit of 59 cents per share, according to a poll by Thomson Financial.

The company posted a 3 percent increase in its December same-store sales, slightly below the 3.3 percent growth analysts were expecting.

Carol Meyrowitz, president and chief executive, said the company managed inventories and controlled costs well during the month, which led to "very strong profit margins."

Shares rose 31 cents to $26.93 in morning trading. (AP)

Posted by globebusiness at 10:25 AM | Comments (0)

Casual Male extends stock buyback program

Casual Male Retail Group Inc. said today its board authorized the apparel and shoe retailer to repurchase up to about $24 million worth of shares remaining under an existing buyback plan.

The authorization effectively extends the company's $75 million buyback program begun in 2007. Repurchases can be made any time in 2008 on the open market or in privately negotiated deals.

Casual Male is based in Canton, Mass. (AP)

Posted by globebusiness at 10:02 AM | Comments (0)

2008 travel trends include germ concerns

TripAdvisor, a travel information website, recently announced the results of its annual travel trends survey. The survey, which questions more than 2,500 travelers from around the world, found customers to be concerned about terrorism, germs and green traveling, among other things. Also noted: travelers will average about three vacations this year.

Here are some highlights from the survey results: Sixty percent of U.S. respondents said the possibility of terrorism is still taken into consideration when planning where to travel; Seventy-eight percent of travelers think the use of cell phones should not be allowed on flights; Eighty percent of those surveyed are concerned about germs, viruses and bacteria when traveling with 55 percent saying they tend to wash their hands more often while traveling; Twenty-six percent of travelers plan to be more environmentally conscious while traveling this year.
(By Ashley Traupman, Globe staff)

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

Skyworks issues bullish forecast

Skyworks Solutions Inc., which makes microchips for mobile devices, said today that it expects fiscal first-quarter earnings and sales will be at the high end of guidance, helped by higher-than-expected product sales.

The company, based in Woburn, previously said it expects earnings of 15 cents to 17 cents per share, while analysts polled by Thomson Financial predict a profit of 16 cents per share.

Shares rose 22 cents, or 2.9 percent to $7.91 during morning trading. The stock has traded between $5.56 and $9.55 during the past 52 weeks. (AP)

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

CRAI profit prediction falls short

CRAI International forecasts profit below Wall Street estimates for fiscal 2008

CRA International Inc. expects profit growth in fiscal 2008 shy of Wall Street's expectations, the business and economics consultant said today.

CRA International expects income growth of 6 percent to 10 percent for fiscal 2008, which ends in November. The forecast implies net income of $34.6 million to $35.9 million.

On a per-share basis, the company expects growth of 10 percent to 14 percent, which implies earnings per share of $2.95 to $3.06. Analysts polled by Thomson Financial expect a profit of $3.09 per share for the year.

CRA International expects revenue growth of 10 percent to 14 percent, which implies revenue of $434.1 million to $449.8 million. Analysts forecast revenue of $450 million. (AP)

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

JetBlue adds direct flight to Jacksonville, Florida

With the Patriots upcoming clash putting Jacksonville, Florida on the map for many New Englanders, JetBlue has some news for those interested in visiting Florida’s largest city. Starting March 15, JetBlue will offer nonstop flights between Boston and Jacksonville each day.

Daily, as of March 15, a flight will leave Boston at 6:10 p.m., arriving in Jacksonville at 9 p.m. Return flights, starting March 16, will leave Jacksonville at 8 a.m., arriving in Boston at 10:35 a.m. Fares for these flights start at $69 one way.

With the addition of the Jacksonville route, JetBlue will offer 28 nonstop flights from Boston, including six destinations in Florida: West Palm Beach, Tampa, Orlando, Fort Myers, Fort Lauderdale and Jacksonville.
(By Ashley Traupman, Globe correspondent)

Posted by globebusiness at 8:39 AM | Comments (0)

BJ's sales up 3 percent

Warehouse-club operator BJ's Wholesale Club Inc. today reiterated its fourth-quarter earnings forecast based on December results and expected January sales.

The company reported same-store sales rose 3 percent in December and it expects January same-store sales, excluding gas and pharmacy results, will increase by 1 percent to 3 percent.

BJ's still expects earnings of 70 cents to 74 cents per share for the fourth quarter, while analysts polled by Thomson Financial predict a profit of 73 cents per share. (AP)

Posted by globebusiness at 7:59 AM | Comments (0)

January 9, 2008

Auto insurance hearing focuses on Commerce

Massachusetts Insurance Commissioner Nonnie S. Burnes today kicked off the first rate-setting hearing under a new auto insurance system in which insurers set their own rates subject to government oversight. Attorney General Martha Coakley called for the hearing to examine rates filed by Commerce Insurance of Webster, the state's largest auto insurer.

But Burnes made it clear that the rate challenge would not turn into one of the lengthy, drawn-out hearings that typified the previous system, when rates were set by the Division of Insurance. Lengthy hearings would mean "consumers are never going to get decent rates," she said. Several times during the hearing, she interrupted assistant attorney general Peter Leight, who led questioning for the attorney general.

"This is an opening statement, not a closing statement," she said to Leight at one point when she thought his initial discussion of the attorney general's concerns went on too long.

During the proceeding, Leight questioned a Commerce assistant vice president about how the company arrived at its proposed 2008 rates, which would be 6 percent less than the insurer's 2007 rates.

The hearing is expected to conclude Thursday. Coakley has also initiated hearings on four other companies' proposed rates. Those hearings will be held later this month.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 4:24 PM | Comments (0)

Hasbro to cut 200 jobs in Mass.

Toy maker Hasbro Inc. today said its Hasbro Games division will cut about 200 jobs at its East Longmeadow factory.

Affected office employees will be offered severance packages and outplacement services. Hasbro said it will negotiate with the union to determine the benefits for the 180 affected union employees.

Additionally, Hasbro said it will invest $10 million to modernize equipment at the plant, as part of a $40 million investment planned over the next few years for new molding machines, high-speed assembly lines, and new printing and dye-cutting equipment.

About 1,350 employees work at the plant, one of two Hasbro Inc. manufacturing facilities. The job cuts represent about 3 percent of the toy company’s worldwide workforce.

Shares of Pawtucket, R.I.-based Hasbro Inc. dropped $1.06, or 4.5 percent, to $22.36 in afternoon trading. They hit a 52-week low of $22.21 earlier in the session.
(AP)

Posted by globebusiness at 3:15 PM | Comments (0)

Sirtris hopes to market red wine drug by 2013

Sirtris Pharmaceuticals Inc., the small Cambridge company that garnered national press attention for its efforts to use a red wine extract to treat aging-related diseases, hopes to bring its first drug to market in 2012 or 2013, said chief executive Christoph Westphal.

Earlier this week, Sirtris released results from an early clinical trial that found that patients with Type 2 diabetes who took the drug, now called SRT501, showed improvement after 28 days. The treatment is a concentrated form of resveratrol, a substance found in red wine that is believed to stimulate a gene that slows the effects of aging.

Despite the positive results, Westphal cautioned that the drug must be tested in several larger and longer clinical trials over the next few years before it can win approval from the Food and Drug Administration, a hurdle most drugs never jump.

Sirtris, which was founded in 2004 and went public earlier this year, has about 50 employees.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:58 PM | Comments (0)

Mass. OKs retail-based health clinic regulations

Massachusetts health officials have approved new regulations allowing the operation of retail-based medical clinics at pharmacies.

The move came after CVS Caremark Corp. applied last year to open a retail clinic at one of its stores in Weymouth. The state's existing regulations did not cover the operation of retail clinics.

Officials say the new regulations also will help not-for-profit hospitals, community health centers and others expand basic health services.

Critics say the clinics could pose a conflict of interest, putting profits ahead of patients health. But supporters say they will expand access to health care and help ease conditions at crowded emergency rooms.

There are hundreds of retail-based health clinics nationwide. (AP)

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

UniFirst declares regular quarterly dividends

UniFirst Corp. said its board declared regular quarterly dividends of 3.75 cents per common share and 3 cents per Class B share.

The workplace uniform provider, which is based in Wilmington, Mass., said the dividends are payable April 3 to shareholders of record March 13. (AP)

Posted by globebusiness at 12:03 PM | Comments (0)

NECCO's 2008 hearts are weather-themed

Personal relationships can go through hot and cold spells just like the weather -- a sometimes harsh reality illustrated by this year's new sayings on the New England Confectionary Co.'s traditional Valentine's Day heart candies.

NECCO said today that its Sweethearts Conversation Hearts will include the weather-themed phrases "Melt My Heart," "In A Fog," "Chill Out," "Cloud Nine," "Heat Wave," "Sun Shine" and "Get My Drift."

The sayings "highlight the excitement and unpredictability of the day-to-day change of weather and people's love lives," NECCO marketing manager Lory Zimbalatti said in a statement.

This year's 10 new sayings also include nature-inspired phrases "Wild Life" and "Nature Lover," and the saying "Do Good."

The Revere-based company has been making Sweethearts Conversation Hearts since 1866, and in the 1990s began introducing different themes. NECCO also makes Necco wafers and Clark bars, with manufacturing plants in Revere and Pewaukee, Wis.

NECCO is being sold to a group of investors under a deal announced Dec. 28. Terms of the sale to a group led by American Capital Strategies Ltd. weren't disclosed. (AP)

Posted by globebusiness at 11:18 AM | Comments (0)

Navy's top admiral supports fleet minimum

The Navy's oft-stated goal of a 313-ship fleet should be considered a minimum level that may have to be increased to meet obligations around the world, the Navy's top admiral said Tuesday.

Adm. Gary Roughead, chief of naval operations, suggested the fleet will have to grow to meet the Navy's commitments. "The 313 will not be enough for the missions that we're going to be tasked with in the coming years," he said.

Roughead's remarks after touring Navy shipbuilder Bath Iron Works and submarine repair yard Portsmouth Naval Shipyard follow a briefing issued by another admiral before Thanksgiving that indicated the 313-ship goal may be adjustable.

The briefing paper by Vice Adm. John Morgan laid out three scenarios, including one that would reduce the fleet and two that would increase the number of ships, to 474 and 534 ships, respectively. The Navy's fleet currently stands at 280 ships.

Shipbuilders who've trimmed their work forces because of tight shipbuilding dollars would welcome a larger fleet but Roughead didn't offer any specifics on how many more ships would be needed, or what type of ships will need to be built.

Roughead's visit came as Bath Iron Works, a unit of General Dynamics Corp., negotiates with the Navy for the final contract to build the first next-generation DDG-1000 Zumwalt destroyer and as Portsmouth Naval Shipyard makes preparations to overhaul Virginia-class submarines.

As it stands, the Navy intends to build seven of the Zumwalt-class destroyers and 55 smaller Littoral Combat Ships designed for nearshore operations. Roughead stuck with those numbers in an interview with reporters.

Maine was the first stop on Roughead's tour of Navy shipbuilders. The next stop is the Austal shipyard in Alabama where one of the versions of the LCS is being built. Bath Iron Works is lead contractor on that project.

From there, he visits Northrop Grumman's Ingalls, Gulfport and Avondale shipyards in Mississippi and Louisiana before traveling to National Steel and Shipbuilding Co. in San Diego. He wraps up the tour with a visit to the Marinette Marine shipyard in Wisconsin where the other Littoral Combat Ship version is being built.

Roughead reiterated that the speedy Littoral Combat Ship that's designed to go where larger ships can't is an important program. He said other countries are watching the program and may be interested in acquiring the ships once the Navy settles on a design.

But he declined to say whether one program is more important than another when it comes to aircraft carriers, amphibious assault ships, destroyers, submarines and other Navy ships. He said the Navy is seeking "a balanced fleet."

It was Roughead's first visit to Bath since 2001 when he was chief of the Navy's office of legislative affairs, before completion of the $300 million land-level transfer facility designed to make the Navy shipbuilder faster and more efficient.

The shipyard also is in the process of building a 66,788-square-foot "Ultra Hall" to allow shipbuilders to put together larger hull segments in an enclosed, climate-controlled facility. The project is key to construction of the Zumwalt destroyer, which will be much larger than destroyers currently built in Bath.

Roughead said he was impressed with the shipyard improvements, the attitude of Bath workers and the shipyard's ability to reduce costs. "That gives me optimism with respect to being able to increase our shipbuilding program," he said.

Before touring Bath Iron Works, Roughead received a similar familiarization tour of Portsmouth Naval Shipyard in Kittery.

The shipyard, spared in the last round of base closings, has focused for years on the repair and overhaul of Los Angeles-class attack submarines. But its workers have begun training to begin work on newer Virginia-class subs down the road. (AP)

Posted by globebusiness at 9:54 AM | Comments (0)

ATG raises sales outlook

E-commerce software maker Art Technology Group Inc. said today it expects 2007 revenue to exceed its prior outlook due to strong demand from companies investing in their Web sites.

The company forecast sales of $136 million to $137 million for the year, up from its prior guidance of $130 million to $133 million.

ATG expects a loss of $5 million to $6 million, compared with its earlier outlook of a loss of $5 million to $7 million.

Analysts, on average, expect a loss of 4 cents per share on sales of $132.8 million, according to a poll by Thomson Financial.

The company plans to post its results on Feb. 5.

Shares climbed 8 cents, or 2 percent, to $4.12 in premarket electronic trading. (AP)

Posted by globebusiness at 9:51 AM | Comments (0)

Iona expects revenues to slip

Iona expects 4th-quarter sales down 21 percent, blaming trouble in financial services sector

Iona Technologies PLC, an Ireland-based software maker with U.S. offices in Waltham, said today that it expects fourth-quarter revenue to slip 21 percent from a year ago, hurt by troubles in the financial services sector -- its largest market.

Shares fell 15 cents, or 4.8 percent, to $3 in premarket electronic trading.

Iona expects revenue of about $18 million, compared to $22.8 million in the year-ago quarter. The company said it's taking on major cost cutting measure this year to counter slumping sales.

The company's prediction matches the average forecast of analysts polled by Thomson Financial.

Iona expects total quarterly expenses of about $20.5 million, which includes a $2.1 million stock-based compensation expense, charges related to debt and a one-time facility fee.

The company will report fourth-quarter results on Jan. 24. (AP)

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

January 8, 2008

Steinway piano sales up in '07 but '08's a challenge

Waltham-based Steinway Musical Instruments Inc. said it expects to report a 10 percent increase in piano sales in 2007.

Based on preliminary results, Steinway said piano sales in Europe and Asia jumped 23 percent, while domestic piano sales rose 3 percent.

For 2008, the company expects stable order and sales rates for band instruments. It also expects margin improvement in its band operations, due to production efficiencies.

Its piano division expects a challenging US and Western European market in 2008, but anticipates growth in Eastern Europe and China. The company plans to reduce inventories and adjust production to match demand in 2008.
(AP)

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

Talbots names a new brand president

The women’s apparel retailer Talbots Inc. has appointed Paula Bennett as president of its J. Jill brand, effective Jan. 28.

Bennett, 58, previously served as president and chief executive of the Appleseed’s, Tog Shop, and WinterSilks brands at Orchard Brands.

She replaces Phil Kowalczyk, recently appointed chief operating officer at Hingham-based Talbots.
(AP)

Posted by globebusiness at 8:12 PM | Comments (0)

Supermarket chain's sales rise, but profit hopes dim

Supervalu Inc., one of the nation’s largest grocers — it’s the parent of the Shaw’s, Star Market, and Albertsons chains, among others — today said its third-quarter profit rose almost 25 percent, but sales fell and it reduced its full-year guidance amid worries about consumer spending trends.

The shares were down more than 14 percent in afternoon trading.

Supervalu said it earned $141 million, or 66 cents per share, in the three months ended Dec. 1, compared with $113 million, or 54 cents, in the same period last year.

Revenue dropped 4.2 percent to $10.21 billion, during a quarter that included one less week of the Eden Prairie, Minn., company’s acquired Albertson’s operations.

Supervalu now expects to earn $2.71 to $2.77 per share for the full year, on revenue of about $44 billion. The profit forecast is down from the $2.73 to $2.83 it previously forecast.

Analysts were expecting earnings of $2.77 on sales of about $44 billion.

The company said it expects consumer spending will continue to be pressured by inflation, as it was during the third quarter.

For the first three quarters, Supervalu earned $437 million, or $2.03 per share, up from $332 million, or $1.75 per share during the same period a year before.

Revenue rose to $33.7 billion, from $27.1 billion. The year-ago period included only about six months of Albertson’s operations.
(AP)

Posted by globebusiness at 3:01 PM | Comments (0)

Genzyme says revenue is up 21 percent

Genzyme Corp. today said its fourth-quarter revenue rose 21 percent to top Wall Street expectations, and annual sales in its kidney and surgical orthopedic segments will reach $1 billion by 2011.

Speaking at JPMorgan’s annual healthcare conference in San Francisco, CEO Henri A. Termeer said quarterly sales grew to $1.04 billion from $854 million a year earlier, and rose 20 percent to $3.8 billion in fiscal 2007, from $3.2 billion in the previous year.

Analysts surveyed by Thomson Financial were expecting quarterly revenue of $989 million and full-year sales of $2.77 billion.

Termeer also reiterated Cambridge-based Genzyme’s outlook for strong growth, forecasting operating profit will total $4 per share in 2008, in line with consensus expectations, and rise to about $7 per share by 2011.

The biotechnology company said 2007 sales of the Gaucher’s disease treatment Cerezyme grew 13 percent to $1.1 billion. Genzyme also forecast that both its renal and biosurgery segments will generate annual sales of about $1 billion by 2011, helped by growth of the kidney treatments Renagel and Renvela and the osteoarthritis injection Synvisc-One, respectively.

Some analysts speculated that Genzyme paid too high a price to codevelop Isis Pharmaceuticals Inc.’s cholesterol drug mipomersen.

Late Monday, Genzyme said it will pay Isis $325 million to develop mipomersen, and up to $1.58 billion more if the drug is developed successfully and reaches sales benchmarks. The two companies will share revenue from the drug.
(AP)

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

Microsoft buys Fast Search for $1.2 billion

Microsoft Corp has purchased Norwegian Web search software company Fast Search & Transfer for $1.2 billion in a deal that would help the world's largest software maker expand into the market for business-oriented search.

Fast, which has its US headquarters in Neehham, designs real-time data search and filtering software and helps filter internal corporate sites. Its clients include Dell and IBM, and it has been viewed by industry analysts as a takeover candidate.

"The problem businesses have around the world is they generate lots of files and they don't know where they put them," said Kim Caughey, senior equity analyst at Fort Pitt Capital, which holds about 203,000 Microsoft shares.

"Microsoft has had desktop search for a while but it really does need a more corporate approach to tracking and storing," she said.

The deal is subject to regulatory approval and acceptance from shareholders with more than 90 percent of Fast's shares, Fast said.

Fast said its board has unanimously recommended that shareholders accept the Microsoft offer, which represents a 42 percent premium to Fast's closing share price on Jan. 4.

The offer values the fully diluted equity of Fast at 6.6 billion Norwegian crowns, or about $1.2 billion.

Shareholders with 37 percent of Fast's stock, including its two biggest institutional investors -- Norway's Orkla and Hermes Focus Asset Management Europe -- have agreed to accept the offer, Fast and Microsoft said.

Microsoft expects the transaction to be completed in the second quarter of 2008.

"Enterprise search is becoming an indispensable tool to businesses of all sizes, helping people to find, use, and share critical business information quickly," said Jeff Raikes, head of the Microsoft Business division.

The deal would spread Fast's search technologies more widely around the world, chief executive John Lervik said. Fast posted a third-quarter loss of more than $100 million on revenue of nearly $36 million. (Reuters)

Posted by globebusiness at 11:03 AM | Comments (0)

Boston Fed president downgrades housing market

The U.S. housing market is headed for its worst performance in 50 years and home prices could fall more rapidly this year if the economy weakens, Boston Federal Reserve President Eric Rosengren said today.

He said previous downturns in the mortgage sector were generally associated with hard economic times, although he steered clear of predicting a recession.

"History may or may not repeat itself," he told an audience of industry executives at a meeting of the Connecticut Business and Industry Association. (Reuters)

Posted by globebusiness at 10:22 AM | Comments (0)

Ariad expecting higher revenues

Drug developer Ariad Pharmaceuticals Inc. said today it expects a higher net loss in 2008 as it continues research and development and defers revenue from a Merck & Co. partnership.

The company expects a loss between $81 million and $84 million in 2008, compared to an estimated loss of $57 million to $58 million in 2007.

Ariad said it will end 2007 with about $85 million in cash and marketable securities. Meanwhile, it will spend between $41 million and $44 million in 2008 for operations, compared with $41 million to $42 million in 2007.

The company's lead drug candidate is deforolimus, aimed at starving cancer tumors of a protein called mTOR. The drug is being developed with Merck and is in late-stage clinical trials as a treatment for bone and connective tissue cancers.

Ariad said its share of deforolimus development costs in 2007 and 2008 will be between $46 million and $50 million. But, that will be offset by projected milestone payments of $43.5 million by Merck. Between 2009 and 2010 the development costs will range from $110 million to $122 million, offset by Merck payments between $100 million to $125 million.

The company said it will focus on building up a commercial infrastructure for deforolimus in 2008 while continuing to build its cancer treatment pipeline. The partnership with Merck calls for testing deforolimus in five separate cancer indications. Ariad also plans to start an early-stage study of its second drug candidate, AP24534, in 2008. (AP)

Posted by globebusiness at 9:21 AM | Comments (0)

BzzAgent partners with Rogers Media

BzzAgent, the Boston-based "word-of-mouth" media network, today announced a partnership with Rogers Media, a division of the Canadian media corporation Rogers Communications Inc., in which Rogers will license the BzzAgent brand exclusively in Canada.

According to the agreement, Rogers Media will assume exclusive rights to sell access to BzzAgent’s word-of-mouth network in Canada and develop campaigns for that consumer channel, under the name BzzAgent Canada. The Canadian company will add word-of-mouth marketing services to its existing print, digital, broadcast and other marketing solutions.

The BzzAgent network consists of more than 360,000 unpaid consumers, nearly 10 percent of whom live in Canada. These consumers, called Agents, volunteer to experience and discuss products and services with members of their social circles.

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

Digitas names Rudduck to top creative spot

Digital marking agency Digitas has named Australian advertising veteran Heath Rudduck executive creative director for the agency's Boston headquarters. Rudduck will oversee creative development and execution across all Boston office clients, including GM, The Home Depot, and the Intercontinental Hotels Group.

Rudduck joins Digitas from TribalDDB, where as executive creative director he led the development of creative concepts and design projects across all agency clients. In a role unique to the Australian advertising industry, Rudduck was simultaneously associate creative director at DDB Melbourne, working across interactive and traditional agency areas.

Digitas, which is based in Boston, is a member of the Paris-based Publicis Groupe S.A., the world’s fourth largest communications group and second largest media counsel and buying group.

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

January 7, 2008

Langan will head Nixon Peabody

Nixon Peabody LLP, an international law firm headquartered in Boston, said it has named Richard F. Langan Jr. to serve as the firm’s chief executive and managing partner.

Langan, who has spent his entire career at Nixon Peabody, will assume his new duties and titles on May 1, the firm said.

At that time, current chief executive and managing partner Harry P. Trueheart III will become the non-executive chairman of Nixon Peabody, the firm said.

While serving as chief executive and managing partner, Langan will continue his legal practice in business and finance, the firm said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:06 PM | Comments (0)

One Laptop Per Child campaign raised $35 million

One Laptop Per Child said today that its recent Give One Get One campaign raised $35 million that will provide more than 100,000 of its XO laptops to poor children in developing countries.

One Laptop Per Child is a Cambridge nonprofit group set up by Massachusetts Institute of Technology professor Nicholas Negroponte; the group's goal is to provide low-cost laptops to poor schoolchildren around the globe.

The Give One Get One campaign ran from Nov. 12 through Dec. 31, the group said.

When first announced, the campaign allowed consumers to pay $399 and get two laptops - one for themselves and the other for a child in a country such as Afghanistan.

In total, One Laptop Per Child said today, the campaign raised $35 million, and more than 100,000 XO laptops are already in the process of being distributed to children in Afghanistan, Cambodia, Ethiopia, Haiti, Mongolia, and Rwanda.

Founded in 2005, OLPC aims to develop the XO laptop to sell for $100 or less, though its current price is $188.

How successful the program will be is uncertain, in part because the nonprofit faces competition from companies such as Intel Corp., which is distributing its own low-cost laptop.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:49 PM | Comments (0)

Gas prices rise in Massachusetts

Gasoline prices are up two cents a gallon this week in Massachusetts, topping last year's highest price.

A statewide survey by AAA of Southern New England found an average price of $3.05 for a gallon of regular, self-serve gasoline, compared with $3.03 a week ago.

The highest average price recorded in 2007 was $3.04 on Memorial Day.

Prices have risen two weeks in a row, and are up a nickel a gallon over that period.

The average in Massachusetts is five cents below the national figure of $3.10 per gallon. (AP)

Posted by globebusiness at 12:04 PM | Comments (0)

Biogen Idec expects higher profit

Cambridge biotechnology company Biogen Idec Inc. said today it will see higher-than-expected profit in 2007 and expects revenue to rise 15 percent through 2010.

Profit in 2007 will likely beat prior guidance of $1.84 to $1.94 per share, or $2.60 to $2.70 per share excluding charges. The company cited sales of its cancer drug Rituxan and the multiple sclerosis drugs Tysabri and Avonex as factors in the new forecast.

Analysts polled by Thomson Financial expect profit of $2.62 per share in 2007, excluding certain charges.

In 2008, the company said it expects profit between $2.23 to $2.38 per share, or $3.20 to $3.25 per share excluding charges. Wall Street expects profit of $3.20 per share.

A compounded 15 percent rise in revenue through 2010 will be led by higher Tysabri sales, expanded approval for Rituxan, and a more balanced mix of international and national sales, the company said.

The company said data continue to support the safe use of Tysabri, with about 12,900 patients in the U.S. now taking the drug. It was pulled from the market in 2005 after two patients in clinical trials died of a nervous system disorder but later was allowed back on the market conditionally.

On the Nasdaq Stock Market, shares of Biogen rose $1.76, or 3.2 percent, to $56.98 in morning trading. The stock has traded between $42.86 and $84.75 over the past 52 weeks. (AP)

Posted by globebusiness at 11:53 AM | Comments (0)

Online spending sets holiday record

Online holiday spending hit a record between Nov. 1 and Dec. 31, according to comScore Inc., a Virginia firm that tracks digital activity.

“This year’s online holiday shopping season has concluded with a record $29 billion in spending, a 19-percent gain versus year ago,” comScore chairman Gian Fulgoni said in a statement. “Ultimately, the softness in the growth of online retail sales during the first ten days of November proved difficult to overcome and prevented the season’s growth rate from reaching our forecast of 20 percent. However, the period between Thanksgiving and Christmas - another measure of the strength of the holiday season - experienced a healthier 21-percent growth rate.”

Monday, Dec. 10, was the heaviest individual spending day of the season with $881 million in sales, followed by Tuesday, Dec. 11, with $819 million in sales, comScore said.

“Cyber Monday” (Nov. 26), which represented the first major spike in online spending activity during the season, ranked as the ninth heaviest day with $733 million in spending, comScore said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:17 AM | Comments (0)

Boston Scientific completes sale of 2 units

Natick medical device company Boston Scientific Corp. said today it has completed the sale of its cardiac surgery and vascular surgery businesses to the Getinge Group of Sweden for $750 million in cash.

The definitive agreement of the sale was announced in November.

Boston Scientific said it expects to record after-tax charges of approximately $240 million in connection with the transaction; these charges will be recorded during the fourth quarter of 2007 and the first quarter of 2008.

"We have now sold three of our five previously identified non-strategic businesses, and we expect to close on the remaining two - Fluid Management and Venous Access - this quarter," Jim Tobin, Boston Scientific president and chief executive, said in a statement. "These divestitures - along with our ongoing efforts to reduce expenses and simplify our operating model - should help us achieve our overall goals of restoring profitable growth, increasing shareholder value and strengthening Boston Scientific for the future."
(By Chris Reidy, Globe staff)

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

Kadant rings up $26 million in orders

Kadant Inc. said today it has received orders for $26 million of its products and services.

Westford-based Kadant is a supplier to the global pulp and paper industry.

Kadant said that its Kadant Black Clawson Inc. subsidiary has received the second and final portion of an order for approximately $11 million from a kraft pulp mill in the United States to design, engineer, and procure materials for a six-effect falling film evaporation system.

Kadant also announced that its Kadant Black Clawson Inc. subsidiary has received the down payments for two pending orders totaling approximately $15 million for stock-preparation systems from a leading linerboard producer in Asia.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:32 AM | Comments (0)

Osiris ends partnership with Boston Scientific

Osiris Therapeutics Inc. announced today it has terminated a collaboration agreement with Boston Scientific Corp. on stem-cell research.

Boston Scientific is a Natick medical device company.

Maryland-based Osiris Therapeutics said it has reclaimed sole worldwide rights to cardiovascular indications for Prochymal and ended its development and commercialization agreement with Boston Scientific Corporation in order to provide Osiris with the flexibility to enter more strategically beneficial relationships.

"This step was critical to realizing the full value of our proprietary stem cell technology," C. Randal Mills, Osiris president and chief executive, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:20 AM | Comments (0)

Foreclosure petitions still rising

Monthly petitions to foreclose on homes in Massachusetts rose 44 percent in October on year-to-year basis, topping 3,000 for only the second time in 2007, according to the Warren Group, a Boston-based provider of real estate data and publisher of Banker & Tradesman.

Petitions to foreclose are the first step in the foreclosure process, and do not always end in actual foreclosure; some homeowners eventually sell their homes or refinance.

Lenders filed 3,040 petitions to foreclose in Massachusetts Land Court during October. There were 3,115 petitions in August 2007, the only other month petitions topped 3,000 since the Warren Group began tracking foreclosure data in January 2005.

Petitions rose 43.9 percent from the 2,112 filed in October 2006; there were 24,155 petitions filed in the first 10 months of 2007, up 62.7 percent from the 14,847 filed during the same time period of 2006, the Warren Group said.

Meanwhile, the number of foreclosure deeds in November dropped slightly from October, but was still well above the number filed in November 2006, the Warren Group said.

Foreclosure deeds in November rose 72 percent from 371 in November 2006 to 638, but were down slightly from the 739 in October 2007; year-to-date deeds were up 149.2 percent from 2,797 filed in the first 11 months of 2006 to 6,970 this year, the Warren Group said.

“Regulators and lawmakers have been paying more attention lately to the foreclosure crisis, but many Bay State homeowners in October and November were still feeling the pinch of rising interest rates and declining home prices, and were in danger of losing their homes,” Timothy Warren Jr., chief executive of the Warren Group, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:41 AM | Comments (0)

Gloria Spire lands Lee Co. solar contract

Gloria Spire Solar LLC announced today that it has won a contract to design and install a 308-kilowatt photovoltaic solar electric system at a manufacturing facility for the Lee Co. in Westbrook, Conn.

Gloria Spire Solar is a Bedford-based joint venture company formed by solar industry companies Spire Corp. and Gloria Solar Co. Ltd.

According to its website, the Lee Co. develops miniature precision fluid control components for such industries as aerospace and oil.

The Westbrook project is is the largest solar electric system to be installed for a manufacturing company in Connecticut, and one of the largest in New England, Gloria Spire said.
(By Chris Reidy, Globe staff)

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

Inverness completes Panbio purchase

Inverness Medical Innovations Inc. said today that its previously announced acquisition of Panbio Ltd has been completed.

Waltham-based Inverness Medical has been embarked on an acquisitions strategy as it looks to become a powerhouse in the field of point-of-care diagnostics.

The Panbio transaction was finalized with Inverness acquiring all outstanding shares for a total value of approximately $37 million, Inverness Medical said.

Panbio, headquartered Australia, develops and manufactures diagnostic tests for use in the diagnosis and management of a board range of infectious diseases; in particular, Panbio's position in Dengue Fever diagnostics complements Inverness Medical's existing product portfolio for the rapid diagnosis of blood borne pathogens, Inverness Medical said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:47 AM | Comments (0)

MassHealth implements Outcome procedures

Outcome Sciences Inc. today announced that it has created a Patient Management Tool to support the MassHealth Hospital Pay-for-Performance, or P4P, Measures initiative.

Outcome is a Cambridge-based provider of patient registries and studies for evaluating real-world outcomes.

In an effort to improve hospital quality in Massachusetts, MassHealth recently implemented Hospital P4P Measures that will improve the standard of care based on specific performance benchmarks. The measures of focus include obstetrics, neonatal, pediatric asthma care, surgical infection prevention, community acquired pneumonia, and health disparities.

Outcome's newly designed MassHealth Hospital P4P PMT is a single entry tool that minimizes reporting time and includes the MassHealth required measures, allowing hospitals to collect data for multiple initiatives in one system, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:42 AM | Comments (0)

EnerNOC names Brady chief operating officer

EnerNOC Inc. today announced the appointment of Darren Brady to the role of chief operating officer and senior vice president.

Boston-based EnerNOC uses technology to automate the so-called demand response process for electricity utilities by signing up commercial and industrial companies to conservation programs; during peak demand periods, such as hot summer days, EnerNOC uses its technology to remotely curtail the electricity consumption of companies that have signed onto the program as a way to lower the likelihood of brownouts and outages.

Brady joins EnerNOC from Washington-based Puget Sound Energy, a subsidiary of Puget Energy, where he served as senior vice president of customer service and information technology and chief information officer since October 2005, EnerNOC said.
(By Chris Reidy, Globe staff)

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

Biogen reasserts Tysabri's safety

Biogen Idec Inc. and Elan Corp. plc today announced that safety data continue to support a favorable benefit-risk profile for Tysabri, their multiple sclerosis treatment.

Biogen Idec is based in Cambridge, Elan in Ireland.

Tysabri was first approved in 2004, but it was later taken off the market after it was linked to a rare brain disease.

The drug went back on sale in mid 2006 after an extensive safety review.

There have been no cases of the rare brain disease, progressive multifocal leukoencephalopathy, since the re-launch of Tysabri in the US and the launch internationally in July 2006, the companies said.

In the US, about 12,900 patients were on Tysabri therapy commercially and internationally, approximately 7,500 patients were on Tysabri, the companies said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:17 AM | Comments (0)

Report: demand for storage surging

Demand for storage capacity continues to grow at a rate of nearly 60 percent, according to IDC, a Framingham-based firm that specializes in market intelligence.

IDC said that it believes that during 2008 the industry will see significant shifts in the way data is stored, managed, and protected.

The overarching theme of storage efficiency will intensify throughout 2008 and increase the industry's focus on virtualization strategies and green initiatives as well as information consolidation techniques like deduplication, IDC said.
(By Chris Reidy, Globe staff)

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

Magen BioSciences licenses Lilly compounds

Magen BioSciences Inc. of Waltham said today that it has licensed dermatology compounds from Eli Lilly and Co., the giant Indiana-based drug maker.

Magen said it had acquired the rights to a series of novel pre-clinical compounds from Lilly and under the terms of the agreement, Magen has been granted the exclusive worldwide rights to develop and commercialize products based on these compounds for all dermatology applications.

Other terms of the deal were not disclosed, Magen said.

“This transaction marks a significant milestone in the growth of Magen to become a premier, science-based dermatology company,” Brian M. Gallagher, company president and chief executive, said in a statement.
(By Chris Reidy, Globe staff)

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

January 4, 2008

Michael J. Fox grant includes Alnylam

Alnylam Pharmaceuticals Inc. today announced that it was part of a research team awarded a new $3.8 million grant from the Michael J. Fox Foundation to further develop an RNAi therapeutic for the treatment of Parkinson's disease.

The Cambridge biopharmaceutical company seeks to develop novel technologies based on RNA interference, or RNAi, a naturally occurring mechanism within cells for selectively silencing and regulating specific genes; since many diseases are caused by the inappropriate activity of specific cells, the ability to silence genes selectively through RNAi has great potential, researchers think.

With ties to actor Michael J. Fox, who disclosed in 1998 that he had a form of Parkinson's disease, the Michael J. Fox Foundation is dedicated to ensuring the development of a cure for Parkinson's disease within this decade.

Alnylam said the four-year grant from the Fox foundation was awarded to Alnylam, the Mayo Clinic, and the Parkinson's Institute and Clinical Center.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:54 PM | Comments (0)

Greenway conservancy meets fund-raising goal

The Rose Fitzgerald Kennedy Greenway Conservancy reached its goal of raising $20 million in funding by the end of 2007, its executive director said today.

In an e-mailed statement, executive director Nancy Brennan said the conservancy, which oversees the Greenway, has received $20.3 million in contributions, $14.2 million of which will be used to build a permanent endowment.

By depressing the Central Artery, the Big Dig project made way for 15 acres of new public parkland, as well as additional space set aside for nonprofit facilities; the Greenway extends from Causeway to Kneeland streets.

In October, the conservancy disclosed plans to sell 900 engraved commemorative bricks to the public, at a cost of $500 each, as a way to augment fund-raising; plans call for the bricks to be used in a section of the Greenway.

At the time, the conservancy said it had nearly $18 million in pledges.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:40 PM | Comments (0)

Hasbro will add Cranium to its toy chest

Hasbro Inc., the large toy maker based in Pawtucket, R.I., said today that it has agreed to buy the privately-held game maker Cranium Inc. for about $77.5 million.

Hasbro Chief Operating Officer Brian Goldner said the deal will allow Hasbro to maximize the Cranium brand and grow in international markets. Seattle-based Cranium has sold more than 22 million games, books, and toys worldwide.

Hasbro officials said the deal is expected to close in the first quarter this year, pending approval of Cranium's shareholders.

Under the deal, Cranium will become a subsidiary of Hasbro, which will pay down Cranium's outstanding debt and pay its shareholders. The final purchase price could change based on Cranium's net assets on the closing date.

Hasbro's brands include Playskool, Tonka, and Milton Bradley and board games such as Monopoly, Scrabble, and Candy Land.

On the New York Stock Exchange, Hasbro shares fell 73 cents, or 2.9 percent, to $23.95 in morning trading after sinking to a 52-week low of $23.83 earlier in the session.(AP)

Posted by globebusiness at 11:55 AM | Comments (0)

Maine approves FairPoint telecom deal

After a long day of deliberations, Maine utility regulators Thursday night approved a negotiated agreement allowing FairPoint Communications' $2.7 billion buyout of Verizon's land lines in the three northern New England states.

The Public Utilities Commission voted unanimously to approve the deal. While all three commissioners said they continue to have concerns, they said the benefits of the deal outweigh the risks.

PUC Chairman Kurt Adams said the case involves one company, FairPoint, whose finances raised concerns that "it would be a reach for them to perform," while saying Verizon wants out of the state and is "allowing its assets in Maine to wither on the vine."

But Adams said consumers stand to fare better having the Charlotte, N.C.-based FairPoint as their phone company.

FairPoint hopes to take ownership of Verizon's 1.6 million access lines and Internet service in Maine, New Hampshire and Vermont, but Verizon would retain its wireless phone operations.

The deal also requires approval from Vermont and New Hampshire regulators. On Dec. 21, Vermont's Public Service Board rejected the deal but invited the company to submit a revised application. New Hampshire's PUC staff recommended against the initial proposal, but it is also willing to consider a revised deal.

The deal is subject to review by the Federal Communications Commission.

Maine's PUC attached several conditions to its approval. The commission suggested reducing FairPoint's debt to Verizon by $100 million by scaling back fees FairPoint will pay to lease equipment from Verizon Communications.

Verizon general counsel Don Boecke dismissed that approach as "pretty much a nonstarter," but left the door open to an alternative. FairPoint Chief Executive Officer Gene Johnson then told the PUC a number of options that would have the same financial impact were available.

Some of those include reducing dividends, selling noncore assets, selling more stock and suspending dividends if necessary, he said.

Other conditions ordered by the PUC included having FairPoint develop and implement a policy protecting customers' privacy, and not having the other two states' regulators materially change FairPoint's financial condition.

Johnson said he did not see the latter condition as a problem, saying he believes the agreement approved in Maine will serve as a "roadmap" in New Hampshire and Vermont.

Earlier in the proceeding, commissioners raised a wide range of questions relating to labor, enforcement and jurisdictional issues in the sale agreement, known as a stipulation.

The stipulation worked out by the companies, the PUC staff, some smaller telephone companies and Maine's Public Advocate is opposed by unions representing Verizon employees.

FairPoint's Joe Donahue said the company would fulfill more than the promised increase in broadband access and employment and rate relief. He asked that FairPoint be given an opportunity to build on its presence in the region.

While the Maine Public Advocate's office told the commission that the deal's benefits far outweigh its risks, labor opponents continued to argue that FairPoint would be financially unable to meet its commitments to workers and retirees and at the same time meet its obligations to stockholders and lenders.

Attempting to meet all of its financial commitments while making promised improvements in the region's phone system would leave FairPoint in "dire financial straits," warned Scott Rubin, representing communications and electrical workers' unions.

Also expressing misgivings was a group worried about the deal's impact on privacy rights. The concerns stem from a case in which the federal government sought to stop the PUC from forcing Verizon to say whether it provided customer call records to the government without a warrant.

Christopher Branson, representing consumers with privacy concerns, said the stipulation should have included stronger language affirming the PUC's jurisdiction in the matter.

The stipulation incorporates numerous changes from the original proposal that surfaced nearly a year ago. Verizon would put in more than $235 million in additional working capital to reduce FairPoint debt, and FairPoint would reduce its dividend level by 35 percent and take other steps to further reduce its debt.

On Thursday, commissioners sought clarification on issues such as how FairPoint's promises of broadband deployment will be enforced. (AP)

Posted by globebusiness at 11:41 AM | Comments (0)

Mass. business confidence down

A Massachusetts business confidence index edged off a tenth of a point in December to 53.5, its lowest level since October 2003, ending 2007 off 5.7 points on the year.

The index is compiled by the Associated Industries of Massachusetts, or AIM, a nonprofit, nonpartisan employer association representing more than 7,000 institutions and businesses in the state.

While Massachusetts employers were predominantly negative about prevailing business conditions, they did not foresee further deterioration in the six months ahead, and on balance expected a stronger employment picture in the first half of 2008, AIM said.

“This was the Index’s fourth decline in the last five months of 2007, which reflects a slowing economy overall as well as more serious problems in certain sectors,” Brian Gilmore, AIM’s executive vice president of public affairs, said in a statement. “At the same time, this is still a ‘positive’ reading, above 50 on our 100-point scale, and survey respondents did not expect to see conditions worsen further over the first two quarters of 2008.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:17 AM | Comments (0)

Report sees increase in "anywhere applications"

The adoption of so-called "Anywhere Applications" will empower end-users with 24/7 access to corporate data within the next 12 to 24 months, according to a new report from the Yankee Group.

The Boston firm, which focuses on global connectivity issues, defines Anywhere Applications as a set of standards-based technologies that enable customers to access information from an array of devices regardless of the location.

These device- and location-agnostic applications will provide enterprises with a much greater competitive edge, and this rapidly emerging technology provides the power and flexibility necessary for the increasingly growing mobile work force, according to the Yankee Group.

"Currently, Anywhere Application deployments are still in their infancy, but Anywhere Applications aren't just a dream. They are fast becoming a reality in mainstream networks," Laura DiDio, research fellow in Yankee Group's Enterprise Research group and coauthor of the report, said in a statement. "No company has yet to achieve full and complete Anywhere Applications capabilities."
(By Chris Reidy, Globe staff)

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

Follica raises $5.5 million

Follica Inc. today announced a $5.5 million Series A financing round.

The Boston firm is the developer of a novel therapy for androgenetic alopecia - male and female pattern hair loss caused by androgens in genetically susceptible men and women - and other hair follicle disorders,

Interwest Partners, an investment firm with offices in California and Texas, led the financing, and existing investor PureTech Ventures of Boston participated, Follica said.

The funding is expected to take the company through a clinical proof of concept study, Follica said.

Follica was co-founded by PureTech Ventures and a group of academic dermatologists.
(By Chris Reidy, Globe staff)

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

WorldCare Int. signs Bulfinch Place lease

WorldCare International Inc., a provider of medical advisory services, has signed a five-year office lease for 8,136 square feet of space at 7 Bulfinch Place in Boston, a broker involved in the transaction said.

The broker is Boston-based NAI Hunneman, a commercial real estate services company, and NAI Hunneman said it represented the building's landlord, WHDH TV Inc., in the transaction.

The Staubach Company represented WorldCare International, NAI Hunneman said.

NAI Hunneman described 7 Bulfinch Place as an 85,000 square-foot office building located in the North Station/Government Center section of Downtown Boston.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:41 AM | Comments (0)

Hartman joins Yankee Candle

The Yankee Candle Company Inc. announced that Bruce L. Hartman will be joining the company as senior vice president of finance and chief financial officer.

The Deerfield company is a designer, manufacturer, wholesaler, and retailer of premium scented candles in the giftware industry.

Hartman joins Yankee Candle from Cushman & Wakefield, a global commercial real estate services firms, Yankee Candle said.

Last February, Yankee Candle was purchased by an affiliate of Madison Dearborn Partners LLC, a Chicago-based private equity firm; when the deal was initially disclosed, it was valued at $1.7 billion, including debt, a Globe story noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:36 AM | Comments (0)

Millennium predicts 2008 profit

Biotechnology company Millennium Pharmaceuticals Inc. said today that it will turn a profit in 2008 on a jump in sales of its cancer drug Velcade.

The company expects a profit between $10 million and $25 million on a mix of Velcade sales and royalty payments. Millennium said Velcade sales will rise between 20 percent and 30 percent to $320 million to $345 million, while royalty payments will range from $175 million to $185 million.

Despite rising Velcade sales, Wall Street has taken a cautious outlook on its growth, citing increased competition from Celgene Corp.'s Revlimid. Velcade and Revlimid are approved to treat the relapsed form of multiple myeloma, a cancer of the white blood cells in bone marrow.

Meanwhile, Velcade is also approved to treat non-Hodgkin's lymphoma and the company expects approval as an initial treatment for multiple myeloma.

Millennium's partner for Velcade development and marketing is Johnson & Johnson.

In 2007, Velcade sales rose 20 percent to $265 million. The company is expected to report its 2007 financial results Feb. 7 and has previously guided for a loss between $30 million and $35 million, or 9 cents to 11 cents per share. Excluding charges and certain costs, the company expects profit between 13 cents and 14 cents per share.

Millennium said it will present its 2008 outlook in a conference call later today and at the 26th annual JP Morgan Healthcare Conference Wednesday in San Francisco.

Millennium also said it will continue focusing on its late-stage pipeline in 2008, which includes an additional study of Velcade in non-Hodgkin's lymphoma and studies of a developing ulcerative colitis and Crohn's disease drug. (AP)

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

Verizon FiOS arrives in Rowley

Verizon Communications Inc. said it has begun offering its FiOS TV service in Rowley.

Rowley is one of 61 Massachusetts communities where the service is being offered, Verizon said.

Headquartered in New York, Verizon delivers broadband and other wireline and wireless services to mass market, business, government, and wholesale customers.
(By Chris Reidy, Globe staff)

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

Helicos BioSciences gets $20 million from GE

Helicos BioSciences Corp. announced today that it has closed a $20 million senior secured credit facility with GE Healthcare Financial Services.

A Cambridge life sciences company focused on innovative genetic analysis technologies for the research, drug discovery, and diagnostic markets, Helicos BioSciences said it will use the credit facility to support working capital and commercialization efforts.

Helicos BioSciences said it received $10 million under the new credit facility on Dec. 31, and has the ability to draw down the remaining $10 million by June 30.

The initial $10 million will be amortized over 36 months with interest-only payments for the first 12 months, said the company, which added that no warrants are associated with the deal.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:00 AM | Comments (0)

Talbots will exit kids and men's businesses

Hingham-based apparel retailer Talbots Inc. said today it will exit its Talbots Kids and Talbots Mens concepts by September.

As a result, Talbots said it will close 78 US stores, including 66 Talbots Kids and 12 Talbots Mens stores; the closures will impact about 800 full- and part-time positions, or 5 percent of company's total workforce.

Talbots is perhaps best known for its classic styled clothing for middle-age women, but the company also noted today that that its quarter-to-date sales for both its Talbots and J. Jill brands are trending below its expectations.

The decision to exit the kids and men's business came after a thorough evaluation of its business, said the company, which added that the decision was part of Talbots strategic business review that was announced in October and which is expected to be completed in the first quarter of 2008.

Trudy F. Sullivan, who recently joined Talbots as president and chief executive, issued a statement regarding the decision.

"This is a very important strategic move that will greatly contribute to our ability to focus and reinvigorate our core brands and provide sustainable long-term shareholder value," Sullivan said in the statement. "By exiting these concepts, we can focus exclusively on our company's core strength - the age 35 plus female market, where we believe there is significant opportunity for profitable growth in both our Talbots and J. Jill brands."

According to the company, its strategic review of its kids and men's businesses revealed that these concepts did not demonstrate the potential to deliver acceptable long-term return on investment.
  As a result of these actions, the company said it currently anticipates total revenue to be impacted by approximately $100 million on an annualized basis.

Talbots added that it currently expects that the ongoing operational benefit resulting from these closings would be approximately $13 to $15 million, or $0.15 to $0.18 per diluted share, on an annualized basis.

Talbots said it anticipates pre-tax expenses associated with the closings of approximately $5 million, or $0.06 per diluted share in the fourth quarter 2007.

In addition, the coompany said it expects to incur pre-tax expenses of approximately $34 to $42 million, or $0.40 to $0.49 per diluted share in fiscal 2008.

According to a story in the Globe's data base, Talbots disclosed plans in 2001 to test a men's clothing line.

Items from the new line were previewed at an investment conference the following year.

At that event, a model showed off a "Prince of Wales" style sports jacket in a "classic yet gutsy plaid," a Globe story recounted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:47 AM | Comments (0)

January 3, 2008

Intel quits One Laptop Per Child's board

Intel Corp. has resigned from One Laptop Per Child Foundation’s board, the company said today.

Spokeswoman Agnes Kwan said the decision came after the Cambridge group’s founder, Nicholas Negroponte, asked Intel to halt its support for Classmate, a program to make inexpensive laptop computers for distribution to poor children in developing countries.

Classmate competes with the foundation, which supplies its XO low-cost laptop computer to needy populations.

‘‘We have long believed that there is no single solution to the needs of children in emerging markets,’’ Kwan said. ‘‘We concluded that we cannot accommodate the request.’’

One Laptop officials were not immediately available for comment.
(By Hiawatha Bray, Globe staff)

Posted by globebusiness at 8:26 PM | Comments (0)

Commercial real estate going strong, firm says

‘‘It’s all good’’ — the phrase pretty much summarizes Jones Lang LaSalle’s assessment of the commercial office market in the Boston area.

Though there are pockets that resist an improving trend — the Interstate 495 belt, with a vacancy rate in the 20s range, percentage-wise, being a notable one — the office market has rebounded in a big way over the past 18 months or so, the real estate firm says.

Net absorption — meaning the amount of vacant square footage that’s been put back under lease — was almost 1 million square feet in the city of Boston alone in 2007. That’s in a market with 58 million square feet, by Jones Lang LaSalle’s count.

At one of the company’s twice-a-year market outlook meetings, held today, executives said a steadily growing economy, a wave of lease expirations, and fewer new buildings coming on the market have all contributed to a relatively low 12.2 vacancy rate in the city, along with asking rents that have climbed to an average of $55 per square foot.

Rents are considerably higher for first-class, top-of-the-tower space, and developers of new buildings are asking for per-foot rents in the $70s. Those rents climbed about 47 percent just last year, Jones Lang LaSalle’s research showed.

As for new construction, a Fan Pier office building in South Boston, a new tower at Russia Wharf, and Two Financial Center — all now coming out of the ground — are expected to satisfy demand in a couple of years without creating a glut of space.

‘‘Three buildings feels right,’’ said William P. Barrack, managing director.

Big tenants that move or renew their leases, 100,000 square feet and up, get all the headlines, but executives said small tenants accounted for most of last year’s growth, firms with 5,000 square feet growing to 7,000, for example.

In Cambridge, space is not in abundance, and not much is being built. But some landlords are looking for $60-per-foot rents, utilities not included, and Immunogen Inc., for one, picked the more modestly priced suburbs (Waltham) instead.

The Route 128/Massachusetts Turnpike western suburbs are hot. Alexander D. Dauria, senior vice president of Jones Lang LaSalle, said more than 1 million square feet is being built from Needham to Burlington; about 70 percent of it will be leased before ribbons are cut.

But the I-495 area isn’t getting its share yet. ‘‘We’re like spectators on the sidelines waiting for the parade,’’ said William D. Bailey, managing director. Vacancies actually increased along I-495 last year.

Cappy Daume, managing director, said 2008 may have two personalities, as 2007 did. Last year started off strong, then collapsed midyear, when serious credit problems in the residential market became evident.

But 2008 may start off slow, then pick up, as investors get their confidence back, Daume said.
The fundamentals — rent levels, tenant growth, vacancy rates — remain solid in Boston, and there’s still a world of capital out there looking to invest.

‘‘Those are two great factors,’’ Daume said. ‘‘They’re going to be very powerful. But my guess is you’re not going to see it happen till the second half.’’
(By Thomas C. Palmer Jr., Globe staff)

Posted by globebusiness at 4:29 PM | Comments (0)

Citi Capital Strategies opens Boston office

Citi Capital Strategies, a unit of Citigroup Inc., said today that it has opened an office in Boston.

Citi Capital Strategies, an investment bank focused on serving closely held and family owned businesses, added that Gregory Rush has joined the firm as the managing director of the Boston office.

Rush was formerly the chief operating officer of Community Newspaper Co., which was acquired by GateHouse Media Inc., Citi Capital Strategies noted.

Citi Capital Strategies' small Boston office will join other Citigroup units, including the Smith Barney brokerage and Citibank, with a local presence.

"The addition of a Boston office is part of our strategic growth plan, and we look forward to assisting private business owners in the area with exit planning and transition strategies," Brian Keane, head of investment banking for Citi Capital Strategies, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:22 PM | Comments (0)

Survey: "Sleepworking" affects many businesses

"Sleepworking" - dreaming about work - affects many small business professionals, according to a survey out today.

The survey is from Staples Inc., a Framingham-based retailer of office supplies, and the survey suggests that instead of keeping people awake at night, work issuescan weave themselves into a true professional's dreams.

Indeed, in the can-do lexicon of the workaholic, a dream about work is not necessarily down-time; it can also serve as a brainstorm that an enterprising dreamer can take action on.

According to the 2nd Annual Staples National Small-Business Survey, more than half of small-business professionals said that work has actually become part of their dreams.

Of those surveyed, 51 percent said that they “sleepwork,” Staples said, and nearly 70 percent of those “sleepworkers” report that they wake up and put their “work dreams” into action.

"Our customers often tell us there just aren’t enough hours in the day, so it’s understandable that business activity is invading sleep time,” John Giusti, vice president of small business marketing at Staples, said in a statement.

Staples said that its online poll surveyed more than 300 small businesses with 20 employees or fewer and that the poll aimed to explore what is causing the insatiable need to work.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:44 PM | Comments (0)

Vertex shares slide on news about drug's testing

Shares of Vertex Pharmaceuticals Inc., which traded at two-year lows in recent days, slid today after a Wachovia analyst downgraded the stock, saying new tests may delay the launch of a hepatitis C drug candidate called telaprevir.

George Farmer said recent trials have been flawed, and Vertex will have to conduct new trials to find the most effective doses. That could delay the drug’s launch two years to 2012, he said, hurting sales by allowing competing drugs like Schering-Plough Corp.’s boceprevir to reach the market first.

The stock was down about 7 percent to $21.50 in early afternoon trading, and had reached a low of $21.21.

Vertex reported midstage results from a telaprevir trial in November. Dropout rates were high, and analysts were concerned by the drug’s side effects, which included fatigue, rash, headache, and nausea.
(AP)

Posted by globebusiness at 1:43 PM | Comments (0)

Mass. court upholds property insurance increase

The Massachusetts Supreme Judicial Court has upheld steep rate increases by the state's home insurer of last resort, turning aside a challenge by the attorney general.

Today's ruling is a setback for homeowners in coastal areas including Cape Cod, where fears of hurricane damage have led insurance companies to pull out of the region.

The high court considered Attorney General Martha Coakley's challenge of a 2006 rate decision by former Insurance Commissioner Julianne Bowler. Bowler approved a rate proposal by an industry consortium that provides coverage when individual insurers aren't willing to take the risk.

The rates increased Cape Cod homeowners' premiums by 25 percent. The increase was 20 percent in New Bedford and parts of Plymouth and Bristol counties and 12.4 percent on average statewide. (AP)

Posted by globebusiness at 12:55 PM | Comments (0)

IBM hardware group restructures

IBM Corp. is restructuring its hardware division around customer types rather than individual products, marking the biggest such realignment in the unit in 15 years.

In an internal memo sent to the hardware group today, the head of the division, William Zeitler, said the changes would strengthen IBM's ability to sell technology to small and medium-sized businesses and to design products specifically for them.

IBM gets most of its business from big corporations and governments, but it has been trying to improve sales of services, software and servers to smaller companies because their technology purchases are growing at a faster rate.

Although IBM will still report hardware revenue by product category as it traditionally has, the realignment will create four client segments, including one governing hardware for large organizations and a separate one for small and mid-sized customers.

The third segment will focus on "industry systems" in retail, telecommunications and health care, and the fourth on microelectronics, serving buyers of IBM's custom microprocessors.

Analyst Bob Djurdjevic of Annex Research said the realignment should help IBM move quicker and more in tune with the needs of smaller customers. While IBM's chairman and chief executive, Sam Palmisano, has been talking about "lowering the center of gravity of the company," that has been "mainly rhetoric" until now, Djurdjevic said.

Palmisano said in 2007 that sales to small and medium customers might soon become IBM's single largest customer segment, surpassing the financial-services industry. IBM claims small and medium businesses accounted for $17 billion of its 2006 revenue, while financial services rang up $25 billion.

However, that figure is not entirely as it may appear: It represents revenue reaped by IBM sales teams other than the ones who sell into the world's very largest organizations. As a result, companies with many thousands of people can get touted as small and medium business sales for IBM. If IBM were to count only the sales into companies with fewer than 1,000 people, it is believed the figure would have been closer to $11 billion in 2006.

IBM employs about 5,000 people in Massachusetts, where it has bought nine software companies in the past decade.

Armonk, N.Y.-based IBM is due to report 2007 financial figures Jan. 17.

Its shares were up 64 cents at $105.33 in midday trading. (AP)

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

Mass. unemployment rate falls

The November unemployment rate for Massachusetts was 4.3 percent, falling 0.9 percentage points from the jobless rate in November 2006, the US Department of Labor's Bureau of Labor Statistics reported today.

That was the largest decrease posted among all the states, the bureau added; the Massachusetts unemployment rate in November was essentially unchanged from October.

Regionwide, the New England unemployment rate was 4.5 percent in November, essentially unchanged from October 2007 and from November 2006, the bureau said.

Nationally, the November unemployment rate was 4.7 percent, the bureau said.
(By Chris Reidy, Globe staff)

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

Raytheon awarded $18 million Army contract

Raytheon Co. said today that it was awarded two U.S. Army contract additions worth a combined $18.2 million to supply additional sensor and motion detection systems.

The first award, valued at $13.2 million, allows for an additional 41 Rapid Aerostat Initial Deployment, or RAID, and nine Eagle Eye elevated sensor systems to be constructed and delivered. The so-called threat detection systems, which are deployed on towers, masts and airships, are expected to be delivered in January and February.

The second $5 million extension calls for Raytheon to deliver spare parts for RAID systems currently in Iraq.

Work on both contracts will be performed by Raytheon Integrated Defense Systems at the Integrated Air Defense Center in Andover, Mass. and the Warfighter Protection Center in Huntsville, Ala.

Shares rose $1.72, or 2.9 percent, to $61.73 in midday trading. (AP)

Posted by globebusiness at 12:20 PM | Comments (0)

ImmunoGen licenses cancer treatment

Biotechnology company ImmunoGen Inc. said today that it licensed an experimental cancer treatment from Johnson & Johnson's Centocor unit.

Under the deal, ImmunoGen gains the exclusive right to the antibody and will use its cancer targeting technology to develop IMGN388.

Centocor has a right but not the obligation to opt-in as a partner early in the compound's development; if Centocor elects not to become a partner, ImmunoGen has the right to find another development partner.

A partnership with Centocor would trigger a payment to ImmunoGen while releasing it from any obligation for milestone or royalty payments to Centocor. Both companies would contribute to development costs for the drug candidate, and they would equally share U.S. profits, while ImmunoGen would receive royalties on international sales.

If Centocor chooses not to develop IMGN388 with ImmunoGen, it has a right to find a new partner. Under that scenario, Centocor would be entitled to up to $30 million plus royalties on sales.

The new license supersedes a previous licensing deal with Centocor. ImmunoGen said it will ask the Food and Drug Administration to approve clinical trials for the drug during the second quarter.

Shares of ImmunoGen fell 9 cents, or 2.2 percent, to $4.09 in morning trading. (AP)

Posted by globebusiness at 11:41 AM | Comments (0)

Doug Bailey launches new firm

Doug Bailey, who spent 15 years at The Boston Globe as an editor and a reporter, said today he is launching a Boston-based public relations firm that will specialize in crisis and strategic communications.

The firm is called DBMediaStrategies and it is currently a one-man operation, Bailey said.

Most recently, Bailey was a senior vice president at Rasky Baerlein Strategic Communications, a Boston public relations firm, which he joined in 2001. He will serve as an outside consultant to Rasky Baerlein for at least 12 months.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:12 AM | Comments (0)

Mass Events Labs bought by CMP

A New York media and marketing solutions company said today it has acquired Mass Events Labs, a Boston company that produces unconference-style and custom events.

The buyer is CMP Technology, and the purchase price was $1.2 million, with a further performance-related consideration of up to $3.8 million payable over the next four years, said CMP's parent company, United Business Media Plc of London, a global business media company.

CMP said Mass Events Labs will join its Business Technology Group, whose technology event portfolio includes such events as Interop, Web 2.0, and Enterprise 2.0.

CMP added that David Berlind, principal and chief content officer of Mass Events Labs, has joined CMP as Interop's executive conference director and as a TechWeb blogger.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:48 AM | Comments (0)

Mt. Washington, Roxbury Highland banks to merge

Two Boston banks today announced plans to merge.

Mt. Washington Bank of South Boston and Roxbury Highland Bank of Jamaica Plain said that the boards of directors of the two institutions have reached an agreement to merge under the Mt. Washington Bank charter.

Upon completion of the merger, which is subject to approval by bank regulatory authorities and the depositors of both banks, Mt. Washington Bank will have six branches with three in South Boston, two in Dorchester, one in Jamaica Plain, and a loan office in South Boston, said the banks, adding that the merged bank will have more than $525 million in assets.

Edward J. Merritt, president and chief executive of Mt. Washington Bank, will continue to serve as president and chief executive upon completion of the merger, the banks said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:44 AM | Comments (0)

Alpha Omega files for bankrukptcy

Alpha Omega Jewelry filed for Chapter 11 bankruptcy late last night while the Cambridge-based retail chain's owners, who hastily left the country for their native India in a shroud of mystery days before Christmas, remained abroad, according to a company lawyer.

Richard E. Mikels, a partner at the Boston law firm Mintz Levin Cohn Ferris Glovsky and Popeo, said his firm filed the paperwork at around 10:40 p.m. with the US Bankruptcy Court for the Eastern District of Massachusetts after the luxury store's owners and sole directors, Raman and Nilda Handa, unanimously voted to do so.

The bankruptcy filing kicks off an auction for Alpha Omega's assets, with the first bid placed by Tiger Capital and Gordon & Co. at 70.25 percent of the cost value of the inventory. Mikels did not know the dollar value of the jewelry store's inventory nor how much debt Alpha Omega had accrued.

But the company's unpaid bills had been mounting for at least six months. Representatives of the LaSalle Business Credit arm of Bank of America Corp. took possession of Alpha Omega's inventory on Dec. 22, a few days after the Handas and their two grown children who work for the family business disappeared without notifying relatives or business associates.

The company is asking the court to auction off the assets around Jan. 22, and until then employees and customers can expect "business as usual" at the four Greater Boston shops.

Mikels said consumer programs and employee benefits will continue as before under a loan by LaSalle.

Alpha Omega jewelry stores have attracted high profile customers over the years, including film star Ben Affleck, former Red Sox pitcher Pedro Martinez, and former President Clinton. In addition to the flagship store in Harvard Square, there are Alpha Omega stores in Boston's Prudential Center, in the Burlington Mall, and in the Natick Collection mall.

Raman Handa's business problems led him to rely on his personal assets to bolster his jewelry stores. In November, he pledged his $2 million home in Lexington as collateral for business financing that the Alpha Omega parent company, Lexington Jewelers Exchange, had signed with LaSalle Business Credit, according to the South Middlesex Registry of Deeds.

Middlesex County records show Handa remortgaged his house and a second piece of property he owned about a dozen times in the last 11 years, often for million-dollar-plus sums. Some refinancings were for lines of credit, including a $350,000 line from National City Bank.

Leader Bank of Arlington was another frequent supplier of the loans to the Handas. Handa also used his home in a $2.4 million business financing that Alpha Omega negotiated with Middlesex Savings Bank in 2002. Many of the loans were repaid or refinanced.

This morning Dow Jones reported that in its bankruptcy petition, Alpha Omega listed its assets and liabilities both in the range of $1 million to $100 million.

Rolex Watch USA Inc. is listed as the company's largest unsecured creditor, holding a $1.46 million claim.

The Boston Globe, with a $1.15 million claim for advertising fees, and Swatch Group U.S., with a $665,985 claim, were also listed as holders of the largest unsecured claims. Alpha Omega said it disputes each of the claims.
(By Nicole C. Wong, Globe Staff )

Posted by globebusiness at 10:30 AM | Comments (0)

Gelesis raises $16 million

Gelesis Inc., a Boston company developing treatments for obesity, today announced that it raised $16 million in its first institutional financing.

OrbiMed Advisors, a New York firm focused on healthcare investments, led the round, Gelesis said.

According to a Globe story in July, Gelesis is developing a substance that could be packed into a pill and swallowed; once in the stomach, the substance would expand, offering a temporary feeling of fullness to discourage overeating before eventually passing out of the system.
(By Chris Reidy, Globe staff)

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

UniFirst earnings rise

UniFirst Corp., which provides uniforms, protective clothing and facility services, today said fiscal first-quarter earnings rose 20 percent because of growth in its core laundry business.

Net income for the quarter ending Nov. 24 rose to $16.5 million, or 85 cents per share, from $13.7 million, or 71 cents per share, during the comparable period a year ago.

UniFirst's quarterly revenue rose to $247.3 million in the quarter, from $222.4 million during the year-ago period. The company is based in Wilmington, Mass.

Revenue for core laundry operations, which exclude specialty garments and first-aid segments, grew 12.5 percent. Growth was strengthened by the September 2007 acquisition of Western Uniform & Towel Service. (AP)

Posted by globebusiness at 9:51 AM | Comments (0)

Tempo Pharmaceuticals raises $8.1 million

Tempo Pharmaceuticals, a Cambridge company focused on nanoparticle-based drugs, today announced that it has closed an $8.1 million Series B financing.

Proceeds from the financing will be used to accelerate the development of Tempo’s preclinical pipeline of multi-compartmental, nanoparticle-based drugs, the company said.

Existing investors Polaris Venture Partners of Waltham, Venrock of New York, and Lux Capital of New York, were joined by Bessemer Venture Partners of Wellesley in the financing, the company said.

Other participants included Alexandria Real Estate Equities and existing investor William H. Rastetter, the company said.

“This new influx of capital at a significantly increased valuation, which brings the total raised within the last year to more than $22 million, reflects the growing excitement and recognition of our unique platform as well as our rapid progress as a company,” Alan Crane, chief executive of Tempo Pharmaceuticals and a venture partner at Polaris, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:43 AM | Comments (0)

Network Appliance buys Onaro

Network Appliance Inc. of California said today that it has agreed to buy Onaro Inc., a Boston company specializing in storage service management.

A press release issued by the companies did not include financial details of the proposed transaction.

Network Appliance, or NetApp, is a provider of data management solutions that simplify the complexity of storing, managing, protecting, and retaining enterprise data.

Asked whether any Onaro employees would lose their jobs as a result of the transaction, a NetApp spokesman responded by e-mail, saying, "NetApp plans on retaining the majority of the Onaro team after the transaction closes and will make reasonable efforts to help Onaro employees find a position within NetApp."
(By Chris Reidy, Globe staff)

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

Boston-Power expands battery production

Boston-Power Inc., a Westborough company focused on portable power solutions, said today that it will expand production of its Sonata next-generation Lithium-ion battery for notebook computers through a partnership with GP Batteries.

GP Batteries is a large battery manufacturer in Asia, Boston-Power noted, and Boston-Power said its new generation of Sonata batteries will be produced in a GP facility in Taiwan.

According to Boston-Power, Sonata is the only battery designed to last the typical three-year life of a notebook computer.

Boston-Power also announced today $45 million in Series C financing.

Oak Investment Partners, a venture capital firm with offices in Connecticut, Minnesota, and California, led the round, Boston-Power said.
(By Chris Reidy, Globe staff)

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

State Street ousts chief executive

Mutual fund and pension processing services provider State Street Corp. said today that William W. Hunt has resigned as president and chief executive of State Street Global Advisors, as the company prepares to take a $279 million fourth-quarter charge related to expected lawsuits over the underperformance of certain fixed-income strategies managed by the investment arm.

State Street said its fixed-income investments were hurt by exposure to, and the lack of liquidity in, subprime mortgage markets and the subsequent tightening of global credit markets. The charge will reduce fourth-quarter earnings per share by 71 cents.

James S. Phalen, currently executive vice president and head of international operations for investment servicing and investment research and trading, is returning to State Street Global Advisors (SSgA) as interim president and CEO to replace Hunt, who also resigned as vice chairman of the company.

Phalen, 57, will report to Ronald E. Logue, chairman and chief executive of State Street. The company has initiated a global search for SSgA's new CEO, which will focus on both internal and external candidates.

"We have reviewed the actively managed fixed-income strategies at SSgA that contained investments backed by sub-prime mortgages," Logue said in a statement. "Based on our review and discussions with certain customers who were invested in these strategies, we have established this reserve to address legal exposure and other costs relating to these strategies."

The company said certain customers invested in its active fixed-income strategies have raised concerns about whether the investments "were consistent with the customers' investment intent." Logue said State Street will address those concerns, but "continue to defend ourselves vigorously against inappropriate claims, including those that seek recovery of investment losses arising solely from changes in market conditions."

State Street expects to report fiscal 2007 earnings per share between $3.42 and $3.45 on revenue growth of more than 30 percent.

Phalen is currently responsible for State Street's investment services and investment research and trading operations outside of North America and is a member of State Street's senior strategy and policy-making team. He spent more than five years at SSgA as a member of its executive management group. In 2000, having overseen the combination of SSgA and Citigroup's retirement business to form CitiStreet, he became CitiStreet's CEO.

He returned to State Street in 2005 and was appointed head of State Street's investment servicing business in North America before assuming his international role in 2007.

In a filing with the Securities and Exchange Commission, State Street said Hunt will receive $14.1 million in severance compensation and benefits, excluding about $5 million in stock options, appreciation rights and retirement benefits that were already vested.

Hunt won't be entitled to a 2007 bonus or any other annual incentive plan. (AP)

Posted by globebusiness at 8:34 AM | Comments (0)

US mortgage applications down

An index that measures the weekly volume of mortgage loan applications posted a reading of 533.9 for the week ending Dec. 28, a decrease of 11.6 percent on a seasonally adjusted basis from the reading for the previous week.

The index is compiled by the Mortgage Bankers Association, a trade group that represents the real estate finance industry.

On an unadjusted basis, the most recent weekly index was down 20 percent when compared with the same week one year earlier, the association said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Eslami joins iBasis

Burlington's iBasis Inc. today announced that it has named telecom industry veteran Louis Eslami to the position of vice president of sales for Europe, Middle East and Africa.

IBasis is a wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services and enhanced services for mobile operators

Before joining iBasis, Eslami was a vice president for Getty Images, a global online media company, iBasis said.

"We are very pleased to add a proven executive like Louis Eslami to the iBasis sales management team," Ofer Gneezy, president and chief executive of iBasis, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:26 AM | Comments (0)

Friendly's hires new ad agency

Friendly’s Restaurants, a Wilbraham-based family restaurant chain known for its ice cream desserts, said that it has named Zimmerman Advertising of Florida as its advertising agency of record following an extensive search.

Friendly’s said it began a comprehensive agency review for the $25 million account in October utilizing Pile and Company, a Boston consulting firm; five agencies were initially considered.

Zimmerman Advertising is part of Omnicom Group Inc., a New York holding company that owns and operates a number of ad agencies, public relations firms, and marketing agencies.

Last June, Friendly Ice Cream Corp. disclosed plans to sell the chain to Sun Capital Partners Inc., a private equity firm, in a deal valued at $337.2 million.
(By Chris Reidy, Globe staff)

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

Survey: TVs getting bigger, flatter

US consumer interest in flat panel televisions has exploded in the past year while demand for bulkier TV technologies continues to shrink, according to a survey from IDC, a Framingham-based market research firm.

For the foreseeable future, the retail and consumer living room landscape will consist primarily of LCD and plasma technologies, the survey found, and more than 60 percent of respondents to the survey indicated that, regardless of price, they believed either plasma or LCD was the best technology for screens of 42 inches or larger.

"More than 35 percent of respondents want to upgrade their existing TV size." Eric Haruki, an IDC research director, said in a statement.
(By Chris Reidy, Globe staff)

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

Mass. joins greenhouse lawsuit

The Massachusetts attorney general’s office said it has joined a lawsuit brought by California against the US Environmental Protection Agency to uphold the right of states to regulate greenhouse gas pollution from automobiles.

Massachusetts joins the attorneys general of 14 other states in the action, which is being filed in the Ninth Circuit Court of Appeals in California, said the office of Massachusetts Attorney General Martha Coakley.

The lawsuit challenges EPA’s refusal to grant California a waiver that would allow California’s motor vehicle greenhouse gas emissions regulations to go into effect, said Coakley's office, which added that identical regulations in 17 other states, including Massachusetts, also cannot be implemented unless and until California’s regulations are approved by EPA.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:12 AM | Comments (0)

January 2, 2008

8 auto dealers to pay fines for misleading ads

Massachusetts Attorney General Martha Coakley’s office has reached a $290,000 settlement with eight auto dealers over false and misleading advertising practices.

Each dealership agreed to pay a civil fine ranging from $20,000 to $75,000 and to stop using ‘‘asterisk pricing,’’ in which a dealer advertises a price with an asterisk. Small print indicates the advertised price requires a trade-in or equivalent amount in cash.

The eight dealerships are Herb Chambers Cos., Quirk Works Inc., Ira Motor Group, Kelly Automotive Group, the Colonial Dealerships (Colonial Nissan of Medford Inc., Wellesley Buick-Volkswagen Inc. d/b/a Wellesley Volkswagen, and Colonial Chrysler Jeep Inc.), Connolly Buick Co., Liberty Motorcar Inc. (formerly 128 Mazda), and Village Automotive Group.

Herb Chambers, Kelly, and Colonial declined to comment; the others could not be reached for comment. (By Sacha Pfeiffer, Globe staff)

Posted by globebusiness at 7:54 PM | Comments (0)

Mass. joins new mortgage system

Seven states including Massachusetts have created a shared database to track the licensing of mortgage loan originators, including mortgage brokers and loan officers at banks.

The Nationwide Mortgage Licensing System, launched today, will allow regulators to prevent loan originators banned in one state from working in a different state. Eventually, perhaps by 2009, customers also will be able to search the database.

The system is a belated response to changes in the mortgage lending industry. Most mortgage loans are arranged by independent contractors, known as mortgage brokers, who operate outside of traditional regulatory frameworks. Until recently, most states imposed minimal licensing requirements on brokers, if any, and regulators did not know whether a broker had been licensed -- or sanctioned -- in another state.

That absence of regulation played a role in the lending excesses of the last decade, and led states including Massachusetts to tighten licensing requirements. The national database is another piece in the response, allowing regulators to track licensees across state lines.

The Massachusetts Division of Banks will use the system to license and supervise over 2,000 loan originators.

Forty-seven states have indicated an intent to join the system. The others already participating are Idaho, Iowa, Kentucky, Nebraska, New York and Rhode Island. While the system's full power depends on greater participation, Massachusetts officials said joining now was an important first step.

"We want to ensure our licensees play by the rules," Steve Antonakes, the state's commissioner of banks, said in a statement. "This new system gives us the framework and the tools we need to get the job done."
(By Binyamin Appelbaum, Globe staff)

Posted by globebusiness at 11:32 AM | Comments (0)

New Jersey firm gets $18m contract from Raytheon

Military contractor DRS Technologies Inc. today said it received an $18 million contract from a unit of Raytheon Co. to produce infrared detectors for the Javelin anti-tank weapon system.

DRS will start delivering the detectors this month with completion expected by November. Javelin is a shoulder-fired, anti-tank missile used by infantry units.

Shares of DRS fell 96 cents to $53.31 in morning trading. (AP)

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

Raytheon shares $232 million Army contract

Raytheon Co. and partner General Dynamics Corp. received a $232.3 million, long-term contract from the Army to develop missiles, the defense contractor said today.

Raytheon and General Dynamics Ordnance and Tactical Systems will be responsible for system design and development of the XM 1111 mid-range munition for the Army's future combat systems' mounted combat system. Raytheon's missile proposal includes plans for a multipurpose chemical energy warhead.

Contract work, which will occur over a five-year, three-month span, will be performed at Raytheon's plants in Tucson, Ariz.

Shares of Raytheon added 14 cents to $60.84, while Falls Church, Va.-based General Dynamics shed 78 cents to $88.21 in morning trading. (AP)

Posted by globebusiness at 9:29 AM | Comments (0)

Analog Devices sells 2 product lines

Chip maker Analog Devices Inc. said today that it completed the approximately $184 million sale of its CPU voltage regulation and PC thermal monitoring product lines to ON Semiconductor Corp.

The purchase price includes the two lines, related intellectual property and funds paid under a one-year manufacturing supply deal.

Analog, which is based in Norwood, said it will record a one-time first-quarter gain related to the sale, which was cleared by antitrust regulators last month.

Voltage regulators control the flow of electricity into computer processors during gaming applications, while thermal monitoring products regulate internal computer temperatures. (AP)

Posted by globebusiness at 8:50 AM | Comments (0)

Succession questions mount at Fidelity

At age 77, Edward "Ned" Johnson III can't keep this pace up forever. But it sometimes seems the Fidelity Investments chief hopes to.

Johnson's tenure running the nation's largest mutual fund company has spanned three decades -- the only other change of leadership in 61 years at Fidelity was when Johnson took over for his father. But the job has become increasingly complex as Johnson tries to fend off rivals' gains and streamline operations, while outsiders' calls for governance reform grow louder.

"He hasn't missed a beat, and a lot of people have crumbled while he's still going 100 miles per hour," says Eric Kobren, a former Fidelity employee who edits the independent money advice newsletter Fidelity Investor. He suspects Johnson "isn't going anywhere soon."

The notoriously insular company isn't publicly offering a timeline for leadership change, or disclosing details of a succession plan it says it has in place, even amid some suggestions that the uncertainty could be hurting Fidelity's competitiveness.

The heir apparent -- Johnson's 46-year-old daughter, Abigail Johnson -- has not been confirmed as such, and some observers question whether she even wants the job. And a flurry of management and organizational changes this year eliminated two other successor candidates from contention.

Outsiders still regard Abigail Johnson as an odds-on favorite for the top job, by virtue not only of her bloodline, but the diversity of management positions she's held overseeing Fidelity's increasingly far-flung financial services.

But her father is still firmly in charge -- and by all accounts, apparently healthy.

"Nothing has told me that he's anxious to pass the baton very quickly, unless something were to develop with his health, or some family issue," said Patrick McGovern, a friend who occasionally dines with Johnson and is founder and chairman of IDG Group, a Boston-based technology research and publishing firm.

Fidelity rarely makes executives available for interviews, and declined requests from The Associated Press. A recent statement issued by Ned Johnson on succession planning described a continuing process to "pass the corporation on in good operating order to the next generation of executives at the appropriate time."

Whoever eventually succeeds Johnson, big changes are expected at the Boston-based company that's a huge force on Wall Street, as the largest provider of Americans' workplace retirement savings plans and a manager of nearly $1.6 trillion in assets.

Observers say Johnson's successor won't have as much power as he has wielded filling the chairman and chief executive roles since 1977 -- posts that could be split between two people when his replacement is named. And the private firm will face increasing pressure to operate more like a publicly held company, with greater attention to open governance, cost-cutting and short-term financial results.

"Whoever follows Ned Johnson can't run it the way he has. The old model doesn't work anymore," said Bruce Raynor, co-chairman of the Council of Institutional Investors, representing public, labor, and corporate pension funds, and general president of Unite Here, a union of hospitality and textile workers.

Fidelity has recently diversified from its core mutual fund business into areas such as individual retirement planning and employee benefit management, after seeing only middling returns in recent years from key mutual funds that fueled rapid growth in the late 1980s and early '90s.

Today, 46,400 Fidelity employees provide financial services to 23 million individuals.

Meanwhile, Vanguard Group and Capital Group's American Funds have recently enjoyed greater success attracting investor money amid rising popularity of low-cost index and exchange-traded funds. Those investments don't play off Fidelity's strength as an active manager of funds that capitalize on the hottest stocks from day to day.

At Fidelity, Johnson family members hold 49 percent of Fidelity's voting stock -- key managers control the rest -- and the company's board consists solely of current or former company executives and Johnson family members.

The structure has come under criticism not only from activists like Raynor, but from Moody's Investors Service. A November report on Fidelity's creditworthiness questioned whether Ned Johnson and his family wield too much power, and said Johnson and other managers haven't adequately defended the company's once-dominant position in mutual funds.

Moody's also said unresolved questions about leadership succession and recent management changes have created uncertainty that could hurt efforts to draw top talent to Fidelity.

Among its competitors, Los Angeles-based American Funds manages just 30 large funds compared with Fidelity's assortment of 431, and eschews mainstream media advertising in favor of brokers' recommendations to clients about fund performance. Like Fidelity, American Funds is privately owned by employees, but without a dominant family like the Johnsons. Teams of "portfolio counselors" manage individual funds, adding more counselors as funds grow in size. In contrast, Fidelity typically closes funds to new investors when they get too big. Fidelity traditionally gives an individual manager broad oversight to run a fund, although it recently launched new team-managed funds.

Valley Forge, Pa.-based Vanguard touts low investment fees and expertise in index funds that passively track stocks of groups of companies. Vanguard is owned by its clients, with each fund contributing money to cover management, marketing and other costs -- a unique structure the company maintains steers clear of potential conflicts involving management.

Outsiders who advise Fidelity investors say the impending leadership change must be accompanied by a new business culture.

"I don't think you have to read too far between the lines to understand that Fidelity is going to be run on a much tighter mandate, to be more accountable for how all its businesses operate, and to run a tighter ship," said Jim Lowell, who runs the independent newsletter Fidelity Investor, a rival newsletter to Kobren's publication.

Fidelity dismisses the criticism.

"Mr. Johnson and the Fidelity board have succeeded over the years in creating one of the most successful and fast-growing financial services companies in the world," said spokeswoman Anne Crowley, who notes Fidelity's managed assets rose 15 percent over the 12 months that ended in November.

The recent upper management shuffling has come fast. In April, Robert Reynolds left after 23 years at Fidelity, where many regarded him as Johnson's right-hand man. Four months later, another former rising star, Ellyn McColgan, also left suddenly without lining up a new job. Between the two executive departures, Johnson brought back a friend, Rodger Lawson, as president. Lawson, 61, had left a Fidelity management position 16 years earlier.

Lawson brought together individual investments and workplace savings operations, and carved out employee human resources into a separate unit. In an internal memo, Lawson indicated he wasn't done. Fidelity, he wrote, "must curb expenses where they are wasteful, not only to avoid waste, but to compete -- and win -- against some very tough rivals in an unforgiving marketplace.

"Price competition grows more aggressive by the week," Lawson wrote.

This decade's gains by American Funds and Vanguard show little sign of slowing. Through October, flows into Fidelity mutual funds totaled $6.1 billion -- one-tenth the inflows at American Funds and Vanguard, according to data from Financial Research Corp. that don't include bank account-style money market funds, a category Fidelity leads.

However, things could begin turning around, based on a Morningstar Inc. report in November that found two-thirds of Fidelity's equity funds beating their category averages through this year's first 10 months. Fidelity credits the recent performance to its hiring of 120 U.S. equity analysts over the past two years, increasing the U.S. total to 246.

Some observers say Ned Johnson may want to wait to turn over the reins until he's managed to improve Fidelity's competitive footing.

As for his daughter, Abigail Johnson has taken on added duties in the recent shuffle, overseeing Fidelity marketing that has shifted from image-oriented spots featuring former Beatle Paul McCartney to ads touting fund performance.

Kobren picks Abigail Johnson as the most likely candidate to assume either or both of her father's positions.

Abigail Johnson "will see how it goes, and decide what she wants to do," Kobren said. "Abby and her family own the company, and theoretically she can do what she wants with the family's blessing. The question is whether she wants it or not." (AP)

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

Sepracor partners with Bial

Drug developer Sepracor Inc. said today that it is partnering with Portugal-based drug developer Bial to develop and sell a new epilepsy drug.

Sepracor, which is based in Marlborough, will file a new drug application with the Food and Drug Administration, as early as late 2008 or early 2009. Bial is entitled to a $75 million payment upfront, and milestone payments up to $100 million.

The compound, called BIA 2-093, has already been tested in three late-stage studies involving more than 1,000 patients. Sepracor's drugs include Lunesta for insomnia and Xopenex for asthma.

Shares of Sepracor closed at $26.25 Monday. (AP)

Posted by globebusiness at 8:02 AM | Comments (0)