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July 31, 2008

State economy lags behind country's

The Massachusetts economy slowed in the second quarter and lagged the national growth rate for the first time since last year, the University of Massachusetts reported. The state economy expanded at 1.6 percent annual rate from April to June, according to UMass.

The national economy grew at a 1.9 percent rate, the Commerce Department reported. The last time the state's economy lagged behind the country as a whole was the third quarter of 2007, when it grew at a 2.8 percent rate, compared to 4.9 percent nationally.

Housing and consumer sectors, such as construction and retail, continue to struggle, but technology, science and health care are expanding, UMass analysts said. Still, the state labor market is weakening.

Employment grew at less than a half percent annual rate in the second quarter, while the unemployment rate rose to 5.2 percent in June, up from 4.4 percent in March, the end of first quarter.
(By Robert Gavin, Globe staff)

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

Javelin strikes deal with Baxter

Javelin Pharmaceuticals Inc., based in Cambridge, said it will expand its relationship with Baxter Healthcare Corp. to expand manufacturing for Javelin's drug to treat post-operative pain.

The agreement between the two companies will provide more manufacturing capacity for Dyloject, which is currently marketed in the United Kingdom and undergoing trials in the United States.

The drug is an injectable form of diclofenac sodium, a widely used anti-inflammatory medicine.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 4:14 PM | Comments (0)

Forrester Research buys a rival for $23 million

Forrester Research Inc., of Cambridge, has purchased a rival, Jupiter Research LLC, of New York, in a $23 million deal that continues the recent wave of consolidation sweeping the technology research sector.

The acquisition is expected to better position Forrester against its larger rivals Gartner Inc., of Stamford, Conn., and International Data Corp., of Framingham.

Forrester today said it will buy Jupiter and its parent company, JUPR Holdings Inc., from MCG Capital Corp.

Jupiter has 83 employees and 2007 revenue of $14 million. Forrester has more than 1,000 employees and reported revenue of $212 million last year.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 3:26 PM | Comments (0)

Talbots revises its board of directors

Talbots Inc. today revealed revisions to its board of directors that the Hingham company said would enhance oversight of its operations.

Talbots named Tsutomu Kaijita as nonexecutive chairman of the board. Kaijita serves as senior vice president of international operations for Aeon Company Ltd.

Talbots also named Gary Pfeiffer independent lead director, a new board position. Pfeiffer, who has served as the company’s independent director since 2004, retired in 2006 from DuPont Co.

Talbots also created an executive committee.

‘‘These revisions to our board strengthen our governance structure and enhance the oversight of the business and our company’s operations,’’ said Trudy F. Sullivan, Talbots’ chief executive.
(AP)

Posted by globebusiness at 2:58 PM | Comments (0)

Hanover to sell First Allmerica insurance business

Worcester-based Hanover Insurance Group Inc. plans to sell its remaining life insurance business, First Allmerica Financial Life Insurance Co., to a Goldman Sachs Group Inc. subsidiary.

Hanover said today that it’s seeking approval from the Massachusetts Division of Insurance for a dividend from FAFLIC of various assets valued at about $160 million. Net proceeds from the sale, including the dividend, are projected to be about $220 million.

Subsequently, Hanover expects to record a loss of about $66 million related to the sale.

The deal, subject to regulatory approval, is expected to close in the fourth quarter.

Hanover’s life insurance business has been in run-off since 2002. Run-off is a situation when an insurer books no new business and instead generates revenue only from existing premiums.

Proceeds from the sale will be used to build the company’s property and casualty business, and for possible acquisitions and share repurchase programs.
(AP)

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

50 will lose jobs in Westborough plant closing

The electronic components maker Bel Fuse Inc. will cease manufacturing operations at its Bel Power Inc. facility in Westborough by January to reduce costs and enhance its competitive position.

The closing results from a drop in low-volume orders, which the facility was designed to produce, the company said today.

Bel expects to lay off about 50 employees over the next few months.
(AP)

Posted by globebusiness at 2:46 PM | Comments (0)

AG reaches mortgage assistance deal with Fremont

The Massachusetts attorney general has negotiated an agreement with the owner of subprime mortgages made by Fremont Investment & Loan to reduce struggling borrowers' payments or pay them relocation assistance.

The unusual agreement was announced this morning and is further fallout from a lawsuit filed by Attorney General Martha Coakley's office last October alleging Fremont engaged in deceptive lending practices in making subprime loans statewide.

Fremont has denied those charges.

Today's agreement would require WMD Capital Markets, which recently purchased a portfolio of Fremont-originated loans, to reduce the interest rates -- and payments -- on those Massachusetts mortgages to their lower, introductory rate. Borrowers would also be credited for loan fees, unpaid late charges and unpaid interest, the state said.

Borrowers who cannot afford their homes will receive relocation payments ranging from $10,000 to $25,000.

"We continue to make progress in our litigation against Fremont for creating and selling to Massachusetts residents thousands of loans that we allege to be unlawful under our Consumer Protection Act," Coakley said in a statement.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 1:21 PM | Comments (0)

Dynamics Research buys Virginia firm

Dynamics Research Corp., an engineering and information technology company based in Andover, said today that it will acquire Kadix Systems LLC, a high-end management consulting firm.

The terms of the agreement include a $42 million cash price with the potential for additional consideration of up to $5 million, based on the achievement of certain conditions, according to a company release. Kadix Systems, based in Arlington, Va., reported revenues of $23 million and $3.8 million in net income for 2007, according to the release. The deal is expected to close by early August.

Founded in 1955, Dynamics Research Corp. has more than 25 offices in the US. Kadix Systems has about 270 employees.
(By Elizabeth Campbell, Globe correspondent)

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

Boston area fifth highest in pay

Boston area pay ranked fifth highest among all the metropolitan areas in the country, according to the US Department of Labor's Bureau of Labor Statistics.

Average pay in the Boston area was 12 percent higher than the national average in 2007, according to the report of pay relatives among 77 metropolitan areas. Pay relative calculations allow comparisons across a large and diverse economy, the bureau said.

Boston area installation, maintenance, and repair jobs were the highest paid in the United States, with workers in those fields earning 15 percent more than the national average. Each of the four New England metropolitan areas ranked in the top 10 with Hartford, fourth; Boston fifth; Springfield tied for sixth with Seattle; and Providence in a three-way tie for eighth with Minneapolis and San Diego.

San Francisco ranked first and Brownsville-Harlingen, Texas, came in last.

Since the first pay relative calculations in 2002, Boston area pay relative has been consistently higher than the national average.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 12:45 PM | Comments (0)

Vertex may be closer to Boston move

Vertex Pharmaceuticals Inc. has taken another step toward moving its Cambridge headquarters to Boston.

The fast-growing biotechnology company signed a nonbinding letter of intent to lease at least 500,000 square feet of office and laboratory space in Boston's Fan Pier neighborhood on the South Boston waterfront, the Boston Business Journal reported on its Website.

The buildings are being developed by Joe Fallon, and the letter of intent could make it easier for him to line up financing for the project. A Fallon spokesman could not be reached for comment. But Vertex hasn't signed a lease and could still go elsewhere. "It is way too early to say Vertex is coming to Boston,'' said Dorothy Joyce, a spokeswoman for Boston Mayor Thomas M. Menino.

Vertex spokesman Zachry Barber said the company couldn't comment on the letter of intent. "We remain engaged in a process to determine how best to accommodate our real estate needs and are not commenting on that process," he said.

The company has previously said it was looking at various options as it expands, including staying in Cambridge, moving to a nearby city or even moving out of state.

A Patrick administration spokeswoman couldn't immediately be reached for comment. But Governor Deval Patrick has personally urged Vertex on numerous occasions to remain in Massachusetts.

Vertex, which is developing a highly anticipated drug to treat hepatitis C, has more than 1,200 employees, including 950 in Massachusetts. The company is planning to report its second-quarter earnings this afternoon. (By Todd Wallack, Globe staff)

Posted by globebusiness at 12:11 PM | Comments (0)

IDC reports mobile phone market robust

The worldwide mobile phone market continued double-digit growth in the second quarter of this year as competition for high-end devices escalated, according to IDC, a technology researcher based in Framingham.

The total number of phone shipments grew 15.3 percent from the same quarter in 2007, according to IDC's worldwide mobile phone tracker. A total of 306 million units were shipped in the second quarter of this year, compared to 265.4 million shipped at this time last year.

Despite economic challenges, vendors have continued to experiment with and release new devices with advanced features, said Ramon T. Llamas, senior research analyst with IDC's mobile devices technology and trends team, in a press release.

In North America, vendors introduced a number of feature phones before the debut of the much-anticipated iPhone 3G. Many such phones included touchscreens, music capabilities, and GPS.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 11:59 AM | Comments (0)

ImmunoGen names Junius CEO

ImmunoGen Inc. said today it promoted Daniel M. Junius to the new position of president and chief operating officer.

Junius, 55, has been an executive vice president and the Cambridge biotech's chief financial officer. The company said it is currently searching for a new finance chief and that Junius will continue his responsibilities in that area until one is found.
(AP)

Posted by globebusiness at 10:40 AM | Comments (0)

July 30, 2008

UBS to pay Mass. $1 million to settle investigation

UBS AG will pay Massachusetts $1 million as part of its agreement to settle the state’s probe of the investment bank’s inappropriate sale of auction-rate securities to 17 cities and towns.

UBS will also repurchase $3.4 million worth of auction-rate securities sold to the municipalities, according to a statement today from Massachusetts Attorney General Martha Coakley.

UBS is paying $750,000 to cover fees and expenses and $250,000 to provide support to cities and towns affected by the breakdown of the auction-rate markets. Auction rate securities involve long-term debt with interest rates that reset weekly or monthly through auctions.

Under a preliminary May agreement, UBS agreed to repurchase $35 million of the securities, which have been impossible to sell since credit markets froze up in January.

Coakley’s office began investigating allegations in February that UBS misled government entities regarding whether the auction-rate securities were a permissible investment for them under state law.

A UBS spokeswoman said today’s news is the final step in the resolution of the matter. The bank denied any wrongdoing.
(Reuters)

Posted by globebusiness at 3:53 PM | Comments (0)

Monster names a new global marketing chief

Monster Worldwide Inc., operator of the jobs website Monster.com, has appointed a new head of global marketing, Ted Gilvar.

Most recently an executive at the advertising agency BBDO, he will serve as executive vice president and chief global marketing officer for Monster. Gilvar managed Monster’s business at BBDO.

Monster Worldwide is headquartered in New York City; Monster’s offices are in Maynard.
(AP)

Posted by globebusiness at 3:21 PM | Comments (0)

Firm to pay $500,000 for investment violations

Pax World Management Corp. will pay a $500,000 penalty after regulators found the firm failed to adequately screen investments in mutual funds promoted as being socially responsible.

The Securities and Exchange Commission and New Hampshire-based Pax announced the settlement today.

The SEC says it found Pax violated its own restrictions by purchasing at least 10 securities that fund investment screening criteria prohibited. The commission says investors were told the funds would not buy securities issued by companies involved in making weapons, alcohol, tobacco or gambling products.
(AP)

Posted by globebusiness at 2:13 PM | Comments (0)

Delta raises second-bag fee to $50

Instead of offsetting rising fuel prices by charging passengers to check in the first piece of luggage, Delta Air Lines Inc. is doubling the fee most domestic passengers pay to check in a second bag. Starting with tickets purchased tomorrow for domestic travel on or after Aug. 5, passengers must pay $50, up from $25, to check a second piece of luggage.

Delta is also raising domestic and international fees for checked items that require special handling, like surfboards and ski equipment.

Meanwhile, Northwest Airlines Corp. has upgraded its website, www.nwa.com, so customers can prepay $15 for a first piece of checked luggage and $25 for a second piece while checking in online. Northwest will start collecting the first-bag fee on Aug. 28.

Northwest said it will not process the prepaid fees until the luggage tags are printed at the airport, so passengers can use airport self-service check-in kiosks to change the number of bags they indicated online that they would check.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 2:02 PM | Comments (0)

Raytheon, Boeing seek $100m Air Force contract

Raytheon Co., based in Waltham, has teamed up with Boeing Co. to bid for a US Air Force contract, potentially worth $100 million over the next 10 years.

The counterspace command and control sustainment contract requires designing and developing protection for global satellite communications systems and delivering new command and control capabilities for the Air Force.

The contract is expected to be awarded in September.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 1:22 PM | Comments (0)

Agion technology attacks school germs

A Wakefield company is helping to keep the cooties away. Using antimicrobial protection technology, Agion Technologies Inc. has partnered with school supply companies to offer protection for products used in bacteria-rich environments like schools, the company said.

Agion's technology inhibits the growth of microbes on surfaces, the company said. Products with it include Samsill binders, washable and dry erase markers and highlighters from Liqui-Mark, pencil sharpeners and staplers from Stanley Bostitch, and glue sticks from Charles Leonard .

"School supplies are often shared by many students. Having antimicrobial protection on these products make sense," said Stuart Patterson, the company's chief executive.

Retailers including Wal-Mart Stores Inc. and OfficeMax will carry some of the germ-protected supplies.

Agion protection is also used in a range of other goods, including medical devices, textiles, food service equipment, and architectural materials.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 1:16 PM | Comments (0)

Billerica firm supplies X-ray system to Middle East agency

American Science and Engineering Inc. has received a $2.6 million order for its mobile X-ray detection system from a Middle East government agency, the Billerica company said Wednesday. The company would not name the country, saying it requested anonymity.

This is the third order of the Z Backscatter system from the unnamed country, said Anthony R. Fabiano, president and chief executive of American Science and Engineering, in a press release.

The government agency will use the system -- installed in vans and configured for harsh environments -- for VIP security, Fabiano said.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 11:56 AM | Comments (0)

Affiliated Managers selling $400m in notes

Affiliated Managers Group Inc., an asset management firm based in Prides Crossing, said today it will sell $400 million in convertible senior notes.

The notes, due in 2038, will have an annual interest rate of 3.95 percent and a conversion price of $125.65, a 40 percent premium over Affiliated Managers Group's Tuesday closing price of $89.75.

Upon conversion, Affiliated Managers Group can pay the holders of the debt with either cash or shares of common stock. (AP)

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

Abiomed opening plant in Ireland

Abiomed Inc. is expanding into Ireland, the Danvers medical device company said today. The company said it has signed a long-term operating lease for a manufacturing facility in Athlone, Ireland, and expects its Impella blood pump production line to be operational there in about 18 months.

The 30,000-square-foot plant in Ireland is intended to meet demand for its Impella 2.5 cardiac assist device from the Abiomed facility in Aachen, Germany.

In June 2008, the US Food and Drug Administration gave Abiomed clearance for its Impella 2.5 device, allowing it to begin selling the blood pump to the estimated 14,000 cardiologists at approximately 1,700 hospitals in the United States, the company said.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 11:04 AM | Comments (0)

Mass. foreclosures more than doubled during first half of year

Foreclosures in Massachusetts more than doubled during the first half of 2008 compared with the same period last year, according to a report by The Warren Group, publisher of Banker & Tradesman.

A total of 6,707 foreclosure deeds were recorded in the first six months of this year, up 117.6 percent from 3,083 at this time last year. In June, foreclosure deeds, the final step in the foreclosure process, rose 50 percent to 1,131 from 756 in June 2007 . Though the number of foreclosures increased year-over-year, the number of foreclosures in June were 19.5 percent lower than May 2008 with 1,405 deeds recorded.

And petitions to foreclose, the first step in the process, fell sharply in June, with 350 petitions to foreclose filed, an 84.8 percent decline from 2,308 in June 2007 and 10.3 percent lower than May 2008 when 390 were filed. The right-to cure law, legislation requiring lenders intending to foreclose to give borrowers 90 days to pay off loan defaults, is credited with postponing some foreclosure petitions.

Overall, however, foreclosure petitions during the first half of 2008 increased 1.4 percent to 13,076 from 12,899 in 2007.

"Despite the temporary drop-off in foreclosure petitions over the last two months, overall foreclosure activity is consistently climbing," said Timothy Warren, chief executive of the Boston-based Warren Group, in a press release. "Thousands of homeowners are still at risk of losing their homes this year."

In June, auction notices rose 17 percent to 1,589 from 1,358 in June 2007. Year-to-date auction notices jumped 38.8 percent to 10,504 from 7,570 .
(By Elizabeth Campbell, Globe correspondent)

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

July 29, 2008

Study: China trade deficit is costing Mass. jobs

The growing trade deficit with China has cost Massachusetts nearly 60,000 jobs over the past several years, about two-thirds of them in manufacturing, according to a study.

The study, by the Economic Policy Institute, a Washington think tank, used an economic model to estimate national job losses resulting from the trade deficit, and then apportioned them according to each state’s share of US employment.

A trade deficit occurs when a nation imports more than it exports. The trade deficit with China hit a record $256 billion in 2007. Between 2001 and 2007, the United States lost 2.3 million jobs, including 1.5 million manufacturing jobs, according to the study.

The China trade deficit cost Massachusetts nearly 40,000 manufacturing jobs, accounting for about one-third of all manufacturing job losses in the state during that period. Massachusetts’ manufacturing employment has been on the decline for years.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 9:13 PM | Comments (0)

PTC wins European software contract

PTC, a product-development software company based in Needham, won a contract with the European Aeronautic and Defence Space Co., the company said today. Terms of the deal were not disclosed.

PTC will provide the European company with software to streamline communications across its business units to manage data and to collaborate externally and internally, the company said. European Aeronautic and Defence Space Co. includes Airbus, Eurocopter, and Astrium.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 5:17 PM | Comments (0)

Mutual Telecom sold to a Pennsylvania company

Black Box Corp. has bought the Needham telecommunications company Mutual Telecom Services Inc. for an undisclosed price, it said today.

Mutual Telecom does work for the Defense Department and other federal clients in areas that include Iraq and Afghanistan. The privately held company posts annual revenue of roughly $46 million.

Mutual Telecom’s former owner, Steven Clancy, will become a Black Box executive under terms of the deal. Black Box, of Lawrence, Penn., specializes in data and voice infrastructure work.
(AP)

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

Comcast adds 7 HD channels

Comcast Corp. is launching seven new high-definition networks across Massachusetts, the company said today.

The new channels include education, family, and entertainment programming, the company said. The latest additions to the Comcast lineup are: Disney HD (featuring "Hannah Montana," in photo), ABC Family HD, TLC HD, AMC HD, Science Channel HD, TMC (The Movie Channel) HD, and Showtime 2 HD.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 12:21 PM | Comments (0)

A rare uptick in home prices

House prices in the Boston metropolitan area nudged upward two straight months this spring, according to the S&P/Case-Shiller Home Price index.

Boston-area house prices gained 1 percent in May after edging up 0.1 percent in April, the financial-markets research firm reported today. These were the area's first month-to-month price increases since August 2007.

The index tracks repeats sales of existing homes.

However, home prices here are still down 6.2 percent from May 2007. Boston is not being hit as hard as cities in California, Florida and other Sun Belt states. In Las Vegas, prices have plummeted 28.4 percent, Miami 28.3 percent, and San Francisco 22.9 percent.

A 20-city index of house prices tracked by S&P/Case Shiller posted a 15.8 percent price drop over the past year. It was the largest decline since the firm began tracking the data in the late 1980s.
(By Kimberly Blanton, Globe Staff)

Posted by globebusiness at 11:53 AM | Comments (0)

New Jacob Wirth redevelopment proposed

A Boston developer wants to build a 24-story office tower around the Jacob Wirth building on Stuart Street, replacing a 2006 proposal for a 108-room hotel and residential building that would have also demolished a portion of the historic tavern.

The new proposal by EASTAT Realty Capital, LLC would preserve the Wirth building, a 140-year-old structure at 31 to 37 Stuart Street. A previous developer, Weston Associates, would have removed a portion of the the tavern's kitchen for the construction. That plan was withdrawn last year.

EASTAT's plan also includes a two-story winter garden with a cafe on the mezzanine level, as well as ground-floor retail space, according to plans filed with the Boston Redevelopment Authority.

The developer is betting that demand for office space in downtown Boston will remain strong by the time the building is ready for occupancy. The proposed development would include nearly 248,000 square feet of office space in a sleek, glass and steel tower. Construction would begin next July, with the tower's opening planned for early 2011.
(By Casey Ross, Globe Staff)

Posted by globebusiness at 11:33 AM | Comments (0)

LNG tankers on the way

Two ships carrying liqeufied natural gas are bound for the LNG terminal in Everett, according to vessel tracking data compiled by Bloomberg News.

Suez SA's Suez Matthew is due in Boston today and is carrying 126,540 liquefied cubic meters (4.47 million cubic feet) of gas, the data show. The ship has a 65,674-ton capacity and most recently docked in Spain, Trinidad and Tobago.

Teekay Corp.'s Catalunya Spirit is due in Boston on Aug. 3 and most recently sailed from Point Fortin, Trinidad and Tobago. The ship is carrying 138,188 cubic meters of liquefied gas and has a capacity of 77,204 tons.

Posted by globebusiness at 11:14 AM | Comments (0)

Sepracor profits up, but short of expectations

Sepracor Inc., which makes respiratory and central nervous disorder treatments, said Tuesday its second-quarter profit increased on a hefty tax benefit, though the results fell short of Wall Street expectations.

The Marlborough company earned $395.1 million, or $3.41 per share, for the three months ended June 30, compared with profit of $4.8 million, or 4 cents per share during the corresponding period a year ago.

The results included a tax benefit of $453.2 million, a charge related to acquired research and development of $50.8 million, and an investment loss of $9.1 million. Excluding these items, the company said it earned 6 cents per share.

Revenue rose 6 percent to $294.1 million from $276.8 million.

But analysts polled by Thomson Financial expected profit of 23 cents per share on revenue of $303.6 million. Analyst estimates typically exclude one-time gains and charges.

Sales of the insomnia drug Lunesta rose 4 percent to $148.1 million in the quarter, while sales of the inhalation solution of the respiratory drug Xopenex fell 17 percent to $85.4 million. sales of the inhalation aerosol version of the drug gained 14 percent to $14.1 million.

Analysts expect profit of $1.52 per share, which excludes the tax benefit and other items, on revenue of $1.32 billion.
(AP)

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

Report says audit fees were down in 2007

Increases in large-company audit fees appeared to slow down in 2007, according to a Compliance Week magazine analysis. The study, which examined audit fees paid by S&P 500 companies with more than $1 billion in annual revenue, found a 3.2 percent median increase over 2006 audit costs.

Moreover, when the audit fees of a few companies with extraordinary transactions are discounted, the average audit fee in 2007 actually dropped by 0.3 percent, according to the study.

"This is evidence that the real growing pains of the Sarbanes-Oxley Act are now well behind us," said Matt Kelly, editor in chief of Compliance Week, in a statement. "The painful spikes in fee increase are over, and companies now appear to have a solid understanding of what their auditors want, and how to work with their auditors to keep costs down while complying with the law."

According to the study, the median total auditor costs for companies was $6.9 million in 2007, compared to $6.7 million in 2006 and $6.3 million in 2005. Median costs for audit fees specifically in 2007 were $5.6 million.

The analysis was based on company revenue data submitted in federal Securities and Exchange Commission filings.
(By Elizabeth Campbell, Globe correspondent)

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

July 28, 2008

Acusphere cuts jobs, managers' pay

Acusphere Inc. said today it is eliminating 24 jobs, or nearly one-quarter of its workforce, and plans to slash salaries for senior managers by at least 10 percent.

The Watertown pharmaceutical company said it is trying to reduce costs, while waiting for the Food and Drug Administration to approve its experimental drug, Imagify, which is designed to help doctors use ultrasound to detect coronary artery disease.

After the cuts, the company estimates it will have enough cash to continue operating through nearly the end of the year. The company currently has 77 employees.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:01 PM | Comments (0)

Twins Enterprise signs Canada deal with NHL

Twins Enterprise Inc. said it has expanded its business relationship with the National Hockey League to distribute licensed headwear and apparel in Canada. The company, based in Boston and Dedham, has worked with the NHL in the United States for 10 years. have had a successful 10 year partnership in the United States. In addition, the agreement with the NHL includes global rights.

“Twins Enterprise has been a valued licensee of the NHL for many years in the United States and we look forward to continuing our success with them in the Canadian market,” said Jim Haskins, NHL vice president of consumer products.

Twins Enterprise is a privately owned licensed products company founded in 1947 by twin brothers Arthur and Henry D’Angelo.

Posted by globebusiness at 3:23 PM | Comments (0)

Raytheon buys Telemus Solutions

Defense contractor Raytheon Co., based in Waltham, said Monday that it bought Telemus Solutions Inc., a company that provides security consulting and other services to federal divisions that include intelligence and defense.

Terms of the deal were not released.

Telemus, based in Falls Church, Va., works on identifying and protecting against threats to government and private entities. That includes drafting vulnerability reports, training security personnel and planning emergency response.

Shares of Raytheon rose 43 cents to $57.65 in morning trading.
(AP)

Posted by globebusiness at 1:04 PM | Comments (0)

Interactive Data names new technology head

Interactive Data Corp., a financial data services company based in Bedford, said it has named Stephan Wolf as its chief technology officer.

Wolf, 48, had been chairman of the executive board of Interactive Data Managed Solutions. He will continue to be based in the company's Frankfurt, Germany office.

Carsten Dirks, 39, will replace Wolf as chairman of Interactive Data Managed Solutions.
(AP)

Posted by globebusiness at 12:59 PM | Comments (0)

Mass. gas prices down 8 cents

Gas prices in Massachusetts dropped 8 cents in the last week, and a gallon now averages less than $4 for the first time since early June.

A statewide survey released today by AAA of Southern New England found an average price of $3.95 a gallon for self-serve, regular unleaded gasoline. That's 13 cents lower than three weeks ago, and in keeping with the national average.

A year ago, the average price for a gallon of gas in Massachusetts was $2.86. (AP)

Posted by globebusiness at 12:46 PM | Comments (0)

New Balance, Nine West pair up for shoe line

Two shoe companies have paired up to match fashion with function in a footwear line set to debut next spring.

Boston-based New Balance and Nine West Group, a division of Jones Apparel Group Inc., said they have agreed to license, create, and distribute a footwear collection that matches New Balance's performance and materials technology with the styling of Nine West. Terms of the deal were not released.

The companies will collaborate on material, color and design and split up manufacturing and production.
(By Elizabeth Campbell, Globe correspondent)

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

Raytheon wins $83m NASA contract

Raytheon Co. has won an $83 million NASA contract, the company said today.

The company, based in Waltham, will provide systems engineering and design, Web development and information technology for NASA's jet propulsion laboratory.

The five-year subcontract, managed under a contract between NASA and the California Institute of Technology, has two-year and three-year extension options. For the last 10 years, Raytheon has provided support to jet lab.

"This contract reflects NASA's continued confidence in Raytheon's ability to deliver the most innovative and reliable engineering solutions vital to mission success," said TW Scott, Raytheon Information Solutions vice president in the release.

Raytheon has 72,000 employee worldwide.
(By Elizabeth Campbell, Globe correspondent)

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

Epix Pharmaceuticals' CEO quits

The chief executive of Epix Pharmaceuticals Inc., Michael G. Kauffman, has resigned, the Lexington biotech said today. The company's board of directors appointed Elkan Gamzu to serve as interim chief executive effective, according to a press release.

"I am pleased to undertake this opportunity to lead Epix at this important time in its history," Gamzu said.

Kauffman joined Epix in August 2006 when it bought Predix Pharmaceutical Holdings Inc., where he had served as chief executive since September 2002.

In June, Epix resubmitted an application to the Food and Drug Administration for Vasovist, a blood imaging agent. Gamzu said the company will continue to work with the FDA to win approval for the drug.

A consultant to the biotechnology and pharmaceutical industries, Gamzu has previously held leadership positions, including as chief executive of Pharmos Corp. He has worked in the pharmaceutical industry since 1971.

(By Elizabeth Campbell, Globe correspondent)

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

Student lender won't have loan money this season

The Massachusetts Educational Financing Authority today said it will not be able to provide any student loans this fall, which could leave tens of thousands of families in the lurch just weeks before college classes begin.

The nonprofit lending authority said it was unable to secure funding to provide private student loans. It is contacting more than 40,000 students and families to whom it has made loans in the past, to urge them to seek other options.

"As a result of our problems and the continued dislocation of the capital markets, we have been unable to raise funds for the coming academic year,'' said Thomas M. Graf, executive director of the group.

In April, the authority -- which is widely used by Bay State students -- announced that it would no longer extend federally backed loans, due to the credit crunch that has roiled the student loan market. But on June 25, the authority had said it expected to be able to offer private loans at fixed rates by the end of July. The group has now abandoned that hope, Graf said. MEFA made $510 million in student loans in the last school year.

For families and students with tuition bills due in August, Graf said, "Time is relatively short. Parents and families really need to satisfy their bills."

He said MEFA will have a hotline set up to offer advice and is encouraging families to seek federally backed loans first, then to shop for private loans, based in part on the recommendations made to them by colleges and universities.

The student loan market began running into trouble at the end of last year, following the subprime mortgage crisis. A kind of long-term debt many lenders had relied on to make loans, called auction-rate bonds, stopped trading on Wall Street entirely in February 2008, as investor demand dried up. It has been difficult for some authorities, like the Massachusetts Educational Financing Authority, to refinance their old auction-rate bonds.

Graf said the reversal of events on private loans occurred when the agency's bond insurer faced a possible downgrade in its credit rating, which, in turn, would have pushed up the cost of floating new debt. Problems with bond insurers have compounded the turmoil in the debt markets this year.

The group still hopes to acquire funding later this year and for spring 2009, Graf said. He noted that MEFA, which employs about 50 people, continues to run other educational programs, including the college savings plan it manages jointly with Fidelity Investments. Massachusetts families have nearly $3 billion in college savings in that program, Graf said. In addition, the lender has about $1.5 billion in past loans on its books which it continues to service.

About 50 nonprofits, banks, and government entities have stopped making some or all kinds of student loans this year.

(By Beth Healy, Globe Staff)

Posted by globebusiness at 11:16 AM | Comments (0)

Mass. housing market getting softer

Massachusetts home sales continued their slide in June, making the first half of 2008 the slowest housing market in more than 15 years, a Boston real estate publishing firm said today in its monthly housing report.

There were 4,663 sales of single-family homes last month, a 14.9 percent decline from the number of sales transactions closed in June 2007. The slowdown drove the state's median price down 8.6 percent, to $329,000, according to The Warren Group.

During the first half of this year, there were 18,487 home sales -- the fewest transactions for the period since 1991.

"What's clear from these numbers is we haven't reached the bottom of the market yet," Warren Group's chief executive, Timothy Warren Jr., said in a statement. "The rash of bad news about bank failures and Fannie Mae's and Freddie Mac's capital needs convinces us that a turnaround isn't going to happen this year," he said.

Condo sales were hit even harder, plummeting 23.3 percent to 2,288 last month. But the median condo price rose to $295,000 from $292,000 a year ago. For the first half of the year, condo sales were down 30 percent compared with 2007, while the price declined 1.1 percent.

The Massachusetts Association of Realtors reported similar results: single-family sales declined 14.9 percent in June from a year ago, to 4,225, and the median price fell 8 percent to $334,900. Condo sales dropped 20.3 percent, to 1,876, but the price fell less than 1 percent to $295,000, the association said.

Warren Group takes its data from deed records filed in court, while the broker group records only agent-assisted sales.
(By Kimberly Blanton, Globe Staff)

Posted by globebusiness at 7:30 AM | Comments (0)

July 25, 2008

TJX reportedly puts Bob's Stores on the block

TJX Cos. is reportedly in discussion to sell its money-losing Bob's Stores.

In addition to Bob's, Framingham-based TJX operates T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright in the United States, Winners and HomeSense stores in Canada, and T.K. Maxx stores in Europe.

TJX, which has benefited as shoppers look for cheaper alternatives, posted a nearly 20 percent profit gain on a 6 percent increase in sales in its first quarter ended April 26. The bulk of its sales come from TJ Maxx and Marshalls. But Bob's Stores, which was acquired in bankruptcy in 2003, remains in a slump.

For the first quarter, Bob's Stores posted a 3 percent decline in same-store sales, compared with a 3 percent gain in same-store sales at T.J. Maxx and Marshalls. Same-stores sales, or sales at stores opened at least a year, are considered a key indicator of a retailer's health

According to the report, which cites anonymous sources, potential buyers for Bob's include private equity firm Versa Capital Management Inc. The report said TJX's adviser Peter J. Solomon Co. is seeking a buyer that will keep Bob's 34 stores open.

Sherry Lang, a company spokeswoman at TJX, declined to comment, as did officials at Peter J. Solomon. Officials at Versa Capital could not immediately be reached for comment.

Mark Montagna, an analyst at CL King & Associates, wrote in a report published today that the sale of Bob's would be a positive since it would eliminate a distraction for management.

"Given TJX is a growth company, it makes the most sense for senior management to focus on the other 98 percent of the business that operates under growth concepts," he wrote.

Still, Montagna noted that given "Bob's small impact to sales and profits," the sale wouldn't have "a long-lasting impact on TJX's shares." Montagna noted that it's difficult to gauge the proceeds from a sale because regional department stores are struggling or filing for bankruptcy. He cited Goody's Family Clothing Inc.'s bankruptcy filing, and the woes of Mervyns LLC, whose suppliers are now holding off on shipments.

TJX's shares slipped 1 percent to $32.41 in midday trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 1:35 PM | Comments (0)

NAI Hunneman will manage 1010 Mass. Ave.

NAI Hunneman Management & Development Co. announced it has been was awarded a contract by the city of Boston to manage 1010 Massachusetts Ave., a six-story office building.

Financial details of the contract were not included in a press release issued by NAI Hunneman, a Boston provider of commercial real estate services.

The firm noted that 1010 Massachusetts Ave. houses several city departments including Inspectional Services and the fire prevention division of the Boston Fire Department; after City Hall, 1010 Massachusetts Ave. is the most heavily visited building for Boston city services, NAI Hunneman said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:38 AM | Comments (0)

BU incubator program earns recognition

Boston University said today that its International Incubator Program has received global recognition.

The program, which blends academics with business development, has won the National Business Incubation Association’s seal of approval recommending it to international companies looking to expand to the United States, BU said.

The university said in a press release, "Of the 2,100 US business incubators, BU’s is the fifth to earn the endorsement, one of 12 globally, and the first in the Northeast."

In a statement, BU president Robert A. Brown added: “Given our leadership role in the life sciences, our experience in incubating new businesses, and our international focus, we are especially well-positioned to help foreign companies that are interested in developing emerging technologies in the American market.”

The two-year “Soft Landings International Incubator” designation from the business incubation association recognizes programs especially capable at helping overseas companies enter the domestic market, BU noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:13 AM | Comments (0)

Sox air new TV ad starring Manny and Pap

Just in time for the Yankees coming to town, the Red Sox are airing a new TV ad that celebrates Manny Ramirez's 500th home run and Jonathan Papelbon's fast ball. If there's one product that wouldn't seem to need a boost from advertising, it would be the Sox, baseball's defending world champions and a team that hasn't had an empty seat at a home game since 2003.

Nevertheless, the team unveiled a branding campaign this season, with the new TV ad as the latest iteration. In past years, Sox ads were about selling tickets. Ads in this season's campaign, called "Here," take a different approach.

"This is the first time we've put a concerted effort behind a consistent, season-long theme," said Sam Kennedy, the team's chief sales and marketing officer. "These new ads are softer. They look to brand Fenway as a multi-generational place to go and celebrate family."

Besides driving traffic to Fenway, ads are also about thanking fans and celebrating team history. And because on-field success is "fragile," Kennedy added. "We need to do everything we can to sustain this current phenomenon."

At Harvard Business School, Professor Stephen A. Greyser studies such topics as brand marketing and sports management. In his view, there are "circles of fandom," and a campaign such as "Here" may be an effort to reach beyond hard-core fans and engage new audiences in a sense of Red Sox nationhood.

Kennedy declined to disclose the "Here" campaign's budget. Ads are primarily running in places that have a Sox connection. TV ads are airing on the New England Sports Network, which the Sox control. Print ads run in the Globe. The Globe's corporate parent, The New York Times Co., owns 17 percent of the Sox.

The campaign was created by Boston ad agency Conover Tuttle Pace.

While TV ads show plenty of Sox heroics, they're not meant to be "a highlight reel," said Grant Pace, the agency's executive creative director. "'Here' was created to tap into a deeper well of emotion."

So who is the target audience?

Said Pace, "Anyone who has ever been, or will ever, be a part of Red Sox Nation."

Please click here to visit a website where other TV ads in the "Here" campaign can be viewed.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:19 AM | Comments (0)

July 24, 2008

Creators of Scrabble knockoff on Facebook sued

T-R-O-U-B-L-E could loom for a Scrabble knockoff that has become one of the most popular activities on Facebook.

Hasbro Inc., the Rhode Island company that owns the word game's North American rights, sued the creators of the Scrabulous program today, less than two weeks after the release of an authorized version of Scrabble for Facebook.

Hasbro said in its lawsuit that Scrabulous violates its copyright and trademarks. Separately, Hasbro asked Facebook to block the game.

In the year since Facebook began letting outside developers write Web programs that Facebook members can plug into their personal profile pages, Scrabulous has attracted some half-million daily users, despite efforts by Scrabble's owners to end it.

Video game maker Electronic Arts Inc. released an official version for American and Canadian Facebook users last week as part of a broader, year-old licensing deal with Hasbro, yet Facebook users have continued to spend countless hours on the unauthorized Scrabulous.

Now, Hasbro is trying to stop Scrabulous completely and collect unspecified damages.

Mark Blecher, general manager for digital media and gaming at Hasbro, said the Pawtucket-based company waited until today to file a lawsuit to ensure that Scrabble fans had a legal option first.

The lawsuit, filed in US District Court in New York, named as defendants Rajat and Jayant Agarwalla, the brothers in Calcutta, India, who created the program, along with their Web design and technology company, RJ Softwares.

The Agarwallas did not immediately respond to an e-mail request for comment made after business hours in India. A 24-hour number for RJ Softwares went unanswered today.

Earlier, Jayant Agarwalla said he was looking forward to competing with the official version, suggesting that Electronic Arts would have a tough time attracting "the attention and patronage of a large and dedicated user base," as Scrabulous has done.

Blecher said that rather than blame Hasbro for trying to block a popular game, "the fans of Scrabble will appreciate an authentic version."

Both games are free.

Mattel Inc. owns Scrabble rights outside the United States and Canada and did not join the lawsuit. It has a deal with RealNetworks Inc. to make a legal version available in other markets. (AP)

Posted by globebusiness at 3:05 PM | Comments (0)

Lawmakers push back on Navy ship cancellation

WASHINGTON--New England lawmakers today are launching a counter-offensive against the Navy’s decision to scrap a $20 billion destroyer program that is important to Waltham-based Raytheon Co. and the Bath Iron Works in Maine. The legislators are threatening to hold up other funds for shipbuilding next year if the service does not provide a better explanation.

Led by Sen. Edward M. Kennedy, several lawmakers from Massachusetts and Maine plan to tell Defense Secretary Robert M. Gates in a letter that they remain unconvinced of the Navy's rationale to forego the Zumwalt-class destroyer -- which has skyrocketed in cost and experienced engineering delays -- and instead buy more older-model warships.

"A shift of this magnitude in the Navy’s shipbuilding plan requires a full review and analysis through the proper departmental channels and processes, including congressional oversight," the lawmakers write, according to a draft of the letter obtained by the Globe. "To do otherwise would undermine the Navy’s shipbuilding plan in Congress and could result in the Congress providing no funding for new surface combatants in" fiscal year 2009.

The Navy has not confirmed that it is cancelling the project. But lawmakers yesterday said they were told by naval officials that the ship's spiraling cost would set back other plans to expand the nation's fleet, and that the vessel is not well-suited to increasingly advanced anti-ship missiles.

The Navy has already committed an estimated $11 billion to the Zumwalt program, also called the DDG-1000, and the lawmakers expressed concern that the investment to date in the first two ships in the class and a complex new suite of advanced combat systems could be lost.

They said they were surprised at the decision, relayed to them earlier this week by top service officials, given the Navy's recent testimony that the Zumwalt program's technologies are key to the future of the fleet and need "to take root, grow, and stabilize."

But the lawmakers are also clearly concerned about the potential impact of the Navy's decision on Raytheon's standing as a major defense company and the future of the workforce at the Bath shipyard, which is building one of the two Zumwalt destroyers already authorized by Congress.

Bath would likely also be awarded contracts to build the additional the DDG-51 Arleigh Burke class destroyers that they Navy is proposing as an alternative to the Zumwalt fleet, but would still take a financial hit, executives and analysts believe.

Meanwhile, a Raytheon rival, Lockheed Martin, designs the combat system on the Arleigh Burke class ships.
(By Bryan Bender, Globe Staff)

Posted by globebusiness at 2:53 PM | Comments (0)

MKS Instruments posts sharply lower earnings

MKS Instruments Inc., an Andover company that makes control and measurement products for the semiconductor industry, posted sharply lower second-quarter profit today and projected third-quarter earnings below analyst estimates, sending its shares into a tailspin.

For the three months ended June 13, net income sank 59 percent to $9.2 million, or 18 cents per share, from $22.5 million, or 39 cents per share, during the same period last year.

Excluding amortization of acquired intangible assets and special items, MKS Instruments' second-quarter earnings plunged to $10.5 million, or 21 cents per share, from $25.1 million, or 43 cents per share, in the year-ago period.

Quarterly sales dropped 16 percent to $171 million from $204 million.

Analysts polled by Thomson Financial, on average, predicted earnings of 25 cents per share on sales of $175 million. Those estimates often exclude special items.

"After a strong first quarter with double-digit sequential growth in the semiconductor market, we saw sharply lower demand in the second quarter as this market weakened," Leo Berlinghieri, the company's president and chief executive, said in a statement.

"However, our solar business continued to ramp, and sales to non-semiconductor markets grew by 17 percent to 45 percent of sales," he said.

In the third quarter, the company expects some incremental weakness in semiconductor capital equipment spending, he said.

Berlinghieri predicted that third-quarter profit could range from 9 cents to 16 cents per share on sales of $155 million to $165 million. Excluding special items, profit could range from 12 cents to 19 cents per share, he said.

Analysts expect third-quarter income of 25 cents per share.

Shares of MKS Instruments dropped $4.46, or 18.3 percent, to $19.94 in midday trading on the Nasdaq Stock Market. The stock has ranged from $15.90 to $26.98 over the past year. (AP)

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

iRobot receives additional Army order

Bedford's iRobot Corp. announced it has received an additional US Army order totaling $17.5 million for robots that can scout battlefields and dispose of bombs.

(At right is an image of a military robot taken from iRobot's website.)

This is the fourth order under the $286 million contract that will deliver more than 220 additional robots to the Army by December 31, the company said.

"The robot included in this contract is the PackBot 510 with FasTac Kit, which will help warfighters investigate suspicious objects, identify roadside bombs, and other improvised explosive devices (IEDs), as well as uncover unexploded ordnance while keeping soldiers in theater at safe distances," iRobot said in a press release.

The release added: "The PackBot 510 represents the next generation of PackBot technology that increases overall robot speed by 30 percent, accelerates travel over tough terrains of rocks and mud to speeds of up to 5.6 miles per hour, and supports climbing grades of up to 60 degrees. Light enough for deployment by one warfighter, but strong enough to carry 30 pounds, the PackBot 510 leverages a digital modular architecture to support interchangeable, modular payload capabilities that address specific missions."
(By Chris Reidy, Globe staff)

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

Thermo Fisher reports record second quarter

Thermo Fisher Scientific Inc., a Waltham company that provides instruments and services to researchers and life sciences companies, reported today that revenues increased 14 percent to a record $2.71 billion in the second quarter driven by "robust demand" for its products, particularly in Asia.

Net income for the quarter was $250 million, up from $164 million a year ago, the company said, and GAAP operating income for the 2008 quarter was $330.2 million, compared with $243 million in 2007.

"Our strong results to date are right in line with our expectations, and position us well to achieve our financial goals for all of 2008," Marijn E. Dekkers (right), president and chief executive officer of Thermo Fisher Scientific, said in a statement. "Our excellent growth was driven by robust demand in our scientific instruments, specialty diagnostics and biopharma services businesses, as well as ongoing strong performance in Asia overall."
(By Chris Reidy, Globe staff)

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

Raytheon reports "solid" performance

Raytheon Co., the Waltham defense contractor, said today that its second-quarter operating income rose 12 percent on strong sales performances in all its key business segments.

"All of our businesses performed well, and the company had a strong second quarter," Raytheon chairman and chief executive William H. Swanson (left) said in a statement. "We are increasing our financial outlook for the year as a result of our solid performance."

Second-quarter sales rose 11 percent to $5.9 billion, Raytheon said, while net income declined to $426 million from $1.34 billion.

The year-ago quarter included a one-time gain from Raytheon's sale of its aircraft unit; as a result, a better metric of performance for this quarter is income from continuing operations, which was $426 million, up from $355 million a year ago, Raytheon said.

One reason why Raytheon is increasing its financial outlook is that the company's "backlog remains very strong," David C. Wajsgras, Raytheon's senior vice president and chief financial officer, said in a brief telephone interview.

A front-page story in the Globe this morning noted that the Navy has canceled a $20-billion purchase of Zumwalt-class destroyers and added that the Navy's decision "threw into question the future of Raytheon Co.'s largest defense program."

Wajsgras said the Navy's decision would have little immediate impact on Raytheon's 2008 financial results.

He said further questions about the destroyer program would likely be addressed in a conference call with investors scheduled for later this morning.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:43 AM | Comments (0)

July 23, 2008

Serono employee pleads guilty to software charge

A medical director for Serono Laboratories Inc., Norma Muurahainen, pleaded guilty in federal court today to helping distribute medical software to diagnose AIDS wasting, without first winning approval from the Food and Drug Administration.

Though other employees were involved, the US Justice Department argued that Muurahainen had the power to stop the shipments, but declined to do so.

Serono already agreed to pay $704 million to resolve criminal charges that it was involved in several illegal schemes to promote its drug, Serostim, which is used to treat AIDS wasting. A medical manufacturer, RJL Sciences Inc., and its president are awaiting sentencing for conspiring with Serono Labs to distribute the unapproved software.

Muurahainen, 56, of Hull faces up to 3 years in prison and a $300,000 fine. Sentencing is scheduled for Oct. 29.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:24 PM | Comments (0)

Staples settles Corporate Express securities offer

Staples Inc., the Framingham office-supply company, said today that its offer for all outstanding securities of Corporate Express NV has been completed.

Staples earlier this month completed a separate offer for all outstanding shares of the Dutch office supply company Corporate Express NV and its 2 percent convertible bonds. Shareholders and bondholders had until last week to tender their shares and bonds under a post-approval period that ended last week.

Staples shares rose 32 cents to $23.66 during midday trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 1:40 PM | Comments (0)

CIDC is moving to larger space in Cambridge

Cambridge Interactive Development Corp., or CIDC, is moving its headquarters to larger space in Cambridge, a broker involved in the transaction said today.

The broker, Boston real estate services firm Richards Barry Joyce & Partners LLC, said that CIDC, a software development company, has signed a lease for nearly 55,000 square feet of space at 150 CambridgePark Drive (photo above), which is near the Alewife MBTA station.

CIDC is relocating its operations from nearby 100 CambridgePark Drive, where the company currently occupies 30,000 square feet of space, said Richards Barry Joyce, which added that the Archon Group is the landlord of CIDC's new space.

  Headquartered in Texas and with an office in Boston, the Archon Group is an international commercial real estate investment management and mortgage loan company; it is a wholly owned subsidiary of the Goldman Sachs Group Inc. of New York, a global investment banking firm.

“CIDC is a very exciting Cambridge company, and their significant expansion into a new office is a positive indicator of their success and forward motion,” Jonathan Varholak a partner at Richards Barry Joyce, said in a statement.

CIDC is a wholly owned subsidiary of Giga Media Ltd. of Taiwan, a provider of online entertainment and software services.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:14 PM | Comments (0)

EMC chief says VMware spinoff is possible

EMC Corp. chief executive Joseph Tucci (right) said that his company may spin off its VMware Inc. business software unit, though it won't happen in 2008.

EMC, the Hopkinton-based data storage giant, said in May that it did not plan to spin off the business, disappointing investors who had been anticipating a spinoff. EMC owns an 85-percent stake in VMware.

When asked in an interview today whether a spinoff of California-based VMware might be in the works, Tucci said it was possible.

"We're committed to optimizing the value of this asset over the long term," he said.

"What does that mean? That means we're going to optimize this asset. That doesn't mean you spin it or you won't spin it. It just means we are going to optimize this asset and make sure that the shareholders get value over the long term."

When asked how often the board reviews such matters, he said, "You are constantly reviewing it. You are constantly looking at everything that happens out there. For the board this is a big strategic asset."

For previous coverage of EMC and VMware, please click here.

EMC released earnings earlier today. VMware released earnings yesterday.
(Reuters)

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

Northborough OK's Verizon FiOS TV

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

As a result of that action, residents in 78 Massachusetts communities either already have Verizon FiOS as a TV option or soon will have, 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 10:11 AM | Comments (0)

Affiliated Managers Group earnings fall 16 percent

Affiliated Managers Group Inc., an asset manager with headquarters in Beverly, said today that its second-quarter profit fell 16 percent as revenue fell in its mutual fund, institutional and high net worth segments.

Net income for the quarter slipped to $35.3 million, or 89 cents per share, from $41.9 million, or $1.04 per share, during the same quarter a year earlier.

Cash net income per share fell to $59.5 million, or $1.43 per share, from $60.3 million, or $1.52 per share, during the second quarter last year.

Cash net income adds back amortization, affiliate depreciation and deferred taxes related to intangible assets. Affiliated Managers Group considers it a key measure of performance because it represents operating performance before certain non-cash expenses tied to acquisitions of interests in affiliated management firms.

Analysts polled by Thomson Financial, on average, forecast earnings of $1.41 per share on revenue of $313.7 million.

Affiliated Managers Group generated $309 million in revenue during the second quarter, compared with $331.5 million during the year-ago period.

Analysts expected revenue of $313.7 million.

Revenue fell across all three segments at Affiliated Managers Group. Mutual fund revenue declined 10 percent to $126 million. Institutional revenue fell 2 percent to $147.4 million in the second quarter. High net worth revenue fell 13 percent to $35.6 million.

Total assets under management declined to $241.82 billion during the second quarter, from $243.6 billion three months earlier. Assets in all three segments fell, contributing to the declines in managed assets.

Shares of Affiliated Managers Group rose $3.57, or 4.1 percent, to $89.70 in New York Stock Exchange trading shortly after the opening bell. The stock has ranged from $72.59 to $136.51 over the past year.

Separately, Affiliated Managers Group said today that it will acquire a 60 percent stake in Harding Loevner LLC, which manages about $6 billion in assets.

Terms of the deal were not disclosed.

Management partners at New Jersey-based Harding Loevner, including global equities specialists David Loevner and Simon Hallett, will continue to oversee the day-to-day operations of the business. No date was set for the expected closing of the deal. (AP)

Posted by globebusiness at 9:51 AM | Comments (0)

Genzyme profit falls on drug licensing charge

Cambridge biotechnology company Genzyme Corp. said today that its second-quarter profit fell on a series of charges, though adjusted profit and revenue topped Wall Street forecasts.

Profit fell to $69.6 million, or 25 cents per share, from $83.8 million, or 31 cents per share, a year ago. Excluding stock compensation costs and other items, adjusted profit was 98 cents per share.

Analysts polled by Thomson Financial expected profit of 97 cents per share on revenue of $1.13 billion. Such estimates typically exclude one-time items.

The charges during the quarter included a $175 million payment to Isis Pharmaceuticals for rights to the developing cholesterol drug mipomersen.

Revenue, meanwhile, rose 25 percent to $1.17 billion from $933.4 million in the same period a year ago

"It was a strong and highly productive quarter," chairman and chief executive Henri A. Termeer said in a statement. "We delivered solid financial results, set in place a number of catalysts that will drive near-term growth, and continued to build the company to grow beyond 2011."

Sales of Myozyme, which treats a genetic disorder known as Pompe disease that can impair muscle function, rose 65 percent to $77.2 million, the company said, despite a delay in regulatory approval for a higher scale of production.

The company said sales of its Fabrazyme enzyme replacement therapy increased 21 percent to $126.6 million, while sales of Cerezyme for Gaucher disease, another enzyme disorder that can result in liver and neurologic problems, grew 13 percent to $319.4 million. Sales of Aldurazyme, which treats the inherited disorder MPS I that can lead to organ damage, grew 33 percent to $38.8 million.

Shares fell 30 cents to $79 in premarket trading. The stock closed at $79.30 in trading yesterday on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 9:38 AM | Comments (0)

E Ink is tapped by mobile phone company

E Ink Corp., a Cambridge company focused on electronic-paper display technologies, announced today that Casio Hitachi Mobile Communications Co. of Japan has selected E Ink display technology for its newest family of mobile phones.

According to E Ink, these are the world's first clamshell-style mobile phones to use E Ink's electronic paper technology on the outside.

E Ink said in a press release: "E Ink's electrophoretic display was chosen for its wide viewing angle, sunlight readability, ruggedness, ultra thin profile, and low power consumption. These benefits allow for stylish secondary displays that do not add weight or thickness to the display and allow long battery life. The arresting movement of the display allows for a unique look and personal statement."

Sriram Peruvemba, E Ink's vice president of marketing, added in a statement: "Fashion is a key driver in today's world. E Ink offers a smart surface that changes the design and brings mobile phones to the fashion forefront of technology."

E Ink's technology is used in a number of consumer and industrial applications such as electronic books. E Ink provides some of the technology for such eBooks as the Amazon Kindle and Sony Reader.

Please click here to read earlier coverage of E Ink.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:18 AM | Comments (0)

Biotech firm is moving its HQ to Cambridge

Taligen Therapeutics Inc., a Colorado biotech start-up, is moving its headquarters to Cambridge and hired a local Novartis AG executive to run the company, the company plans to announce today.

Taligen says its new chief executive will be Abbie Celniker, who previously ran the program office at the Novartis Institutes for BioMedical Research in Cambridge. Novartis is a Swiss drugmaker.

The company is still tiny, with just eight employees, but recently raised $65 million in venture capital from Alta Partners of San Francisco, Clarus Ventures of Cambridge, and other investors.

The company, which is trying to develop protein-based therapies to treat a wide range of inflammatory conditions and diseases, says it plans to maintain a drug discovery operation in Denver, while establishing its headquarters and late-stage research operations in Cambridge.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 8:47 AM | Comments (0)

Dyax issues quarterly results

Dyax Corp., a Cambridge biotechnology company, said today that its second-quarter loss widened as research-and-development expenses grew.

   For the quarter that ended June 30, Dyax reported a net loss of $24.9 million, or $0.41 per share, compared with a net loss of $17.9 million, or $0.37 per share, for the comparable quarter in 2007.

Second quarter revenues increased 46 percent to $3.8 million, versus $2.6 million in the year-ago quarter, Dyax said.

Research and development expenses for the second quarter increased to $18 million from $15.5 million a year ago, the company said.

At the end of the second quarter 2008, Dyax said it moved to close its Liege, Belgium research facility and recorded a related restructuring charge of about $3.8 million; the closing of that facility should result in roughly $7 million in annual cost savings, Dyax said.

As of June 30, Dyax said it had a total of $67.9 million in cash, cash equivalents, and short-term and long-term investments, exclusive of restricted cash.

During the quarter, Dyax said it made progress in moving toward the US commercialization of its drug candidate DX-88 in indications for hereditary angioedema, a rare swelling disorder.

While the US commercialization of DX-88 in hereditary angioedema indications remains the company's top priority, Dyax is also moving forward to gain approvals for DX-88 in other uses, the company said.

For some previous coverage of Dyax, please click here.
(By Chris Reidy, Globe staff)

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

EMC profit rises on overseas growth

EMC Corp., the world's biggest maker of corporate storage equipment, posted higher quarterly profit today as international sales grew 27 percent and US sales rose 10 percent.

In its quarterly report, the Hopkinton-based company said that net income rose 13 percent to $377.5 million, or 18 cents per share, from $334.4 million, or 16 cents a share, a year earlier.

Profit excluding special items rose to 24 cents per share from 20 cents.

Revenue climbed 18 percent to $3.67 billion. (Reuters)

Posted by globebusiness at 7:27 AM | Comments (0)

Boston Properties' profit falls after asset sales

Boston Properties Inc., which led a group that bought Manhattan's General Motors Building last month, said last night that second quarter earnings fell.

The company's Boston real estate portfolio includes such signature buildings as Prudential Tower and 111 Huntington Ave. (Shown at right.)

Net income fell to $79.5 million, or 66 cents a share, from $102.3 million or 84 cents a year ago, the company said in a statement distributed on PRNewswire. Funds from operations, a cash flow measure used by real estate investment trusts, rose to $1.19 per share from $1.18. Funds from operations beat the average projection of $1.17 a share by 13 analysts surveyed by Bloomberg News.

The Boston-based company sold about $4.5 billion of buildings between 2005 and early 2008, including 5 Times Square in Manhattan for $1.28 billion, 280 Park Ave. for $1.2 billion, and Embarcadero Center West in San Francisco for $205.8 million.

``They sold a number of assets last year, so they lost rental income,'' said Shawn Barnes, a REIT analyst for Edward Jones & Co., in an interview conducted before today's report. ``There will be some time between when they sell those properties and when they redeploy those assets.''

Boston Properties, the biggest U.S. office REIT, led a partnership that paid $2.8 billion for the GM Building, the most ever paid for a single U.S. building. The 50-story tower on Fifth Avenue, at the southeast corner of Central Park, houses some of Manhattan's most expensive offices.

Falling Prices

Prices are falling in all four of the company's principal markets: New York, Boston, Washington, and San Francisco, according to data from Real Capital Analytics, a New York-based real estate research firm. Boston Properties expect to remain profitable by owning and building only the highest quality office towers in those markets, the company says on its Web site.

Boston Properties rose $3.16, or 3.3 percent, to $99.98 in New York Stock Exchange composite trading yesterday. Shares have risen 0.9 percent since May 20, when news reports identified Boston Properties as the GM Building buyer, compared with a 4.2 percent decline in 12-member Bloomberg REIT Office Property Index.

The company is chaired by New York Daily News publisher Mortimer Zuckerman, 71.

``There's no such thing as a distressed sale in the Manhattan real estate market,'' Zuckerman said in a May 27 interview. ``Manhattan is a key part of the global economy as well as the national economy and an attractive place for investment.''

GM Building

The GM Building will cost Boston Properties about $5.5 million during its first year of ownership, according to a June 10 report by Deutsche Bank REIT analyst Lou Taylor. While cash flow will improve to $26.8 million by 2012, ``meaningful lease expirations don't occur until 2010 and 2012,'' wrote Taylor, who has a ``hold'' rating on the stock.

Boston Properties owned 139 properties, almost all of them office buildings, comprising 43.9 million square feet, as of March 31, according to its Web site. It has another 3.6 million square feet in development, including 250 West 55th St., a 1- million-square-foot tower at Eighth Avenue in Midtown Manhattan, where the law firm Gibson, Dunn & Crutcher LLP is to be the anchor tenant. (Bloomberg)

Posted by globebusiness at 7:17 AM | Comments (0)

July 22, 2008

House approves Massachusetts sales tax holiday

The Massachusetts House has approved a plan to give consumers a two-day break from the state sales tax.

By a 139-15 vote, lawmakers voted today in favor of a bill withholding the state's 5-percent sales tax from most items sold during the weekend of Aug. 16-17.

Boats, cars, and some other items will be excluded.

Members of the Senate and Democratic Gov. Deval L. Patrick have also signaled their support for the measure, making it likely to be enacted.

House Speaker Salvatore DiMasi had fluctuated in his position on the bill this year, a problem for proponents since tax measures must originate in his chamber. But last week he said he would support it. (AP)

Posted by globebusiness at 3:21 PM | Comments (0)

MassHousing commits to Randolph rental project

MassHousing, the state's affordable housing bank, said today it is making a loan commitment of up to $32.5 million for a rental apartment complex proposed for Randolph.

The developer of the Avalon Blue Hills project on Canton Street, AvalonBay Communities Inc. of Virginia, envisions a complex of 276 apartments; of that total, 69 of the units will be reserved in perpetuity for residents earning no more than 80 percent of Area Median Income guidelines, MassHousing said.

That's $52,900 for a two-person household, and affordable-housing income limits vary based on household size, MassHousing noted.

The remaining apartments will be market rate, MassHousing said.

Plans call for the complex to feature nine buildings clustered in a campus-style setting and surrounded by professionally landscaped grounds and permanently restricted open space for conservation purposes; there will be 154 two-bedroom apartments and 122 one-bedroom apartments, MassHousing said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:33 PM | Comments (0)

Fresh from Maine: Gifford's "lobster" ice cream

Only in New England would you find seafood in your ice cream. Sort of.

Maine Lobster Tracks is a cool new scoop from Gifford's Ice Cream, a Maine-based company whose more pedestrian flavors have earned recognition at the World Dairy Expo, an industry organization that issues the ice cream equivalents of Emmys and Academy Awards.

(In the above photo, provided by Gifford's, a young ice cream buff prepares to chow down on a cone scooped high with Maine Lobster Tracks.)

Headquartered in Skowhegan, the family-owned company boasts other local tastes such as Maine Birch Bark - vanilla ice cream with white chocolate chips mixed with chocolate covered cashews - and Maine Black Bear, vanilla ice cream spiced up with such extras as black raspberry swirl.

This year's crustacean-inspired Maine Lobster Tracks starts with vanilla ice cream, and other ingredients include red-colored chocolate cups filled with caramel and swirls of eclair crunch.

Customers sometimes grimace when they ask if the name of Maine Lobster Tracks rings true.

But there is no real lobster meat in the ice cream, said Lindsay Gifford, the chain's vice president of sales, though customers ask all the time.

"They make one of those faces," said Gifford. "Then when they taste it, they enjoy it."

In addition to inventing wacky flavors, Gifford's made dairy history of sorts by winning the title of "World's Best Chocolate Ice Cream" at the recent World Dairy Expo in Wisconsin, which drew more than 65,000 attendees from 80 countries.

Two years ago, Gifford's won "World's Best Vanilla Ice Cream." Entries are judged on flavor, body and texture, color and appearance, quality assurance, and melting quality.

Gifford's doesn't just sell ice cream at its ice cream stands in Maine; its products can also be found in some supermarkets.

In the Greater Boston area, its flavors, including Maine Lobster Tracks, are available in Roche Bros. stores, Sudbury Farms, select Shaw's Supermarkets, Crosby's Marketplace, and other small independent markets, Gifford's said.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 1:18 PM | Comments (0)

Shares in Boston Scientific fall

Shares in Boston Scientific Corp. were down nearly 12 percent in late-morning trading after the Natick medical device maker reported a profit drop in quarterly results released yesterday afternoon.

On the New York Stock Exchange this morning, company shares were trading at $12.17, down $1.63.

Yesterday Boston Scientific said that second-quarter profit dropped 15 percent as rivals cut into sales of its heart stents and defibrillators.

Please click here to read an item on Boston Scientific that appeared in the "Earnings roundup" section of today's Globe.

Please click here to read the second-quarter press release that Boston Scientific issued yesterday.
(By Chris Reidy, Globe staff)

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

Fidelity brokerage assets rises to $1.92 trillion

Fidelity Investments of Boston, the world's biggest mutual fund firm, said today that total client assets at its brokerage business rose to $1.92 trillion in the second quarter of 2008, up 2 percent from the same quarter of last year.

Fidelity said in a statement the growth was attributable to net new client assets. The firm said it added $23.5 billion in net new client assets under administration in the brokerage business during the quarter. (Reuters)

Posted by globebusiness at 11:29 AM | Comments (0)

Bruschi is back in new Papa Gino's ads

Papa Gino's Holdings Corp. said today that its namesake pizza chain will again tap New England Patriots linebacker Tedy Bruschi to kick off its “Papa Time” ad campaign.

The campaign, created by Boston ad shop Connelly & Partners, reminds guests that there are many occasions when Papa Gino’s can make their lives easier by being the answer to their next meal decision, and the campaign suggests that “Papa Time” can be anytime you need a quality, convenient meal to satisfy you or your family, said Papa Gino's, which is headquartered in Dedham.

In addition to the new ads, Papa Gino’s said it will launch the online “Papa Time Sweepstakes,” which will offer weekly chances to win free pizza for a year and will also include instant food prizes.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:52 AM | Comments (0)

BBN Technologies gets $74 million order

BBN Technologies, the Cambridge company that developed much of the early technology for the Internet, announced today that it has been awarded $74 million to provide more than 8,000 Boomerang Shooter Detection Systems to the US Army.

The Boomerang system immediately alerts US forces to the occurrence of hostile incoming fire and pinpoints the location of the enemy shooter, BBN said.

(The above eight-minute video was taken from Youtube.com, the video-sharing website, and it demonstrates how the Boomerang system works. The footage was taken from a show that appeared on the Discovery Channel, said a BBN spokesman, who confirmed that the footage is an accurate description of the system.)

The Boomerang systems for this contract will be manufactured at Kimchuk Inc., a contract manufacturing and engineering firm based in Danbury, Conn.

BBN's press release included a statement from the office of US Senator Edward M. Kennedy, a Massachusetts Democrat.

The statement from Kennedy's office said: "Sniper detection is indispensable in keeping our brave men and women in uniform safe in Iraq and Afghanistan and the senator is proud that BBN Technologies' Boomerang systems have again been selected by the Army to carry out this mission. He looks forward to continuing to work with BBN Technologies and the Army to see that our troops have the best possible equipment to meet their needs."

The video appearing above this story originally aired on a Discovery Channel show called FUTUREWEAPONS. The show, which explores the science and technology that goes into the making of the latest weapons, is hosted by ex-Navy Seal Richard "Mack" Machowicz. Discovery's sister channel, the Military Channel, plans to re-air the show with the segment on the Boomerang system at 9 p.m. Eastern time on Aug. 17, a spokeswoman for the channel said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:18 AM | Comments (0)

TA Associates completes recapitalization

TA Associates, a private equity and buyout firm with offices in Boston, today announced it has completed a minority recapitalization of Keeley Asset Management Corp., a boutique value manager based in Chicago and its sister company Keeley Investment Corp.

Keeley Asset Management manages equity for corporations, pension plans, foundations, endowments, and individuals, using a bottom-up value-based investment approach that focuses on small to mid-cap companies undergoing internal corporate restructuring, said TA Associates, which added that as of June 30, Keeley had more than $10 billion under management.

The firm's flagship product, the Keeley Small Cap Value Fund has significantly outperformed its respective benchmarks since its inception and has a 5-star Morningstar rating, TA Associates said.

Over the years, TA Associates said that it has invested more than $2.5 billion in financial services and financial technology companies.

Its press release today did not include details of its investment in Keeley Asset Management.

Roger B. Kafker, a managing director at TA Associates, has been invited to join Keeley's board of directors, TA Associates said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:58 AM | Comments (0)

Waters profit jumps on boost in systems sales

Waters Corp., a Milford company that makes a range of instruments for scientific analysis, said today that second-quarter profit surged 38.7 percent on strong sales of its research and analytical equipment.

The company earned $83.1 million, or 82 cents per share, compared with profit of $59.9 million, or 59 cents per share, a year earlier. Revenue rose 13 percent to $398.8 million from $352.6 million.

Waters said financial reporting errors caused an overstatement of its income-tax expense, and in turn, the company incorrectly calculated its provision for income taxes. Excluding that and other adjustments, Waters reported second-quarter profit of 76 cents per share.

Analysts polled by Thomson Financial expected profit of 71 cents per share on revenue of $394 million.

The company said the accounting errors are not material to prior quarters and it doesn't plan to restate previous financial results.

During the quarter, a weak dollar contributed 6 percent to sales growth.

"Though the first half of 2008 presented Waters with a challenging economic environment, solid sales of our technologically advanced systems solutions, as well as our recurring revenues, resulted in strong earnings growth and superior cash generation," Chairman, President, and Chief Executive Douglas Berthiaume said in a statement.

Shares of Waters closed at $62.32 yesterday on the New York Stock Exchange. (AP)

Posted by globebusiness at 8:40 AM | Comments (0)

Dyax and Aveo announce license agreement

Dyax Corp. today announced a nonexclusive antibody library license agreement with another Cambridge biotechnology company, Aveo Pharmaceuticals Inc.

Dyax said its human antibody phage libraries combine gene fragments from human donors with strategically designed synthetic DNA; the libraries are used to identify high-affinity human antibodies that bind to numerous therapeutic targets, including cell surface proteins such as tumor cell markers, viral antigens, enzymes, and glycoproteins, Dyax said.

Aveo describes itself as a clinical-stage biopharmaceutical company focused on the discovery and development of novel, targeted cancer therapeutics.

The companies said in their press releases: "The terms of this strategic agreement include up-front and annual license fees, clinical and regulatory milestone payments as well as other considerations. Dyax is also entitled to royalties on net sales of any products identified by Aveo using Dyax's technology that may be developed and commercialized by Aveo and/or its sublicenses. The agreement also provides Aveo with sublicenses to relevant third-party antibody phage display patents related to Dyax's technology."
(By Chris Reidy, Globe staff)

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

Biogen Idec issues second quarter results

As of the end of June, more than 31,800 patients worldwide were estimated to be receiving Tysabri, a treatment for relapsing forms of multiple sclerosis, or MS.

The estimate was issued today by the two companies that market the drug: Biogen Idec Inc. of Cambridge and Elan Corp. plc of Ireland.

Separately, Biogen Idec also released second-quarter results, noting that revenue for the period rose 28 percent to $933 million on higher sales for its multiple sclerosis treatments; second-quarter net income, meanwhile, was $207 million, up from $186 million a year ago.

The Tysabri estimate was part of a statement that the companies issued to mark the second anniversary of Tysabri's reintroduction in the United States and its first international approval, Biogen Idec and Elan said.

The promising drug was pulled off the market in 2005 after it was linked to a rare brain disease. Tysabri was reintroduced in 2006 with stricter guidance on how to use it to minimize safety problems.

Biogen Idec and Elan said today that there have been no confirmed cases of that rare brain disease - progressive multifocal leukoencephalopathy, or PML - since the US re-launch and the first international approval of Tysabri in July 2006.

Such is Tysabri's recent track record that local health agencies in countries including Australia, Austria, the Netherlands, the United Kingdom, Sweden, France, and Germany have all recommended Tysabri for reimbursement by government-run health agencies, the two companies noted.

In its second-quarter earnings release, Biogen Idec said that it recognized revenue of $147 million related to Tysabri, and the company also raised its 2008 financial guidance, adding that revenue growth should benefit from Tysabri's market penetration and favorable foreign exchange.

"Our prospects for growth remain strong," James Mullen (right), Biogen Idec's chief executive, said in a statement. "Tysabri sales nearly tripled compared to the same period last year, our core products continue to grow, our pipeline is overflowing, and our revenues have grown more than 25 percent year-over-year for three consecutive quarters. Given the strong momentum underway, we are raising our full-year guidance and setting an aspirational goal of generating a record $4 billion in revenues this year."

For earlier coverage of Tysabri, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:18 AM | Comments (0)

July 21, 2008

PerkinElmer expands its screening in Mexico

PerkinElmer Inc., a Waltham company that makes equipment for genetic screening and drug research, said today that it will triple its neonatal screening capacity in Mexico.

Under the terms of a one-year agreement with the Mexican Ministry of Health, PerkinElmer said it will provide instrumentation, reagents, and screening expertise that will help the ministry screen for congenital hypothyroidism.

The company said in a press release: "In 2007, PerkinElmer provided technology to screen approximately 640,000 newborns in 14 laboratories across Mexico. Under this new agreement, that number will increase to approximately 1.9 million tests per year. Additionally, PerkinElmer will continue to collaborate with Mexican health authorities to assist them in further developing and expanding their program in the coming years."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:48 PM | Comments (0)

Forrester: Gen Y sets pace for technology adoption

Members of Gen Y, the name demographers have given to people between the ages of 18 to 28, set the pace for technology adoption, according to a report out today from Forrester Research Inc. of Cambridge.

In a report titled "The State of Consumers and Technology: Benchmark 2008," Forrester, a market intelligence firm, noted that nine in 10 Gen Y'ers own a personal computer, and 82 percent own a mobile phone.

What's more, Gen Y members spend more time online - for leisure or work - than they do watching TV; 72 percent of Gen Y mobile phone owners send or receive text messages, and 42 percent of online Gen Yers watch Internet video at least monthly, Forrester said.

Members of Generation X (also known as folks who are 29- to 42-years-old) generally use technology to support a "lifestyle need," Forrester said, "while technology is so deeply embedded in everything Gen Y'ers do that they are truly the first native online population."

Even though Gen Y is relatively small. with 38 million Americans falling into that age category - an estimated 63 million Americans belong to Gen X - Gen Y members are crucial to technology adoption, Forrester said.

"Gen Y is the audience that most companies are struggling to understand right now because it's key to their future revenue growth," Charles Golvin, principal analyst at Forrester Research, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:33 PM | Comments (0)

Reebok ad featues 20 NFL stars

Reebok International Ltd. said today it is launching a TV ad with 20 National Football League stars, the most to ever appear in a single TV ad, to promote a new product that features a breakthrough in T-shirt technology.

(Two of those stars, Benjamin Watson and Laurence Maroney of the New England Patriots, ham it up in the above photo supplied by Reebok.)

Called "Join the Migration," the ad campaign focuses on "NFL Equipment Speedwick Tee", an anti-microbial, moisture wicking shirt from Reebok with a "unique, soft cotton hand," Canton-based Reebok said in a press release.

Reebok may be best known for its sneakers, but it also markets a wide range of athletic apparel.

“Speedwick is the next generation workout shirt,” David Baxter, president of Reebok's sports licensed division, said in a statement. “It offers the comfort of a traditional cotton tee, but with the breathability and anti-microbial benefits of high performance apparel.”

NFL players touting the new Tee include three Patriots: Maroney, Ty Warren, and Watson.

Peyton Manning, quarterback of the Indianapolis Colts, rates a speaking part.

In the ad, Manning says: “I’ve always preferred the feel of a cotton tee to the tight fitting compression shirts. But as an athlete, I want the technology benefits those products offer. With Speedwick, you get the best of both worlds.”

The shirt is available in color schemes for all NFL teams, and depending on style, the suggested retail price of the shirt ranges from $26 to $32, Reebok said.

In its press release, Reebok added: "The music in the spot is 'Train Song,' by psychedelic folk pioneer Vashti Bunyan. The British born Bunyan, who was discovered in 1965 by Rolling Stones manager Andrew Loog Oldham, disappeared from the music scene for more than 30 years after the release of her debut album."
(By Chris Reidy, Globe staff)

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

Former Bruker VP sues over firing

Brian Lamy, a former vice president and tax director for Bruker Corp.'s Biospin unit, sued the Billerica life sciences company in federal court last week, saying he was wrongfully fired after complaining about improper accounting practices.

The suit alleges that Bruker Biospin's subsidiaries in Germany artificially inflated patent reserves to dodge income taxes and boost earnings.

Lamy said he voiced his concerns to his supervisor and a company attorney in June 2007 and was fired a month later because of "poor attendance," according to the suit. Lamy said the company had not previously complained about his attendance. At the time, Bruker BioSpin was a Bruker affiliate, but is now a wholly owned subsidiary of Bruker Corp.

Lamy first filed his complaint with the US Department of Labor last October, but turned to federal court after the department failed to issue a ruling within 180 days. Lamy also complained to the Securities and Exchange Commission, which contacted Bruker in February.

Bruker said in an SEC filing that it plans to cooperate with the agency, but found no evidence of improper activity.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 1:21 PM | Comments (0)

Local foreclosures are in a holding pattern

Massachusetts foreclosure filings dropped 85 percent in June from a year ago, largely because of a recent change in foreclosure regulations, said ForeclosuresMass.com, a Framingham-based provider of Massachusetts foreclosure data for investors, real estate professionals, and mortgage brokers.

The firm said that it expects the drop to be temporary and that local foreclosure rates are likely to return to record levels soon.

June had 351 filings because of the mandated extension before foreclosure action can be filed in Land Court, a drop of 85 percent from the 2,343 petitions filed in June 2007.

New foreclosure regulations, which went into effect May 1, have continued to produce a temporary lull in foreclosure filings, ForeclosuresMass.com added. Those new regulations created a 90-day cooling off period before foreclosure proceedings can begin in court. Previously, those proceedings could begin within 30 days after a borrower went into default.

“Massachusetts foreclosures are in a holding pattern, but the low numbers of filings we’ve seen over the past two months will end within the next four to six weeks,” Jeremy Shapiro, president and cofounder of ForeclosuresMass.com, said in a statement. “Massachusetts homeowners continue to face a wide range of economic pressures, and will soon return to the record foreclosure levels being seen nationwide.”

Taking a longer-term view, ForeclosuresMass.com noted that lenders initiated 30,026 foreclosures statewide in Massachusetts against homeowners in the 12-month period that ended June 30, a year-over-year increase of 22.4 percent.

In the past 12 months, foreclosures are up in 241 of the state’s 351 communities, with 75 communities experiencing at least a 50 percent increase in filings.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:02 PM | Comments (0)

July 18, 2008

Skyworks expects to beat analyst forecasts

Chip maker Skyworks Solutions Inc. said Thursday it expects adjusted earnings of 20 cents per share for its fiscal fourth quarter, which is above Wall Street's current expectations.

The company also forecast revenue of $225 million for the quarter ending in September. Skyworks said market share gains and new program launches are helping grow its revenue.

Analysts, on average, are predicting a profit of 19 cents per share on sales of $222.1 million, according to a poll by Thomson Financial.

The company also posted fiscal third-quarter profit ahead of analyst expectations.

Shares gained 25 cents, or 2.3 percent, to $11.10 in after-hours electronic trading. The stock closed at $10.85 in the regular session. (AP)

Posted by globebusiness at 10:48 AM | Comments (0)

Natural gas firm to pursue offshore Mass. berth

The company hoping to build a liquefied natural gas import terminal in Fall River, Mass., said Thursday it is focusing on an alternate plan for an offshore berth in Mount Hope Bay to receive tanker deliveries.

The original proposal from Weaver's Cove Energy depended on tankers traveling up the Taunton River to Fall River.

Critics, including Fall River officials and members of the state's congressional delegation, worked to block the original proposal, saying it poses unacceptable risks to the heavily populated area. That plan also was opposed by officials in nearby Rhode Island.

The Weaver's Cove announcement came one day after the House voted to extend federal "wild and scenic" environmental protection to the Taunton River, dealing a setback to the company's plan for an LNG terminal on an urbanized stretch of riverbank in Fall River. The Massachusetts congressional delegation was behind the bill.

Under the new plan, tankers would unload LNG offshore into a four-mile underwater pipeline to Fall River. Company officials said the proposed offshore berth would be located about one mile from the nearest shoreline and two miles south of the Braga Bridge.

The company said the new plan was aimed at easing community safety and environmental concerns.

"This new proposal would not require LNG ship traffic within the confines of the Taunton River and would address concerns previously expressed by the community and the U.S. Coast Guard," Weaver's Cove officials said in a statement. "It would also greatly decrease dredging within the Taunton River."

Rep. James McGovern, D-Mass., said he has concerns about safety risks posed by the latest proposal. He said it was misleading for Weaver's Cove to characterize it as an "offshore" proposal.

"Mount Hope Bay is not the Gulf of Mexico," McGovern said in a statement. "It's a crowded waterway, and LNG tankers would continue to pose a significant hazard to commercial and recreational boat traffic. But the most important point is this they still want the storage tankers on land in Fall River, a stone's throw away from residential neighborhoods. That has always been the most significant safety concern about this project, and today's new announcement doesn't change that one bit."

The alternate plan for an offshore berth was first floated in March by company officials who said they were exploring it as an option.

The original terminal plan by Weaver's Cove, which is owned by Hess LNG, was approved by the Federal Energy Regulatory Commission in 2005.

But the project faces several government obstacles. Fall River has spent at least $1.4 million fighting the project.

The Coast Guard has rejected the original Weaver's Cove proposal, citing safety and navigation concerns that the path along the river approaching the terminal is unsafe for navigation by massive LNG tankers.

The new plan calls for a four-mile LNG pipeline that would be buried in a trench beneath portions of Mount Hope Bay and Taunton River leading to an LNG storage and processing terminal located on the banks of the river.

The LNG would be stored at the terminal until it was turned back into gas for delivery through pipelines to homes and businesses throughout the region. LNG would also be trucked from the terminal to other LNG storage tanks throughout New England.

Weaver's Cove has said the region needs new LNG facilities to help meet rising energy demands and high prices. (AP)

Posted by globebusiness at 10:42 AM | Comments (0)

Major League Baseball taps IBM Web 2.0 tech

Major League Baseball is turning to Web 2.0 technology to improve the operations of America's pastime.

The league's information technology department has purchased IBM Portal software, some of which was developed in Westford, to create connections between players, umpires, and fans, IBM is disclosing today. The software, using a new generation of Internet technologies, has a range of applications from combating counterfeit memorabilia to keeping umpires and ballpark security staffers abreast of weather patterns and potential risk factors.

Desktop computers installed in umpires' dressing rooms will be able to create mashups showing everything from how field conditions will affect play to the historic behavior of players prone to fighting. The computers will also allow umpires to use Google Gadgets to create real-time weather views and other data on web pages.

For the memorabilia application, a fan catching a home run ball can link up with a security guard who will place a hologram on the ball. Data from the hologram will then be wirelessly uploaded to the league's IBM DB2 data server, enabling potential buyers to verify the ball's authenticity.

(By Robert Weisman, Globe staff)

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

Electronics giant Philips to move to Mass.

Andover town officials say Dutch company Royal Philips Electronics NV is relocating its North American headquarters to the town.

Selectman Brian Major, who works for subsidiary Philips Healthcare which employs 2,200 in town, broke the news at a meeting this week.

Joseph Bevilacqua, president of the Merrimack Valley Chamber of Commerce, calls the move a "monumental decision."

Philips spokesman Ian Race would only confirm that a news conference is scheduled for Tuesday to discuss the "economic benefits" of Philips' presence in Massachusetts. Gov. Deval Patrick and Philips CEO Scott Weisenhoff will attend.

Philips Electronics North America is currently headquartered in New York City. Amsterdam-based Philips Electronics had $36.8 billion in worldwide revenues last year. (AP)

Posted by globebusiness at 9:37 AM | Comments (0)

Watts Water issues bullish forecast

Watts Water Technologies Inc., which makes products to monitor water safety and flow, guided for second-quarter profit above Wall Street's estimates on Thursday.

For the period ended June 29, Watts Water said it expects to post adjusted earnings of 52 cents to 54 cents per share, on revenue of $389 million.

Analysts polled by Thomson Financial expect, on average, earnings of 41 cents per share on revenue of $344.3 million

The company expects to post final results July 29.

Shares jumped $2.84, or 11.6 percent, to $27.30 in aftermarket trading. (AP)

Posted by globebusiness at 9:32 AM | Comments (0)

Interactive Data sets quarterly dividend

Interactive Data Corp. said its board declared a quarterly cash dividend of 15 cents.

The financial data services company said the dividend is payable on Sept. 26 to shareholders of record as of Sept. 5. (AP)

Posted by globebusiness at 9:24 AM | Comments (0)

July 17, 2008

Promotions at US Trust

Bank of America yesterday promoted two Boston executives at its US Trust private banking organziation. The Charlotte bank named Eric Hayes to the new position of Chief Fiduciary Officer for trust organizations for families and private foundations.

Hayes was previously head of US Trusts' New England division, a job that now will be held by Lynn Davis. Davis also will continue to head a US Trust planning area that provides services for well-to-do customers. Hayes and Davis will remain in Boston and report to US Trust president Frances Aldrich Sevilla-Sacasa in New York.
(By Ross Kerber)

Posted by globebusiness at 4:01 PM | Comments (0)

Exact Sciences in cash squeeze

Exact Sciences Corp. in Marlborough, which is trying to use genomics to develop cancer screening technology, said late Wednesday night it has slashed its operations to preserve its cash, while pursuing a possible sale or other strategic alternatives.

The company said is eliminating eight jobs, cancelling a clinical study and trying to renegotiate its existing obligations.

Exact said it believes the cost-saving measures will extend its cash through at least second quarter of 2009, giving it breathing room to find a partner.
(By Todd Wallack, Globe Staff)

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

Courier Corp. swings to $12.4 million loss

Courier Corp., a leading book manufacturer and specialty publisher, said it lost $12.4 million in its fiscal third quarter, due to a noncash impairment charge of $23.9 million on poor performance at a subsidiary that publishes home and garden titles.

News of the loss sent Courier's shares tumbling today. They set a 52-week low of $18.02 and were down nearly 19 percent, or $4.20, to $18.21 in midday trading. The shares have traded as high as $41.48 in the last 52 weeks.

Courier said it lost $1 per share, though revenue remained unchanged from last year at $73.4 million. Last year in the same quarter, Courier earned nearly $6.7 million, or 53 cents a share.

Excluding the impairment charge, income for the latest quarter was $3.1 million, or 25 cents per share, compared with income of $6.7 million or 53 cents per share, in last year's third quarter.

The impairment charge at Creative Homeowner comes after that business saw slow sales and higher-than-anticipated returns from retailers due to declining store traffic at home improvement centers and other retail chains. Including the allowance for returns, Creative Homeowner's sales slid 45 percent in the quarter ended June 28, compared with the prior year period. That resulted in a pretax loss of $3.6 million, or 18 cents a share in the quarter, and a pretax impairment charge of $23.8 million, or $1.25 a share, with an after-tax effect of $15.5 million.

The company warned it would fall short of its previous guidance for the year due to current weak sales. Chairman and Chief Executive James F. Conway III predicted a loss of between $1 million and $1.7 million at Creative Homeowner in the fourth quarter, though he said the company expected the publishing segment would return to profitability in the quarter. The division focuses on the education, religion, and specialty trade markets.

Courier expects fourth-quarter sales of between $78 million and $83 million, compared with last year's fourth-quarter sales of $81 million. Earnings in the fourth quarter are expected to decline to between 57 and 67 cents a share, before impairment charges, down from 74 cents in the fourth quarter last year.

For the full year, Courier expects total sales to fall to a range of $282 million to $287 million from $295 million last year, with earnings per share between $1.20 and $1.30, excluding the impairment charge, down from $2.03 last year. (AP)

Posted by globebusiness at 2:26 PM | Comments (0)

Mass. House passes health care cost savings bill

The Massachusetts House has approved a bill to rein in health care spending, but rejected a proposed ban on the practice of doctors accepting gifts from representatives of pharmaceutical companies.

A version of the bill approved by the Senate included the ban.

The House version prohibits pharmaceutical companies from buying confidential prescription drug information for marketing purposes.

The House bill also requires uniform coding of medical claims to make the billing process consistent and rewards primary care physicians who focus on patients with chronic illnesses.

It also requires a statewide electronic health record system be up and running by 2015.

House and Senate leaders hope to come up with a single, compromise version. (AP)

Posted by globebusiness at 1:47 PM | Comments (0)

BG Medicine in new fundraising

BG Medicine, a Waltham biotech company, raised $40 million in its latest round of venture capital, in addition to $52 million it had previously raised.

The company had originally tried to raise money through an initial public offering, but yanked the IPO filing in January citing market turmoil. No venture-backed companies have been able to go public so far this year in Massachusetts.

BG, which has 39 employees, is trying to develop novel medical tests for congestive heart failure and other maladies based on proteins and other molecules found in the body.

The company said the round included several investors: Legg Mason Capital Management, GE Asset Management and Smallcap World Fund, Flagship Ventures, Gilde Healthcare Partners, Humana and Stelios Papadopoulos.
(By Todd Wallack, Globe Staff)

Posted by globebusiness at 11:54 AM | Comments (0)

Genzyme licenses rights to genetic disorder drug

Biotechnology company Genzyme Corp. said today that it will pay PTC Therapeutics Inc. $100 million upfront to license rights to a developing treatment for genetic disorders.

The deal with privately-held PTC gives Genzyme rights to market PTC124 outside of the United States and Canada. The compound is in late-stage development for a type of muscular dystrophy and for cystic fibrosis.

In addition to the $100 million upfront, PTC is eligible to receive up to $337 million in milestone payments and royalties on sales. PTC is responsible for funding current Phase IIb clinical trials, but the companies will split costs on further development.

"PTC124 is a powerful new approach that holds great potential to help cystic fibrosis and Duchenne muscular dystrophy patients and many others with a variety of devastating diseases," said Henri A. Termeer, Genzyme's chairman and chief executive, in a statement.

Genzyme said its experience with the drug Myozyme, which treats the genetic disorder Pompe disease, will be directly applicable to the deal for PTC124, since Myozyme patients are treated by the same specialist physicians. The company's best-selling drug is Cerezyme, a treatment for the genetic disorder Gaucher disease. Sales of that drug reached $304.3 million in the first quarter, followed by the kidney disease treatments Renagel and Renvela, with sales of $168.7 million.

Shares of Genzyme fell 9 cents to $78.88 in morning trading. (AP)

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

Anderson-Little making a comeback

Anderson-Little, the iconic New England retail clothing chain that closed its last store a decade ago, is making a comeback.

The grandson and great-grandson of the company's founder say they will start selling the Anderson-Little men's Classic Blue Blazer online only for $139 beginning in August.

President Scott Anderson, the great-grandson of founder Morris Anderson, says the company will restart by selling only the blazer, but may expand its offerings if there is customer demand.

Anderson-Little started with a single store in Fall River in 1936. Under the ownership of F.W. Woolworth Co, the chain grew to more than 100 stores along the East Coast. It was sold to Gentlemen's Wearhouse in 1992, which closed the last Anderson-Little in 1998. (AP)

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

Mass. unemployment rises to 5.2 percent in June

The Massachusetts unemployment rate in June rose above 5 percent for the first time in nearly four years, a sign that national economic downturn is weighing on the state.

The jobless rate has jumped more than a point over the past two months, rising to 5.2 percent from 4.9 percent in May and 4.1 percent in April, the state Department of Workforce Development reported. It's the highest unemployment rate since July 2004.

The state jobless rate remains below the nation's, which hit 5.5 percent in June. The state also continues to add payroll jobs as they are cut nationally. The unemployment rate can rise even if the economy is creating jobs, if jobs are not created fast enough to keep up with growth of the labor force.

In June, Massachusetts employers added 2,900 jobs in June, following job gains of 1,900 in May. Nationally, employers have cut jobs in each of the past six months. Job gains were concentrated in the state's leisure and hospitality sector, which includes hotels and restaurants. The sector added 2,500 jobs in June. Construction, manufacturing and education and health services also added jobs.

Two key sectors, financial services and information, which includes software, experienced modest job losses. Employment in professional and business services, another important sector, was flat.
(By Robert Gavin, Globe Staff)

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

July 16, 2008

Reebok unveils Vince Young football cleats

Reebok International Ltd., the authentic outfitter of the National Football League, announced the launch of the VY Electrify football cleat and trainer - shoes named for Tennessee Titans quarterback Vince Young.

The VY Electrify line is available nationwide at stores operated by Dick's Sporting Goods Inc., a Pittsburgh-based retailer, Reebok said.

(The Globe file photo above shows Young, left, getting wrapped up by the Patriots Rodney Harrison during a 2006 game.)

The VY Electrify line consists of three styles of football cleats as well as the VY Preseason Trainer, Reebok said, and to support the line, Reebok and Dick's Sporting Goods are teaming up on a national marketing campaign that incorporates retail, direct mail, and a TV commercial described as a "retrospective focusing on Young's football career from Pop Warner through the pro ranks," Reebok said.

A statement from Young was included in Reebok's press release.

In the statement, Young said: "I'm happy to be working with Reebok and Dick's Sporting Goods to launch my new cleat. I know it takes a lot of faith in an athlete for a company to create a signature product, and I will do my best to make Reebok and Dick's Sporting Goods proud. As I say in the commercial, 'I play in the greatest football league in the world. Experience, ability, and intuition got me here and I'm better equipped now than ever.' This cleat is awesome, and I can't wait to wear it when it counts - in September."

In a statement of his own, Jim Gabel, president of Reebok North America, added, "We believe this cleat will help electrify our brand, our consumers, and most importantly, Vince's game as the 2008 NFL season begins."
(By Chris Reidy, Globe staff)

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

Nurses union expresses outrage at Senate action

A nurses union expressed outrage today at the Massachusetts Senate Ways and Means Committee, which released a version of a bill that according to the union, will allow the state’s hospitals to "continue the dangerous and deadly status quo" in staffing their hospitals.

But according to the Massachusetts Hospital Association, the proposed Senate version of the bill represents a "credible compromise."

In a press release, the nurses union, the Massachusetts Nurses Association, said that the Senate bill removes key provisions achieved through negotiations with legislators and healthcare stakeholders that were contained in a version of the bill that passed the Massachusetts House in May.

According to the nurses' union, the House version would call upon state government to create industry-wide staffing standards and patient limits to assure safe patient care in Massachusetts hospitals, while the new Senate version proposes to keep hospital administrators in charge of setting their own staffing standards.

The Massachusetts Hospital Association, or MHA, a not-for-profit group made up of hospitals and health systems, countered with its own take on the action by the Senate Ways and Means Committee.

Association president and chief executive Lynn Nicholas said in a statement: "While MHA is confident that the current hospital staffing is appropriate, and while we have been advocating for a different approach to hospital oversight, the Senate’s proposal is grounded in science, focuses on the need of patients, and recognizes the important contributions of the entire care-giving team. As such, it is a credible compromise that we hope will put this contentious issue behind us and allow us to focus collaboratively on sustaining coverage reform, ensuring high-quality care, and increasing cost effectiveness in delivering care."
(By Chris Reidy, Globe staff)

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

Convention center may look for new food service

The Massachusetts Convention Center Authority said that it has notified Aramark Corp. that it is looking for someone else to provide food and beverage services at the Boston Convention & Exhibition Center and the John B. Hynes Veteans Memorial Convention Center.

While Aramark has held the $27 million concessions contract since 1997, the authority "consistently has been concerned with the quality and level of service provided" since early 2005, the authority's executive director, James E. Rooney wrote in the letter to Aramark, a concessions company headquartered in Philadelphia.

Additionally, Rooney told the Globe that Amarak has not effectively managed relations with its union, which picketed both convention centers for three days last month to protest several of its contract-negotiation members being fired last year.

Aramark's contract with Unite Here Local 26, which represents more than 300 food and beverage workers, expired in October.

Rooney plans to recommend a course of action to the convention center authority's board in September for changes that would be implemented in January.

Aramark and union spokespeople could not be immediately reached for comment

(The photo above was taken from the convention center authority's website. According to the caption, it shows the interior of the Boston Convention & Exhibition Center during a recent auto show.)
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 1:01 PM | Comments (0)

Parexel International promotes Goldberg

Parexel International Corp., the Waltham pharmaceutical services company, said today that it promoted Mark A. Goldberg to chief operating officer.

Goldberg, who joined Parexel in 1997, most recently worked as the president of clinical research services and perceptive informatics.

"Dr. Goldberg has been an asset to Parexel's executive management team for more than 11 years," said Josef von Rickenbach, chairman and chief executive, in a statement. "His appointment as chief operating officer is in recognition of his strong leadership skills and increasing responsibilities, especially as we have expanded our clinical development capabilities and global footprint."

The company recently expanded into the Asia-Pacific region, he said. Parexel focuses on a contract research and development services, communications, and consulting services for the drug development industry.

Shares of Parexel rose 55 cents, or 2.1 percent, to $26.33 in morning trading on the Nasdaq Stock Market. (AP)

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

Del Checcolo named to Raytheon IDS post

Waltham defense contractor Raytheon Co. said today that its Integrated Defense Systems unit has named Michael Del Checcolo as vice president of engineering.

Del Checcolo's responsibilities include leading all engineering activities within the Integrated Defense Systems, or IDS, unit, including the development and management of technology, execution of advanced programs, coordination of strategic architecture initiatives, and continuous improvement of processes and tools, Raytheon said in a press release.

Del Checcolo's most recent assignment was vice president of the IDS Engineering Advanced Technology Directorate, and he holds a master's in electrical engineering from the University of Massachusetts-Amherst and a bachelor's from Northeastern University, where he began his career with Raytheon in 1989 as a "co-op" student, Raytheon said in its release.
(By Chris Reidy, Globe staff)

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

Local energy prices rise in the Boston area

June energy prices in the Boston area rose 33.5 percent from the level reported in June 2007, the highest recorded year-over-year increase since the aftermath of Hurricane Katrina in October 2005, the Bureau of Labor Statistics reported today.

June energy prices in the Boston area were 6.9 percent higher than prices in May 2008, said the bureau, which is part of the US Department of Labor.

Boston area gasoline prices continued to rise in June, up 32 cents over May to $4.074 a gallon, the highest price on record, according to the bureau's metrics.

The bureau said: "Utility (piped) gas service increased 10.3 percent since May, and electricity prices rose 1.1 percent. Over 12 months, utility (piped) gas posted a 36.9 percent increase, the highest annual increase since October 2005."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:52 AM | Comments (0)

Comcast gets cable TV renewals

Comcast Corp. said that Barnstable and Medway separately approved 10-year license renewals this week that will enable Comcast to continue offering its cable TV service in those communities.

According to Comcast, the TV service that it delivers over its fiber-optic network offers customers more viewing choices and more control over their home entertainment options than rival services.

Headquartered in Philadelphia, Comcast provides cable, entertainment, and communications products and services.

(The image above was taken from Comcast's website, and it notes that one of many offerings available to Comcast subscribers is a concert from Miley Cyrus, who is set to perform both in the demanding role of herself and as her TV show alter ego, Hannah Montana. The concert will be available to customers with access to Starz HD.)
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:25 AM | Comments (0)

ULocate reports brisk activity at iPhone App store

Boston's uLocate Communications Inc. today announced that its location-based application called "Where" has been popular in the early days of the the new iPhone App Store.

Since the launch of Apple Inc.'s new App Store on Friday, Where has received more than 125,000 downloads, according to uLocate Communications.

"We're thrilled to see the immense numbers of downloads and popularity of Where over the weekend," Dan Gilmartin, uLocate Communication's vice president of marketing, said in a statement, "IPhone and iPod users are quickly connecting with the world around them through Where's library of location-enabled widgets, and we look forward to continuing the momentum."

With Where, users can do such things as locate Starbucks stores near their locations, as shown in the image above, which was supplied by uLocate Communications.
(By Chris Reidy, Globe staff)

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

US firms eye green supply-chain initiatives

There is a growing level of commitment among both small and midsize US firms toward the adoption of applications that would support more environmentally friendly supply-chain initiatives, IDC said in a report today.

IDC is a Framingham firm that provides IT market intelligence.

"While the social responsibility for establishing green initiatives is now generally regarded as the norm for European companies, US firms have been slow to embrace the technologies that would support this effort,"Judy Hodges, manager of IDC's Small and Medium Business Markets: Enterprise Applications research service, said in a statement. "However, in our most recent IDC AppStats Survey,we find that small and midsize manufacturers, wholesalers, and distributors in the United States are on the path toward leveraging innovative technologies to support a green supply chain."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:27 AM | Comments (0)

July 15, 2008

Au Bon Pain to open 100 restaurants in India

Au Bon Pain will open 100 locations in India during the next two years, the Boston company said today.

CEO Sue Morelli said the company is ‘‘in the throes’’ of consumer research to determine how the menu might be tweaked to better fit with Indian culture.

‘‘Our assumption is that obviously vegetarianism is a huge part of that culture, so we would dial that up,’’ she said.

The company said it signed a franchise agreement with Spencer’s Retail Ltd., the retail division of India’s industrial conglomerate RPG Enterprises, to develop the stores. Financial terms were not disclosed.

Morelli said the first stores will be in the southern part of the country and could open as soon as the first quarter of 2009.

The growth comes after a private equity firm invested more than $100 million to expand the chain and open new franchise locations overseas. In January, the firm, LNK Partners, said it would acquire a majority stake in the company. That deal closed in March.

Privately held Au Bon Pain operates more than 200 locations in the United States and abroad.
(AP)

Posted by globebusiness at 4:06 PM | Comments (0)

State Street profit rises by nearly half

State Street Corp., the big Boston firm that provides financial services to institutional investors, said today that its second-quarter profit rose by nearly half as the company grew both its fee-based and interest revenue streams.

On the New York Stock Exchange, company shares were up $5.73, or just over 10 percent, to $61.43 in mid-afternoon trading.

For the three months ended June 30, the company earned $548 million, or $1.35 per share, compared with $366 million during the same period a year earlier.

The most recent quarter included $22 million of after-tax costs related to State Street's acquisition of Investors Financial Services Corp. Excluding those expenses, the company would have earned $1.40 per share.

Analysts surveyed by Thomson Financial had expected the company to earn $1.36 per share. Those forecasts typically exclude one-time costs.

Revenue totaled $2.67 billion during the quarter, up from $1.92 billion a year earlier. Analysts forecast sales of $2.6 billion.

State Street said revenue from fees jumped to $2.01 billion from $1.54 billion. Servicing fees, which account for about half of all fee revenue, rose 28 percent.

Revenue from interest increased to $657 million from $385 million.

Ronald E. Logue, State Street's chairman and chief executive (pictured at right), said in a statement: “Our strong performance in the second quarter following outstanding performance in the first quarter demonstrates our core business strength and our ability to sustain strong momentum globally. Additionally, the performance of the acquired Investors Financial business continues to meet or exceed the financial targets we established with more than 90 percent of the customer revenue now retained. (AP)

Posted by globebusiness at 3:05 PM | Comments (0)

EnerNOC enters energy contract with Rhode Island

EnerNOC Inc., a Boston company in the energy-management business, said today that it has entered into a five-year contract with the state of Rhode Island.

The contract will let EnerNOC enable and manage energy demand response capacity from Rhode Island city, town, and government-related buildings, the company said.

The contract has the potential to create a revenue stream for the state, EnerNOC added.

Describing some of the details of the contract, EnerNOC said: "Individual government buildings can enroll in EnerNOC’s technology-enabled demand response network. Each site will be paid for agreeing to reduce nonessential electricity consumption during periods of peak demand. In addition, each participating site will gain basic access to EnerNOC’s PowerTrak energy management platform, which enables users to view and analyze their energy consumption data in near real time and measure efficiency gains."

EnerNOC uses technology to automate the so-called demand response process for electricity utilities by signing up customers such as 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 entities that have signed onto the program as a way to lower the likelihood of brownouts and outages.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:02 PM | Comments (0)

Photo gallery is proposed for Downtown Crossing

Mayor Thomas M. Menino announced a project today that proposes to turn a big construction site in Downtown Crossing into a giant outdoor photo gallery.

By the fall, Menino envisions a public art project, called "Have We Met Yet?", that will be made up of hundreds of "street portraits" of people who visit Downtown Crossing; the photo installation will "wrap" the construction site of One Franklin, the landmark site of the former Filene's department store, Menino's office said.

Downtown Crossing is undergoing big changes, and some fear it might not recapture its earlier glory as a key retail destination in the city.

(A Globe file photo shows the Filene's Christmas tree, where hundreds annually gathered to celebrate the season.)

A few years ago, Filene's parent company, was purchased by the parent company of Macy's, and the Filene's Downtown Crossing store was closed.

Seeing a bright future for Downtown Crossing, developers John B. Hynes III of Boston and Vornado Realty Trust of New York have proposed a $625 million redevelopment project that includes hotel, residential, retail, and office space on the Filene's site, and last September, Filene's Basement, a beloved local retail icon, closed its Downtown Crossing location to accommodate construction.

Once sister operations, Filene's and Filene's Basement became parts of separate companies many years ago.

According to Menino's office, more than $4.4 billion is being invested into Downtown Crossing to improve and increase its physical assets and to re-brand it as “Boston’s Meeting Place.”

In a statement today, Menino said of the "Have We Met Yet" project: “Our goal is for the people of this community to feel connected to each other, to feel connected to the neighborhood, and to be excited about the upcoming changes. Featuring community members to be the storytellers through a public art project is an innovative way to translate the idea of ‘Boston’s Meeting Place’ into the physical neighborhood.”

Menino's office said in a press release: "During the next two days, pedestrians will have the opportunity to pose for 'street-portraits' that will eventually be used to make the photo-installation piece. The event will be the first in a series that will activate the pedestrian area as 'Boston’s Meeting Place,' illustrating that the Downtown Crossing neighborhood brings together people from all parts of Boston to this central location every day."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:13 PM | Comments (0)

Office market has slight rise in vacancy rate

Vacancy rates in Greater Boston’s office market increased slightly by 0.4 percent to 13.6 percent during the second quarter, and average asking lease rates for office space had a corresponding decrease, dipping 58 cents to $39.54 per square foot.

Those were key findings in a second-quarter report titled "officeSTATus - Summer 2008" from Richards Barry Joyce & Partners LLC, a Boston real estate services firm.

During the quarter, more than 800,000 square feet of office space was added to the market, and construction activity was at a four-year high, with 2.1 million square feet under development, Richards Barry Joyce said in the report.

“Greater Boston’s office market is very stable and we see that continuing, even if there is a broader economic slowdown,” Brendan Carroll, the firm's vice president of research, said in a statement. “The local economy isn’t in the center of the economic issues as was the case during the commercial loan issues in the late 1990s or in the tech bust of 2001. Additionally, the construction pipeline of 2.1 million square feet is much more manageable than the 9.1 million square foot pipeline at the end of 200.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:46 AM | Comments (0)

ThingMagic closes on $9.5 million in funding

ThingMagic Inc., a Cambridge developer of radio-frequency identification, or RFID, technology, said it has secured an additional $9.5 million in funding.

The funding is from existing investors, ThingMagic said. Existing investors with local ties included Tudor Ventures and .406 Ventures, both with offices in Boston, and Morningside Technology Ventures, which has an office in Newton.

In a statement, Larry Begley, cofounder and managing director of .406 Ventures, said: “ThingMagic has witnessed substantial demand across a wide range of industries and applications for its embedded RFID module product line. This, coupled with their leadership position in RFID supply chain applications, underscores the company’s market opportunity and makes ThingMagic a compelling investment.”
(By Chris Reidy, Globe staff)

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

Saladworks looks to Greater Boston to expand

Saladworks, a chain of fresh tossed-salad franchised restaurants, said it has identified Greater Boston as ideal territory for expansion.

The Pennsylvania chain, which has 96 franchise locations, said it has signed an agreement with a multi-unit developer that is exploring opening Saladworks restaurants in Cambridge and in Boston's Back Bay and Financial District.

“The health-conscious, highly educated people of Boston have indicated that they want healthier food choices, which makes the city a perfect fit for Saladworks,” John Scardapane, chairman and chief executive of the company, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:42 AM | Comments (0)

Evergreen Solar gets $1.2b contract, its largest ever

Marlborough solar-panel maker Evergreen Solar Inc. today said it has signed a sales contract with Germany's IBC Solar AG worth $1.2 billion - the biggest deal in the company's history.

Evergreen will make the solar panels at a recently opened plant in Central Massachusetts and at another factory expected to open in 2010. The deal runs through 2013.

(The photo at right is taken from the company's website. It shows a school in Germany that installed Evergreen solar panels on its roof, according to the photo's caption information.)

Evergreen said the contract with German-based IBC brings its backlog to almost $3 billion, spread among five customers.

"This contract represents the single largest contract in the history of our company and is one of the largest contracts ever between a panel manufacturer and a distributor," said Richard M. Feldt, Evergreen Solar's chairman, president, and chief executive. (AP)

Posted by globebusiness at 8:43 AM | Comments (0)

BMW taps local laser firm IPG

Oxford laser maker IPG Photonics Corp. said today that its German subsidiary has received a "major order" for its fiber laser systems from the BMW Group, a German automotive company.

The high power fiber lasers will be used in the new production line at BMW for the welding of automotive doors, said IPG, which added that the contract represents the first large-scale production use of fiber laser systems for BMW.

The lasers, which would be manufactured at IPG's facility in Burbach, Germany, are scheduled to be delivered in the fourth quarter, IPG said.

"We are seeing particular interest in our high power fiber lasers in automotive applications because of their proven low maintenance and smaller footprint on the factory floor," IPG chief executive Valentin Gapontsev said in a statement.
(By Chris Reidy, Globe staff)

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

Dyax enters license negotiations with Dompe

Dyax Corp., a Cambridge biotechnology company, said today it is negotiating with an Italian pharmaceutical company over the European licensing of one of its drug candidates.

As a condition for the exclusive negotiation rights, the Italian company, Dompe Farmaceutici S.p.A., has entered into a securities sale agreement with Dyax to purchase just over 2 million shares of Dyax common stock in a private placement at $4.98 per share, Dyax said.

According to Dyax, that represents a 57 percent premium over the July 10 closing price of its shares, and the offering, which represents a total investment of $10 million, is expected to close this week.

The agreement focuses on DX-88 in angiodema indications, said Dyax, which added that DX-88 recently completed its second Phase 3 trial for hereditary angiodema indications.

On its website, Dyax describes hereditary angiodema as an acute inflammatory condition characterized by severe, often painful swellings of the extremities; in some cases, it can be fatal.

"Dompe's premium, unconditional investment in Dyax highlights the value potential of the DX-88 franchise as well as our proprietary phage display discovery technology," Henry E. Blair, chairman, president and chief executive of Dyax, said in a statement."This agreement, if finalized, will be another step towards the completion of our DX-88 global strategy, which also includes a partnership with Cubist Pharmaceuticals for surgical indications, and our own commercial infrastructure for hereditary angioedema within the US."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:56 AM | Comments (0)

Raytheon nabs $194.5m in foreign sales for Patriot

Kuwait and South Korea have placed separate orders worth a combined $194.5 million with defense contractor Raytheon Co. for its Patriot air defense and missile system, Waltham-based Raytheon said today.

The two deals follow recent orders during the first half of the year from both the Taipei and Seoul governments totaling $320 million. Raytheon anticipates a "significant resurgence" in the near future of its Patriot programs, both domestically and internationally, Sanjay Kapoor, vice president of Raytheon's Patriot program, told the Associated Press in an interview ahead of the ongoing Farnborough International Airshow.

With tensions in the Middle East and Asia, an increasing number of countries have expressed interest in the Patriot program, Kapoor said.

The Patriot is a medium- to long-range missile used to counter threats, including aircraft, tactical ballistic missiles and cruise missiles. Its radar tracks airborne objects and then displays them as symbols on a screen. Its operator than has seconds to decide whether to override the machine, or let it fire.

The system, developed by Raytheon's Integrated Defense System, initially ran into several battle management problems during the first Gulf War and during the early stages of current operations in Iraq, according to John Pike, director of Globalsecurity.com, a military information Web site.

The Patriot was blamed for the deaths of three coalition aviators who were killed in 2004, including two crew members of a British Royal Air Force Tornado fighter jet and the pilot of American F-16 fighter jet, built by Bethesda, Md.-based Lockheed Martin Corp.

Victoria Samson, a defense research analyst for the Center for Defense Information and a critic of the Patriot program, said it's worrisome that foreign governments are following US footsteps in buying an air defense and missile system that has proven to have technical limitations that prohibit it from accurately discerning objects in "crowded air spaces."

Raytheon continues to improve its technology and works with the Army to assess new needs, said Guy Shields, a Raytheon spokesman. The Patriot is the cornerstone of the Army's air defense and missile system.

Even today, it's unclear what went wrong in 2004 leading to the misguided missile hits, Pike said. But the fact that customers still purchase the system is a sign Raytheon has improved the Patriot's capability, he said.

"People need to trust their weapons," said Pike. They "want to buy something that is combat proven."

Aside from the latest deal, Raytheon said it has been "actively working" with a number of countries including Turkey and the United Arab Emirates on future sales of the Patriot program.

To date, Raytheon has supplied 10 foreign governments with its Patriot program since 1984, including its latest customer, South Korea. The countries that have purchased the program include Taiwan, Israel, Japan, Saudi Arabia and Greece.

Kuwait's contract, authorized by the U.S. government, is worth $156 million and will provide an upgraded radar system to better discriminate against potential targets.

The $38.5 million contract with South Korea was awarded to a joint venture between Raytheon and German missile company LFK, a member of the multinational MBDA Group. Under the deal, South Korea is buying a piece of Germany's Patriot program. Raytheon will then upgrade the 64 Patriot missiles to provide enhanced precision targeting with hit-to-kill capability.

The German government agreed to sell a part of its program after determining it had an excess of Patriot missiles based on their current and future needs. The deal was approved by the U.S. government.

Shares of Raytheon fell 37 cents to close at $56.67 yesterday on the New York Stock Exchange. The stock has traded between $52.83 and $67.49 in the past year. (AP)

Posted by globebusiness at 7:32 AM | Comments (0)

Citizens, alliance support Boston's at-risk youth

Citizens Bank and the Black Ministerial Alliance of Greater Boston said they are teaming up again to bring a summer enrichment program to Boston neighborhoods.

The program, funded by a $100,000 grant from the Citizens Bank Foundation, focuses on employment, engagement, and education, said the two groups in a press release, adding that the program was created in 2007 in response to Mayor Thomas M. Menino’s appeal to the community to discourage the city’s youth from violence.

(The photo at right was taken from the website of the Black Ministerial Alliance.)

Through the summer enrichment series, 18 at-risk youth have summer jobs at local faith-based organizations, Citizens Bank and the Black Ministerial Alliance said.

The series also includes nine "Teen Cafes," which offer a safe haven for young people on Thursday and Friday nights, Citizens and the alliance said.

"At the cafes, youth learn violence prevention training while engaging in fun activities, including poetry slams, cook-offs, movie nights, and talent shows," Citizens and the alliance said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:08 AM | Comments (0)

July 14, 2008

Boloco to close Davis Square location

Boloco, a local taqueria chain known for its overstuffed burritos, will close its Davis Square location tonight.

The Boston-based company struggled to attract pedestrians to the Somerville store, which is a 10-minute walk from the nearest T stop. In addition, Boloco had a difficult time competing with the half dozen other burrito eateries scattered around Davis Square and Porter Square.

"It's the lowest volume restaurant we opened in a dozen years," John S. Pepper, the chief executive officer and co-founder said in a phone interview today. "There's only so much you can do before you throw in the towel."

The restaurant, located on 187 Elm Street, serves about 200 customers a day, while the other 11 Boston locations serve between 500 to 1,000 customers a day. In the eighteen months that the Davis Square store has been opened, it generated less than $500,000 in sales.

"We thought if you build it they would come," he said. "But the customers never came."

Pepper said the bad location is mostly to blame. The Somerville store, which is situated midway between the Davis Square and Porter Square MBTA stops, was hard to reach for riders who took the train. Boloco faded in the background as better-located burrito restaurants like Anna's Taqueria, Chipotle, Qdoba, and Boca Grande drew large crowds.

The Davis Square location did became a favorite for parents in the neighborhood, Pepper said. It was the only Boloco with a play area. Somerville groups for mothers and other organizations came in weekly with their children. He notified these patrons early this morning on a blog and via email -- when the news was final.

"We've met some wonderful people at Davis," Pepper wrote on an online message board today at 4:42 a.m. under the title "O, woe! No mo Boloco after tonight."

This is the first time the chain has closed one of its locations, and Pepper stressed this is the only store that is closing. Boloco, which was called The Wrap when it opened in 1997, continues with its expansion plans. It opened a new restaurant in Burlington, Vermont on Friday, and plans to build another nine locations in the next year, including five in the Boston area.

The twelve employees that work at the Davis Square store will be moved to another location in Boston. Boloco is having a farewell party tonight from 6 to 8 p.m. Kids will eat for free and burritos and smoothies will only be $3 for adults.
(By Angel Jennings, Globe staff)

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

Liberty Mutual to open Beijing branch

Liberty Mutual Group won approval from the China Insurance Regulatory Commission to open a Beijing branch of its subsidiary Liberty Insurance Company Limited (LICL), the company announced today.

Liberty Mutual Group Chairman, President and CEO Edmund F. Kelly attributed the commission's approval to the support of the Chongqing mayor and city government. The Boston-based insurance group has “significantly increased” its presence in Asia over the past four years, Kelly said in a release.

Liberty Mutual opened its first office in China in 1996 in Shanghai. In December 2003, the company became the first foreign property and casualty insurer in western China after it received permission for an office in Chongqing. In September 2007, the Chongqing office got approval to convert into a wholly-owned subsidiary, which is now LICL, making it the only Fortune 500 company subsidiary headquartered in Chongqing, the company said. Liberty Mutual Group employs more than 41,000 people in 900 offices worldwide.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 3:44 PM | Comments (0)

Amtrak renames, upgrades Regional service

Amtrak’s busiest train has a new name. The Regional service on the Northeast Corridor has been rebranded as the Northeast Regional.

The service is a slightly slower and cheaper alternative to Amtrak’s fastest train, the Acela Express. Both trains connect Boston, New York, and Washington. The Northeast Regional extends farther south, to Newport News, Va.

Along with the new name, the Northeast Regional features refurbished cafe cars, a new menu, and improved business-class seats and interiors.

The Regional service carried 6.8 million passengers last year, and Amtrak expects the rebranding, the upgrades, and a marketing campaign to attract an additional 136,000 passengers.
(AP)

Posted by globebusiness at 3:13 PM | Comments (0)

Mass. gas prices drop for first time in months

Gas prices in Massachusetts have dropped for the first time in nearly four months.

A statewide survey by AAA of Southern New England today found an average price of $4.06 a gallon for self-serve, regular unleaded gasoline, down 2 cents from a week ago.

The last time prices fell in Massachusetts was March 24.

Prices in the Bay State are 4 cents below the national average.

A year ago, the average price in Massachusetts was $2.92.
(AP)

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

3Com to get $70m in patent settlement

Marlborough-based 3Com Corp., a provider of networking solutions, today said it will receive $70 million from Realtek Semiconductor Corp. to settle a patent dispute.

In April, a court in California awarded 3Com $45.3 million for past infringement by Realtek.

Since then, 3Com and Realtek have reached an agreement, whereby the lawsuit and decision will be dismissed and Realtek will now be able to use the patents and related technology under a licensing agreement.
(AP)

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

July 11, 2008

Staples resets release date for quarterly results

Staples Inc., the office-supplies retailer with headquarters in Framingham, announced today that it is rescheduling the release of some financial results due to the timing of its acquisition of Corporate Express NV.

Staples, which last month disclosed an agreement to buy Corporate Express of the Netherlands for $2.6 billion, said it will report results for the fiscal quarter ending Aug. 2 on Sept. 3, instead of Aug. 19 as previously scheduled.

Staples added that its second quarter results will include the results of Corporate Express for July.

For previous coverage of Staples' pursuit of Corporate Express, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:27 PM | Comments (0)

Hub parking prices are near the top, survey says

The stock market may be tanking, and oil prices may be skyrocketing, but there is one constant in an uncertain world: With a median rate of $460 a month, Boston is one of the priciest places to park on the planet.

That's one finding of the eighth annual parking rate survey conducted in June and released this week by Colliers International, a global real estate services company.

In the United States, New York City had the only pricier markets than Boston, the survey concluded. Parking in midtown New York City was $585 a month. For survey purposes, downtown New York City was deemed a separate market, and the parking cost there was $462 a month, a mere $2 more than parking privileges in the Hub, which technically ranked as the third costliest parking market in the United States.

The median monthly parking rate in the United States was $153.79, and Bakersfield, Calif., clocked in with one of the best deals at $40, Colliers said.

Although the US economy has slowed, office occupancy rates remain near cyclical peaks in many US cities, and comparatively high office occupancy rates and a limited supply of parking in many US markets have combined to help push monthly parking rates higher, said Colliers, which added that parking costs nationally rose for the fifth straight year.

Colliers said in a press release: "With 53 US markets and 11 Canadian markets under study, Colliers’ survey shows that over the past 12 months, the cost of parking has increased by 2.8 percent (monthly rates) in the United States, in response to ongoing demand and only limited new supply. Daily rates also moved higher, increasing 4.3 percent over the past year."

One piece of good news for Boston: This year's montly median was the same as last year's, Colliers said.

As for the global market, Colliers found it can cost nearly $1,167 a month to park in certain parts of London and about $775 a month to park in Sydney, Australia.

For comparison purposes in the United States, the median monthly parking rate was $310 for Chicago, $90 for Dallas, and $350 for San Francisco, Colliers said.
(By Chris Reidy, Globe staff)

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

Labor board issues complaint against Aramark

The National Labor Relations Board has accused concessions giant Aramark Corp. of intimidating and firing employees involved in union activities at Boston's two convention centers.

The Boston Herald reports that the labor board made the charges in an unfair labor practice complaint against Aramark.

Aramark faces a hearing this October before the board's administrative judges.

The Philadelphia-based company is locked in a contract dispute with Unite Here Local 26. The complaint, issued last week, claims Aramark has been "interfering with, restraining and coercing" its employees at the John B. Hynes Veterans Convention Center and the Boston Convention and Exhibition Center (right).

It claims union members have been harassed by Aramark managers, and that two employees on the union's negotiating committee were fired.

An Aramark spokesman said the company is reviewing the complaint. (AP)

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

Magnolia teams up with Kopin on NASA project

Magnolia Optical Technologies of Woburn announced that it is collaborating with Kopin Corp. of Taunton in developing indium nitride-based, or InN-based, quantum dot solar cells for NASA and defense applications.

(The image above was taken from NASA's website, and it is described as an infrared temperature snapshot of Saturn.)

"The goal of the current program is to develop high performance solar cells that are resistant to extreme conditions while achieving high solar electric power conversion efficiency," Roger Welser, Kopin's director of new business and product development, in a statement. "The advanced solar cell structure incorporating InN-based nanostructures can harness a very large fraction of the solar spectrum while minimizing the effects of high temperatures and high-energy radiation. This technology will enable photovoltaic power systems of future NASA space exploration missions and can be applied to other defense applications."

Earlier this year, Kopin announced that it was awarded a $600,000 contract from NASA to participate in a solar-cell development program for future space exploration missions.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:32 AM | Comments (0)

Tribe won't bargain with union at Foxwoods Casino

A lawyer for the Mashantucket Pequot Tribal Nation says the tribe won't bargain with the labor union representing table game dealers at Foxwoods Resort Casino.

(The above photo, taken from the Foxwoods website, shows Foxwoods' rotunda.)

The tribe, which owns the eastern Connecticut casino, has sent a letter to the United Autoworker Union, refusing the UAW's request to negotiate a contract on behalf of nearly 3,000 dealers.

The National Labor Relations Board last month certified the results of a November election in which dealers voted to unionize.

The tribe's lawyer, Jackson King, says the tribe is a sovereign nation and the NLRB did not have jurisdiction to administer the election.

The tribe has urged workers and the UAW to unionize under tribal labor laws rather than federal labor laws. (AP)

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

Compete unveils Web analytics service

Boston Web analytics company Compete Inc. said it has introduced Compete Pro, a self-service online measurement service that is affordable to a wider range of companies.

According to Compete, sophisticated Web analytics has been something that only top-tier brands can afford to use.

But the company say its new Pro product is designed to be financially feasible for marketers at smaller companies.

With the Pro product, a website manager can see how rivals are using search terms to drive traffic to their sites, or a media planner can determine how seasonality affects their business, Compete said.

The product can also provide its users with daily updates and a full 25 months of history reporting on reach, page view, and visitor engagement for more than 1,000,000 websites, the company said.

“Compete PRO gives marketers a single place to go for premium-grade online metrics, something that until now was available to only a select few,” Stephen DiMarco, Compete's chief marketing officer, said in a statement.

Compete was recently acquired by TNS media intelligence, a global marketing insight and information group with US headquarters in New York City.
(By Chris Reidy, Globe staff)

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

Exact Sciences gets Nasdaq compliance notice

Exact Sciences Corp., a Marlborough company that specializes in cancer screening, announced today that it has been notified by the Nasdaq Stock Market that it is not in compliance with a listing requirement.

The company said it received a Nasdaq notice dated yesterday that it is not in compliance with a rule that requires a listed security to maintain a minimum $50 million market capitalization for continued listing on the Nasdaq Global Market.

The notice has no immediate effect on the company's listing, and its common stock will continue to trade on the Nasdaq Global Market, Exact Sciences said.

In accordance with Nasdaq marketplace rules, Exact Sciences said it will be provided a period of 30 calendar days, or until August 11, to regain compliance with the rule.

Exact Sciences said that it is also looking at other options. If the company cannot meet the requirements for continued listing on the Nasdaq Global Market, it may apply to transfer to the Nasdaq Capital Market, the company said.

Exact Sciences was in the news for another reason earlier this week.

Yesterday it provided a regulatory update on "Version 2" DNA technology for cancer screening.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:48 AM | Comments (0)

Momenta announces filing of FDA application

Momenta Pharmaceuticals Inc., a Cambridge biotechnology company, announced today that the Food and Drug Administration has agreed to review the an abbreviated new drug application, or ANDA, for a generic version of Copaxone.

Copaxone is used to reduce the frequency of relapses in patients with Relapsing-Remitting Multiple Sclerosis, and the ANDA application was submitted by Sandoz Inc., Momenta's development and commercialization partner for this product, Momenta said.

Sandoz is the generics division of Swiss drug giant Novartis AG, and Momenta has been working with Sandoz to make generics of brand-name biologic drugs in Europe.

Advancing the "program for the development of a generic version of Copaxone is one of Momenta's top priorities, and we are pleased that the ANDA has been accepted for review," Craig A. Wheeler, Momenta's president and chief executive, said in a statement.

Momenta cited third-party data that US sales for Copaxone were $1.1 billion last year.

Momenta said it has scheduled a conference call this morning to discuss the submission of this application.

One of Momenta's cofounders is Christoph Westphal, also cofounder of another Cambridge biotech, Alnylam Pharmaceuticals Inc.

Westphal is currently chief executive of Sirtris Pharmaceuticals Inc., another Cambridge biotech. In April, British pharmaceuticals giant GlaxoSmithKline PLC announced plans to buy Sirtris for $720 million.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:19 AM | Comments (0)

July 10, 2008

Airlines ask travelers to push Congress on oil prices

Hardships make for strange bedfellows. In an unusual move, 12 US carriers - AirTran, Alaska, American, Continental, Delta, Hawaiian, JetBlue, Midwest, Northwest, Southwest, United and US Airways - are asking passengers to push Congress to rein in oil speculators.

In an open letter to customers signed by chief executives, the carriers note that 20 years ago, 21 percent of oil contracts were traded by speculators and now, with fuel prices surging, that figure is 66 percent, which adds an estimated $30 to $60 to the cost of each barrel of oil. That translates to increases of 22 percent to 44 percent, based on this morning's price of $137.85.

The letter directs you to a website called StopOilSpeculationNow where you can digitally sign a form e-mail to be sent to your representatives.

Strange and difficult times, these.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 2:27 PM | Comments (0)

Menino details biotech company moves

Boston Mayor Thomas M. Menino said today that several biotech companies are moving to Boston or expanding their operations in the city, helping it inch toward its goal of adding thousands of biotech jobs.

Paratek Pharmaceuticals Inc., a Boston drug development company, plans to move from the Leather District to the South Boston waterfront, relocating 65 workers and adding 50 more over the next couple years.

Cogito Health Inc., a health software company, and its affiliate Dimagi Inc., are moving from Cambridge to an unspecified location in Boston. The companies plan to move 10 jobs to Boston and hire another 10 workers.

Menino also touted the recent decision by Soadco/Klockner to open its United States headquarters in Boston, adding about a dozen jobs. Soadco's move was disclosed last month by Governor Deval Patrick.

The company is also scouting locations in the Boston area for a manufacturing plant that could potentially add another 130 jobs, city officials said.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:31 PM | Comments (0)

Apple's App store will sell uLocate services

Boston's uLocate Communications Inc. today announced its location-based application, Where, will be available from Apple Inc.'s new App store.

According to uLocate Communications, iPhone and iPod Touch users can leverage Where's library of location-enabled widgets to easily discover nearby places and things of interest; these users will also be able to share their location and status with friends via Buddy Beacon, a friend-finding network.

ULocate Communications said in a press release, "Each of Where's widgets delivers content based on the user's current location and provides the ability to show this content on a map, get directions, and easily share the location with friends."

Walt Doyle, chief executive of uLocate Communications, said in a statement, "We look forward to expanding the ways in which iPhone and iPod Touch users connect with the world around them."
(By Chris Reidy, Globe staff)

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

Salem Five debuts customer text-message service

Salem Five announced its latest technology-based offering, Salem Five Account Text Messaging, which enables customers to receive account balance and transaction history for their accounts via text message on their cell phones and personal digital assistants.

With $2.7 billion in assets, Salem Five operates 19 bank branches in such communities as Salem, Beverly, and Boston.

“Part of the Salem Five charter is to advance business through technology,” Joseph M. Gibbons, Salem Five president and chief executive, said in a statement. “With this new free service, Salem Five is making our customers’ banking experience more convenient.”

Salem Five said in a press release: "To take advantage of the Salem Five Account Text Messaging service, customers must be enrolled in Salem Five Online Banking. Through the registration process, customers can elect to receive account balance information (Available and Current), account history (last three transactions posted to the account), or both sets of information. Text messages are sent directly to the device registered by the customer. Customers can opt to receive messages to an e-mail address."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:58 AM | Comments (0)

Tobacco ads target teens in song

The youth smoking prevention campaign "truth," created with input from the Boston ad agency Arnold, has launched a "ReMix" project on its website that features songs with anti-tobacco messages.

"Songs from the current truth advertising campaign will be getting a new twist this summer when nine innovative and well-known DJs and bands put new spins on the songs by re-mixing them in styles from house and hip-hop to electro," the American Legacy Foundation said.

The foundation was created as a result of a 1998 settlement agreement between the tobacco industry and a coalition of many state attorneys general. Using money from that settlement, the foundation hired Arnold to lead a roster of ad agencies to develop creative ideas for the truth smoking prevention campaign, which debuted in 2000.

The latest iteration of that campaign is called the "Sunny Side of truth," and the "Sunny Side" music ReMix phase of that campaign, which launched yesterday, features such DJs and bands as Cobra Starship, Diplo, Kaskade, and Mix Master Mike (shown at right in a photo from his website), the foundation said.

Although playful and upbeat in tone, the songs convey a strong anti-tobacco message, the foundation said. The plan is to make this music available on websites that teens frequent, including websites accessible by cellphone.

Songs can be heard on the truth's website as well as on such sites as MySpace.com and Facebook.com, the foundation said.

Plans call for additional ReMix podcasts to roll out every two weeks through early October, and starting at the end of July, songs will be available for download from iTunes and other digital distribution sites such as Amazon.com, said the foundation, which added that teens will also be able to share ReMixes on their cellphones by using a special widget.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:36 AM | Comments (0)

Follow-up drug studies are becoming more routine

Studies of prescription drugs following their release on the market are becoming increasingly routine in the United States, Europe, and Japan, according to a new analysis by the Tufts Center for the Study of Drug Development.

In many cases, pharmaceutical companies have agreed to do such post-release studies as a condition of being granted regulatory approval to market a particular drug, the Tufts Center said.

Over the last decade, 75 percent of new drugs approved in the United States and the European Union and 50 percent of those approved in Japan had post-marketing study commitments attached to them, the Tufts Center analysis found.

"What used to be the exception is increasingly becoming the rule for new drug approvals," Christopher-Paul Milne, associate director at the center and the study's author, said in a statement. "While post-approval studies increase the cost of marketing new medicines, they may offer a silver lining in that potential safety issues are identified earlier and the increased knowledge of a drug's safety and efficacy allows drug sponsors to serve patient populations better."
(By Chris Reidy, Globe staff)

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

BJ's enjoys strong June sales

BJ's Wholesale Club Inc. said today its June same-store sales jumped 14.5 percent, topping analyst expectations, as sales of both merchandise and gasoline rose sharply.

The Natick-based big box retailer said for the five-week period ended July 5, same-store sales of merchandise rose 8.3 percent, reflecting higher sales of consumable items such as paper products, health and beauty aids, and household cleaners. Gasoline sales contributed 8.2 percentage points to the same-store sales gain.

Analysts polled by Thomson Financial, on average, expected same-store sales to rise 10.9 percent.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

BJ's said total sales rose 18.8 percent to $1.05 billion, from $887 million in the same month last year. The week preceding the July 4 holiday was the strongest of the period, the company said.

Food sales rose about 11 percent, driven by strong sales of perishable items. Sales of general merchandise gained about 4 percent, with air conditioners and consumer packaged goods selling well.

Weaker sales were recorded for cigarettes, electronics, residential furniture, jewelry, and televisions. (AP)

Posted by globebusiness at 9:13 AM | Comments (0)

Hub firm launches with help from pharma giants

Boston start-up Enlight Biosciences said today it will direct up to $39 million to "advance breakthrough technologies that can fundamentally alter drug discovery and development."

According to its press release, the company was conceived by PureTech Ventures, a Boston venture capital firm focused on the life sciences industry, and several major pharmaceutical companies, including Merck & Co. of New Jersey, Pfizer Inc. of New York, and Eli Lilly & Co. of Indiana.

One cofounder of Enlight is Nobel Laureate H. Robert Horvitz, a professor of biology at the Massachusetts Institute of Technology, the company said in its press release.

Enlight's team also includes a radiology professor at Stanford University, a tumor biology professor at Harvard Medical School, and Raju Kucherlapati, a cofounder of Millennium Pharmaceuticals Inc. of Cambridge, the company said.
(By Chris Reidy, Globe staff)

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

Exact Sciences provides screening-test update

Exact Sciences Corp. of Marlborough today provided a regulatory update on its "Version 2" DNA technology for cancer screening.

The company said that it has confirmed with the Food and Drug Administration the clinical performance characteristics and the minimum number of average-risk cancer samples that will be required for validation of its Version 2 stool-based DNA technology for colorectal cancer screening.

The company now say it believes that the clinical study will take about six to nine months to complete.

In a press release, the company added: "Exact estimates that total study and regulatory costs will range from $6.5 to $8.5 million. The company's current cash and short term investments provide for approximately $2 million through the end of 2008 to begin the clinical and technical validation studies."

Jeffrey R. Luber, president and chief executive, added in a statement: "We are very pleased to be moving forward with greater clarity regarding the minimum size and clinical performance requirements of our clinical study. Confirmation from the FDA on these points has been a critical precondition for planning and execution purposes."

In March, Exact Sciences said it was exploring a possible sale of the company.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:56 AM | Comments (0)

GSI Group agrees to buy New York company

GSI Group Inc. today announced that it has agreed to buy Excel Technology Inc. in an all-cash transaction for $32 per share, or about $360 million.

GSI Group, a Bedford company that supplies precision technology to the global medical, electronics, and industrial markets, added that the offer price represents a 30.2 percent premium to the average Excel closing share price over the last 30 trading days.

On the Nasdaq Stock Market yesterday, Excel shares closed at $22.66, down 83 cents.

According to its website, Excel is headquartered in East Setauket, N.Y., and the company and its subsidiaries manufacture and market photonics-based solutions, consisting of laser systems and electro-optical components, primarily for industrial, commercial, and scientific applications.

Sergio Edelstein, president and chief executive of GSI, said in a statement, "GSI and Excel have a set of uniquely complementary products, technologies, and distribution channels, which will enable the combined company to provide customers with a significantly broader set of solutions."

For the 12 months ended December 31, Excel reported revenues of $160.0 million and net income of $17.7 million; for the same period, GSI reported revenues of $317.8 million and net income of $19 million, the companies said.

The boards of directors of both companies have unanimously approved the transaction, and GSI expects that the transaction will close in the 3rd quarter, GSI said in a press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:29 AM | Comments (0)

July 9, 2008

Boston Scientific loses bid for new patent trial

A federal judge in Dallas rejected a request by Boston Scientific Corp. for a new trial in a patent-infringement case that ended with a $501 million judgment against the Natick medical-device maker.

Boston Scientific said it planned to appeal. The case involves drug-treated heart stents.

Dr. Bruce N. Saffran sued the company, claiming that its stents infringed on his 1997 patent covering technology to deliver injury-healing medication.

Heart stents are mesh-wire tubes that prop open coronary arteries after surgery to remove fatty plaque.

In February, a jury deliberated less than two hours before awarding Saffran $432 million. Ward later raised the amount by adding $69 million for interest on royalties dating to 2004, when Boston Scientific introduced the stents in the United States.

Boston Scientific based its motion for a new trial partly on the claim that the judge made prejudicial comments in front of the jury about the company’s lawyers.

Boston Scientific argued that Saffran’s patent differed in design from its Taxus stent. It argued Saffran’s invention was insignificant and that more than 100 companies had declined to pay a license to use it.

Boston Scientific and a unit of Johnson & Johnson dominate the market for newer stents.

Saffran, a radiologist from Princeton, N.J., also sued Johnson & Johnson. That case is pending in the same East Texas district, which attracts many patent claims because of its quick handling of cases and reputation for favoring plaintiffs.
(AP)

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

ISO New England names Chadalavada to new post

ISO New England Inc. announced today the appointment of Vamsi Chadalavada to the post of senior vice president and chief operating officer, effective immediately.

Headquartered in Holyoke, ISO New England is the operator of the region's bulk power system and wholesale electricity markets.

Chadalavada replaces Stephen G. Whitley, who retired from ISO New England after being named president and chief executive of the New York ISO, ISO New England said.

In his role as senior vice president and chief operating officer, Chadalavada will be responsible for the day-to-day management of ISO New England system operations, system planning, wholesale markets development and operations, and information services; previously, he was senior vice president of market and system solutions at ISO New England, ISO New England said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:55 PM | Comments (0)

Boston tech pioneer dies

Alex d'Arbeloff, who cofounded the electronics company Teradyne Inc. above a Boston sandwich shop in 1960 and turned it into a $1 billion business, died last night. Mr. d'Arbeloff, who was 80 and lived in Brookline, had also served as chairman of the MIT Corporation for several years.

"All of us privileged to know Alex are deeply saddened by his loss," Susan Hockfield, MIT's president, said in a statement issued by the college. "MIT has lost an extraordinary friend who paired his passionate devotion to the Institute with a brilliantly dispassionate, clear-eyed view of how it could grow even stronger. ... We will sorely miss his warmth, charm, humor and remarkable gift for framing complex problems and inspiring visionary solutions."

When Mr. d'Arbeloff and Nick DeWolf, who had been classmates at the Massachusetts Institute of Technology, founded Teradyne, they eschewed the Route 128 corridor that was attracting many businesses, choosing instead space above Joe & Nemo's sandwich shop on Summer Street. The reasons were monetary and practical. "We both lived in the city and wanted to be able to walk to work," d'Arbeloff told the Globe in 1964. They also found the rents in downtown Boston advantageous.

Teradyne, which makes test instruments for the semiconductor industry and interconnection systems, recently relocated to Reading. He stepped down as its chairman in 1996.

"Knowing how the equipment is used and how to sell it is what fascinates me," he told the Globe in 1979. "It involves electronics. It involves human relations. It's very exciting."

d'Arbeloff was born in Paris, the son of Russian immigrants who had escaped that country around the time of the revolution. With his family, he moved to South America, to New York, and to Los Angeles. He graduated in 1949 with a bachelor's degree in management from MIT, where he and DeWolf lined up alphabetically during an ROTC class, according to the college. d'Arbeloff became a member of the MIT Corporation in 1989 and was named chairman in 1997. He stepped down in 2003 to serve as honorary chairman.

Mr. d'Arbeloff leaves his wife, Brit; two daughters, Katherine and Alexandra; two sons, Eric and Matthew; and six grandchildren. Funeral arrangements were not immediately available.

(By Bryan Marquard, Globe Staff)

Posted by globebusiness at 3:34 PM | Comments (0)

OneUnited launches financial literacy summer school

OneUnited Bank announced today the launch of the OneUnited Bank Summer School, a program that offers free financial literacy workshops that will be held in Boston, Miami, and Los Angeles.

According to the Boston-based bank, its July and August summer school provides a friendly environment to learn basic banking skills; anyone can enroll by stopping by any OneUnited Bank branch, calling the bank's toll free phone number, 877-One-United, or registering online at www.oneunited.com.

The mission of OneUnited Bank, which bills itself as the largest black-owned bank in the country, is to "educate urban consumers about banking and financial literacy," the bank said.

"During these difficult economic times, it is critical that urban communities learn and remember basic banking skills," OneUnited Bank chief executive and chairman Kevin Cohee (right) said in a statement. "Given the increase in foreclosures and gas prices, our community will need to do more with fewer resources. We will need to plan and manage our credit to survive until the housing market improves. We will also need to be ready to take advantage of opportunities to buy homes at good prices when they arise. For this reason, we think financial literacy is more important than ever."
(By Chris Reidy, Globe staff)

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

WPI launches home buyer program

Worcester Polytechnic Institute said it has launched a program to help eligible employees buy a first home in Worcester.

Called the WPI Home Ownership Program, the mortgage program is a partnership with a commonwealth of Massachusetts initiative called MassWorks, and it is designed to "increase a home buyer’s ability to buy a home in Worcester by combining a $2,500 contribution from WPI with a match of $2,500 from the commonwealth of Massachusetts," WPI said in a press release.

Those funds will be combined with a fixed-rate first and second mortgage from a bank, thereby lowering monthly payments and increasing the home buyer’s purchasing power, said WPI, adding that eligibility requirements include income level and years of service.

WPI said its mortgage program is "part of a larger, city-wide program officially launched today by Worcester City Manager Michael O’Brien’s office."

In its own press release on the "Buy Worcester Now" program, O'Brien's office said: "Buy Worcester Now is a private/public partnership in which buyers who purchase a home in Worcester will receive discounted services, and in some cases, up to 100-percent financing at below-market rates with no down payment. Eleven local financial and lending institutions have pledged more than $60 million in loans" to the program.

The local initiative takes advantage of help from the commonwealth of Massachusetts, which said today that it is teaming up with five Worcester employers, including WPI, to offer an employer-assisted mortgage program, called MassWorks, designed to help first-time homebuyers afford homes near to where they work.

Other participants in the program are the College of the Holy Cross, UMass Memorial Health Care, Clark University, and Assumption College.

The new statewide program features the blending of an employer contribution and a dollar-for-dollar state match with traditional fixed-rate mortgage financing from a bank, the commonwealth said in a press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:21 PM | Comments (0)

Former Sycamore execs charged

The former chief financial officer of Sycamore Networks Inc. and another former employee were charged by federal officials today with fraudulently backdating employee stock options, misleading investors and personally benefiting from the manipulated securities.

Chelmsford optical networking company Sycamore itself was charged by the US Securities and Exchange Commission with securities violations, including making false and misleading statements about expenses related to the the employee-stock options. Please click here to read the SEC's press release.

According to the SEC, Frances M. Jewels, Sycamore's former chief financial officer, and Cheryl E. Kalinen, who served as the company's director of financial operations, agreed to settle the charges without admitting or denying the allegations.

Jewels' attorney, Michael Gardener, said, "She is pleased to have this behind her without any need for litigation."

The company also agreed to settle the case without admitting or denying the claims, the agency said, as did a third former employee, Robin A. Friedman, once Sycamore's director of human resources, whom the SEC alleged helped to mislead Sycamore's auditors.

The three individuals will pay more than $650,000 combined, the SEC said. Sycamore had already restated its results to account for about $250 million in extra options expenses, and blamed its problems on Jewels and others.

The case is part of the SEC's broad investigation of employee stock-options practices at dozens of technology companies. Options are rights to buy shares at set prices and were given out liberally by companies as compensation in the 1990s. But studies have shown that many companies picked a low point in their stocks' trading history and used that as the grant date for the options, benefiting recipients.

The practice can be illegal if it isn't disclosed to investors, and the SEC's complaint describes how Jewels and Kalinen allegedly sought to conceal their actions. They "falsified or caused others to falsify various company documents, including grant approval lists, grant agreements and other records reflecting option grant dates,'' the SEC claimed.

Of the three individuals, Jewels will pay the most, $450,000, and be barred from serving as an officer or director of a public company for five years, the SEC said. It said Sycamore consented to an injunction against several securities law violations as part of a settlement that "takes into account the company's cooperation during the Commission's investigation.''

To read previous coverage about Sycamore, please click here.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 1:05 PM | Comments (0)

Best Doctors lands Pennsylvania account

Best Doctors Inc. said today that it has been chosen by a Pennsylvania consortium to provide its services to more than 20,000 school district employees, retirees, and eligible employee family members.

Best Doctors is headquartered in Boston, and it said it will now provide services to the Allegheny County Schools Health Insurance Consortium, or ACSHIC, which represents school employees, retirees, and their eligible family members for the purpose of acquiring health insurance coverage.

Best Doctors aims to be a medical resource for ensuring that individuals with serious illnesses have the right diagnosis and the right treatment.

Under the agreement with ACSHIC, Best Doctors said it will "help empower" the consortium's members by "providing expert answers to their questions about diagnosis and treatment."

Best Doctors was founded in 1989 by two Harvard Medical School professors, and it said it now serves more than 260 insurers, employers, and health plans, touching 10 million people in 30 countries.
(By Chris Reidy, Globe staff)

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

Acella completes addition to Fall River church

Acella Construction Corp. announced today that it has completed an addition to the Espirito Santo Church in Fall River.

The 500-square-foot addition to the Catholic church is centered on a 45-foot bell tower and a new circular chapel addition with a patio and a pergola, said Acella Construction, which is headquartered in Norwell. The new bell tower is composed of galvanized steel and was designed to be one of the hallmarks of the church exterior, the firm said.

Included in the refurbishing were large round stain glass windows and gilded woodwork that were salvaged from the neighboring Our Lady of Health Church, said Acella Construction, adding that those measures were undertaken as part of a gesture to welcome former parishioners from Our Lady of Health to their new parish.

Acella said it worked on the project with an architectural design team from Annino Inc. of North Attleborough.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:41 AM | Comments (0)

Martin guitar honors Click & Clack

It might make sense to immortalize Tom and Ray Magliozzi - a.k.a. Click & Clack, the Tappet Brothers of the "Car Talk" radio show - with a wrench or heavy duty jumper cables, but C.F. Martin & Co., a 175-year-old Pennsylvania firm that has been making musical instruments since 1833, is honoring the pair with a special edition $6,500 guitar.

(Provided by Martin, the video above this story shows the Magliozzi brothers receiving the special guitar. Be prepared to make a commitment - the video is just over eight minutes long and it features the lads performing a bluegrass paean to mountain dew. Presumably, Click & Clack will be even more animated in their new PBS cartoon TV show, which is scheduled to debut tonight on Channel 2. Click here to read a Globe story about the show. Clack here to read a review of the show.)

Unveiled last month at an industry trade show organized by the trade group NAMM, the special edition guitar is a variation of the "classic dreadnought," the $3,000 workhorse of the Martin line; according to C.F. Martin, the Click-&-Clack version is fashioned from Engelmann spruce, East Indian rosewood, and abalone pearl, among other components.

In recent years, the company has issued more than 100 special edition guitars, honoring such guitar greats as Eric Clapton, Mark Knopfler, and Clarence White, according to the company's website.

So how did Click & Clack manage to make it into a finger-picking pantheon that also includes such six-string virtuosos as Robbie Robertson, Johnny Cash, and Willie Nelson?

"It's a little bit of a stretch," acknowledged Dick Boak, Martin's director of artist and public relations, who added quickly that Click & Clack are "very capable bluegrass musicians."

Maybe so. But it doesn't hurt that C.F. Martin IV, the current head of a family business that had $92 million in sales last year, is an "avid fan of Car Talk" and National Public Radio, Boak said. Another just-issued special edition Martin guitar celebrates "A Prairie Home Companion," the NPR show that features Garrison Keillor and plenty of music.

One idea being tossed about is that donors who contribute $15,000 or more to NPR might also receive one of these special edition guitars, with C.F. Martin providing the guitars to NPR at a discount, Boak said.

As for the Magliozzi brothers, the great men were unavailable for comment, one of their handlers wrote in an e-mail.

The Magliozzi brothers may be out of pocket, but not out of mind, thanks to tonight's scheduled debut of "Click & Clack's As the Wrench Turns" on PBS.

Making an Eric Clapton special-edition guitar is a sure-fire way to bring in extra revenue for C.F. Martin, Boak said.

But what about the Click-&-Clack guitar, which features artwork by "Car Talk" website illustrator Bill Morrison? Is that a potential money-maker too?

When it comes to Click & Clack, Boak said: "It's is not about revenue. It's about fun."
(By Chris Reidy, Globe staff)

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

New firm aims to build green homes

The housing market may be in a slump, but with concerns about the environment rising, a new company is betting that there will still be demand for green homes built from scratch.

Two local real estate companies said they are teaming up to launch Abode, a company in Nashua, N.H., that will focus on building next-generation green homes.

In a press release, Bob Wildes and Jack McBride, the principals of Commons Development Group Inc., also of Nashua, and Sue Hawkes, principal of the Collaborative Cos., said they have joined forces to form Abode. Collaborative Cos. has offices in Boston and Burlington, according to its website.

According to the release, Abode will be a homebuilding company utilizing advanced building systems to deliver custom and semi custom homes that are greener, more energy efficient, structurally stronger, and quicker to deliver than conventionally built homes.

"The company’s hybrid modular system combines factory built sections and components with custom site built finishes to attain a level of efficiency and quality control that is not possible with conventional site built processes," the press release added.

The hybrid construction process, Abode said, is recognized as "green by design" according to the Leadership in Energy and Environmental Design, or LEED, rating system drawn up by the US Green Building Council, a nonprofit group advocating for environmentally friendly construction.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:32 AM | Comments (0)

MIT Enterprise Forum taps Kivel as chairman

The MIT Enterprise Forum Inc. announced today that Richard Kivel has been appointed the new chairman of its global board of directors.

The forum described Kivel as "a serial entrepreneur" who currently serves as chief executive of TheraGenetics, a personalized medicine diagnostics company with offices in Cambridge and London.

The MIT Enterprise Forum is a volunteer-driven organization, operated out of the MIT Alumni Association, and it has been a platform for entrepreneurial networking, inspiration, and education since 1978.

Kivel (left), who has degrees from the Massachusetts Institute of Technology and Boston College, will also hold an ex-officio seat on the MIT Alumni Association board of directors; Kivel succeeds Joe Hadzima, who has served as chairman for the past four years, the forum said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:00 AM | Comments (0)

July 8, 2008

New Downtown Crossing development proposed

A New York developer plans to build a $200 million housing-retail development in Downtown Crossing, a key milestone in the city’s effort to revitalize the central shopping district, Mayor Thomas M. Menino said today.

Midwood Management Corp. said it plans to build 200 luxury apartments, in addition to three floors of retail space at the corner of Bromfield and Washington streets, where it has acquired several buildings.

The development would replace buildings that are currently home to several stores, including Payless ShoeSource and City Sports.

The company, which is expected to file formal plans for the 28-story building with the Boston Redevelopment Authority this week, said it hopes to begin construction in 2010.

"We believe rental housing has a role in downtown Boston's continuing growth," said Paul Davis, a senior vice president of privately owned Midwood Management. "We looked at condos, but we think rental housing is more appropriate for us."

Menino used the news to highlight the stream of development projects underway in Boston. He said that there are $4 billion in projects under way.

"Despite the national economic (slowdown), Boston's economy is strong," Menino said.

Midwood Management, which generally keeps a low profile, owns 100 properties with more than 3.5 million square feet nationwide, but the development would be the firm's first for the Boston area.

Midwood Management normally retains properties that it develops, rather than selling them to other investors, and it plans to do the same with the project proposed for Downtown Crossing.

Davis, the Midwood Management executive, said that the firm hopes to work with several tenants, including City Sports and the Bromfield Pen Shop, to accommodate them in the new building, which is expected to have 60,000 square feet allocated to retail space.

"We will try to accommodate tenants if we can," Davis said. "There will be new tenants and there will be relocation of tenants."
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:19 PM | Comments (0)

Comcast renews its TV license in Millis

Comcast Corp. said today that it has received a 10-year license renewal for its TV service in Millis.

Comcast said that the Millis board of selectmen last night approved its proposal to continue delivering TV service to Millis residents over Comcast's fiber-optic network.

Comcast added that it is one of three companies currently offering subscription TV services in Millis.

(At right, an image taken from Comcast's website promotes "Shark Week," an option for Comcast TV subscribers.)

According to Philadelphia-based Comcast, its TV service offers more programming choices than rivals, and Comcast added that its new license in Millis will allow it to deliver such new offerings as AnyPlay DVR.

As early as next year, AnyPlay DVR will allow Comcast customers to take their digital video recordings with them when they travel.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:15 PM | Comments (0)

Fidelity Ventures invests in iPipeline

A Pennsylvania company called iPipeline today announced the completion of an $18 million Series A financing led by NewSpring Capital, also of Pennsylvania, and Fidelity Ventures of Boston.

IPipeline said its management team also participated in this financial venture.

In describing itself, iPipeline said it provides a suite of sales distribution software to the insurance and financial-services markets delivered as an on-demand service.

“With iPipeline’s distribution reach, we believe the company is well positioned to meet the needs of an underserved insurance industry," Fidelity Ventures partner Roger Hurwitz said in a statement.

Fidelity Ventures is part of Fidelity Investment's private-equity division, which is part of the overall Fidelity organization but separate from the financial-services division.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:50 AM | Comments (0)

VMware chief executive resigns, and EMC shares fall

Business software maker VMware Inc. said today that its chief executive resigned and that it cut its 2008 revenue growth forecast, sending its shares tumbling 25 percent.

The California company, majority-owned by EMC Corp., the Hopkinton data-storage giant, said that VMware founder Diane Greene stepped down as president and chief executive has been succeeded by former Microsoft Corp executive Paul Maritz.

VMware also said it now expects revenue for 2008 to be "modestly below" its previous forecast of 50 percent growth over 2007.

Maritz worked at Microsoft for 14 years. He managed the development and marketing of products including Windows 95. He left Microsoft in 2000 and several years later founded Pi Corp, which was acquired by EMC. He most recently ran EMC's Cloud Division.

VMware shares fell $13.38 to $39.81 in heavy morning New York Stock Exchange trade. EMC shares fell $1.51, or 10 percent, to $13.63. EMC owns 86 percent of VMware. (Reuters)

Posted by globebusiness at 10:31 AM | Comments (0)

HFF arranges financing for Boston Harbor Garage

The Boston office of Holliday Fenoglio Fowler L.P. announced today that it arranged $85 million in financing for the Boston Harbor Garage, which is near the New England Aquarium and the Rose Fitzgerald Kennedy Greenway.

Holliday Fenoglio Fowler, or HFF, is a Pittsburgh-based company that provides commercial real estate and capital markets services to the commercial real estate industry.

HFF said it arranged the financing on behalf of a joint venture between the Chiofaro Co. and Prudential Real Estate Investors, and HFF described the financing as a five-year, fixed-rate loan through Hartford Investment Management Co.

The joint venture of Chiofaro and Prudential acquired the property in an all-cash transaction in December, HFF said.

When the $155-million transaction was disclosed last year, Donald J. Chiofaro, who developed International Place, said that the garage would likely be replaced with a large complex of offices, residences, and a hotel.

The Boston Harbor Garage is located at 70 East India Road, and it is a 1,380-space garage with 30,000 square feet of street-level retail, HFF said.
(By Chris Reidy, Globe staff)

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

Fidelity vet will head Wilmington Trust's Hub office

Wilmington Trust Corp. announced that Roger Hobby has been named president of Wilmington Trust FSB, New England, and that he will be responsible for managing the firm's Boston office.

Hobby comes to Wilmington Trust after spending his entire 19-year career with Fidelity Investments, the Boston mutual funds giant, where he served most recently as president of Fidelity's Family Office Services group, Wilmington Trust said.

Wilmington Trust, headquartered in Delaware, is a financial services holding company that provides regional banking services throughout the mid-Atlantic region.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:29 AM | Comments (0)

It's opening day for back-to-school shopping

Staples Inc., the Framingham office-supplies retailer, has declared today as "the first official day of the 2008 back-to-school shopping season."

According to a survey commissioned by the company, more than 70 percent of parents polled said they would welcome an official start for the back-to-school shopping season to help them identify when they can expect to start finding school supplies in stock, Staples said.

The winter holidays have Black Friday - the day after Thanksgiving - to signal the start of that season, and Staples decided that it was only fitting and just, based on its two decades of experience in tracking and analyzing back-to-school shopping habits, that it should step in and unilaterally declare July 8 as the official opening day of the 2008 back-to-school shopping season.

By establishing an official start to the back-to-school shopping season, which parents deem to be a stressful time, "Staples is giving parents a clear road map of where and when to the find the best products and deals this season," the company said in a press release.

To promote back-to-school shopping, Staples said it is teaming up with Dosomething.org and American Idol winner Jordin Sparks (pictured above); as part of a campaign titled "Do Something 101," Sparks will be encouraging teens to collect school supplies and drop them off at the nearest Staples, or make a $2 donation, to help out needy students.

(At right is an image taken from the Staples website. The company believes that this stylish lunch bag is something that many trendy students will crave this school year.)

For much of the year, Staples focuses on customers with home offices or small businesses; the back-to-school season is the one time of the year when the company sees a surge of business from mainstream consumers.

Staples recently agreed to buy Corporate Express of the Netherlands for $2.6 billion.

That deal will give Staples a bigger presence in the segment of the business that delivers office supplies to large corporate customers, and that's likely to mean that the back-to-school shopping season will account for a smaller portion of the company's total sales than back-to-school seasons have in the past.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:54 AM | Comments (0)

Stop & Shop raises money for cancer programs

Stop & Shop announced that it has reached its goal of raising $3.75 million for a program designed to help care for those with childhood cancer and to search for a cure.

The Quincy chain's fund-raising mechanism is the Triple Winner game, a scratch card promotion in which participants can win a free product, a gift card, or cash prizes up to $10,000.

The promotion, now in its 18th year, distributed tickets to customers who made a $1 donation to fight pediatric cancer.

“Triple Winner has been the cornerstone of Stop & Shop’s efforts to help eradicate childhood cancer,” José Alvarez, president and chief executive for Stop & Shop, said in a statement. “Through this program, our associates, customers and suppliers have raised more than $48 million since 1991 to directly support cancer research and care for children.”

The 2008 Triple Winner game raised $2.5 million for the Jimmy Fund and $1.25 million for the Memorial Sloan-Kettering Cancer Center, said Stop & Shop, which operates nearly 400 supermarkets throughout much of the Northeast.
(By Chris Reidy, Globe staff)

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

PerkinElmer taps Marshak to lead China operations

PerkinElmer Inc. announced the appointment of Daniel R. Marshak to the additional position of president of its Greater China operations.

The Waltham company provides goods and services to the life sciences, research, and technology industries.

While continuing as senior vice president and chief scientific officer for the company, Marshak in his new role will assume overall leadership of PerkinElmer in Greater China, and he will be based out of Shanghai, the company said.

PerkinElmer noted in a press release that China represents a key market for its products and that the company currently employs approximately 1,200 people in Shanghai, Beijing, Guangzhou, Chengdu, Wuhan, Shenyang, and Shenzhen.

Worldwide, the company said it has 9,100 employees.
(By Chris Reidy, Globe staff)

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

Menino plans "retail opportunities tour"

Mayor Thomas M. Menino is scheduled this morning to kick off an "Experience Boston retail opportunities tour" that aims to highlight the Hub's potential as a shopper's paradise, his office said.

"The city is hosting the 'Experience Boston' tour as a prelude to the International Conference of Shopping Center’s Boston conference, which begins on July 9," the mayor's office said in a media advisory. "Following the tour through Downtown Crossing, the city will also showcase opportunities in Chinatown, the South End, and Dudley Square before a boat tour that will highlight the North End, Charlestown, East Boston, and the South Boston waterfront."

The tour aims to show off the vibrancy of Boston's retail districts to retailers, brokers, and developers in town for the conference, the mayor's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:10 AM | Comments (0)

July 7, 2008

HFF secures bridge loan for Needham portfolio

The Boston office of Holliday Fenoglio Fowler L.P. announced today that it secured a $27.4 million bridge loan for a five-building office portfolio in the New England Business Center in Needham.

Headquartered in Pittsburgh, Holliday Fenoglio Fowler, or HFF, provides commercial real estate and capital markets services to the US commercial real estate industry, and working on behalf of a joint venture between Commonfund Realty of Connecticut and Boston real estate firm Cabot, Cabot & Forbes, it said it placed a three-year, adjustable-rate loan with Wells Fargo Real Estate Group Inc.

Loan proceeds will allow the joint venture to reposition the portfolio by redeveloping some buildings and releasing others, said HFF, which added that the four of the buildings are currently vacant and the fifth is leased to Gold’s Gym.

The venture is in the midst of permitting these parcels for a Class A office campus, HFF said.
(By Chris Reidy, Globe staff)

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

Montana financial-services firm opens Hub office

D.A. Davidson & Co., a Montana-based financial services holding company that has more than 975 associates in 17 states, today announced the opening of a new equity capital markets office in Boston.

Overseeing the new Boston office is managing director William Boyle, the firm said.

"Boston is a major institutional investment market, and we are thrilled to have a team of experienced professionals with strong relationships to build D.A. Davidson's presence in New England," Doug Woodcock, D.A. Davidson's president of Equity Capital Markets, said in a statement.
(By Chris Reidy, Globe market)

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

Baskin-Robbins unveils expanded Oreo line-up

Baskin-Robbins, the Canton-based ice cream chain, said today it is expanding its "Oreo Explosion menu line-up."

The chain said in a press release that it is "again teaming up with America's favorite cookie" to offfer "19 outrageous Oreo ice cream products."

Oreo-themed offerings include Jamoca Oreo Sundae, which is three scoops of Jamoca Oreo ice cream layered with marshmallow, caramel, and chopped Oreo pieces, topped with whipped cream, Baskin-Robbins said.

There's also Oreo 31 Below take-home pies made with vanilla soft-serve ice cream blended with Oreo cookies and a chocolate pie crust, the chain said.

Baskin-Robbins is the sister chain of Dunkin' Donuts, the coffee and baked-goods chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:04 AM | Comments (0)

BBN wins more funding to rapidly process Chinese

BBN Technologies, the Cambridge company that developed much of the early technology for the Internet, announced today it has been awarded $5 million in additional funding to develop software that can rapidly process Chinese.

The funding is from the Defense Advanced Research Projects Agency, or DARPA, and it is part of DARPA's Global Autonomous Language Exploitation, or GALE, program.

The goal of GALE is to develop and apply software technologies to transcribe speech, translate both speech and text, and distill large volumes of speech and text in multiple languages, BBN said; such a capability would help US analysts recognize critical information in foreign languages quickly.

Under this latest contract award, BBN said it will continue to work on software that can process Chinese from both speech and text sources as BBN looks to meet the GALE program's increasingly steep accuracy goals.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:44 AM | Comments (0)

Average Mass. gas price rose 2 cents a gallon

The average gas price rose 2 cents in Massachusetts to $4.08 for a gallon of self-serve regular unleaded gas in its latest weekly survey, AAA Southern New England said today.

Before this latest survery, the Massachusetts average had held steady for the last three weeks , noted AAA Southern New England, which added that the latest Bay State average of $4.08 per gallon is 2 cents below the national average of $4.10 per gallon.

A year ago, the Massachusetts average price for a gallon of gas was $2.90, AAA Southern New England said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:22 AM | Comments (0)

Acceleron Pharma expands in Cambridge

Acceleron Pharma Inc. has doubled its space in Cambridge, Colliers Meredith & Grew said today.

A Boston real estate firm, Colliers Meredith & Grew said it recently represented Acceleron in two leases totaling nearly 75,000 square feet.

In a new transaction, Acceleron leased all the space at 128 Sidney St. and also agreed to a long-term extension on its existing lease for about 37,000 square feet of space at 149 Sidney St., Colliers Meredith & Grew said.

In a statement, Nancy Sullivan, Acceleron's senior director of operations, said the lease for 128 Sidney St. will "support the company's rapid growth."
(By Chris Reidy, Globe staff)

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

Covergence appoints Moran as chief executive

Covergence Inc. today announced that it has named James M. Moran as its president and chief executive officer.

Covergence of Maynard describes itself as a provider of "next-generation Session Border Control and Session Management solutions" for big companies.

Moran is an industry veteran, and his resume includes a stint as executive vice president Massachusetts-based edocs, which focuses on the delivery of enterprise-class Web-based self-service solutions for big companies, Covergence said.

“With the enterprise market rapidly emerging, Jim’s strong enterprise background and proven track record, combined with his ability to create and manage high-performance teams will ensure that Covergence is well positioned for its next phase of growth,” Sean Dalton, general partner of Highland Capital Partners, said in a statement.

Highland Capital Partners, a venture firm with offices in Lexington, is an investor in Covergence.
(By Chris Reidy, Globe staff)

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

Archemix drug wins orphan status in Europe

Archemix Corp., a Cambridge biotechnology company, today announced that one of its product candidates has received orphan drug designation from European regulators.

The candidate, known as ARC1779, received orphan drug designation from the US Food and Drug Administration in April, the company added.

According to Archemix, ARC1779 is an anti-platelet agent that has the potential to treat a rare, life-threatening blood disorder known as thrombotic thrombocytopenic purpura, or TTP.

There is no drug approved for the treatment of TTP, and acute episodes of TTP are associated with a significant mortality rate, estimated to be as high as 20 percent, Archemix said.

An orphan-drug designation in the European Union confers a range of benefits to pharmaceutical companies, including market exclusivity for a period of 10 years, said Archemix, which added that ARC1779 is currently in Phase 2 clinical development.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:15 AM | Comments (0)

Virtusa sees profit below Wall St. estimates

Westborough information technology firm Virtusa Corp. today issued preliminary fiscal first-quarter results below analysts' expectations after work on projects from one of its largest clients was unfunded.

Virtusa said fiscal first-quarter financial results will range between break even and earnings of 3 cents per share.

Analysts polled by Thomson Financial, on average, forecast earnings of 15 cents per share for the quarter ended June 30 on revenue of $45.5 million.

Virtusa expects revenue to range between $42 million and $42.5 million during the quarter.

Virtusa's relationship with client British Telecommunications PLC hurt quarterly profit, Kris Canekeratne, the company's chairman and chief executive said in a statement. Virtusa began work on projects for British Telecommunications, and the budget allocations for the work were not approved.

Rising expenses for outside contractors and foreign currency transaction losses also affected first-quarter earnings.

Virtusa is scheduled to release its full results July 30. (AP)

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

Biopure announces meeting with FDA

Biopure Corp., a struggling Cambridge biotechnology company, said today that it has had discussions with the Food and Drug Administration about identifying an acceptable patient population for a new clinical trial of its Hemopure product.

Biopure makes products from cattle blood that is refined to replenish oxygen-starved tissue. Biopure has won regulatory approvals for a product to treat anemia in dogs.

Now the company seeks to convince the FDA that it should approve a study in humans that would investigate the use of Hemopure in patients with Acute Myelogenous Leukemia, or AML, who refuse transfusion with blood components.

"Currently, AML patients who do not accept blood transfusions are unable to undergo potentially life-saving induction chemotherapy because of the profound anemia the chemotherapy causes," the company said in a press release.

Zafiris G. Zafirelis, Biopure chief executive and president, added in a statement, "By serving as an oxygen delivery bridge following chemotherapy-induced suppression of red blood cell count, use of Hemopure, as part of a bloodless treatment regimen, may potentially reduce mortality in these patients, who currently have no hope."

Last month, Biopure said it laid off 50 employees, about 60 percent of its staff.

For more stories on Biopure, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:19 AM | Comments (0)

Teradyne introduces Magnum II

Teradyne Inc., a North Reading company that makes gear used to test microprocessors, today unveiled the newest member of its Magnum family of memory-test solutions and products.

According to the company, the Magnum II line delivers a level of performance and test efficiency required to satisfy the higher speeds and performance requirements of Flash and embedded memory systems.

"We have already shipped multiple systems to several different customer sites worldwide, and we are confident that with the added system performance of Magnum II, we can expand our leadership position in the low-cost, high-volume Flash market," Tim Moriarty, general manager of the Nextest business unit of Teradyne, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:50 AM | Comments (0)

RI lead paint loss gives industry huge victory

PROVIDENCE - Communities and child health advocates around the country had pinned their hopes on Rhode Island prevailing in its landmark lawsuit against the lead paint industry.

Now, after the state Supreme Court threw out the first-ever jury verdict finding former lead paint companies liable for creating a public nuisance, at least one city says it's rethinking a similar lawsuit against the industry, and one of the lawyers in the Rhode Island case predicted the decision would have a "devastating" effect on national efforts to hold the manufacturers accountable for their products. Still, other lawyers with pending cases say they're not deterred.

"There's no question about it, that the Supreme Court of Rhode Island has stopped any progress nationally to get justice for lead-poisoned kids," said Jack McConnell, a lawyer who represented the state and is involved in other lawsuits over lead paint. "It has a devastating effect on progress nationwide."

The 2006 verdict against Sherwin-Williams Co., NL Industries Inc. and Millennium Holdings LLC had been the only victory against the industry. It gave advocates hope for future success even though courts around the country have more recently rejected similar suits against the companies.

But the Supreme Court's opinion last week seemed to underscore the difficulty in successfully suing the industry, and other states and communities tracking Rhode Island's case could be less inclined to take up a costly court fight with uncertain prospects of victory.

"I think very clearly most of those people are going to be discouraged by it, and they'll wait and see if anyone else breaks through before they stick their necks out," said Ralph Scott, community projects director at the Alliance for Healthy Homes, a Washington advocacy group.

In Ohio, Columbus City Attorney Richard Pfeiffer Jr. said the city was rethinking its lawsuit. Last year, several other Ohio cities voluntarily withdrew separate suits against the industry.

"I think it's fair to say that most us were counting on Rhode Island as a bellwether," Pfeiffer said. "The way the bell rung indicates to us that we need to rethink whether it's worth going forward."

Other cases, however, are moving forward.

A spokesman for the attorney general's office in Ohio -- the only other state that has sued -- said last week that its lawsuit would continue.

In California, Santa Clara County Counsel Ann Ravel, who is suing on behalf of cities, counties and school districts, said her case will not be directly affected by the Rhode Island decision because it involves some different legal issues. That case is on hold pending an appeal of the plaintiffs' contingency fee arrangement with private lawyers hired to try the case.

"My assessment is that while the Rhode Island decision is disappointing, our case is based on California law," Ravel said. "Our court does not have to follow the reasoning of that court in its determination."

Lead paint was banned from residential use in the United States in 1978, and studies have shown children who ingest flaking chips or dust can suffer health problems including reduced intelligence, brain damage and even death.

But the toxic substance has proved a tough target for plaintiffs lawyers, in part because it was made decades ago and because it's essentially impossible to prove which company's product is responsible for poisoning an individual child or contaminating a specific home. The companies also argue that lead pigment was legal when they made it and say they are less responsible than landlords who put their tenants at risk by allowing their properties to deteriorate.

The highest courts in New Jersey and Missouri rejected public nuisance lawsuits against the industry last year. Suits have also failed in New York and Illinois. A jury trial in Milwaukee last year ended in favor of NL Industries.

Last Tuesday, Rhode Island's Supreme Court ruled that the companies, which each made lead pigment used in paint, could not be held liable since they did not have control of their product after they sold it.

The companies called the Rhode Island decision a "victory for common sense" and said they should have never been found liable since there was no proof they had done anything wrong.

In dismissing the case, the court eliminated the state's proposed $2.4 billion cleanup of roughly 240,000 older homes, which would have been funded by the companies.

"There is no doubt that what the Rhode Island Supreme Court did this week is to seriously squelch any justice coming from these wrongdoers," said McConnell, the lawyer for the state. "We were on the cusp of finally once and for all resolving the lead poisoning problem in this state." (AP)

Posted by globebusiness at 7:20 AM | Comments (0)

Black-I Robotics wins $728,000 Pentagon contract

TYNGSBOROUGH - The knock on Brian Hart's door came at 6 a.m. An Army colonel, a priest and a police officer had come to tell Hart and his wife that their 20-year-old son had been killed when his military vehicle was ambushed in Iraq.

Brian Hart didn't channel his grief quietly. Committed to "preventing the senseless from recurring," he railed against the military on his blog for shortcomings in supplying armor to soldiers. The one-time Republican teamed with liberal US Senator Edward Kennedy to tell Congress that the Pentagon was leaving soldiers ill-equipped.

And then Hart went beyond words to fight his cause. He became a defense contractor.

He founded a company that has developed rugged, relatively inexpensive robotic vehicles, resembling small dune buggies, to disable car bombs and roadside explosives before they detonate in hot spots like Iraq and Afghanistan.

Now, Hart has won over the military brass he so harshly criticizes. Three years after starting Black-I Robotics Inc. of Tyngsborough, Hart and his four employees won a $728,000 contract from the Pentagon in June to further develop the "LandShark" robot.

Technology to protect troops is a subject uncomfortably close to home for Hart, who says the death of his son, Army Pvt. First Class John Hart, left him in "total devastation." Brian Hart can't forget the call he got from his son in Iraq a week before he was killed by a gunshot Oct. 18, 2003.

"He asked me to help him: `Get us body armor and vehicular armor,"' Brian Hart said. "He thought he'd be killed on the road in an unarmored Humvee. And a week to the day later, he was."

The Pentagon contract requires Black-I to supply three of its six-wheeled, electric-powered vehicles this year and provide support.

The military will test two units, while Boston's Logan airport will get one for bomb-disposal duties. If tests go well, soldiers in Iraq could be using the robots as soon as next year, Hart says.

His company also is trying to secure an additional $1.5 million in Pentagon funding next fiscal year.

At 275 pounds and about 4 feet long, Black-I's LandShark looks like a dune buggy without a seat for a human driver. Hart hopes to make them available for commercial sale to law enforcement next year, with expectations that the cost would be $65,000 to $85,000 per robot, including the chassis and add-on bomb-disposing equipment. The vehicle can pull tilling equipment to plow up soil where an explosive or trip wire may be hidden. Or it can drop off "disrupters" that can be maneuvered near a bomb and set off, with jets of water disabling the bomb.

Hart contends LandSharks will be far less expensive than many of the Pentagon's current bomb-disposing robots, including models made by two larger Boston-area companies, iRobot Inc. and Foster-Miller Inc. Those models have more sophisticated electronics, but also are more fragile than LandSharks, which use car batteries rather than lighter and pricier lithium-ion batteries.

"We want to make robots affordable, so that a private first class or a lance corporal could get this equipment," Hart said.

A Foster-Miller vice president, Bob Quinn, called Hart a "superb individual," but countered that the LandShark is too big and heavy to be practical for most soldiers in Iraq and Afghanistan. Quinn said soldiers using his company's $100,000-plus Talon robots typically carry four of the hand-portable, 80-pound bots in military vehicles, along with other cargo. The advantage of this approach, he said, is that multiple robots are needed as backups. Insurgents frequently watch from a hiding spot as a robot approaches to dismantle an explosive, then remotely detonate the bomb to knock out the robot in a war of attrition, Quinn said.

Hart is a clean-cut former College Republicans chapter president who describes himself today as a radical. But he speaks like a Pentagon insider, peppering his conversation with acronyms for battlefield weapons and defense technology initiatives. His sport-utility vehicle has a "Support our troops" bumper sticker, and he posts nearly every day to his blog, which focuses on security and political issues.

While his entrepreneurial intentions are in part idealistic, Hart also hopes to make a buck with Black-I -- which he co-founded with longtime business partner Arthur Berube, who helped put up money to supplement startup cash from Hart's personal savings. Hart wouldn't specify how much money they used, but said he and his four employees went without pay until the company won an unspecified amount of private equity funding in May.

While many Pentagon critics, including families of soldiers, have spoken out about better gear for soldiers, Brian Hart stands apart for his decision to launch a company focused on troop protection, said Bill Thomasmeyer, president of the National Center for Defense Robotics. The Pittsburgh-based nonprofit organization helps robotics firms like Black-I compete for government contracts.

"I don't know of any other similar company that is headed by someone who has had such a personal loss as he has," Thomasmeyer said. "His company has had to overcome a lot of obstacles to get to this point, without having a lot of resources."

Another company founder is Hart's younger brother, Richard, a former Marine who serves as a Black-I product designer. But the staff is otherwise made up of acquaintances from Hart's previous ventures, which had nothing to do with robotics or military contracting. His prior executive experience has been in such fields as wireless communications and pharmaceuticals.

At Black-I, Hart and his staff relied on basic knowledge of mechanical and electrical engineering to design their robotic buggies. They cut costs by pairing custom design features with components already available commercially from other makers of small vehicles and remote-control gadgets. The off-the-shelf parts, such as the car batteries, are also expected to simplify repairs and maintenance.

Black-I operates from a modest office and garage in a small industrial park in Tyngsborough, 40 miles north of Boston, with a paved back lot serving as a testing ground.

In a demonstration for a reporter, a LandShark pushed a trash Dumpster. It was meant to simulate how the buggy could be useful for letting soldiers remain at a safe distance while a robot rams aside a car booby-trapped with explosives. The company is developing versions operated remotely by a human using radio signals, as well as models designed to complete bomb-disposing missions either wholly or partly without human intervention.

Whether or not the company keeps getting defense contracts, Brian Hart doesn't plan to stay quiet on the issues he's been raising since his son's death. He still argues that the military must remake itself to meet ground troops' basic needs and wean itself off expensive high-tech systems.

"We are spending billions upon billions on technologies and equipment we will never use, while we shortchange our infantrymen on basic equipment that will save their lives in combat," Hart said. "The way our military is run and the way our government is run doesn't have to be this bad." (AP)

For an earlier story on this company, please click here.

Posted by globebusiness at 7:04 AM | Comments (0)

July 3, 2008

Shire agrees to buy German company

Shire PLC, the British pharmaceutical company that employs about 685 people in Massachusetts, said today it has agreed to buy a German firm called Jerini AG in a deal valued at about $549 million.

Jerini has an orphan drug candidate in the pipeline; the candidate, FIRAZYR, is a potential treatment for hereditary angiodema, a rare and potentially life threatening
genetic disease, said Shire, which noted that FIRAZYR could generate annual global sales of as much as $400 million.

The US Food and Drug Administration initially declined to approve FIRAZYR, but Shire is confident that it can overcome the FDA's objections, a company spokesman said. Shire added that it expects FIRAZYR to launch in Europe later this year.

Much of the work that will be needed to win the FDA's OK of the drug candidate is expected to happen at company facilities in Cambridge and Lexington, a Shire spokesman said.

With orphan-drug status, a pharmaceutical company is granted exclusivity to market a drug for a period of a time without competition from other manufacturers.

Orphan drug laws seek to provide financial incentives to pharmaceutical firms to develop drugs that affect only a small number of people.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:54 PM | Comments (0)

Patrick details neighborhood stabilization fund

The Massachusetts Housing Investment Corp., a private nonprofit funded by banks and corporate investors, will administer the new $20 million Neighborhood Stabilization Loan Fund, Governor Deval L. Patrick said earlier this week.

Patrick unveiled the program, which aims to help communities buy and stabilize abandoned properties, in April, and offered more details about the fund during an event this week at a Chelsea location where 44 homes are in foreclosure within a five-block radius, the Massachusetts Housing Partnership said.

According to its website, the partnership is a statewide public nonprofit organization that works with the Massachusetts governor's office to increase the supply of affordable housing in the commonwealth.

Patrick also announced that the stabilization loan fund has attracted interest from private foundations, including a $2 million contribution from the Boston Foundation and a $1 million contribution from the Hyams Foundation, the partnership said.

Those contributions complement the $17 million in private funds put forth by the Massachusetts Housing Investment Corp. and the Massachusetts Housing Partnership, the partnership said.

The program was initially envisioned as being exclusively for nonprofits, but it is now also available to for-profit developers; in both cases, developers must be working as part of a municipally-supported strategic development plan, the partnership said.

Developers interested in more information and a term sheet can go to www.mhp.net/neighborhoodloan, the partnership said.
(By Chris Reidy, Globe staff)

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

Mass. lobstermen promote whale-safe practices

New green rubber bands that will bind the claws of Massachusetts lobsters beginning this weekend won't save the lobsters from the dinner table. But they signify a state initiative aimed at saving whales.

Lobsters caught in state waters will be given the bands, stamped "Massachusetts" and depicting whale tails, to highlight the state's efforts to make the seas safer for whales by requiring lobstermen to use rope to connect their traps that rests on the ocean floor, rather than line that floats and could entangle whales.

The campaign is being led by environmental groups, including Ocean Conservancy, and the state Division of Marine Fisheries. Its backers hope to decrease the risk of entanglement, the second-leading cause of human-related whale deaths behind ship strikes, and to add to the appeal of Massachusetts-caught lobster.

"Other areas fight these mandates. We want the public to know not all fishermen are in that category," said Bernie Feeney, a 60-year-old Boston lobsterman.

Lobsters are caught in traps strung together and attached to buoys on each end. Whale advocates say when floating line is used, it creates arcs of rope between the traps that can entangle whales.

Between 2002 and 2006, the National Oceanic and Atmospheric Administration confirmed 145 whale entanglements along the East Coast and in adjacent Canadian waters, and 21 deaths due to entanglement among large whale species -- which include the right whale. The right whale population stands at only 350 to 400.

Massachusetts, which made the change to sinking rope in 2007, is the only state to draft such measures. But federal regulations will require many East Coast lobstermen and fishermen to begin using sinking rope starting in October.

Maine, by far the nation's largest lobster harvester, is resisting calls for change. Lobstermen in Maine, which pulled in $297 million in lobster revenues in 2006, compared to second-place Massachusetts' $52 million, say sinking rope wouldn't work on their rocky ocean bottom because it would fray quickly and become easily snagged.

The cost of changing to sinking rope isn't cheap, either. Feeney, the Boston lobsterman, said he spent $11,000 on new rope and other required gear changes.

Federal regulators have proposed a six-month delay -- to April 2009 -- in its sinking line requirement, and Patrice McCarron, executive director of the Maine Lobstermen's Association, said she hopes that's enough time for Maine to get its waters exempted.

She said Massachusetts' green band wrongly implies lobstermen in other states aren't as concerned with conservation.

"I don't have a problem with Massachusetts saying, 'We're doing a great thing,' because they are," she said. "What I don't like is the implication that other people are not."

Bill Adler, executive director of the Massachusetts Lobstermen's Association, said the green bands were meant to promote Massachusetts' efforts, not take a shot at other states.

The green bands should be appearing at seafood markets this weekend, and will stay on Massachusetts lobsters after sinking lines are broadly required to highlight the state's pioneering efforts, said Vicki Cornish of the Ocean Conservancy. (AP)

Posted by globebusiness at 9:41 AM | Comments (0)

Acme Packet sees profit below Wall St. forecast

Acme Packet Inc. today said that it expects to report second-quarter earnings below Wall Street estimates as some customers delayed contracts.

The Burlington-based maker of security products for computer transactions expects earnings between $200,000 and $1.2 million, or less than 1 cent per share and 2 cents per share.

Adjusted to exclude certain items, the result is expected between $1.5 million and $2.5 million, or 2 cents to 4 cents per share.

It anticipates revenue of $24.5 million and $25.5 million.

Analysts, whose estimates typically exclude items, have an average estimate for profit of 9 cents per share on revenue of $34 million, according to Thomson Financial.

Chief Executive Andy Ory said some transactions did not close on schedule, but did not provide a reason. He said the company does not think the business was lost, only delayed.

Acme said some shipments made in the final days of the quarter could not be recorded as revenue in the period.

Ory said the company is "not prepared to comment" on its full-year outlook. (AP)

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

StyleFeeder wins award

StyleFeeder, a Cambridge-based personal shopping engine, said it has been awarded the Golden Link Technology Genius award by LinkShare, a marketing network with offices in New York and London.

According to StyleFeeder, the Golden Link awards recognize achievements in e-commerce and the partnerships that drive performance-based marketing.

StyleFeeder's press release described the company as an online "personal shopping engine that learns your style. No more sorting through lists of search results to find the perfect shoes. As you rate items on the site, StyleFeeder learns your personal taste so it can help you find products you like faster, discover new items you’ll love and others who share your sense of style. By combining these elements, StyleFeeder brings you personalized product recommendations from across the entire Web."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:05 AM | Comments (0)

Fantini & Gorga arranges financing for Hub project

Boston mortgage banking firm Fantini & Gorga said it recently arranged $59.7 million in financing for 50 West Broadway, a residential complex being developed on the site of the former Cardinal Cushing Central High School in Boston.

(A rendering of the 50 West Broadway, supplied by Fantini & Gorga, shows what the project will look like when completed in late 2009.)

The development of the 139 rental-unit project near an MBTA stop is a joint venture between John M. Corcoran and Co., a Braintree firm focused on residential communities, and the Brennan Group of Boston.

“This financing demonstrates that there is indeed capital available for well-sponsored, feasible projects,” George Fantini, chairman of Fantini & Gorga, said in a statement. “We were able to couple tax-exempt financing with equity from a pension fund partner who understood the value that tax-exempt bond financing can bring to a deal.”

The $59.7 million raised in capital represented 98 percent of the cost of the $61 million project, said Fantini & Gorga, which added that 20 percent of the apartments at 50 West Broadway will be allocated under affordable housing guidelines.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:37 AM | Comments (0)

July 2, 2008

Ex-broker files whistle-blower suit against UBS

A former UBS broker who sold $30 million in auction-rate securities to Massachusetts municipalities has filed a whistle-blower lawsuit against the Wall Street firm, alleging it retaliated against him for cooperating with regulators and forced him to resign.

In a complaint to the US Department of Labor, Timothy P. Flynn alleged UBS Financial Services Inc. locked him out of his office and shut off his e-mail access shortly after he provided testimony for state Attorney General Martha Coakley’s investigation of the firm last spring.

UBS settled with Coakley’s office in May, agreeing to buy back $37 million in investments sold by Flynn and others at UBS to 17 towns and cities and the Massachusetts Turnpike Authority.

UBS spokesman Kris Kagel said: ‘‘The firm has taken no improper actions against Mr. Flynn. Mr. Flynn made the decision to resign of his own volition. UBS therefore denies the allegations in his claim and plans to defend itself vigorously.’’

According to Flynn’s complaint, he agreed to speak with the attorney general after receiving a request in March. At an April 16 meeting, he told investigators UBS had led its brokers to believe that auction-rate securities were cash alternatives, similar to money markets.

Auction-rate securities are bonds issued by municipalities and nonprofits, such as student lenders. The market for the bonds shut down in February, when there were more sellers than buyers, and UBS and other firms stopped using their funds to support trading. As a result, individuals, companies, and small-town treasurers were left with an estimated $220 billion stuck in securities they were told were as safe as cash.

In May, when the Globe first wrote about Flynn, the firm refused to say whether he was being disciplined.
(By Beth Healy, Globe staff)

Posted by globebusiness at 8:40 PM | Comments (0)

Fugitive hedge fund manager surrenders in Mass.

A convicted hedge fund swindler who set off a national manhunt when he faked his suicide and failed to report to prison last month surrendered to police in Massachusetts today after three weeks on the lam.

Authorities say his own mother helped broker the surrender.

Samuel Israel III, 48, walked into the police station in Southwick, at about 9:15 a.m. wearing a colored T-shirt and shorts, identified himself, and said he was a fugitive wanted by the federal government, officials said.

"He was polite, very contrite and a perfect gentleman at all times," said Southwick police Officer Paul Miles.

Israel disappeared June 9 just hours before he was to report to prison to begin serving a 20-year sentence handed down in April for his role in the collapse of the Bayou hedge funds.

Israel's SUV was found abandoned on a bridge over the Hudson River in suburban New York City with the words "Suicide is Painless" - the theme song for the "MASH" television show - scrawled in dust on the hood.

Prosecutors said he and two other men scammed investors into putting $450 million into the funds by announcing nonexistent profits and providing fake audits, and made millions in commissions on trades that lost money for the investors. The collapse of the funds prompted calls for stricter oversight.

Frank Dawson, public information officer for the US Marshals Service in Boston, said Israel was talking to his mother on his cell phone when he surrendered. He said the marshals' service had been in contact for several days with Israel's mother in Illinois and as a result, the surrender was "more or less expected."

"Obviously, she probably had some kind of influence, which mothers usually do," Dawson said. "He knew they were getting close to him, so he probably did the right thing."

Officials said the RV Israel fled in was found in nearby Granville. Israel had planned to surrender in Granville but the town's part-time police department was closed so he rode a motor scooter to Southwick to turn himself in, they said.

Israel was expected to appear in federal court in Springfield later today. A call to his lawyer, Lawrence S. Bader, wasn't immediately returned.

Almost as soon as Israel's SUV was found, its key in the ignition, authorities suspected he had faked his disappearance. No body was found beneath the 150-foot-high bridge, and the anthem "Suicide is Painless" was sung during a fake suicide in the original "MASH" movie.

His girlfriend, Debra Ryan of Armonk, was arrested 10 days after his disappearance and charged with aiding and abetting his escape.

After Ryan was arrested, officials said Israel took off in a white recreational vehicle carrying a scooter and his belongings. He was thought to be staying at RV parks, campgrounds, or highway rest areas.

Southwick, where Israel turned himself in, is near the Connecticut line about 100 miles southwest of Boston. It is also about 95 miles away from the federal prison in Ayer, Mass., where Israel was to report.

Already facing a lengthy prison term for conspiracy and fraud, Israel was likely to be charged with failing to surrender to serve a federal sentence, authorities said.

Ryan told authorities that on the day Israel was to surrender, she drove her car and he drove the RV to a rest area. Israel parked the RV there, and the two drove back to their home.

After Israel stopped on Bear Mountain Bridge, near West Point about 40 miles north of New York City, surveillance video showed a second car slowly pass his SUV and then stop.

That could explain how he got from the bridge to the rest area, but authorities have never confirmed reports that the driver of the second car had been questioned.

Ryan could face as many as 10 years in prison if convicted in the scheme to help Israel flee.

In a separate development, federal prosecutors announced today that more than $115 million is available to pay back victims of the Bayou fraud. The money includes whatever was forfeited by Israel and his co-defendants as part of their sentences, plus interest. The total loss to investors was about $300 million. (AP)

Posted by globebusiness at 3:02 PM | Comments (0)

Harvard opens office in Shanghai

Harvard University and Harvard Business School announced yesterday the opening of a Harvard office in Shanghai and the university said it plans to open another office in Beijing in the fall.

The Shanghai office will house a Harvard Business School researcher and be part of a Harvard Business School network of international research centers that include researchers in Japan, India, Latin America, and Europe.

The Shanghai and Beijing "locations will enable Harvard University to explore a range of potential activities in support of its research and teaching programs," the university and the business school said in a press release.

The business school sometimes refers to itself by its initials - HBS.

In a statement, Harvard Business School dean Jay O. Light (right) said: "Harvard Business School has had a long-standing interest in and commitment to the region. Today, increasing numbers of HBS faculty list China among their top areas of geographical interest. The addition of this new office will add significantly to our research and our understanding of the world's fastest-growing economy. We look forward to working with and learning from Chinese business people, government officials, and many others in the years ahead."

The Harvard office in Shanghai will also serve the Harvard China Fund, which exists to support the university's engagement with China, Harvard said.

Launched in the fall of 2006, the fund is a university-wide "academic venture fund" to enhance Harvard's teaching and research about China, the university said.

In a statement, William C. Kirby, T. M. Chang professor of China Studies and Spangler Family professor of Business Administration at Harvard and chairman of the Harvard China Fund, said: "Through the resources of the Harvard China Fund, Harvard University will continue to investigate and increase its options in greater China. Generations of Harvard College students and Harvard graduate students will benefit greatly from these opportunities now and in the future, and these initial steps towards establishing a more comprehensive set of facilities in the region will further the university's research and teaching missions."
(By Chris Reidy, Globe staff)

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

Stop & Shop offers gas discount program

Stop & Shop Supermarket Cos. said today that it is unveiling a points program designed to help its grocery customers to save on gas during a time of rising energy prices.

For every dollar spent on groceries, consumers will earn one point, and for every 50 points, they will receive 10 cents off per gallon on their next gas purchase at participating Stop & Shop stores, the Quincy-based chain said.

Consumers can click here to find participating locations, said Stop & Shop, which operates 378 supermarkets throughout much of the Northeast.

About 50 Stop & Shops have facilities to sell gas. (The photo above, taken from Stop & Shop's website, displays a gas pump showing prices that were considerably lower than they are today.)

In many cases, customers can go to a participating Stop & Shop store that does not sell gas and then take advantage of the discount later at a nearby Stop & Shop store that does sell gas, a Stop & Shop spokesman said.

For additional information about the program, please click here to view the appropriate page on the Stop & Shop website.

"The gas rewards will be automatically tracked and applied at the pump via consumers’ Stop & Shop cards, making it easy for consumers to save," Stop & Shop said in a press release.

The press release provided an example of how the program is designed to work: If a consumer spends $55 on groceries, that consumer would then be eligible for a 10-cent-per-gallon discount the next time he or she gets gas at Stop & Shop, with the extra 5 points remaining on his or her Stop & Shop card, said the chain, adding that points are not awarded on all items.

Gas rewards are good for up to 60 days from the date of grocery purchase, Stop & Shop added.

The Stop & Shop press release also noted: "Through a partnership with Christy’s stores on Cape Cod, Stop & Shop grocery customers at participating locations purchasing $50 or more of groceries in a single transaction will earn a 20-cents per gallon reward that can be used at Christy’s stores offering gasoline for purchase."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:38 PM | Comments (0)

UniFirst earnings rise 24 percent to $16.9 million

UniFirst Corp., a Wilmington company that supplies uniforms and protective clothing, said today that its fiscal third-quarter earnings rose 24 percent due to improving margins in the company's core laundry business.

Net income for the quarter ended May 31 rose to $16.9 million, or 87 cents per share, up from $13.7 million, or 71 cents per share, during the comparable period a year earlier.

Analysts polled by Thomson Financial, on average, forecast earnings of 77 cents per share for the quarter.

Revenue increased 11 percent to $254.6 million in the fiscal third quarter, from $229.8 million during the year-ago period. Analysts forecast revenue of $252.7 million, on average.

Operating margins in the laundry business, which accounts for about 90 percent of total revenue, improved to 12.3 percent during the third quarter. Laundry margins were 10.5 percent during the year-ago period.

Margins benefited from lower merchandise amortization, payroll and other costs. Some of those benefits were offset though by rising fuel costs associated with delivery vehicles, the company said in a statement.

UniFirst shares rose $4.83, to 10.8 percent, to $49.50 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 10:45 AM | Comments (0)

Cubist will promote AstraZeneca drug in the US

Cubist Pharmaceuticals Inc. of Lexington said today that it has signed an exclusive agreement to promote an antibiotic from the British pharmaceutical giant AstraZeneca PLC in the United States.

The antibiotic is MERREM I.V., and the agreement, effective yesterday, establishes a baseline of $20 million in annual revenue that will go to Cubist as part of the relationship, said Cubist, which added that the baseline could be adjusted based on actual MERREM I.V. sales.

AstraZeneca noted that Cubist's strong relationships with infectious-disease specialists and acute-care providers will help AstraZeneca maximize the potential of MERREM I.V. Cubist also markets a complementary product called CUBICIN.

In a statement, Cubist executive vice president and chief operating officer Robert J. Perez also said: “As a broad spectrum antibiotic, MERREM I.V. is an excellent fit with our Gram positive therapy, CUBICIN, which has experienced the most successful I.V. antibiotic launch in US history in dollar terms."
(By Chris Reidy, Globe staff)

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

AS&E lands $55.1 million order from Abu Dhabi

American Science and Engineering Inc. today announced that it has received a $55.1 million order from Abu Dhabi Customs.

The Billerica company, which refers to itself as AS&E, focuses on X-ray detection technology, and it said that the customs administration of Abu Dhabi purchased a range of company products, including OmniView, Z Portal, and Z Backscatter Van X-ray detection systems, to scan cargo trucks, passenger vehicles, and containers at border checkpoints.

(The image above this story, taken from the company's website, demonstrates how Z Backscatter technology can detect stowaways attempting to sneak through checkpoints.)

In a statement, company president and chief executive Anthony Fabiano said, "Abu Dhabi Customs will utilize AS&E's full range of cargo inspection products to protect the emirate's borders and citizens while facilitating trade and collecting revenues through effective customs operations as per the directorate strategic priorities. Each of AS&E's proprietary cargo inspection solutions are uniquely designed to provide superior detection, while optimizing high-throughput and safety."
(By Chris Reidy, Globe staff)

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

Spalding adds "rookie" line for young children

Spalding, the Springfield-based sporting goods brand, said today it is introducing Spalding Rookie Gear, a line of youth-sized basketballs, footballs, and soccer balls that weigh 25 percent less than standard youth products.

The line is engineered for children 8 and under, and it is "designed so kids can shoot, rebound, kick, and throw more easily and successfully, and with better form," said Spalding, which added the Rookie Gear line is set to arrive in sporting goods stores this week.

(In the photo above, Boston Celtics star Paul Pierce and some young friends show off some products from the new Spalding line.)

In a statement about the brand's new line aimed at young children, Bob Llewellyn, Spalding's director of consumer marketing, said in a statement: “We want kids to enjoy, embrace, and achieve early success in sports. Spalding Rookie Gear is all about keeping young athletes 'in' the game because playing with a lighter ball builds confidence, enables sound fundamental skills, and keeps a child active. The end result is making sports more fun to play.”

Spalding is a division of Russell Corp.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:13 AM | Comments (0)

Five Star adds 10 assisted living facilities to portfolio

Five Star Quality Care Inc., a Newton company that operates senior living communities, said today that it has expanded its portfolio by acquiring newly built facilities in prime locations in Pennsylvania and New Jersey.

In a press release, the company said that it has "purchased three assisted living facilities with 259 living units for $21.4 million and acquired the operations of an additional seven assisted living facilities with 614 living units for an annual rent payment of approximately $7.6 million per year."

The 10 facilities combined have a total of 873 living units and an average occupancy of 82 percent, the company said.

The facilities were previously operated by NewSeasons Assisted Living Communities Inc. of Pennsylvania under leases from Senior Housing Properties Trust, a Newton-based real estate investment trust, said Five Star, which added that it has assumed NewSeasons' lease obligations to Senior Properties Trust for seven of these facilities.

Please click here to read the press release on the transaction released by Senior Housing Properties Trust.

In consideration of Five Star's lease assumption, NewSeasons has paid Five Star $10 million and transferred title to certain personal property located at the facilities which personal property was owned by NewSeasons, Five Star said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:42 AM | Comments (0)

Conn. home prices fall by more than 10 percent

Home prices in Connecticut dropped more than 10 percent in May from a year ago, the first double-digit percentage drop in 16 years, a research firm reported yesterday.

The Warren Group, a Boston company that tracks New England real estate activity, said that the median price of single-family homes in Connecticut fell 10.8 percent in May, from $305,000 in May 2007 to $272,000 this May. That was the first double-digit drop in percentage since July 1992, when prices fell 10.3 percent.

The 2008 year-to-date prices declined 7.6 percent from $290,000 to $268,000.

Single-family home sales declined 24.5 percent in May, from 3,008 last year to 2,271 this year. Year-to-date sales fell 26.5 percent, from 12,390 to 9,104.

The price drop was the worst since the housing slump in the early 1990s, according to the Warren Group.

"Clearly, this downturn is showing no signs of relenting, and without a pickup in sales, it could be more severe than the last one," said Timothy Warren Jr., chief executive officer of the Warren Group.

Fairfield County again experienced the state's biggest sales drop in May, with single-family home sales declining 44.6 percent from a year ago. The median price of single-family homes in Fairfield County fell 13.2 percent in May, from $627,500 to $545,000.

Litchfield County also saw large declines, with sales in May falling 22.4 percent, from 183 to 142, and prices dropping 17.2 percent, from $302,000 to $250,000.

Condominium sales statewide declined 36.2 percent in May, from 1,338 to 854. Year-to-date sales fell 32.8 percent, from 5,194 to 3,494. The median price of condos fell 4.1 percent in May, from $208,500 to $200,000. The year-to-date price rose 0.2 percent, from $199,500 to $199,900. (AP)

Posted by globebusiness at 7:50 AM | Comments (0)

Stoughton OK's Verizon FiOS TV service

Verizon Communications Inc. said that the board of selectmen in Stoughton granted a cable franchise to its FiOS TV service Monday.

According to the company, its new fiber-optic television service - FiOS - offers a better-quality picture, more high-definition and on-demand programs, and more reliable service at competitive prices than rival TV services.

The board’s vote brings to 76 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 7:39 AM | Comments (0)

Buzzwire signs up new content partners

Buzzwire Inc., a Hub firm whose website boasts, "We're powering the mobile video revolution," today announced that it has added 22 new content partners for its mobile streaming media service.

New partners include Next New Networks, 60Frames, Rooftop Comedy, and Abigail’s Teen Diary as well as the Classic Wines Minute, Political Lunch, and 20 Minute Yoga, Buzzwire said.

By signing up for Buzzwire service, consumers can gain access to Web programming through one-click mobile access. Buzzwire says it lets users discover the most talked about content, create their own personalized mobile media channel, and share their favorites with family and friends.

In a statement that accompanied today's press release, Buzzwire chief executive Andrew MacFarlane said: “Today’s media consumers have ‘grown up’ with online video and they are accustomed to getting access to their favorite entertainment on demand. What’s more, their mobile phones have become their constant connection to the world. With Buzzwire, they can now create their own personal and portable video channel that they can enjoy by themselves or with friends during small moments of downtime or whenever they want.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:13 AM | Comments (0)

July 1, 2008

ING closes $900 m acquisition of CitiStreet

ING Group has completed its $900 million acquisition of a retirement services venture jointly owned by Citigroup Inc. and State Street Corp.

ING, a Netherlands-based financial services company, said today that it received regulatory approvals for its acquisition of Quincy-based CitiStreet LLC. The transaction's closure comes two months after the deal was announced.

The sale is part of Citigroup's efforts to shed assets and raise cash after losing billions in the mortgage and credit crises.

New York-based CitiGroup and Boston-based State Street created CitiStreet in 2000. The unit provides record keeping and administrative services to more than 16,000 retirement plans.

As of March 31, the venture had about 3,700 workers, with more than $262 billion in assets under administration. (AP)

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

Gentle Giant makes West Coast move

Gentle Giant Moving Co. of Somerville said it has purchased a Seattle moving firm for an undisclosed amount as Gentle Giant pursues a geographic expansion strategy.

Gentle Giant, a private company that said it had $28.1 million in 2007 revenues, said it bought TempStore Moving Co. and changed its name to Gentle Giant Moving Co. West LLC.

Founded in 1980, Gentle Giant initially specialized in local moving jobs. If someone was moving from Dorchester to Cambridge, for example, Gentle Giant could handle that.

Four years ago, Gentle Giant branched out into national moving. As a result, if someone was moving from South Boston to San Francisco, Gentle Giant could handle that job too.

One challenge, though, was getting moving jobs for the Gentle Giant van's return trip from the West Coast; the Seattle acquisition makes booking return moves from the West Coast easier, a Gentle Giant spokesman said.

TempStore employees included some Gentle Giant alumni, one of whom has been appointed as the company's new Seattle branch manager.

Another reason for the acquisition is that Seattle doesn't seem to be as hard hit by the housing crisis as many other cities, meaning that many people are still moving in Seattle, Gentle Giant said.

“Acquiring TempStore and establishing our first West Coast branch in Seattle accelerates the nationwide expansion of the professional, award-winning local and interstate moving services that Gentle Giant provides,” Gentle Giant president and chief executive Larry O’Toole (pictured above) said in a statement. “This acquisition also supports our dual purpose of raising people’s expectations of a moving company and developing leadership opportunities for our employees.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:56 PM | Comments (0)

Boston Ventures buys Oakstone Publishing

Private equity firm Boston Ventures said today that it will build upon its expertise in the publishing industry with the acquisition of Oakstone Publishing, which serves the medical education and corporate wellness industries.

The seller of Oakstone Publishing is Haights Cross Communications, a White Plains, N.Y., firm that said that terms of the transaction were not being disclosed.

Based in Alabama, Oakstone Medical provides continuing education content, and it has long-standing relationships with physicians and key strategic alliances with US medical organizations, including Harvard Medical School, Boston Ventures said.

Oakstone's other brand, Personal Best, provides health and wellness information that promotes healthful lifestyles to employees through a range of integrated offerings, including print and electronic newsletters, Boston Ventures said.

"We plan to leverage Boston Ventures' experience in the publishing sector to grow the two segments of Oakstone's business," Elizabeth Granville-Smith, a managing director at Boston Ventures, said in a statement. "We see a number of strategic initiatives that can develop both the medical and wellness businesses. Oakstone Medical's strategic relationships, product development capabilities, and electronic publishing infrastructure provide a solid platform for future growth."

Boston Ventures said it has made several other recent investments in the publishing sector, including Home Pages LLC, an independent, regionally concentrated community yellow pages publisher of approximately 135 town-centric local yellow pages directories in Illinois, Wisconsin, and Indiana; it said it also recently invested in New Track Media, which publishes special interest consumer magazines such as Sky & Telescope, American Woodworker, and Fons & Porter's Love of Quilting.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:18 PM | Comments (0)

Massachusetts Business Confidence Index falls

A business confidence index of Massachusetts employers dropped again in June, falling a half-point to 48.9 from the previous month.

The index has now posted a six-month string of weak readings.

The index is compiled by the Associated Industries of Massachusetts, or AIM, an organization of Bay State employers. A reading above 50 on the index indicates that employers are feeling positive about local economic conditions; a reading below 50 reflects a negative outlook.

“The index has lost ground in seven of the past eight months, but the reading is still close to a neutral 50, and the overall decline so far in 2008 has been minor,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “Although the Index’s monthly average for the first half of the year is negative, the second quarter [49.5] was no worse than the first [49.4].”

Noting some positive signs in June, Torto added in his statement, “Survey respondents were more positive about national conditions and also a bit more optimistic in their expectations for the next six months, both of which suggest that the economy is stabilizing.”
(By Chris Reidy, Globe staff)

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

Study: Fourth of July generates $20 m to the Hub

The Fourth of July celebration in Boston generates nearly $20 million a year in tourism revenue to the Massachusetts economy, Liberty Mutual said today.

Liberty Mutual, a Boston insurance company that is the chief sponsor of the local Fourth of July event, said it based that estimate on a recent study conducted by Mt. Auburn Associates, a Somerville-based research firm.

The Fourth of July spending estimate was part of a larger study that the firm released last month and that claimed that the Boston Symphony Orchestra has an economic impact on Massachusetts of $166.7 million a year. Please click here to read a Globe story about that study.

According to Liberty Mutual's reading of the study, the Fourth of July draws roughly 160,000 out-of-state tourists to the Esplanade, and these tourists - about one-third of the event’s concert goers - spend millions of dollars at hotels, restaurants, and retail venues.

Liberty Mutual said it provides about $2 million a year to fund the celebration.

Several years ago, Liberty Mutual stepped in to bail out Boston's Fourth of July celebration on the Esplanade after some feared that the event was doomed because of rising costs.
(By Chris Reidy, Globe staff)

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

R.I. high court overturns lead paint verdict

The Rhode Island Supreme Court has overturned a landmark jury verdict against three former lead paint companies, halting plans for a multi-billion-dollar cleanup and dealing a setback to efforts around the country to hold the companies accountable for lead paint poisoning.

The unanimous decision today reverses the lone victory to date against the lead paint industry.

A jury in February 2006 found Sherwin-Williams, NL Industries Inc., and Millennium Holdings liable for creating a public nuisance by manufacturing and selling a toxic product.

The companies would have been required to clean up contaminated homes. The state had said that would cost $2.4 billion and require inspections and work on hundreds of thousands of homes built before 1980.

The court said the state failed to prove that the presence of lead paint was a public nuisance in Rhode Island and that the lawsuit should have been dismissed at the outset.

A lawyer for the companies called the ruling a "victory for common sense."

"This case never should have been filed," said Charles H. Moellenberg, Jr., an attorney for Sherwin-Williams. "It was factually wrong and legally flawed. A company should not be held liable when there is no proof that it did anything wrong."

Jack McConnell, a lawyer for the state, would not immediately comment.

Rhode Island was the first state to sue over the harms of lead paint, which studies have shown can cause reduced intelligence, brain damage, coma, and even death in children exposed to flaking paint chips or dust. The state's lawsuit, filed in 1999, targeted former makers of lead pigment, which had long been used in paint to make it more durable.

The first trial ended in 2002 with a hung jury.

The case went to trial again in the fall of 2005. The jury ruled against three manufacturers and absolved a fourth, Atlantic-Richfield Co. It remains the only court case the lead paint industry has lost.

Though lead-based paint was banned from residential use in the United States in 1978, lawyers for the state say the toxic substance has poisoned tens of thousands of children since the early 1990s in Rhode Island, where a large portion of homes were built before the ban took effect. They said lead paint remains in an estimated 240,000 properties.

The state said the companies continued manufacturing and selling lead-based paint even though they knew it was unsafe. It said that unlike property owners, landlords and taxpayers, the companies have done nothing to deal with the problem.

The companies argued that the number of lead-poisoned children was steadily declining. They said the state never presented any evidence that their products were used in any Rhode Island home or had even been sold in the state.

The state's $2.4 billion cleanup proposal, which the companies are challenging separately, is being reviewed by two public health experts appointed by a judge.

It would require the companies to remove or permanently enclose lead paint from homes built before 1980, two years after lead paint was banned, as well as elementary schools, playgrounds and child care centers. The state says its proposal would take four years, involve 10,000 workers and is the best way to prevent children from being poisoned by lead in the future.

There have been efforts around the country to sue lead paint makers, but so far no other case has been successful. Several suits are still pending, including in Ohio and California. The top courts in New Jersey and Missouri last year rejected public nuisance lawsuits against the companies, while a jury in Milwaukee in November ruled in favor of NL Industries in a suit brought by a poisoned child. (AP)

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

Thermo Fisher Scientific buys RNAi company

Thermo Fisher Scientific Inc., a Waltham company that provides tools and services to researchers in such fields as the pharmaceuticals and biotech industries, announced today that it has acquired a firm specializing in RNA interference.

Terms of the acquisition for Open Biosystems Inc. were not disclosed. Thermo Fisher Scientific, which has annual revenues of about $10 billion, said Open Biosystems had sales last year of about $14 million.

Thermo Fisher Scientific said in a press release: "RNA interference is a method for blocking, or 'silencing,' the expression of genes to study their function and to develop therapies targeting genes that may cause disease. Open Biosystems, which is based in Huntsville, Alabama, specializes in short-hairpin RNA (shRNA) and viral-vector systems for delivering shRNA into living cells."

In a statement, Thermo Fisher Scientific president and chief executive Marijn E. Dekkers added: "The acquisition of Open Biosystems further strengthens our market-leading position in synthetic RNAi products with highly complementary technologies based on advanced shRNA. This combination brings together leading technologies for analyzing gene function, allowing us to create a powerful tool set for our customers who are performing cutting-edge life science research."

Open Biosystems will be integrated into Thermo Fisher's Analytical Technologies Segment, the company said.
(By Chris Reidy, Globe staff)

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

CVS/Caremark is nation's fourth largest retailer

CVS Caremark Corp. of Rhode Island ranked as the country's fourth largest retailer, thanks to CVS's acquisition of Caremark, Stores magazine said today.

Stores is published by the communications unit of the National Retail Federation, a trade group of merchants, and every year, the magazine compiles a Top 100 retailers list that ranks chains by revenues.

According to the Stores list, CVS Caremark had 2007 revenues of just over $76 billion; CVS, which acquired prescription drug benefits manager Caremark Rx Inc., ranked ninth on the previous year's list, Stores said.

CVS Caremark was only slightly behind the second and third largest retailers - the Ohio-based food retailer Kroger Co., with $79.2 billion in revenues, and Home Depot Inc. of Georgia, with about $77.4 billion in revenues, Stores said.

At the 10th spot on the list, with about $44 billion in 2007 revenues, was Supervalu Inc., the Minnesota-based parent of Shaw's Supermarkets Inc. of West Bridgewater, which has a big presence in the Greater Boston market.

Staples Inc., the office supplies retailer headquartered in Framingham, came in 19th on the list with about $19.4 billion in annual revenues. Staples could move even higher next year. Staples recently won its battle to buy Corporate Express NV. The two companies have combined annual revenues of $27 billion, Staples has said - $27 billion would have been good for 13th place on this year's list of top retailers.

TJX Cos., the Framingham-based operator of such chains as T.J. Maxx and Marshalls, ranked 20th on this year's list, with just over $18.6 billion in revenues, according to Stores magazine.

Holding the top spot once again on the retailers list was Wal-Mart Stores Inc., the Arkansas behemoth with just under $379 billion in 2007 revenues, Stores said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:09 AM | Comments (0)

Epix resubmits drug application

EPIX Pharmaceuticals Inc. of Lexington announced today that it has resubmitted a new drug application to the Food and Drug Administration for Vasovist, an imaging agent for diagnosing vascular disease.

The biopharmaceutical company, which expressed the hope that Vasovist will gain US approval by the end of the year, noted in its press release that Vasovist has been approved for marketing in 33 countries, including member states of the European Union, Switzerland, Turkey, Australia, and Canada.

Nearly two years ago, the FDA denied approval for Vasovist, and Epix said at the time that the FDA had suggested that additional testing was needed.

In a statement included in today's press release, Epix chief executive Michael G. Kauffman said: "Throughout the appeal process for Vasovist, we worked closely with the FDA, and the resubmission is a culmination of the work done by our team at Epix. We remain hopeful that we will achieve approval for Vasovist by the end of 2008 and are focused on executing our strategy to monetize our interest in this valuable asset."

Epix describes Vasovist as an injectable intravascular contrast agent designed to provide improved imaging of the vascular system through magnetic resonance angiography imaging, or MRA.

To read additional coverage about Vasovist, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:10 AM | Comments (0)