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September 30, 2010
The Warren Group will publish REBA News
The Real Estate Bar Association for Massachusetts, or REBA, said that the Warren Group, a Boston-based media and real estate information company, will now publish its newspaper, REBA News.
REBA is the third largest bar association in Massachusetts and one dedicated to the interests of lawyers practicing in all real estate-related and transactional fields in the Bay State. REBA said it will retain editorial content over the monthly publication.
Under a licensing arrangement, the Warren Group will take over the operations of REBA News, which is distributed to the association's roughly 2,500 members.
The newspaper was previously published by Dolan Media, REBA said.
In a statement, Tom Moriarty, president of the Real Estate Bar Association, commented on the new arrangement with the Warren Group.
"We see this as a desirable way to improve REBA News, while showcasing the association to a broader audience," Moriarty said.
The Warren Group publishes Banker & Tradesman. It also produces publications for the Massachusetts Bankers Association, the Greater Boston Real Estate Board, the Family Business Association, and the Homebuilders Association of Massachusetts, among others.
The press release added that the addition of REBA News "expands the Warren Group's base of publications and products in the legal field. In January, the Warren Group acquired the publishing rights to Massachusetts Lawyers Journal, the largest circulation legal newspaper in Massachusetts and the official newspaper of the Massachusetts Bar Association."
Posted by globebusiness at 2:05 PM | Comments (0)
SEC charges two former State Street employees
Federal regulators today charged two former employees at State Street Corp. with misleading investors about their exposure to subprime investments.
The Securities and Exchange Commission alleged that the employees, John P. Flannery and James D. Hopkins, marketed State Street's Limited Duration Bond Fund as an "enhanced cash" investment strategy -- a portfolio as safe as a money market fund.
But by 2007, the fund was almost entirely invested in subprime residential mortgage-backed securities and derivatives. However, State Street only told certain investors of the mounting risks in the fund amid the credit crisis.
The Boston financial services giant would ultimately settle charges with the SEC over the matter and pay out more than $663 million to investors and regulators, as previously reported.
In a statement, State Street said it "has resolved this matter both in terms of addressing client concerns as well as settling with the SEC and will not comment on the SEC's separate investigations into individuals who are no longer with the firm."
Flannery's attorney, Mark W. Pearlstein, said his client denied wrongdoing and would be vindicated at trial. He said the evidence in the case "will demonstrate that Mr. Flannery acted in complete good faith throughout his period of employment at State Street Global Advisors." He said the client letters in question were all approved by State Street lawyers.
"It is simply unfair and unjust that the SEC has chosen to bring claims against Mr. Flannery when he believed that the letters were accurate and he followed the advice of the company's lawyers,'' Pearlstein said.
Hopkins's lawyer, Jack Sylvia, said, “Mr. Hopkins is understandably disappointed that the SEC has chosen to commence this administrative action. He is justifiably proud of his distinguished 34-year career built on personal integrity and the highest ethical standards and fully expects to be exonerated once the true facts are presented.”
Posted by globebusiness at 1:51 PM | Comments (0)
CRA International 3Q net income falls 21 percent
The consulting firm CRA International Inc. said its third-quarter net income fell 21 percent on a mix of lower revenue and restructuring and other charges.
The Boston company does business under the trade name Charles River Associates, providing management, economic and financial consulting.
CRA reported net income of $2.1 million, or 19 cents per share, for the three months ended Sept., down from $2.6 million, or 24 cents per share, a year ago.
Revenue fell 5 percent to $84.6 million from $89.3 million. Excluding charges, the company said it earned 30 cents per share. Analysts polled by Thomson Reuters expected net income of 30 cents per share on $84.2 million in revenue. Its shares rose 52 cents, or 3 percent, to $17.86 in midday trading.
Posted by globebusiness at 12:07 PM | Comments (0)
Target to open Oct. 10 at South Shore Plaza
Target will officially open an anchor store at South Shore Plaza in Braintree on Sunday Oct. 10, the mall's operator said.
The mall's operator is Simon Property Group. The Target is set to open in the mall's new wing, which also features a Nordstrom anchor store. The Nordstrom store opened in March.
Having a Target and a Nordstorm complement the mall's existing store line-up truly validates "South Shore Plaza as a one-stop regional retail destination for shoppers of all ages and occasions,” mall manager Judy Tullius said in a statement.
Plans to add a Target store to South Shore Plaza were initially disclosed in the spring of 2009.
Posted by globebusiness at 11:30 AM | Comments (0)
Globe to offer two websites: one free, one pay
The Boston Globe next year will split its digital news brands into two distinct websites, keeping Boston.com free while establishing a subscription-only pay site, BostonGlobe.com, which will feature all the content produced by the newspaper's journalists, publisher Christopher M. Mayer said today.
The change, scheduled to take place during the second half of 2011, is aimed at building an audience of paid subscribers online, a strategy that newspapers across the country increasingly are moving towards. With this approach, the company also aims to maintain high traffic to Boston.com, one of the nation’s largest regional news sites and a site that generates revenue from advertising.
Boston.com will continue its focus on being a "one-stop source for all things Boston" that offers breaking news, sports, and weather, from a variety of sources, as well as classified advertising, social networking, and information about travel, restaurants and entertainment, Globe officials said. Boston.com's audience will have limited access to journalism that appears in the newspaper, but will have wide-ranging access to content the Globe’s newsroom produces throughout the day for the website.
BostonGlobe.com, designed to closely approximate the experience of reading the paper's print version, will contain all the stories and other content from the day's paper as well as exclusive reports, in-depth news, analysis, commentary, photos and graphics, plus video and interactive features.
"Our research shows that Boston.com currently attracts several different types of users. Some are readers whose main interest is breaking news and things to do, while others want access to the entirety of The Boston Globe,” Mayer said. “These two distinct sites will allow us to serve both types of readers with maximum effectiveness, while continuing to provide advertisers the large engaged audience they have come to expect from Boston.com.”
Subscribers to the Globe newspaper will have access to BostonGlobe.com as part of their subscription at no additional charge. The cost of a digital-only subscription has yet to be determined.
The paper is also developing a range of Globe-branded digital products for smartphones, tablets and other devices.
"We want to deliver our content when people want it, where people want it and how people want it," Mayer said. "Two brands create exciting opportunities for us."
Newspapers are launching paid websites as they seek new sources of revenue in the face of dwindling print circulation and advertising. While digital advertising is growing rapidly, it does not yet generate enough money to support the costs of extensive news gathering operations. As a result, publishers across the United States have dramatically cut the size of newsrooms in recent years.
The Globe is the latest newspaper to announce or launch a pay system, although its "two brands" model appears to be the first of its kind. The Wall Street Journal, which has long charged for its online version, allows readers free access to a limited number of articles, but requires a subscription for most content. Gannett Co., the nation's largest newspaper publisher, is experimenting with online pay systems at its papers in Tallahassee, Fla., Greenville, S.C., and St. George, Utah.
In Massachusetts, the Worcester Telegram & Gazette, which is also owned by the Globe's parent, The New York Times Co., last month introduced a so-called metered model, in which print subscribers get free, unlimited access to the website, but non-subscribers are limited to 10 staff-produced articles a month. After that, they must pay a fee of $1 for a day's access, or $14.95 a month.
Earlier this year, the New Bedford Standard Times implemented a similar model for its website. Meanwhile, the New York Times plans to adopt a metered model next year, although it has yet to disclose details.
The Globe considered those and other pay models before settling on the two-brands approach, Mayer said. He said the paper was in a unique position since Boston.com, started 15 years ago, had established a separate brand identity, in addition to its affiliation with the Globe. Today Boston.com attracts about 5 million unique visitors a month and is ranked by Nielsen NetRatings as the nation's eighth largest newspaper website.
Market research, meanwhile, showed Boston.com attracts two distinct audiences: casual and occasional visitors interested in quickly accessing listings, classifieds, and specific articles; along with committed readers who immerse themselves in stories produced by Globe journalists for the newspaper. That second group, Mayer believes, will be willing to pay for more extensive stories and other information.
Some Globe content, such as breaking news, will remain on Boston.com, but the precise mix has yet to be decided, Mayer said. Boston.com will also try to expand the ease and range of goods and services people can buy directly through the site. BostonGlobe.com, with the goal of creating a "lean-back experience" for readers, will have a simpler, newspaper-like design with less intrusive ads, he said.
At the same time, the two sites will allow advertisers to target different audiences, Mayer said. 'If you want to expand market share," he said, "you expand the product base."
The Globe, like many newspapers, has struggled in recent years as more readers and advertisers have moved from print to online. Last year, with the national recession accelerating the decline in ad revenues, and the Globe losing millions of dollars, the Times Co. threatened to close the paper unless unions agreed to deep concessions, which they eventually accepted. Compensation for Globe managers was also reduced.
Since then, the financial situation has stabilized. Ultimately, said Mayer, the goal of the Globe's pay system is to support a news operation that has won 20 Pulitzer Prizes. "Our objective is to continue to provide quality journalism," he said.
Read the press release from The Boston Globe on the changes.
Posted by globebusiness at 11:06 AM | Comments (0)
Bans alone don't stop all texting motorists
While more state laws exist today to ban texting while driving, 35 percent of mobile phone users continue to text behind the wheel, up from 26 percent in 2009, according to a new survey.
The survey of nearly 5,000 US consumers was commissioned by Vlingo Corp., a Cambridge company that specializes in voice-to-text technology for smartphones. One Vlingo application lets a smartphone user text by talking and hear text messages spoken out loud.
Vlingo released the survey results in a press release as a new Massachusetts law goes into effect that bans texting while driving.
The survey found that smartphone users between the ages of 20 to 29 years old had the highest percentage - 62 percent - of offenders admitting to texting while driving, Vlingo said.
"We've conducted this survey three years in a row, and each year despite the growing awareness of distracted driving, people continue to endanger themselves and their passengers by typing and reading messages behind the wheel," Vlingo president and chief executive Dave Grannan said in a statement. "It is clear from our survey and a recent report published by the Highway Loss Data Institute, 'Texting Laws and Collision Claim Frequencies,' that banning texting while driving does not automatically make roads safer; we're also going to need a technology solution, which is where Vlingo is focused."
Posted by globebusiness at 10:26 AM | Comments (0)
R2-D2 smartphone is now available in the Hub
Verizon Wireless said that today marks the official launch of the Droid R2-D2, a limited edition smartphone from Motorola that marks the 30th anniversary of "Star Wars."
The Verizon Wireless store at 340 Washington St. in Boston is the only store in New England selling this limited edition device, though the device will also be available online at www.verizonwireless.com, the company said. Among the smartphone's Star Wars-themed features are special Star Wars inspired graphics and R2-D2 ringtones.
The DROID R2-D2 device by Motorola is available for $249 after a $100 mail-in rebate with a new two-year customer agreement, said Verizon Wireless, which provided the image with this post.
Posted by globebusiness at 9:43 AM | Comments (0)
Communispace taps Mechanica
Communispace has engaged Mechanica as its marketing agency of record, Newburyport-based Mechanica said.
Headquartered in Watertown, Communispace describes itself on its website as a firm specializing in creating online communities that connect brands to their customers.
In a press release, Mechanica said it is "responsible for research, strategy, brand identity, social media, user experience, and the creation and launch of a highly dynamic Web experience designed to introduce prospects to the benefits of Communispace’s communities."
Billings are not being disclosed.
Mechanica said its roster of clients currently includes Saucony, Kronos, Fallon Community Health Plan, Symantec, and Tribe Mediterranean Foods.
Posted by globebusiness at 9:03 AM | Comments (0)
Axcelis CFO plans to retire next year
Axcelis Technologies Inc., a Beverly company that semiconductor manufacturing equipment that prepares silicon wafers to be turned into microchips, said that its chief financial officer, Stephen Bassett, will retire March 31.
In a press release, Axcelis said it has initiated a search for his successor. Bassett joined Axcelis in 2003.
In a statement, company chairman and chief executive Mary Puma said: "Steve has been a valuable member of the Axcelis leadership team over the last seven years. He has been an asset not only in leading the financial function, but in his many contributions to improving the financial health of the business overall."
Posted by globebusiness at 8:48 AM | Comments (0)
Gilman Clark, new IP law firm, launches
Two veteran intellectual property attorneys said they have launched their own Boston-based boutique law firm, Gilman Clark LLC, which will focus on serving small to mid-sized high-tech companies.
Bob Gilman and Thomas (T.J.) Clark, former attorneys at Mintz Levin, will lead the new firm, which has its offices at 176 Franklin St.
Initial clients include Pulse Trading, a national brokerage firm, and Nextslide Imaging, a medical diagnostic company, the new firm said in a press release.
Posted by globebusiness at 8:29 AM | Comments (0)
Dyax signs contract for DX-88 in Japan
CAMBRIDGE -- Dyax Corp. said it signed a deal with CMIC Co. to develop and sell the genetic disorder drug DX-88 in Japan.
The drug was approved in December in the United States and is sold as Kalbitor. It treats hereditary angioedema, a potentially fatal genetic disorder involving a deficiency of a certain type of protein in blood plasma.
Under the deal, Dyax will receive $4 million upfront and $102 million in future development and sales milestones for DX-88 in hereditary angioedema and other angioedema uses.
CMIC is solely responsible for all costs associated with development, regulatory activities, and sales of DX-88 for all angioedema indications in Japan.
Posted by globebusiness at 7:52 AM | Comments (0)
AVEO, Merck end collaboration on experimental drug
AVEO Pharmaceuticals Inc. said it has regained worldwide rights to a drug candidate that has the potential to treat such diseases as non-small cell lung cancer.
Cambridge-based AVEO had been collaborating with drug giant Merck to develop the drug candidate, known as AV-299. Now AVEO will go it alone on AV-299.
AVEO's press release included a statement from David Nicholson, senior vice president and head of worldwide licensing and knowledge management at Merck.
"Merck is pleased with our history of collaborating with AVEO, and would welcome the opportunity to work with AVEO again in the future," said David Nicholson, Ph.D., senior vice president and head of worldwide licensing and knowledge management at Merck. "The decision to return this program to AVEO is a result of portfolio prioritization."
In June, AVEO initiated a Phase 2 clinical trial evaluating AV-299 in combination with gefitinib versus gefitinib monotherapy in patients with non-small cell lung cancer, AVEO's press release noted. "In conjunction with the Phase 2 trial initiation, AVEO received an $8.5 million milestone payment from Merck."
Posted by globebusiness at 7:26 AM | Comments (0)
Today in Globe Business
Liberty Mutual backs off $1.2 billion IPO
Liberty Mutual Group yesterday postponed what would have been the largest initial public offering in the stock market this year, a $1.2 billion stock sale by its biggest insurance unit, as investors balked at the price and terms of the offering.
The sale of stock in Liberty Mutual Agency Corp. had been expected to hit the public market today. But Liberty said it would delay the sale indefinitely, blaming economic uncertainty, market volatility, and weak values for insurance stocks for its decision to pull the IPO.
Market analysts instead suggested that, at an estimated range of $18 to $20 a share, Liberty Mutual and its investment bankers had overpriced the offering. They also said the fact that Liberty Mutual Group would have retained about 80 percent of the unit’s stock and nearly 98 percent of its voting rights also dissuaded investors.
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A case entangled in weeds and vines
It began as a cordial relationship in one of the region’s most exclusive ZIP codes:
When Boston developer Jonathan Davis bought land bordering The Country Club in Brookline for $5.8 million in 2005, the club expressed its desire for a “very friendly and neighborly’’ rapport with the prominent businessman.
That did not last.
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Hub finance adviser faces SEC fraud charge
Federal regulators charged a Boston investment adviser with fraud yesterday for allegedly misleading customers into moving $100 million in assets from a brokerage where he previously worked to his own new financial firm.
Benjamin Lee Grant was a broker with Wedbush Morgan Securities until September 2005, according to the Securities and Exchange Commission. Days after quitting the firm, he wrote to about 300 of his clients and urged them to move their accounts to his Sage Advisory Group. He told them the investment firm managing their money — First Wilshire Securities Management Inc. — no longer wanted to do business through Wedbush.
But that wasn’t true, the SEC said; First Wilshire, based in Pasadena, Calif., had made no such decision. Grant also lied to clients, the SEC alleged, when he said First Wilshire wanted them to switch their accounts from Wedbush to a discount broker, Charles Schwab & Co.
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TECH LAB: New apps, gadgets give chronic texters a way to work around ban
I’ve been sending a lot of cellphone text messages lately, mainly to myself. Call it research.
The new Massachusetts ban on texting while driving may save lives, although I have my doubts. But it certainly provides an economic stimulus for makers of cellphone software and accessories that are designed to keep our eyes on the road and hands on the wheel.
Some applications block the use of your phone while driving. Others let you keep right on texting, by reading the messages out loud and even letting you reply by talking, rather than by clicking.
Posted by globebusiness at 6:22 AM | Comments (0)
September 29, 2010
Rosengren: Do more to lower unemployment
The Federal Reserve should do more to lower unemployment and be willing to take unconventional steps, such as buying government securities, to generate faster economic growth, said Eric Rosengren, president of the Boston Federal Reserve Bank of Boston.
Rosengren, speaking to economic forecasters today in New York, said the economy continues to struggle because of weak spending by consumers and businesses. Employers, in turn, have been reluctant to hire until they see demand for their products and services pick-up.
Buying US Treasury bills could help increase demand and spending by lowering long-term interests rates, which lower borrowing costs for businesses and consumers, Rosengren said.
"While the economy is growing, it is growing too slowly to significantly reduce unemployment," Rosengren said. "My firm view is that it is important that policy makers be open to implementing policies consistent with achieving full employment."
The US economy has been expanding for about a year, but economic growth has slowed in recent months as federal stimulus spending programs have expired. The national unemployment rate remains stuck near 10 percent.
With a bitterly divided Congress unlikely to approve major new stimulus spending, and the Fed's short-term interest rates already slashed to near zero, policy makers are debating what, if any, additional steps, the central bank should take stimulate the economy. The Fed holds its next interest rate-setting meeting in early November.
During the recession, the Fed conducted widespread purchases of mortgage-backed and government securities, which pushed long-term rates, such as mortgages, to record lows. The Fed ended those purchases as the economy began to recover over the past year.
Now, Fed policy makers are divided on whether to resume those purchases. Some, such as Thomas Hoenig, president of the Kansas City Federal Reserve Bank, have argued that the economy is recovering moderately, and pushing rates too low for too long risks inflating the same kind of bubbles that precipitated the recent recession.
Others, including Rosengren, have said the Fed must continue to stimulate the economy until the unemployment rate retreats significantly.
In today's speech, Rosengren rebutted arguments that unemployment has remained stubbornly high because workers' skills don't match employers' needs. For example, he said, surveys show that businesses are having little trouble finding employees to fill openings demanding specialized skills.
The problem is weak demand, Rosengren said. "If [businesses] were confident that demand would pick up, they would -- and easily could -- hire additional workers," he said.
As a result, Rosengren said, the Fed should pursue policies to stimulate demand.
"I've called this talk, `How Should Monetary Policy Respond to a Slow Recovery,' '' Rosengren said. "My answer to the question is: vigorously, creatively, thoughtfully, and persistently as long as we have options at our disposal. And we do have options."
Posted by globebusiness at 1:26 PM | Comments (0)
More workers skip lunch, poll finds
Possibly because of hard times, the workplace lunch break isn't what it used to be, with a new poll finding that fewer than half of employees manage to take a lunch break.
The online poll of roughly 2,300 workers is from Right Management, the talent and career-management unit of the employment services firm Manpower Inc.
One poll finding: Young employees and senior executives are more likely to lunch than the mid-level middle-age worker. Another finding: The lunch hour isn't necessarily an hour any more. At many companies, lunch breaks can clock in at 30 minutes.
The canny boss, however, would be well advised to encourage the underlings to chow down at mid day, Right Management's press release suggests. That's because lunch can help employees to relieve stress, buck up energy levels, and heighten performance, Right Management said.
"Has the true lunch break become the exception rather than the rule?” Bruce Maxfield, market vice president of Right Management, said in a statement. “We know employees are currently under a great deal of pressure, but skipping lunch or being reluctant to take a break during the work day is not a good way to deal with it. On the contrary, taking time away from one’s desk for lunch may go a long way toward relieving stress and boosting energy.”
Posted by globebusiness at 1:18 PM | Comments (0)
Who, What, Where
Scott Ebner is the new managing director and global head of ETF Product Development at State Street Global Advisors, the investment management business of State Street Corp. Ebner will be based in State Street Global Advisors' London office and responsible for developing, enhancing and launching State Street's exchange traded funds worldwide. Ebner joins State Street Global Advisors from NYSE Euronext, where most recently he was senior vice president and global head of exchange traded products. Boston-based State Street Corp. provides financial services to institutional investors.
John A. Brunjes and Genna N. Garver have joined the corporate and securities practice at the law firm Greenberg Traurig LLP. Brunjes joins the firm's Boston and New York offices as shareholder, and Garver joins the New York office as of counsel. Previously, Brunjes and Garver practiced law in the Connecticut office of Bracewell & Giuliani.
Tyson C. Reed has joined the J.P. Morgan’s Boston office as a managing director and senior private banker. Reed comes from US Trust, Bank of America Private Wealth Management. He will report to Marc A. White Jr., managing director and chief executive for J.P. Morgan’s New England Private Bank.
Ron Greenberg has joined Avid Technology Inc., a Tewksbury company that makes editing equipment, as senior vice president of marketing. Most recently, he was the chief marketing officer and senior vice president of digital media for TouchTunes Interactive Networks Inc.
Posted by globebusiness at 12:06 PM | Comments (0)
Columbia Management signs lease at 225 Franklin
The financial services firm Columbia Management is moving to a Boston office tower at 225 Franklin St., taking 156,000 square feet in one of the largest leases this year.
The firm will occupy six floors in the newly renovated building and expects to make the move in early 2011. The lease will allow the firm to consolidate management offices now split between buildings in Cambridge and Boston.
The lease fills a large void in the local portfolio of landlord Equity Office, which was trying to fill a large hole at 225 Franklin left by the impending departure of the law firm Fish & Richardson, which is moving to Fan Pier.
Columbia Management, recently purchased by Ameriprise Financial from Bank of America, is the eighth largest long-term asset manager in the United States. At 225 Franklin, it will be a neighbor to Bank of America, which is also a large tenant in the building.
Posted by globebusiness at 10:59 AM | Comments (0)
Liberty Mutual postpones unit’s IPO
Liberty Mutual Group said today that it is postponing the initial public offering of stock in Liberty Mutual Agency Corp., saying that the "stalled economic recovery, volatile stock market, and undervalued property and casualty insurance stock prices create an unfavorable environment" for its IPO.
Earlier this month, the Boston-based company said it would try to sell shares in its agent-brokered insurance division for $18 to $20, which looked to make the proposed $1.2 billion public offering one of the largest of 2010.
In today's press release, Liberty Mutual chairman and chief executive Edmund F. Kelly said: "The delay will not impact our business or our day-to-day operations. While we still believe this transaction is a useful step in giving the group additional capital flexibility, we have more than adequate capital to conduct our business successfully."
Liberty Mutual Group is a diversified global insurer and fifth largest property and casualty insurer in the United States based on 2009 direct written premium.
To see some recent Globe coverage of Liberty Mutual, please click here.
Posted by globebusiness at 10:45 AM | Comments (0)
Advisor targeted elderly investors, Galvin charges
The office of Massachusetts Secretary of State William F. Galvin said that it has charged a Cape Cod financial advisor with diverting money from elderly investors to a company she controlled.
The complaint alleges that Carlene B. Veara, then a registered representative in the Hyannis branch of Morgan Stanley Smith Barney LLC, gained power of attorney for a 98-year-old woman in failing health and transferred about $177,000 from the woman's Morgan Stanley Smith Barney assets to a company that Veara controlled, the complaint alleges.
And so far, investigators in Galvin's office have uncovered that about $443,000 was shifted from other Veara clients at Morgan Stanley Smith Barney to Veara's company, the complaint alleges.
An attempt to reach Veara was not immediately successful. Veara's attorney declined to comment.
The complaint notes that Morgan Stanley Smith Barney discharged Veara shortly after the securities division of Galvin's office began an examination of the books in the firm's Hyannis branch office.
Among other things, Galvin's complaint seeks a cease-and-desist order against Veara, compensation to investors, a retroactive revocation of her registration as a broker dealer, and an administrative fine.
Galvin said in a statement, "The charges in this complaint highlight an outrageous abuse of trust that appears to have targeted elderly investors whose goal was to protect retirement savings."
Christy Pollak, a spokeswoman for Morgan Stanley Smith Barney in New York, said the firm "promptly terminated Miss Veara in May 2010, after determining she had violated firm policies, and is fully cooperating with regulators."
Posted by globebusiness at 9:22 AM | Comments (0)
Gilbane to direct regional operations from Boston
Gilbane Building Co., a national construction company, said that it will now direct its growing business in New England from Boston.
New England operations had been previously run out of Gilbane's headquarters in Providence, the company said.
"The shift of operations to Gilbane's offices at 155 Federal St. in downtown Boston reflects a significant increase in business in Massachusetts," and its head count of Bay State employees has grown from 80 to 160 over the last few years, the company said in a press release.
The New England region will be overseen by Ryan E. Hutchins, who has just been appointed senior vice president, Gilbane said. Hutchins had been vice president and Massachusetts district manager.
Posted by globebusiness at 8:49 AM | Comments (0)
Mersana Therapeutics has a new CEO
Mersana Therapeutics, a platform-based cancer therapeutics company, announced the appointment of Nicholas G. Bacopoulos as president and chief executive.
Bacopoulos has been a member of the Cambridge company's board of directors since 2007 and is a former president and chief executive of Aton Pharma Inc. Bacopoulos succeeds Julie A. Olson, who has been appointed to the newly created role of chief technology officer, Mersana Therapeutics said in a press release.
Posted by globebusiness at 8:19 AM | Comments (0)
Ligon will collaborate with Bayer Schering Pharma
Ligon Discovery said it has partnered with Bayer Schering Pharma AG of Germany, which will apply Ligon Discovery's proprietary small molecule microarray screening platform to discover new drug candidates.
Cambridge-based Ligon Discovery identifies drugs in the fields of oncology and coagulation disorders using its proprietary small molecule microarray screening technology
No financial terms of the collaboration were included in Ligon Discovery's press release.
Posted by globebusiness at 7:22 AM | Comments (0)
Today in Globe Business
Housing sales plunge as tax credit ends
It was the worst August in more than two decades for Massachusetts home sales as the state’s housing market continued to adjust to the end of the federal tax credit for home buyers, a Boston real estate tracking firm reported yesterday.
Sales of single-family homes fell nearly 19 percent from a year earlier, while condominium sales dropped 23 percent — the second consecutive month of steep year-over-year declines, according to Warren Group. It was the lowest level of August sales since the firm began tracking such data in 1987.
The Massachusetts Association of Realtors, which follows a slightly narrower swatch of the housing market, reported similar declines.
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LOWELL — In 1979, 10 years after the death of the writer Jack Kerouac, the city of Lowell held its first public event recognizing its native son. Until then, Kerouac’s hometown had done little to honor a man many remembered more as a wayward boozer than a literary figure of historical significance.
The event’s success surprised even its most optimistic supporters.
“So many people showed up, the Fire Department had to seal the doors,’’ recalled Paul Marion, an organizer. “It was an early indication of the potential of Kerouac as a cultural asset.’’
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Fidelity offers a safer plan for college
Parents saving for their children’s college education are apparently so nervous about investing in stocks, bonds, and other investments that some firms are offering them the safest option imaginable: a federally insured savings account at a bank.
Fidelity Investments, the Boston financial services giant, said yesterday it will offer a bank account option in five college savings plans it manages, including the Massachusetts U.Fund College Investing Plan. Fidelity also will offer the option in its other tax-advantaged college savings products, called 529 plans, in New Hampshire, California, Delaware, and Arizona, that it markets directly to customers.
Like most investment firms, Fidelity already offers customers in 529 plans a conservative money market option that is intended to preserve investors’ money. The funds have traditionally been considered as safe as checking accounts.
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Builder says work on apartments to start in spring if city OK's increase
After a seven-year delay, the developer of a 29-story residential complex in Chinatown says construction will begin next spring if the city approves a one-third increase in the number of apartments on the property.
Kensington Investment Co. now wants to build 395 apartments in a pair of towers at the corner of Washington and LaGrange streets, the site of the former Gaiety Theatre. The theater was torn down in 2004 to make way for the development, but Kensington has struggled to secure funding.
In a new filing made public yesterday, the company said approval of the additional apartments — a prior plan called for 300 units — will allow it to “re-enter the financial market with a project tailored to the real estate market of the forthcoming decade.’’
Posted by globebusiness at 5:59 AM | Comments (0)
September 28, 2010
D’Angelo unveils Angus beef line-up
D’Angelo Grilled Sandwiches, the Dedham-based restaurant chain, said it is mounting a social media campaign to help get the word out about some Angus burger subs on its seasonal menu.
Three new premium Angus Burger subs - the BBQ Cheddar, the Cheeseburger Club, and the Mushroom & Swiss - will be available through Dec. 19, D'Angelo's said; a small Angus Burger Sub includes a third of a pound of Angus beef and will retail for $5.79.
Throughout October, D'Angelo's plans to deliver these new items to deserving folks in the region, including firefighters, police officers, and teachers. D’Angelo customers can "nominate people in their lives through Facebook and Twitter to receive a free Angus Burger sub," the chain said.
D’Angelo's is a sister chain of Papa Gino's.
Posted by globebusiness at 1:20 PM | Comments (0)
College savings providers expand options, cut fees
One of the nation's biggest providers of 529 college savings accounts is trying to entice investors seeking more conservative savings options, and a rival is cutting fees by nearly half on one of its biggest 529 plans.
Boston-based Fidelity Investments is introducing a bank deposit option that is FDIC-insured against losses, making it invulnerable to the stock market's whims. An investor choosing that option would gain tax benefits compared with someone saving for college in a regular bank account.
Meanwhile, Vanguard is cutting the management fees it charges clients in its Nevada 529 plan, which is open to investors across the country. Investors in the plan's three age-based options now will pay $2.50 per year for every $1,000 invested, compared with the previous $4.40.
Posted by globebusiness at 12:33 PM | Comments (0)
Toys R Us pop-up store set for Downtown Crossing
Toys "R" Us will soon open a roughly 4,000-square-foot temporary store at Downtown Crossing's Pi Alley Garage, the Boston Redevelopment Authority said today.
Temporary stores, or pop-up stores, are sometimes opened to take advantage of the holiday season.
FAO Schwarz, the toy brand recently acquired by Toys "R" Us, recently disclosed plans to open roughly 10 pop-up stores around the country in time for the holidays. An FAO Schwarz pop-up store is already up and running at the Mall at Chestnut Hill, Toys "R" Us said earlier this month.
Posted by globebusiness at 11:43 AM | Comments (0)
Campanelli, new partner buy nine properties
Campanelli Cos., a Braintree commercial real estate development and construction firm, announced that it has formed a joint venture partnership with Dallas-based TriGate Capital and has acquired eight properties from the GS Portfolio and from Analog Devices.
The collective purchase price for all nine properties was $19.6 million, a Campanelli spokeswoman said. The commercial real estate properties are in Eastern Massachusetts and Southern New Hampshire and in total, they amount to about 573,00 square feet of space.
Among the purchases were 700 and 900 Technology Park Drive in Billerica and 5 and 10 Cornell Place in Wilmington, Campanelli Cos. said.
“During these economic times, our firm has continually looked for ways to capitalize on opportunities as they arise,” Dan DeMarco, a partner at Campanelli Cos. said in a statement. “Our partnership with Tri-Gate Capital will afford us increased flexibility and speed in decision making and completing deals.”
Posted by globebusiness at 11:27 AM | Comments (0)
Investor confidence falls
Global investor confidence fell 4 points from August’s revised reading of 92 to 88 in September, according to a monthly investor confidence index maintained by State Street Global Markets.
In North America, confidence dropped 7.3 points to 87.9 from August’s revised reading of 95.2, said State Street Global Markets, the investment research and trading arm of Boston-based State Street Corp.
The index was developed with the help of Harvard University professor Ken Froot.
“This month’s decline in global investor confidence is somewhat surprising, in light of the meaningful rally in risky assets since the last data release,” Froot said in a statement. “Looking at the numbers more closely, however, we see that the decline is driven largely by North American investors; elsewhere we see a much more upbeat mood. One underlying driver here is the persistent softness observed in the US economy over the summer, which contrasts with the resilience of markets elsewhere such as Australia, Canada, New Zealand and Sweden.”
The graphic with this post was included with State Street Global Markets' press release.
Posted by globebusiness at 10:24 AM | Comments (0)
Advanced Electron Beams has a new CEO
Advanced Electron Beams, a Wilmington-based supplier of compact electron beams for energy efficient manufacturing solutions, said that Richard (Rick) Feldt has been appointed chief executive, effective Oct. 11.
Feldt was previously chief executive of Evergreen Solar, a Marlborough-based manufacturer of solar power products, Advanced Electron Beams said in a press release.
Mitch Tyson has served as chief executive for the last five years; he was recently appointed company chairman. When Feldt takes over as chief executive, Tyson will continue to serve as Advanced Electron Beam's chairman and continue to be actively engaged in shaping the company's strategy, a company spokeswoman said.
Evergreen announced last week that Feldt was leaving Evergreen to take a job at another company. Evergreen said then that it was promoting Michael El-Hillow to the position of president and chief executive.
A Globe story in March noted Feldt received a nearly half-million dollar bonus for 2009, a year in which Evergreen struggled with mounting losses and announced plans to shift a portion of its manufacturing operations to China at some point in 2011.
Posted by globebusiness at 10:01 AM | Comments (0)
Boston Properties to buy Waltham office park
Boston Properties Inc., a real estate investment trust whose local portfolio includes the Prudential Tower, 111 Huntington Ave., and Atlantic Wharf, said it has agreed to buy Bay Colony Corporate Center, a four-building office park in Waltham, in a transaction valued at $185 million.
In a press release, Boston Properties said the purchase price would be $41.1 million in cash and the assumption of $143.9 million of indebtedness.
The closing is scheduled to occur in the fourth quarter of 2010 and is subject to customary closing conditions, the release said.
Posted by globebusiness at 9:26 AM | Comments (0)
Boston Productions is moving to larger offices
Boston Productions Inc., which provides immersive theater experiences for corporate and museum clients, has a 10-year lease for 16,680 square feet of office space at 290 Vanderbilt Ave. in Norwood, said NAI Hunneman, the Boston-based broker involved in the transaction.
The firm will relocate to its new headquarters in November this year from 100 Morse St. in Norwood, said NAI Hunneman, which represented Boston Productions in the transaction.
An NAI Hunneman press release included a statement from Karen Lewko, chief financial officer of Boston Productions, who noted that the firm will double the size of its current space when it moves to its new address.
“The new office and production facilities will allow us to grow and expand not only our physical space but also our creative talent,” Lewko said.
Boston Advisors represented the landlord, Distribution Services of America, in the transaction.
Posted by globebusiness at 9:15 AM | Comments (0)
Generics will eat into hypertension drug sales
Decision Resources, a research and advisory firm for pharmaceutical and health care issues, said it projects that the hypertension drug market will decline as more generic alternatives become available.
Looking at the United States, France, Germany, Italy, Spain, the United Kingdom, and Japan, Decision Resources said it expects the hypertension drug market to decline from $26 billion in 2009 to $23 billion in 2019.
Diovan/Tareg, a drug marketed by Novatis, will "suffer the greatest decline as its sales will decrease more than $1 billion in 2013, following the entry of generic versions of the drug," said Decision Resources.
The firm has offices in Burlington.
Posted by globebusiness at 8:42 AM | Comments (0)
Heels.com taps Akamai
Akamai Technologies Inc., the Cambridge-based provider of Internet content delivery services, said that Heels.com, a Web retailer that sells designer women's shoes, is using Akamai services to accelerate and improve performance of its online shoe store.
The Heels.com site offers video for every shoe it sells.
"The company's database and Web servers are continually stressed by serving real-time data to as many as 22,000 unique visitors per day," Akamai said in a press release.
"In fact, back-end bottlenecks previously led to poor site performance. Pages took up to 30 seconds to load and in some cases, customers could not access pages at all.... Heels.com chose Akamai to address its goals of site performance improvement, a superior online shopping experience, and a reduction in database stress."
The photo with this post was taken from the Heels.com website.
Posted by globebusiness at 7:45 AM | Comments (0)
August home sales drop to lowest level in 2 decades
Sales of Massachusetts single-family homes in August fell to their lowest level in more than two decades as the housing market continued to feel the effects of the expiration of a federal home buyers tax credit, the Warren Group said today.
On a volume basis, 3,659 single-family homes were sold in Massachusetts in August, an 18.5 percent drop from August 2009, said the Warren Group, a Boston firm that tracks local real estate activity. August 2010 was the second consecutive month of year-over-year sales declines.
"This is the first time sales have fallen below 4,000 in the month of August since the Warren Group began tracking data in 1987," the firm added.
Sales of single-family homes edged up from a month ago, when there were 3,590 sales of single-family homes.
"Sales volume in the real estate market remains slow as an after-effect of the expiration of the popular tax credit for home buyers," Warren Group chief executive Timothy M. Warren Jr. said in a statement. "Anxiety and uncertainty in the minds of consumers regarding rising foreclosures, the economy, jobs, and financial markets all played a role in keeping potential home buyers on the sidelines this summer. I'm afraid that the slumping real estate market led the country into the recession and the market's continuing malaise is holding back any kind of strong economic recovery."
The median price of single-family Massachusetts homes rose 3.9 percent to $315,000 in August, up from $303,000 a year earlier and dropped from a month ago when the median price was $320,000, the Warren Group said.
As for August condominium sales in Massachusetts, they fell 23.3 percent from a year earlier, with 1,620 condos selling in August. Condo sales increased slightly from a month earlier. The median selling price for a Massachusetts condo was $298,500 in August 2010, up 8.5 percent from a year ago, the Warren Group said.
The Massachusetts Association of Realtors also issued a report today on the local housing market. The association uses a different method to track sales than the Warren Group does.
Association president Kevin Sears commented on the August sales figures in a statement.
“With median prices continuing to climb year over year and sales slightly increasing from July to August, the market is slowly starting to move in a more positive direction,” Sears said. “While questions about the economy and unemployment remain, the record low interest rates continue to benefit those consumers who are in the market to buy a home now. We can’t forget about the long-term value of home ownership, and the importance for buyers to follow a timeline that is right for them, regardless of the market.”
On sales volumes for single-family homes sold in Massachusetts in August, the association reported an 18.4 percent decrease from the same time last year.
"The median selling price for single-family homes in August was $330,000 an increase of 4.8 percent compared to $315,000 in August 2009," the association said. "This is the 10th straight month of year-over-year price increases."
Posted by globebusiness at 6:02 AM | Comments (0)
Today in Globe Business
Merger could lift airfares in Boston
Southwest Airlines said yesterday that it plans to buy rival AirTran for $1.42 billion, combining two of the nation’s biggest discount carriers in a move that could eventually mean higher ticket prices for some Boston travelers.
The proposed acquisition would reduce competition along overlapping routes; less competition typically leads to higher fares, according to analysts. From Logan International Airport, Southwest and Atlanta-based AirTran compete along the Baltimore route.
“What Southwest is doing is taking out the low-cost carrier,’’ said airline analyst Michael Friedman. “You are eliminating the guy who prices at the bottom.’’
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Long before the Red Sox reached the brink of elimination from postseason play, there was a sign the end was near: A parking spot in lots near Fenway Park was only $20, discounted from the usual $35 or more.
“I’ve never, ever, seen that before,’’ said season ticket holder Warren Downie before a recent game.
As the prospects of even a wild-card berth in the playoffs slipped away in the last month, revenue for restaurants, shops, and vendors around Fenway also slumped. For each postseason game not played, businesses collectively lose an estimated $2.5 million, according to the Greater Boston Convention & Visitors Bureau. For World Series games, it’s double that.
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Debt forces Harvard back to the drawing board
It is no secret that Harvard University ran into a short-term cash crunch when the markets plunged in late 2008 and had to cut costs sharply. But there also has been a longer-term toll: Harvard borrowed heavily to get through that period, and now finds itself grappling with big debt payments and scaling back ambitious plans.
The nation’s wealthiest university doubled its debt load over the last three years, to $6 billion. It spent $204 million to pay down its debt in fiscal 2009, or 40 percent more than the prior year — money that deans would rather have spent on projects and programs. And Harvard is now spending a larger slice of its $3.8 billion operating budget on debt service than its peers.
All of this puts the university’s president, Drew Faust, in the unenviable role of seeing Harvard through much leaner times than her predecessors, who enjoyed large endowment returns for more than two decades.
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BOSTON CAPITAL: Not so bad in Bay State
How bad is it?
I’m talking about the economy, but not the big broad picture of America. I mean the state of things right here in Massachusetts.
A feeble economy is dominating our gubernatorial race, as it is in practically every other statewide political campaign across America. For the moment, put aside the fact that governors and their policies are not the big drivers in state economies. That may not matter much this November.
Governor Deval Patrick acknowledged as much yesterday, talking with reporters about his earlier campaign lead that had fizzled into a statistical dead heat with Republican Charlie Baker in the latest Boston Globe poll.
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Harvard Pilgrim cancels Medicare Advantage plan
Harvard Pilgrim Health Care has notified customers that it will drop its Medicare Advantage health insurance program at the end of the year, forcing 22,000 senior citizens in Massachusetts, New Hampshire, and Maine to seek alternative supplemental coverage.
The decision by Wellesley-based Harvard Pilgrim, the state’s second-largest health insurer, was prompted by a freeze in federal reimbursements and a new requirement that insurers offering the kind of product sold by Harvard Pilgrim — a Medicare Advantage private fee for service plan — form a contracted network of doctors who agree to participate for a negotiated amount of money. Under current rules, patients can seek care from any doctor.
“We became concerned by the long-term viability of Medicare Advantage programs in general,’’ said Lynn Bowman, vice president of customer service at Harvard Pilgrim’s office in Quincy. “We know that cuts in Medicare are being used to fund national health care reform. And we also had concerns about our ability to build a network of health care providers that would meet the needs of our seniors.’’
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Trio plead not guilty in mortgage fraud case
A Dorchester developer and two Virginia-based associates pleaded not guilty in federal court yesterday to charges of wire fraud and bank fraud in connection with an alleged mortgage scheme that led to a string of abandoned and foreclosed properties in some of Boston’s poorest neighborhoods.
Developer Michael David Scott, 44, of Mansfield, and Jerrold Fowler, 26, and Thursa Raetz, 35, both of Norfolk, Va., are accused of recruiting “straw buyers’’ to purchase condominiums in Dorchester and Roxbury, even though the borrowers did not plan to live in the properties and could not afford the mortgage payments.
Scott also pleaded not guilty to 22 counts of money laundering related to the case that involved at least 12 buildings and 42 condos.
Posted by globebusiness at 5:58 AM | Comments (0)
September 27, 2010
Affiliated Managers Group buys into Trilogy Global
Affiliated Managers Group Inc. said today it will acquire a majority interest in Trilogy Global Advisors, a money manager based in the US, with about 70 percent of its clients outside the US.
Affiliated Managers, which is based in Boston, and Trilogy, based in New York and Florida, did not disclose financial terms of the transaction. The companies said senior members of Trilogy's 21-person team of investment professionals will continue to hold "a substantial equity interest" in their firm and direct day-to-day operations after the transaction closes.
All members of Trilogy's management team will remain with the firm, and senior partners have reached long-term employment agreements with Affiliated Managers.
Trilogy had about $12 billion in assets under management as of June 30 for institutional and individual clients across the U.S., Europe, and the Asia Pacific region. Affiliated Managers' affiliates managed a total of about $261 billion at the end of June.
Sean Healey, Affiliated Managers' president and CEO, said the deal "extends our position in outstanding global and emerging markets products, which will account for nearly 40 percent of our earnings upon the closing of the transaction."
The transaction is the latest by Affiliated Managers to enhance its international offerings and deepen its client base in overseas markets.
In February, for example, Affiliated Managers announced plans to acquire a majority interest in Artemis Investment Management Ltd., a United Kingdom mutual fund manager. Terms weren't disclosed. The next week, Affiliated Managers said it was buying Pantheon Ventures, a London-based private equity investment manager, for about $775 million in cash, from Northwestern Mutual Life Insurance Co.
Posted by globebusiness at 1:43 PM | Comments (0)
Southwest Airlines to buy AirTran for $1.42 billion
Southwest Airlines said Monday it will buy AirTran for about $1.42 billion. The move will put Southwest in head-to-head competition with Delta Air Lines in Delta's home base of Atlanta.
The buyout, funded mostly with debt, will also give Southwest a bigger slice of the market in cities like Boston and New York, where it has been expanding.
Southwest, based in Dallas, carries more passengers than any other airline in the U.S. Besides its base in Atlanta, AirTran has hubs in Milwaukee and Orlando.
The announcement continues the airline industry's move to consolidate. Continental Airlines and United Airlines parent UAL Corp. will formally combine at the end of this week and become the world's largest, toppling Delta. Delta claimed that spot when it acquired Northwest Airlines two years ago.
Southwest tried unsuccessfully last year to buy Frontier Airlines out of bankruptcy. Republic Airways Holdings won the auction for Frontier last August, buying the Denver-based carrier for almost $108.8 million.
Southwest's acquisition of AirTran is expected to close in the first half of next year. It requires both regulatory and shareholder approval. The airlines expect to fully blend their operations in 2012.
Based on Southwest Airlines' closing share price on Friday, the deal is worth $7.69 per AirTran share. That's a 69 percent premium over its closing price of $4.55. In premarket trading, AirTran shares jumped 61 percent to $7.31, while Southwest shares rose 12 cents to $12.40.
Southwest will pay about $670 million with available cash. Southwest will assume $2 billion in AirTran debt.
Southwest and AirTran said the new airline will operate from more than 100 different airports and serve more than 100 million customers.
Southwest Airlines proposed acquisition of low-cost rival AirTran would give Southwest a bigger share of flights but it may not have a big impact on Boston passengers.
In Boston, where AirTran and Southwest Airlines are the sixth and seventh biggest carriers in terms of passengers, respectively, the combined airline still wouldn't rank among the top five largest carriers flying out of Logan International Airport. Combined, the airlines would account for 9.4 percent of passenger traffic.
The top airline at Logan is JetBlue Airways, which has an 18 percent share of traffic.
Southwest and AirTran only have one overlapping route out of Logan to Baltimore, which means there should not be major scheduling changes in the near future.
Matt Brelis, a spokesman for Massachusetts Port Authority, said it was too early too comment on the deal.
Southwest officials stated that "our plan is to integrate AirTran into Southwest within two years."
Southwest, which began service at Logan in August 2009, has 25 daily flights to six destinations to Baltimore, Chicago Midway, Denver, Philadelphia, Phoenix and St. Louis.
AirTrain, which launched service at Logan in Sept. 1997, has 19 daily flights out of Logan to five destinations to Akron-Canton, Ohio; Atlanta, Baltimore, Milwaukee and Newport News-Williamsburg, Virginia.
Once the merger takes place, both airlines will be located at Terminal E at Logan. In the meantime, both airlines will continue to operate independently and there will be no immediate changes in schedules, according to Phil Orlandella, director of media relations at Logan.
The AP file photo shows an AirTran flight leaving Boston's Logan International Airport in 2007.
Posted by globebusiness at 1:00 PM | Comments (0)
State unemployment systems back online after Sunday crash
The Massachusetts system that allows residents to file for unemployment checks is back online today after a computer glitch crashed it on Sunday, the busiest day of the week for the unemployment "certification" claims, that enable people to get their unemployment benefits.
"We had a hardware failure over the weekend that shut the system down all day Sunday, but now we're back online," said John Glennon, the chief information officer in the state's executive office of labor and workforce development.
Glennon said the unemployment office is experiencing high volumes today because of the Sunday shutdown, "but people should keep trying, because it is up and running."
To help deal with the backlog, the state will keep the system operating for three additional hours every weekday night this week, extending the hours from the normal 7 p.m. closing time to 10 p.m.
Posted by globebusiness at 12:14 PM | Comments (0)
Mass. to host energy officials
Hundreds of public and private energy experts are scheduled to be in Boston this week for the annual National Association of State Energy Officials conference.
The goals of the four-day meeting that starts Tuesday are to hear and share the latest on innovative financing and project implementation, clean energy technologies, and links between energy, environment and transportation priorities.
Massachusetts Energy Secretary Ian Bowles is scheduled to deliver the keynote address.
Bowles said the state is a national leader in energy efficiency and clean energy initiatives.
Posted by globebusiness at 10:56 AM | Comments (0)
FDA panel backs Hologic 3D mammography system
Hologic Inc. said today that a Food and Drug Administration panel of experts has backed the company's new 3-D digital mammography system, moving the company closer to gaining regulatory approval for the breast cancer detection tool.
Hologic said the FDA panel unanimously voted that the new Selenia Digital Breast Tomosynthesis System is safe and effective in detecting breast cancer, and its benefits outweigh possible risks including increased exposure to radiation.
The company said it will now work with the Food and Drug Administration on the next steps for the system's potential approval. The FDA is not required to follow the advice of its panels, but normally does.
Current mammogram systems generate two-dimensional images. Hologic's new system, which is available in certain countries in Europe, Latin America and Asia, is designed to increase accuracy when screening women for the presence of cancerous tissue, and allow for a more precise characterization of suspicious lesions.
In morning trading, shares slipped 60 cents, or 3.6 percent, to $16.06.
Posted by globebusiness at 10:22 AM | Comments (0)
Today in Globe Business
In sour economy, emotions and complaints high
It is another side effect of the lagging economy: Consumers are complaining more.
The state’s Office of Consumer Affairs and Business Regulation received more than 54,000 complaints last year, and the number is on track to break that record this year. Since 2007, calls to the state’s consumer hot line have more than doubled.
The agency hears from people upset about all sorts of money matters, from the gas tax to credit card interest rates to finicky cellphone reception. No complaint is too small. One caller reported a moldy bagel. Twice.
“People are much more aware of how they spend their money,’’ said Barbara Anthony, the state’s director for consumer affairs, who oversees five agencies that regulate businesses.
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Reversals on funding slow progress of region’s stem cell researchers
For Leonard Zon, the legal uncertainty has meant losing all the momentum he gained earlier this year.
For Jonathan Garlick, it has put a dark cloud over what he considers his most promising work: developing wound-healing cells to help victims of burns, gum disease, diabetic ulcers, and battlefield injuries.
Massachusetts scientists who work with embryonic stem cells have been on a roller coaster over the last year, first elated when President Obama allowed federal research funding that had been limited during the Bush years, then devastated by an August court injunction that blocked the same funding, and then relieved when that injunction was temporarily lifted earlier this month, allowing the money to flow — for now.
Though the back-and-forth may be common in law, it’s harmful to science, the researchers say, delaying progress now and potentially for years into the future.
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IBM likely to continue snapping up Mass. tech firms
With four acquisitions of local companies in the past three months, and the launch of a major software lab here, IBM Corp. has found a lot to like in Massachusetts. And there’s a good chance that the giant computer firm isn’t ready to put away its checkbook.
“We are an acquisition-friendly company,’’ said Mike Loria, IBM’s vice president of business development. “We are constantly looking.’’
Although IBM searches the entire world for new acquisitions, Massachusetts is a prime hunting ground, thanks to its excellent universities and array of small but sophisticated tech companies. “There’s a lot of incubation that takes place in Massachusetts,’’ said Loria, who’s based in Westford at IBM’s new Mass Lab, the company’s largest software operation in North America.
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Innovation Economy: Growing idea -- robotic farm help
The farmer and the robot can be friends. Charles Grinnell believes every farmer needs a few good robots working his acreage, and this morning Grinnell is expected to say he has wrapped up a $5.3 million first round of funding for his Billerica start-up, Harvest Automation.
The company, which once tested its prototypes in a greenhouse behind Grinnell’s home in Groton, initially had trouble finding financing to develop a robot strong and rugged enough to move potted plants around as they grow in nurseries. Harvest says its first target market will be the largest growers in the $4 billion wholesale ornamental plant market, i.e., the kind of company that grew that ficus tree sitting in the corner of your reception area. These plants get moved a lot from the time they are tiny seedlings to when they head for the marketplace, and Harvest’s robots are designed to take over that manual labor. The company has not yet begun selling the robots to customers yet.
The new funding is the biggest investment so far for Founder Collective of Cambridge, which joins other investors, including Massachusetts Technology Development Corp. Joining a new advisory board Harvest has formed are Colin Angle, chief executive of iRobot, and Mick Mountz, chief executive of Kiva Systems, a Woburn company that makes a robotic order-fulfillment system for warehouses. (Harvest’s chief technology officer is Joe Jones, who led the development of the Roomba robotic vacuum cleaner when he worked at iRobot.)
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User Friendly: Lightweight gear monitors your progress
You might remember Oregon Scientific Inc. for its electronic weather stations and weatherproof radios.
Now the company is selling sleek gadgets to count your heartbeats and footfalls.
Two of them, the Gaiam Fitness Trainer G2 and the Zone Trainer G3, are wrist-worn devices aimed at women. They come with thin bands in juicy colors.
The Fitness Trainer (about $100) tracks heart rate, calories burned, and workout times. To check your heart rate, press your finger to a spot on the watch. And by tapping on the Fitness Trainer’s large-digit LCD screen, you can toggle between the time, heart rate, and calories readouts.
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Posted by globebusiness at 6:07 AM | Comments (0)
September 24, 2010
New ad campaign celebrates Converse’s brand
Converse, the North Andover-based athletic footwear brand, is unveiling a new fall brand campaign titled "The Procession," which seeks to pay homage to the brand's 102-year-old past as well as its present and its future.
The ad features the new Star Player Evo shoe. Julius "Dr. J" Erving; Carlos Arroyo of the Miami Heat; musicians Jim Jones and Doug E Fresh; legendary ball-handler God Shammgod and Harlem streetball player Adrian "A-Butta" Walton are among those making cameos. The sound track is "Hello Operator" by alternative rock band The White Stripes, Converse said.
The ad is designed to show the "brand's deep connection to sport, music, and culture," Converse said.
In addition to the ad, each of the stars are featured in a series of online vignettes.
In a statement, Converse chief marketing officer Geoff Cottrill said, "The new Converse campaign is the perfect summary of who we are as a brand."
Converse is now a subsidiary of sneaker giant Nike Inc. The photo from the ad that appears with this post was provided by Converse.
Posted by globebusiness at 1:39 PM | Comments (0)
Vertex debt offering grows to $400m
CAMBRIDGE -- Vertex Pharmaceuticals Inc. said the underwriter of its recently announced debt offering has exercised its option to purchase an additional $25 million in notes.
That brings the total principal amount of notes sold up to $400 million. The 3.35 percent convertible senior subordinated notes are due in 2015. BofA Merrill Lynch is the sole underwriter.
Posted by globebusiness at 1:03 PM | Comments (0)
Alnylam plans to cut workforce
Alnylam Pharmaceuticals Inc., a Cambridge company developing drugs based on RNA interference, said it intends to reduce its workforce by 25 percent to 30 percent as it looks to save about $25 million in 2011 cash operating expenses.
As of June 30, Alnylam said it had 182 employees in its Cambridge facility.
"There will be one-time charges related to the personnel reductions of approximately $3 million, the majority of which will be incurred in the third quarter of 2010," the company said in a press release.
The corporate restructuring, with its workforce reduction, is the result of "completing the fifth and final planned year" of a drug collaboration with the drug maker Novartis, Alnylam said.
Alnylam’s RNAi therapeutics partnership with Novartis began in 2005. Novartis has notified Alnylam that Novartis has declined its option to extend its partnership with Alnylam beyond its final year, Alnylam said.
Posted by globebusiness at 12:37 PM | Comments (0)
Timberland reports on Clinton Global Initiative
Timberland Co., the outdoor footwear and apparel brand that incorporates social and environmental messages into its marketing efforts, said it is providing consumers with an inside look into this week's annual meeting of the Clinton Global Initiative, which seeks to propose practical solutions to global issues.
New Hampshire-based Timberland said it dispatched correspondent Olivia Zaleski and documentary filmmaker Gabriel London to file reports that now appear on Timberland blogs and Youtube.
This is the second time Timberland has engaged in such an effort. Last year, it dispatched Zaleski and London to United Nations Climate Change Summit.
“CGI (the Clinton Global Initiative) is an inspiring, action-oriented meeting, and we want to share the excitement and real progress generated at this event with people across the country,” Timberland chief brand officer Mike Harrison said in a statement. “Timberland will continue to engage in educating people on key issues affecting our world and environment, and we hope to motivate consumers to turn their own ideas into action.”
(The image that tops this post was provided by Timberland.)
Posted by globebusiness at 11:11 AM | Comments (0)
45 bucks can buy a lot of Papa Gino's pizza
Papa Gino's, the Dedham-based restaurant chain, said it is offering a $6 pizza promotion that will be supported by a media blitz of advertising.
With the full-price purchase of any large or extra-large pizza, a customer can buy an additional large cheese pizza for $6, with a limit of five $6 pizzas per customer, the chain said. Full-price large pizzas at Papa Gino's generally range from $12 to $18 so for about $45, a customer could likely buy enough chow for a kid's birthday party or a football tail-gate outing.
The promotion is available at all participating Papa Gino’s through Jan. 2, the chain said, and radio, TV, and billboard ads will get the word out. The marketing campaign was developed by Boston ad agency Connelly Partners.
With hard times putting consumers in a penny pinching mood, many quick-service restaurant chains have resorted to dollar menus and value meals in an effort to get consumers to pry open their wallets.
In a statement, Papa Gino's senior vice president Michael McManama said: “Papa Gino’s understands that the New England consumer continues to look for quality and value when deciding their dining out purchases. We want our pizza to be served at team dinners, family nights in or out and our new promotion presents tremendous value for families throughout New England.”
Posted by globebusiness at 10:24 AM | Comments (0)
RI home sales drop by 29 percent in August
The expiration of the federal home buyers tax credit continues to have a negative affect on the Rhode Island housing market.
The state Realtors association said Friday that even though sales of single-family homes last month rose slightly when compared to July, they were down 29 percent when compared to August 2009. The median price in August when compared to the same month last year remained stable.
There was also a lower number of distressed sales last month, with short sales and foreclosures down 47 percent from August 2009. Condominium and multifamily home sales were also down, although prices were up when compared to the year-ago period. Association President Karl Martone says he expects to market to return "to a more normal pace" in the fall.
Posted by globebusiness at 8:54 AM | Comments (0)
John Hancock Funds website wins industry award
John Hancock Funds said it has received an award for a website it developed for the financial advisors who sell its wealth management products to consumers.
The Boston-based mutual fund business unit of John Hancock Financial said the website was recognized as the "Best of Industry" website in the mutual funds category by the Web Marketing Association.
The association's judges said of the Hancock website: "Tools are quick and easy to get to, and the simplicity of design and integration were well thought through. Design elements are consistent and clean while reinforcing the overall structure."
Posted by globebusiness at 8:30 AM | Comments (0)
TripAdvisor unveils new feature
TripAdvisor, a Newton-based travel review website, announced the roll out of Reviews at a Glance, a new feature that summarizes the most frequent review phrases for hotels with a large number of reviews on the site.
"Reviews at a Glance allows travelers to quickly analyze the wisdom of the crowds when visiting any property with at least 50 reviews on TripAdvisor," the company said in a press release. "While reading all of a hotel’s reviews could take some time, Reviews at a Glance summarizes the most common review phrases, such as “Very Nice," “Great Location,” and “Free Internet,” in a box above the most recent reviews. This allows consumers to get a quick snapshot of the overall traveler sentiment on a property without having to read through dozens of reviews at a time."
Posted by globebusiness at 8:06 AM | Comments (0)
Children's Hospital gets help from Kohl’s
Children’s Hospital Boston said that the Kohl's department store chain helped it raise $458,000 for a hospital program that seeks to reduce childhood obesity in the area's lower income families.
The donations were collected from Kohl’s stores in the Boston area, Children’s Hospital Boston said.
All of the funds from Kohl's gift will be directed to the Martha Eliot Health Center and affiliated community health centers in Jamaica Plain, Roxbury, and other nearby neighborhoods for the "Fitness in the City" program, which aims to increase access to nutrition counseling and physical activity for children ages 6 to 16, the hospital said.
Posted by globebusiness at 7:41 AM | Comments (0)
Today in Globe Business
Caritas warns of two hospital closures
Caritas Christi Health Care executives have told union negotiators they will shutter St. Elizabeth’s Medical Center in Brighton and Carney Hospital in Dorchester if they can’t close a deal for the six-hospital chain to be bought by a New York private equity firm.
The warning was made during contract talks last week with the Massachusetts Nurses Association, according to two people who attended the meeting. The association represents nurses at four Caritas hospitals.
At the Sept. 15 session — which focused on nurses at the flagship St. Elizabeth’s — executives also talked of mounting financial pressures stemming from an increase in the Catholic hospital system’s unfunded pension liability, said the two people at the meeting, who spoke on the condition of anonymity because they are not authorized to discuss the negotiations.
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New pitch for former Filene's site
Owners of the downtown site of the former Filene’s department store are putting the property up for sale, just as city officials said they will take the unprecedented step of revoking the project’s permits next week following a two-year delay in construction.
The turn of events raises the possibility of new life for the fallow property, where there are now skeletons of half-demolished buildings lining a massive crater that had been dug for the foundation of a once-planned 39-story tower.
Instead of the $750 million office-condominium complex they failed to build, developers
Vornado Realty Trust of New York and John B. Hynes III are marketing the Filene’s block as ideal for apartments and stores. Potential buyers are already coming forward.
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BOSTON CAPITAL: Public scrutiny awaits oh-so-private insurer
If they were being honest, most executives would tell you how much they hate the intense scrutiny that comes with running a publicly traded company. They see the relentless attention as the unfortunate price of access to public stock markets.
That’s one of the reasons why Liberty Mutual Group’s initial public stock offering, on tap for next week, seems so unusual.
The giant Boston insurance company would rank near the top of my list of powerful businesses that guard their privacy as much as possible on financial matters. Mutually owned companies don’t have to disclose as much public businesses, and never do.
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Improved Hub ad market eases strain on media
Advertising spending in Boston rose 11 percent in the first half of the year, enabling some media companies to hire and add content after the recession pummeled their budgets.
Automakers and retailers boosted ad spending the most, and heated political races also contributed to the rebound, according to a report released this week by Kantar Media, a New York research firm.
Boston TV stations were the biggest beneficiaries, with ad spending up 34 percent from the first half of 2009, when companies of all kinds reduced cut back on spending because of fears, Kantar Media said. Ad spending for local radio was up 5 percent and remained essentially unchanged at local newspapers.
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Posted by globebusiness at 6:16 AM | Comments (0)
September 23, 2010
Evergreen Solar has a new chief executive
Evergreen Solar Inc., a Marlborough-based manufacturer of solar power products, said that Michael El-Hillow has been promoted to president and chief executive, effective immediately.
El-Hillow's previous titles were chief operations officer and chief financial officer. El-Hillow is replacing Richard M. Feldt, who has accepted the position of chief executive at a company that Evergreen Solar declined to name. Evergreen Solar said it will begin a search for a new chief financial officer
In hopes of creating jobs, the Commonwealth of Massachusetts offered the company state aid several years ago. Evergreen pledged to create 350 jobs in exchange for what the company described as an aid package comprised of $20 million in cash grants and a package of tax incentives that it has been unable to take advantage of yet.
Evergreen has been hurt by global competition from China, a Globe story from a year ago noted. The company announced in 2009 that, because of a lack of financial support in the United States compared to China, it is looking to shift a portion of its manufacturing operations to China as it expands there in late 2011.
The company said it currently employs 967 people in Massachusetts, including 853 in a factory in Devens.
Posted by globebusiness at 4:31 PM | Comments (0)
Alnylam elects former Lilly researcher to board
CAMBRIDGE -- RNA drugmaker Alnylam Pharmaceuticals Inc. said it elected former Eli Lilly and Co. executive Steven Paul to its board of directors.
Paul worked at Eli Lilly for 17 years and became head of its research laboratories unit, Alnylam said. He replaces James Vincent, who is retiring from the board. Vincent is a former chairman and chief executive of Biogen Idec Inc.
Posted by globebusiness at 2:48 PM | Comments (0)
Vertex prices offering of $375m in notes
CAMBRIDGE -- Vertex Pharmaceuticals Inc. priced an offering of $375 million in convertible senior notes due in 2015.
Vertex said it set a conversion price of about $48.83 per share for the notes. The company announced the offering Wednesday and said its underwriters would have an option to buy notes worth another $25 million. In afternoon trading, Vertex stock fell 24 cents to $35.93.
Posted by globebusiness at 2:19 PM | Comments (0)
A Star Market gets environmental award
A Star Market in Chestnut Hill has been cited by the Environmental Protection Agency for its efforts in reducing emissions, the chain's operator said today.
After renovations were completed a year ago, that Star Market became "the first grocery store in the region to combine the use of fuel cell electricity, LED lighting, and glycol/carbon dioxide refrigeration," said Shaw's Supermarkets Inc., the West Bridgewater chain that operates supermarkets under the Shaw's and Star Market brands.
The EPA has mounted a campaign called GreenChill, a partnership with supermarkets to reduce refrigerant emissions and decrease their impact on the ozone layer and climate change. GreenChill Partnership awarded the Star Market in Chestnut Hill with its "Best of the Best" Award for employing environmentally-friendly refrigeration technology, Shaw's said.
Posted by globebusiness at 1:46 PM | Comments (0)
Schilling’s firm signs Providence lease
38 Studios, the video game company founded by former Red Sox star Curt Schilling, said it has executed a lease for office space in downtown Providence.
The company currently has its headquarters in Maynard, but said this summer that it planned to move from Massachusetts to Rhode Island after Rhode Island signed off on a plan to provide the firm with $75 million in a loan guarantee.
A company spokeswoman said that 38 Studios is not ready to disclose yet when the actual move will take place.
In a statement, company chief executive Jen MacLean said: "The staff at 38 Studios is incredibly excited about our relocation to Providence and we expect to be the first of many relocating knowledge-economy companies that will take advantage of the opportunities Rhode Island provides. Providence has some of the best students in the nation, a vibrant arts community, and a dynamic urban environment with easy access to public transportation. We look forward to working closely with the Rhode Island Economic Development Corporation and local businesses in the months ahead to plan how our company's growth can also benefit the state of Rhode Island."
38 Studio's press release included a statement from Rhode Island Governor Donald L. Carcieri.
"I commend 38 Studios for quickly securing a location for the company's new headquarters in Rhode Island," he said. "38 Studios presents Rhode Island with a tremendous economic development opportunity. This investment creates 450 high-paying jobs, provides job opportunities for our college graduates in a fast growing industry, and will attract other interactive and entertainment companies to Rhode Island. Located in the heart of the capital city and surrounded by our universities and strong arts community, I am confident that 38 Studios will serve as a touchstone for growth in the interactive entertainment and digital media industry."
(Schilling is shown above right in a Globe file photo.)
Posted by globebusiness at 11:56 AM | Comments (0)
Arnold expands digital network
Boston advertising agency Arnold Worldwide said it is beefing up its digital division with four hires as more ad dollars continue to migrate toward the Internet.
The additions will bring the head count of the digital network at Arnold's Boston office to 55; the office has a total head count of 362, said Arnold, which added that with today's announcement it has increased the size of its Boston digital network by 15 employees so far this year.
Joining Arnold as a senior vice president and director of digital production is Graham Cousens, formerly of the ad agency Crispin Porter + Bogusky.
Steve Caputo, Tom Morhous, and Keith LaFerriere are new vice presidents at the agency, and Todd Vanderlin has been promoted to director of creative technology.
Arnold said it has developed digital campaigns for such clients as Ocean Spray Cranberries Inc., Progressive Insurance, and Carnival Cruise Line. Other agency clients include CVS/pharmacy, Fidelity Investments, McDonald's franchisee groups, and Volvo.
"We currently partner with 75 percent of our clients on digital projects and execute 80 percent of that work in house,” Andrew Benett, global chief executive of Arnold Worldwide and global chief strategy officer of Havas Worldwide, said in a statement. “From R&D to strategy, creative technology and analytics, we provide a full range of digital capabilities that are focused on delivering measurable results.”
Havas is Arnold's parent company.
Posted by globebusiness at 10:43 AM | Comments (0)
Kent of TBS will address BC CEO club
Philip I. Kent, chairman and chief executive of Turner Broadcasting System Inc., is scheduled to be the keynote speaker at the BC's Chief Executives’ Club of Boston lunch Sept. 29, Boston College said today.
The invitation-only event is booked for the Boston Harbor Hotel’s Wharf Room.
Kent is expected to address the "multiple responsibilities of the media industry to its various constituents – ranging from traditional broadcast news to the network’s use of 'guerrilla advertising,'" BC said in a media advisory.
Atlanta-based Turner Broadcasting System operates such cable television networks as CNN , Cartoon Network, and Turner Classic Movies.
Posted by globebusiness at 10:06 AM | Comments (0)
RI Airport Corp. chairman gets contract extension
WARWICK, R.I. -- The head of the state agency that runs T.F. Green Airport has been given a one-year contract extension.
The board of the Rhode Island Airport Corp. voted unanimously Wednesday to give its chairman the authority to negotiate a contract that runs three years from Jan. 1, 2011. That effectively extends Kevin Dillon's contract for a year. He makes about $283,000 per year.
Dillon was interviewed for the job as head of Tampa International Airport, but announced this week that he was withdrawing his name from consideration there.
He tells The Providence Journal he decided to stay in Rhode Island to address unresolved issues, including declining passenger traffic at the airport and extension of the main runway.
Posted by globebusiness at 8:42 AM | Comments (0)
Foreclosure petitions hit highest level in a year
Foreclosure petitions, the first step in the Massachusetts foreclosure process, hit their highest number in more than a year last month, and foreclosures rose for the eighth straight month in August, the Warren Group said today.
Massachusetts foreclosure petitions rose 2,713 in August, up 13.2 percent from a year ago; 2,307 foreclosure petitions were recorded in July 2010, the Warren Group said.
Last month, 1,207 foreclosure deeds were recorded in Massachusetts, up from 659 in August 2009 and down from 1,247 in July 2010, said the Warren Group, a Boston firm that tracks real estate activity and publishes Banker & Tradesman.
"Despite reports that the recession is over, and the market is on its way to recovery, we are not out of the woods yet," Warren Group chief executive Timothy M. Warren Jr. said in a statement. "Foreclosure deeds are on track to outpace the record numbers in 2008, when there were 12,430 completed foreclosures. Job creation and employment numbers will have to improve before we see more recovery in these foreclosure reports."
Posted by globebusiness at 8:14 AM | Comments (0)
Lottery launches Celtics Cash instant game
The Massachusetts State Lottery has joined with the Boston Celtics to unveil an instant game called "Celtics Cash."
Celtics Cash, a $2 game, will feature more than $20 million in prizes, and it is expected to "net nearly $6 million for local aid, bringing the total raised for communities by Celtics instant games to $25 million," the Celtics and the lottery said in a press release. "The first two Boston Celtics games – Celtics Green and the Limited Edition 2008 NBA Champions Boston Celtics ticket – sold more than $116 million in tickets, rewarding fans with $88 million in prizes and raising nearly $19 million for taxpayers."
The Massachusetts Lottery said it has entered into partnerships with all four of the major Boston-area professional sports franchises; 11 instant games developed under this program have sold more than $1 billion in tickets and raised more than $140 million for the state’s 351 communities.
Posted by globebusiness at 7:46 AM | Comments (0)
Today in Globe Business
Many small Massachusetts businesses are grappling with major increases in health insurance costs, despite an aggressive effort by the Patrick administration to cap rate increases.
As a result of premium increases that in some cases top 30 percent, companies say they are reducing coverage to save money, and using more independent contractors instead of payroll employees to avoid having to offer insurance.
“It’s insane,’’ said Ori Ron, managing partner of Hudson Group North America, whose small Swampscott real estate firm faces premium increases of more than 31 percent from Blue Cross Blue Shield of Massachusetts. “The only thing that counts is the bottom line, and the bottom line obviously wasn’t capped.’’
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High-risk egg farms to get first inspections
The US Food and Drug Administration plans to prioritize inspections of large commercial egg facilities that have a history of violations and corporate connections to repeat offenders such as egg magnate Austin “Jack’’ DeCoster, according to testimony at yesterday’s congressional hearing on the recent salmonella outbreak.
Joshua M. Sharfstein, FDA principal deputy commissioner, would not identify any specific facilities, such as producers in Maine that have ties to DeCoster, but said the agency would reach out to federal partners to prioritize the highest risk farms.
“You can hear a sigh of relief going on all over New England right now because of the record there,’’ Representative Edward J. Markey said during yesterday’s hearing in Washington. Many of the eggs in New England come from three Maine producers that have links to DeCoster.
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The new Ben Affleck film “The Town’’ portrays the region as a haven for bank thieves, who pull off dramatic robberies donning masks with guns blazing, but the reality is far from colorful.
It turns out the region isn’t “the bank robbery capital of America,’’ as the movie posters proclaim. Massachusetts ranked eighth in robberies per resident last year, down from number one in 2008. And most real-life bank robberies are more mundane.
In one Hollywood production after another, bank heists feature squads of trained professionals storming a fortified institution, firing automatic weapons, and fleeing with piles of currency and other loot. But in real life, bank robberies are usually committed by drug addicts desperate for cash who simply pass a note to a teller asking for money.
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Labor groups affirm support of Caritas deal
Representatives from nine labor groups in Massachusetts sent a letter to the state attorney general’s office yesterday reiterating their support for the purchase of Boston’s Caritas Christi Health Care by a New York private equity firm.
The letter criticized a group of rival hospitals that last week called on state officials to impose strict conditions on the sale, ranging from a ban on improper recruiting of doctors from competitors to a requirement that the buyer, Cerberus Capital Management, not sell Caritas for at least seven years rather than the three years it has committed to holding onto the chain of six Catholic hospitals.
It also took issue with a letter sent by the competitors and a larger coalition Tuesday, urging regulators to slow the approval process to assure the deal does not hurt access to affordable health care.
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Posted by globebusiness at 6:11 AM | Comments (0)
September 22, 2010
Gates tops annual list of wealthiest Americans
Microsoft Corp. software mogul Bill Gates is still the richest American, according to Forbes magazine. Gates was listed in the number-one spot on the Forbes 400 list of wealthiest US citizens, with a fortune worth $54 billion. Investor Warren Buffett came was second, with $45 billion.
Newcomers to the list this year include Facebook co-founders Dustin Moskovitz (who at age 26 is the youngest billionaire on the list) and Eduardo Saverin.
There are five Massachusetts residents on the list, which was released today, including Patriots owner Robert Kraft and Fidelity Investments chief executive Edward C. "Ned" Johnson III.
Ses photos of the other Massachusetts members of the Forbes 400.
View the complete Forbes 400 presentation online here.
Posted by globebusiness at 6:05 PM | Comments (0)
Van Faasen elected Blue Cross chair
William C. Van Faasen, who stepped down this month as interim chief executive of Blue Cross Blue Shield of Massachusetts, has been elected chairman of the Boston-based health insurer's board.
Van Faasen will replace Paul H. Guzzi, president of the Greater Boston Chamber of Commerce, who has served as Blue Cross Blue Shield chairman since March when the insurance carrier bowed to pressure from state regulators to separate the jobs of chairman and chief executive. Both were then held by Cleve L. Killingsworth.
When Killingsworth resigned abruptly shortly after relinquishing the chairman's post, Van Faasen, a long-time former chairman and chief executive, came out of retirement to run the company temporarily. Last month, the Blue Cross Blue Shield board named veteran executive Andrew Dreyfus as the new chief executive. starting Sept. 7.
Guzzi will remain on the board of Blue Cross Blue Shield, the state's largest health insurer, serving as its vice chairman.
Posted by globebusiness at 3:26 PM | Comments (0)
Dunkin’ will crank up Nutmeg State drivers
It's official. Dunkin' Donuts could soon become the official joe of the Connecticut Turnpike.
The Canton-based coffee-and-baked-goods chain announced the signing of an agreement with existing Dunkin' Donuts franchisee, Men at Work IV LLC, for the development of 23 restaurants in service plazas on I-95, also known as the Connecticut Turnpike in the state, as well as in service plazas on the Merritt Parkway/RT-15 and I-395.
"The first six locations are expected to open in 2011 and the remainder by 2014," Dunkin' said in a press release.
Posted by globebusiness at 12:51 PM | Comments (0)
JetBlue looks to have Wi-Fi on its planes
JetBlue Airways, the largest carrier at Logan International Airport, is getting into the Wi-Fi game.
The airline announced today that it has signed a deal with ViaSat Inc. to bring satellite broadband Internet and TV to JetBlue passengers starting in mid-2012. The satellite system, the first of its kind to be used on commercial aircraft, according to JetBlue, must be tested by the Federal Aviation Administration before it is installed fleet-wide.
“This system will be designed for the 21st century, not just for today’s personal connectivity needs, but with the bandwidth to expand to meet tomorrow’s needs as well,” JetBlue chief executive Dave Barger said in a statement. "Rather than invest in current technology, designed to transmit broadcast video and audio, we elected to partner with ViaSat to create broadband functionality worthy of today’s interactive personal technology needs.”
AirTran Airways and Virgin America already have Wi-Fi on all their planes, Delta Air Lines expects to be finished installing it on all their domestic planes by the end of the year, and Southwest Airlines and American Airlines are in the process of rolling it out.
Posted by globebusiness at 12:33 PM | Comments (0)
It will be Gillette Stadium through 2031
Gillette, the Boston-based shaving and male grooming brand, said its name will stay on Gillette Stadium through the 2031 football season.
Gillette has had its name on the stadium in in Foxborough since 2002 under a naming agreement that extends through 2017. Today Gillette said in a press release that it has signed a new agreement with the Kraft Group, owner of the stadium, the New England Patriots, and the New England Revolution, that will extend its naming rights on the stadium through 2031.
Financial terms of the naming rights extension were not disclosed.
Gillette was acquired by consumer products giant Procter & Gamble Co. in 2005.
Gillette has a long history in sports marketing.
"This extension continues our successful relationship with the Kraft family and one of the strongest sports franchises in the world," Chip Bergh, group president of P&G Global Male Grooming, said in a statement. "The naming of Gillette Stadium has been a great investment for our business."
In a statement of his own, Kraft Group president Jonathan Kraft said, "We look forward to continuing the championship tradition here at Gillette Stadium and are happy that Gillette will remain part of that tradition well into the future."
Posted by globebusiness at 11:34 AM | Comments (0)
Two Burlington Woods taps Lincoln Property
The Boston office of Lincoln Property Co. said that it has been selected as the exclusive leasing agent for Two Burlington Woods in Burlington.
Located just off Route 128, Two Burlington Woods is a three-story, 27,029-square-foot office building, with 9,990 square feet of space currently available for lease, Lincoln Property said.
Posted by globebusiness at 11:02 AM | Comments (0)
Forsyth officially relocates to Cambridge
The Forsyth Institute, an oral-health research organization affiliated with Harvard University, said it has officially relocated to 245 First St. in Cambridge.
The Forsyth was long a fixture of the Fenway neighborhood in Boston. In 2007, it sold its Fenway property to the Museum of Fine Arts. Last year, the institute said it had signed a long-term lease for about 73,000 square feet of space at 245 First St.
In its new location, the Forsyth plans to conduct biomedical research in molecular biology, microbiology, immunology, global infectious diseases, skeletal biology, developmental biology, tissue regeneration, and clinical research, the Forsyth said in a press release.
“We are very excited about our new location, which will enable Forsyth to conduct research in the absolute best facilities, establish additional collaborations and thrive into its second century,” Dr. Phillip Stashenko, president and chief executive of the Forsyth Institute, said in a statement.
Posted by globebusiness at 10:29 AM | Comments (0)
Partners+Simons wins kudos
Boston ad agency Partners+Simons said that the "TuftsMedicalCenter.tv" initiative that it created for Tufts Medical Center has won an award from the Web Marketing Association.
In a press release, the agency said: "TuftsMedicalCenter.tv is an online video resource where patients and their families can learn about medical conditions and appropriate treatments from Tufts physicians, who are essentially being interviewed for their own hire. In simple 3-4 minute video segments, some of Boston’s top docs help educate patients on questions they should ask physicians and hospitals – so they can make informed decisions about their health-care options."
In its 14th year, the Web Awards looks at nearly 100 industries as it seeks to recognize websites that sets standards of excellence for website development, the Partners+Simons press release noted.
Posted by globebusiness at 10:08 AM | Comments (0)
Unitil presents new emergency plan to Fitchburg
FITCHBURG -- Officials with an electric utility that came under intense criticism for its response to an ice storm that paralyzed central Massachusetts two years ago say they have developed a new emergency response plan.
Unitil officials on Tuesday presented their plan to the Fitchburg City Council. More than 1,000 customers from Fitchburg and several nearby communities were without power for 12 days after the December 2008 ice storm. The utility says under the plan, all employees will be trained for a second job, planning for major storms will start three days in advance, and communications will be streamlined.
Unitil officials tell The Sentinel and Enterprise newspaper the plan complies with state and federal guidelines. State Representative Stephen DiNatale commended Unitil, but said the utility still has work to do to restore public trust.
Posted by globebusiness at 10:02 AM | Comments (0)
Pricey US housing markets include Wellesley
Want a buy a house on the cheap? Then be prepared to move to Detroit or Sioux City, Iowa.
Those are among the most affordable housing markets in the country, according to a new survey from Coldwell Banker Real Estate LLC. In Detroit and Sioux City, homes can be had for between $68,000 and $86,000, the survey suggests. The survey focused on four-bedroom, two bathroom homes in nearly 300 US housing markets and examined listing data from February to August, Coldwell Banker said.
The most expensive market for four-bedroom homes? Newport Beach, Calif., where the average home listing price for a four-bedroom house was $1.83 million.
With an average home listing price of just under $1.1 million, Wellesley ranked seventh on the survey's list of priciest addresses.
Ahead of Wellesley in the survey were such housing markets as Palo Alto, Calif.; Rye, N.Y.; and Greenwich, Conn.
Markets where bargains can be had include Cleveland, Kansas City, and Norfolk, Neb.
One purpose of the survey is to highlight some price-comparison tools on the Coldwell Banker website. One of those tools can be found by clicking here.
Posted by globebusiness at 9:23 AM | Comments (0)
Biogen Idec issues statement on Novartis MS drug
Swiss drug maker Novartis says it has gained approval from US regulators for a new multiple sclerosis treatment, the AP is reporting out of Geneva.
Novartis, which has a big presence in Massachusetts, says the US Food and Drug Administration has approved Gilenya for oral use with relapsing forms of multiple sclerosis, the AP said.
Gilenya is potential competition for MS drugs made by Biogen Idec Inc. of Weston.
In a press release this morning, Biogen Idec said: "MS impacts each person differently and until we have a cure, there should be multiple treatments available to address the individual needs of patients. Today Biogen Idec is pleased to provide leading MS therapies Avonex (interferon beta-1a) and Tysabri (natalizumab), both of which have been used in a broad range of patients worldwide."
The release added: "The long-term safety profile of Gilenya has yet to be established, and there is limited data for it in patients with certain common comorbidities. We agree with the FDA that there is a need for safety monitoring for Gilenya through a comprehensive Risk Evaluation and Mitigation Strategy (REMS)."
Novartis is one of several major international drug companies to have Boston-area research centers.
A May story in the Globe noted that the Novartis Institutes for Biomedical Research had doubled its workforce to about 2,000 since it opened in the Kendall Square neighborhood of Cambridge.
Posted by globebusiness at 7:52 AM | Comments (0)
Akamai teams up with NFL.com
Akamai Technologies Inc., the Cambridge-based provider of Internet content delivery services, said that NFL.com, the official website of the National Football League, has implemented Akamai's HD Network to enable broader availability of high-quality online video.
In a press release, Akamai said, "The majority of video content on NFL.com will be offered in higher quality and delivered across the Akamai HD Network."
"We think HD-quality video will have the same impact online as it has on television," Hans Schroeder, NFL vice president of media strategy and development, said in a statement. "Our multi-year partnership with Akamai will help us deliver the highest quality NFL video experience to our fans."
Posted by globebusiness at 7:33 AM | Comments (0)
Today in Globe Business
The economic news got worse the longer Barbara Levitov was out of work. Unemployment was climbing as jobs disappeared and companies stopped hiring. So she decided to simply stop listening until she found another job.
For Alexa Tsokanis, losing her management-level job was about finding new ways to keep busy. That included taking a minimum-wage job at a clothing store.
Steve Kitay, laid off from Fidelity Investments, made a vow to stay upbeat during his job search, even as his wife, Cilla, was diagnosed with breast cancer. “Nobody wants to talk to you if you’re negative,’’ said Kitay.
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Initiative promises more clout for charities
The Boston Foundation, the biggest public philanthropy in New England, and three other nonprofits today unveil a new fund to help local charities work together, or even merge, to better serve their communities.
Over the next five years, the $1.7 million Catalyst Fund for Nonprofits will offer grants meant to help charities form partnerships, combine functions like bookkeeping or community services, or merge into new groups.
“What we’re looking to do is preserve or expand the impact these organizations have in their communities,’’ said William Pinakiewicz, New England director for the Nonprofit Finance Fund, which consults to charities and is managing the new program.
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Egg farms with violations need scrutiny, Markey says
Representative Edward J. Markey is planning at today’s congressional hearing to ask federal regulators to prioritize inspections at egg farms that have a history of violations and at producers — including three in Maine — that have ties to these farms.
The House Committee on Energy and Commerce is examining Dorothy Egg Farms, Mountain Hollow Farms, and Quality Egg of New England and their connections to Austin “Jack’’ DeCoster, whose Iowa farm is at the center of a broader investigation into the nation’s largest egg recall of more than 550 billion eggs. More than 1,500 people were sickened by eggs suspected of being contaminated by salmonella.
“I want to make sure these facilities are subject to strong regulatory scrutiny in light of the salmonella outbreak,’’ said Markey, a committee member. “We need to make sure that regulators are protecting the safety of our food supply.’’
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TV stations alter flight plans
Andrew Dubrovsky recalls the adrenaline rush he felt when multiple news helicopters raced to a breaking story, desperately trying to beat rival TV stations to the scene.
“It was a zoo up there,’’ recalled Dubrovsky, 60, a former WHDH-TV (Channel 7) cameraman who traveled with the station’s news chopper for three decades and watched the stations jockey for the best aerial shots. “Everybody would be in each other’s way.’’
Not anymore. Gone are the days when every TV station had its own helicopter hovering overhead becoming an eyewitness to some of the biggest events in history, and serving as a reminder to viewers of the power of a live news story. To cut costs, rivals WBZ-TV (Channel 4) and WFXT-TV (Channel 25) have been sharing a news chopper since last year, and Boston’s other two network-affiliated stations, WCVB-TV (Channel 5) and WHDH, which already share some aerial footage if one of their choppers is unavailable or being repaired, are considering a similar partnership.
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Fed hints it may buy more debt to spur recovery
WASHINGTON — Officials at the Federal Reserve signaled yesterday for the first time that they were worried that the slow-moving economic recovery could be undermined by very low rates of inflation and hinted strongly that the Fed might resume buying vast amounts of government debt to spur the recovery. While the central bank’s Federal Open Market Committee did not take any new steps on interest rates, it communicated in unmistakable terms its concerns about the fragility of the economic recovery and a threat to stable prices.
I
t said that underlying inflation levels, which have hovered at about half the Fed’s 2 percent target rate, were “somewhat below those the committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability.’’
That was a departure from just six weeks ago when the committee commented that inflation measures had “trended lower in recent quarters.’’ The concern over low inflation has raised fears of deflation — a sustained drop in wages and prices.
Posted by globebusiness at 6:04 AM | Comments (0)
September 21, 2010
EveryScape sues Adobe for patent infringement
A Newton company called EveryScape Inc. has filed a patent infringement lawsuit against Adobe Systems Inc.
According to EveryScape's complaint, Adobe has included EveryScape image-editing technology in some versions of Adobe's Photoshop software without permission.
In an e-mailed statement, California-based Adobe said it does not comment on pending litigation.
In documents filed in US District Court in Boston this week, EveryScape alleges that its founder, MIT-trained Byong Mok Oh, created image editing tools that allow users to manipulate digital photographs. Oh later received patents for these tools and founded a company called Mok3 Inc.to commercialize them. EveryScape was formerly known as Mok3.
In 2005, Oh's company made some of these image-editing tools available as a plug-in tool for use with Adobe Photoshop, EveryScape said in court documents. A few months later, Adobe announced a new version of Photoshop that included a new feature called Vanishing Point that "allows users to clone, paint, and transform image objects while retaining visual perspective," EveryScape's complaint said.
Through a company spokeswoman, Oh declined to be interviewed. But in a statement, his company said: "EveryScape has filed a lawsuit in the Massachusetts US District Court alleging that Adobe Systems Inc. has infringed US Patent Numbers 7,327,374 and 7,593,022. The complaint alleges that Adobe infringes the patents through its Photoshop software products that include the Vanishing Point feature."
EveryScape's complaint added that potential customers declined to buy Oh's product, choosing instead to purchase Photoshop versions in which Vanishing Point was already a bundled feature.
EveryScape's lawsuit asks for an unspecified amount of monetary damages.
Posted by globebusiness at 5:24 PM | Comments (0)
iZUP offers promo to block driver texting
The second Distracted Driving Summit is underway in Washington, D.C., and while it is going on, a local company is making available for free its smartphone app that limits phone use while phone owners are driving.
The company is Illume Software, and its app is iZUP. Thanks to the Global Positioning System chips that are found in virtually all smartphones, iZUP can determine whether the smartphone and its owner are in motion. As a Globe story from earlier this year noted, IZup uses GPS to determine whether the phone is moving faster than about 5 miles per hour. When the phone passes that speed, the app restricts the user's ability to place or receive calls, send or receive text messages, or run other software applications like games, e-mail programs, or Web browsers.
The company said iZUP pricing is $19.95 a year for a single user or $59.95 annually for a family plan.
In a press release, Illume Software said, "Consumers can download the app at no cost for use indefinitely from the Blackberry App World and Android Market beginning Monday Sept. 20 through Sunday Sept. 26."
To learn more, please click here.
Posted by globebusiness at 2:38 PM | Comments (0)
Madaus to address Chamber forum
Martin Madaus, former president, chairman, and chairman of Millipore Corp., is scheduled to be the featured speaker at the Greater Boston Chamber of Commerce's Innovation Forum.
The Innovation Forum is scheduled for tomorrow morning at the Omni Parker House Hotel in Boston, the Chamber said
Earlier this year, Merck KGaA agreed to buy Millipore, a Billerica-based supplier of drug development equipment for biotechnology companies, for about $6 billion.
In July, Merck, a German drug and chemical giant, announced that Bernd Reckmann would succeed Madaus as chief executive and that Madaus would continue to work for the company as a consultant until the end of the year.
Posted by globebusiness at 12:24 PM | Comments (0)
Babson is tops in an MBA survey
Babson College said its MBA program has been named the top MBA program for entrepreneurship for the third year in a row.
Babson's MBA program was tops in an entrepreneurial ranking survey compiled by the Princeton Review and Entrepreneur magazine.
In a press release, Babson added that its undergraduate program was ranked third on this year's survey behind the University of Houston and Baylor University.
"We remain firmly committed to this institution’s leadership in entrepreneurial education as measured by our own internal standards, as well as survey results -- and we will continue to prepare Babson’s undergraduate and MBA students to create economic and social value…everywhere,” Babson College president Len Schlesinger said in a statement.
To link to the listings, please click here.
Posted by globebusiness at 12:01 PM | Comments (0)
Bed bug relief efforts surge, Panjiva says
Bed bugs are the scourge du jour if recent media reports are any guide -- see a Globe story from earlier this month -- but have no fear, help may be on the way from overseas.
According to a business intelligence firm called Panjiva, shipments of mattress protectors have more than doubled in the past year, from 212 shipments during the last three months versus 89 shipments for the same period a year ago. These protectors are designed to keep mattresses safe from dreaded bed-bug infestations, Panjiva notes.
That trendline suggests that mattress protectors will continue to ship at brisk rates, said Panjiva, which provided the graphic that appears with this post.
With offices in New York, Cambridge, and Shanghai, Panjiva uses technology developed by an MIT computer scientist to analyze the bills of lading for ships bringing goods to the United States.
Posted by globebusiness at 10:42 AM | Comments (0)
Casino saturation not seen -- yet -- in New England
UNCASVILLE, Conn. _ A gambling industry analyst says slot machines in New England are nowhere near saturation, but legalization of casino gambling in Massachusetts and the addition of slot machines would hurt Connecticut and Rhode Island.
Clyde Barrow, director of the Center for Policy Analysis at the University of Massachusetts-Dartmouth, said at a conference at the Mohegan Sun on Tuesday that slots saturation is possible in the future, but not now.
He says failed legislation that would have brought thousands of slot machines to Massachusetts would have drawn huge numbers of gamblers from Connecticut and Rhode Island. A deal to bring casino gambling and slots to Massachusetts fell apart in the Legislature in August.
BNP Media, an industry company, and the research firm Spectrum Gaming Group are sponsoring the first New England Gaming Summit.
Posted by globebusiness at 10:02 AM | Comments (0)
EMC will help Cooperstown digitize Hall of Fame
EMC Corp., the Hopkinton data storage giant, said it is sponsoring a digitization project that will make collections of the National Baseball Hall of Fame and Museum in Cooperstown "globally accessible."
In a press release, EMC said that the digitization initiative aims to protect, preserve, and make accessible many of the museum's nearly 500,000 photographs, more than 12,000 hours of recorded audio and video, three million documents, and nearly 40,000 three-dimensional artifacts for future generations. (The photo of kids at Cooperstown that tops this post was provided by the Hall of Fame through EMC.)
The release included a statement from Jeff Idelson, president of the National Baseball Hall of Fame and Museum.
"Through the support of EMC, the Hall of Fame will be well-positioned to deliver content around the globe, with these critically important initiatives to digitize and make available our assets to everyone, not just those who are able to travel to Cooperstown," Idelson said.
This project is scheduled to launch later this year, and it will make many items accessible to audiences over the next three years, EMC said.
The project evolved out of a business relationship between EMC and the Hall of Fame, an EMC spokesman said. As the two sides discussed digitization and data storage efforts, EMC realized that the Hall of Fame's videoconferencing educational series meshed neatly with its own educational priorities.
"Strengthening education is the top priority of EMC's social investment strategy," Bill Teuber, EMC's vice chairman, said in a statement.
EMC is donating hardware, software, consulting services, and funding to the initiative, but is not disclosing the dollar value of its contribution, the EMC spokesman said.
(A 1950 AP file photo shows Hall of Famers Ted Williams and Joe DiMaggio above right.)
Posted by globebusiness at 9:34 AM | Comments (0)
Boston Scientific stent gets OK for wider use
Boston Scientific Corp., the Natick medical device maker, said that one of its stents has been given regulatory approved for additional uses in Europe.
In a press release, the company said that its PROMUSElement Everolimus-Eluting Coronary Stent System has received CE Mark approval for use in patients with diabetes and for use in patients experiencing an acute myocardial infarction, or heart attack. The stent system was launched last year in countries that recognize the CE Mark, Boston Scientific said.
Stents are wire-mesh tubes used to help keep open arteries that have been unclogged during medical procedures. Stents are among Boston Scientific's most important products.
Posted by globebusiness at 8:56 AM | Comments (0)
Lawyer to explain his role in McCourt divorce case
LOS ANGELES -- The Boston attorney who represented Jamie and Frank McCourt will likely be a key witness when he's expected to testify Tuesday at the couple's divorce trial.
Larry Silverstein, who drafted a postnuptial marital agreement for the couple, will have to tell a judge why there are three versions that say the Los Angeles Dodgers belong solely to Frank McCourt, and three copies that say the team doesn't.
The fate of the Dodgers could hinge on whether Superior Court Judge Scott Gordon decides whether the pact is valid or isn't. He could order the sale of the team. (The McCourts have ties to Boston. As a Globe story noted today, Frank McCourt once owned land on the South Boston Waterfront where developers now propose to build a project called Seaport Square. Frank McCourt sold that property to Rupert Murdoch's News Corp. The current development team bought it in 2006.)
Silverstein's actions will be called into question six years after he gave the McCourts the copies to sign in March 2004 shortly after the Dodgers were bought for about $430 million.
Frank McCourt's attorneys chalked up the difference in the documents to a typographical error.
Jamie McCourt's legal team has questioned why Silverstein later replaced three versions that excluded the Dodgers, the stadium and the surrounding property as Frank McCourt's separate property with three that included the assets as his own and failed to tell their client about the replacement.
It wasn't until a few months ago after forensic analysts were hired by both sides to examine the six copies that it was determined Silverstein made the changes.
Meanwhile, Silverstein also will testify about what he told the couple the marital agreement intended to do. In a deposition taken in April, he said that he went through the documents "paragraph by paragraph" with the McCourts.
On Monday, Jamie McCourt testified no one told her what the pact entailed and what would happen if the couple divorced. She also said she didn't read the document.
She said she relied on her husband and Silverstein and she thought the agreement was only meant to protect a half-dozen luxurious homes in her name from her husband's business creditors. She added if she had read the document or comprehended she would give up the rights to the Dodgers, it would have "sounded a lot of alarms" and she would have posed questions to Silverstein.
"I believe I understood it, but it did more than what it was intended to do," she said.
Under questioning by Frank McCourt's attorney Steve Susman, Jamie McCourt said her husband never coerced or threaten her to sign the agreement. When asked whose fault it was for her not to read the agreement, she admitted she should have.
"I don't think it's anyone's fault to read it but myself," she said.
Susman noted that during a deposition earlier this year, Jamie McCourt said the reason she didn't read the agreement was because reviewing legal documents was boring. During the afternoon session, Susman methodically went over the agreement with her, asking her questions if she knew what the terms meant. In some of the instances, she said even today she didn't understand it.
Outside of court, Susman said Jamie McCourt's testimony wasn't believable.
"It's as fictional as Harry Potter," he said.
Posted by globebusiness at 8:33 AM | Comments (0)
ImmunoGen starts clinical testing of cancer drug
ImmunoGen Inc. announced the start of clinical testing of a drug compound that is a potential treatment for many ovarian, breast, cervical, lung and pancreatic cancers.
Waltham-based ImmunoGen has been developing the compound, known as SAR566658, while engaged in a research collaboration with Sanofi-Aventis SA, the French drug maker. (Sanofi recently offered to buy Genzyme Corp., the Cambridge biotechnology company.)
In a press release today, ImmunoGen said, "Sanofi-aventis has begun clinical evaluation of SAR566658, triggering a $1 million milestone payment to ImmunoGen."
ImmunoGen added, "Eight compounds are now in the clinic through ImmunoGen's product programs and those of its partners, consistent with Company expectations of as many as 12 such compounds being in the clinic by late 2011 and marked, sustained pipeline growth thereafter."
Posted by globebusiness at 7:28 AM | Comments (0)
Today in Globe Business
Ambitious plan may reshape Boston's waterfront skyline
Developer Donald J. Chiofaro yesterday unveiled the latest revision of his redevelopment of the Harbor Garage on the Boston waterfront, proposing a pair of sharply angled towers whose tallest point is still 400 feet above the city’s new height limit for the property.
The larger tower would reach 615 feet, while the smaller one would top out at 470 feet. Last month, the city approved new zoning guidelines that would cap the height of new structures on the property at 200 feet.
The new proposal did little to break the standoff between Chiofaro and City Hall over the size of his proposed development.
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Scrutiny of Caritas sale is urged
More than 20 community groups, health care providers, and lawmakers are calling on state regulators to slow the approval process for the proposed acquisition of Boston-based Caritas Christi Health Care by a New York private equity firm.
In letters being sent today to Attorney General Martha Coakley and Public Health Commissioner John Auerbach, the coalition, organized by consumer advocacy group Health Care for All, urged officials to review the sale of Caritas to Cerberus Capital Management in a “deliberate, transparent, and inclusive’’ manner.
“Cerberus’ need to produce investment returns raises real concerns about the potential for its financial success to come at a great cost to Massachusetts’ health care system,’’ the letter reads.
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BRA poised to give a thumbs-up to bold Seaport Square project
The Boston Redevelopment Authority board tonight is expected to approve zoning for Seaport Square, a planned $3 billion project that would turn 23 acres of what is now mostly parking lots on the South Boston Waterfront into a new neighborhood.
The development team of Morgan Stanley, Gale International, and retail developer WS Development plans to break ground next spring for an apartment building and innovation center, the first phase of an ambitious 10-year building process.
The redevelopment authority staff, which has been reviewing the project and meeting with developers for three years, recommends approval.
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BOSTON CAPITAL: Hard calls for hospitals
Boston Medical Center and Cambridge Health Alliance, two big hospital groups that treat lots of poor patients, are struggling in the age of health care reform.
In fact, all Massachusetts hospitals that treat a large share of poor patients rightly feel they got the short end of the stick in the state’s closely watched experiment to insure the health of almost everyone. Public financial support for those hospitals suffered when money was redirected toward other reform priorities.
Hospital executives in Boston and Cambridge have adopted radically different strategies to deal with the money squeeze. The question: Who got it right?
Posted by globebusiness at 6:09 AM | Comments (0)
September 20, 2010
Boston Scientific to buy privately held Asthmatx
Boston Scientific will buy privately held Asthmatx Inc. in a deal that could be worth more than $440 million, the medical device maker said today.
Boston Scientific, which is based in Natick, said it will pay $193.5 million in cash up front. It will then make payments totaling up to $250 million through 2019 based on revenue benchmarks for Asthmatx.
Asthmatx makes and markets the Alair Bronchial Thermoplasty System for the treatment of severe, persistent asthma. The system aims to reduce the frequency of severe asthma attacks by delivering thermal energy to airway walls to decrease their ability to constrict. It received Food and Drug Administration approval last April.
Wells Fargo analyst Larry Biegelsen said the acquisition will increase the company's offerings to lung specialists. Boston Scientific already sells products used to detect and treat certain airway diseases.
"We think the deal makes sense strategically since it will leverage an existing sales force, in a new treatment arena separate from Boston Scientific's slow growing 'cardiac rhythm management' and stent core business."
Asthmatx is based in Sunnyvale, Calif.
The deal is expected to close in the fourth quarter.
Posted by globebusiness at 3:00 PM | Comments (0)
Campanelli tapped for Hingham project
Campanelli Cos. said it has been selected by A.W. Perry to help develop of Two Pond Park Medical Center in Hingham.
Campanelli, a commercial real estate development and construction company headquartered in Braintree, said that a 78,300 square foot medical building will be developed at the entrance of the South Shore Park at Derby Street and Route 3 and will house South Shore Orthopedics LLC and South Shore Hospital’s Outpatient Center for Orthopedic Care and Pain Management.
The expected completion date for the project is the third quarter of 2011, said Campanelli.
Posted by globebusiness at 2:38 PM | Comments (0)
Boston ranks 13th in business Twitter use
Erudition is no crime in the Hub of the Universe, where everything from the novel to long-form poetry has long been celebrated, but apparently the local Twitterati have been falling down on the job because when it comes to business tweets, Boston ranks 13th on a list of top business tweeting US cities.
So concludes a new survey compiled by NetProspex, a Waltham sales and marketing database firm, and the survey was the subject of an article in the Huffington Post.
Just to be clear: What the survey focused on was the "most active business people" on Twitter. In another words, nonbusiness tweets were not on the radar screen of this particular report, a NetProspex spokesman said.
As outlined by the Huffington Post story, the top business tweeting cities were New York, San Francisco, and Washington, D.C. According to the survey, business people in such cities as Sacramento (4), Las Vegas (7), and Orlando (11) were more active on Twitter than business people in Boston.
Taking a broader overview, NetProspex ranked cities by how active their business people were with other forms of social media, including networking website LinkedIn and the social networking service Facebook.
By that measure, Boston ranked fifth behind San Francisco (1); San Jose (2); New York (3); and Austin, Texas (4), NetProspex said.
This is the second quarterly report from NetProspex, said Michael Bird, the firm's chief revenue officer, and the plan is to keep doing reports on a quarterly basis.
"Over time, we expect patterns to emerge" that will yield insights on how companies and executives are using social media as "business tools," Bird said.
Posted by globebusiness at 1:56 PM | Comments (0)
Good Start Genetics repays loan
Good Start Genetics Inc. is the first company to repay an accelerator loan from the Massachusetts Life Sciences Center, the center said today.
Boston-based Good Start Genetics has developed a pre-pregnancy test that utilizes an advanced DNA sequencing technology to screen for many genetic disorders.
In May 2009, Good Start Genetics was awarded a $500,000 loan from the center in the first round of the center's accelerator program, which provides working capital to early-stage life sciences companies.
The center is a state quasi-public agency whose mission is to implement the goals of the Massachusetts Life Sciences Act, a $1 billion initiative that aims to promote the Bay State has a hotbed of life sciences research and job creation.
Earlier this month, Good Start Genetics announced it had completed an $18 million Series A financing. (Read Boston.com post on the announcement.)
Good Start Genetics expects to launch its test exclusively through board certified physicians in US fertility clinics starting in 2011, the center said in a press release.
Posted by globebusiness at 1:12 PM | Comments (0)
Chiofaro revises plan for waterfront project
The revised plans for the towers appears at right, with the old tower plans shown at left.
Developer Donald J. Chiofaro today unveiled his latest revision of the Harbor Garage redevelopment, proposing a pair of angular towers reaching 470 feet and 615 feet, respectively.
The plan, at a cost of $1 billion, is roughly 20 percent smaller than Chiofaro's initial plan but is still significantly taller than the city's 200-foot building guideline for the property. The garage is situated at a highly sensitive location between the Rose Fitzgerald Kennedy Greenway and Boston Harbor. It also abuts the New England Aquarium.
But to this point, relations between Chiofaro and the city have been extremely turbulent, a dynamic that promises to make a compromise more elusive. A couple months ago, the city released a study of height limits along the Greenway that established a 200-foot guideline for Chiofaro's property, and city officials have not shown a willingness to be flexible on that front. Chiofaro also unveiled the revised the design to the media before he showed it to neighbors and city officials he must persuade to support it.
Officials at the Boston Redevelopment Authority could not immediately be reached for comment today on Chiofaro's latest proposal.
In addition to reducing the project's height, Chiofaro substantially altered the design. The revised towers, which would contain offices, a hotel, and residences, are more angular than before, twisting upward to sloped rooftops. Chiofaro also changed plans for a promenade between the two towers, making it a zig-zagging pathway instead of straight opening to the water.
Despite the acrimony that has thus far prevented the project from moving forward, Chiofaro said he thinks latest version can open the channels of communication. He said the project would generate 7,000 new jobs and $20 million in annual tax revenue for the city.
"This is the most important site on the Greenway," he said. "It's a place the city and the financial district can make a statement not only about themselves, but about the city's future. This is a once-in-a-generation opportunity, and we shouldn't miss it."
The revised tower plans are part of a sweeping waterfront plaza redesign previously proposed by Chiofaro, with the aquarium as its centerpiece. The plaza would connect with the Rose Fitzgerald Kennedy Greenway and offer more space for food vendors, public art, a fountain, and other uses.
Related: Don Chiofaro's evolving tower plans
Posted by globebusiness at 12:50 PM | Comments (0)
Who, What, Where
Eric Mogilnicki has returned to Boston law firm WilmerHale as a partner. During the past four years, he served as chief of staff to the late US Senator Edward Kennedy and, following Kennedy’s death, to US Senator Paul Kirk, who was appointed to fill the vacant Senate seat. Mogilnicki is based in the firm's Washington, D.C., office.
Jeffrey D. Glidden has just been appointed to be executive vice president and chief financial officer at Parametric Technology Corp., a Needham company that provides discrete manufacturers with software and services to meet the globalization, time-to-market and operational efficiency objectives of product development. Most recently, Glidden served as vice president and chief financial officer at Airvana Inc.
Retired Army four-star general David McKiernan is a new senior policy advisor at ADS Ventures, a government relations, business development, and strategic communications firm based in Boston. McKiernan will work with existing and future ADS Ventures clients to enhance their understanding of defense requirements and provide counsel on legislative and policy priorities. McKiernan completed 37 years of military service in August 2009, following his tenure as commander of all American and international security assistance forces in Afghanistan.
Alex Goor has been appointed chief information officer, effective immediately, at Interactive Data Corp., a Bedford-based provider of financial market data, analytics, and related solutions. Goor, 38, is responsible for development and operations across Interactive Data globally. He is based in New York and reports to Mason Slaine, Interactive Data’s chairman, president, and chief executive. Goor's resume includes stints as co-chief executive and chief information officer of Instinet Inc and as president of Inet ATS, Inc., Instinet Group’s electronic marketplace subsidiary.
Scott Biller has joined Agios Pharmaceuticals as chief scientific officer. Headquartered in Cambridge, Agios is a biopharmaceutical company focused on discovering and developing novel drugs in the rapidly emerging field of cancer metabolism. Biller was previously with Novartis Pharmaceuticals, where he was vice president and head of global discovery chemistry at the Novartis Institutes for BioMedical Research.
Posted by globebusiness at 12:00 PM | Comments (0)
FDA to consider approval of modified salmon
A Massachusetts company is asking the Food and Drug Administration to approve the marketing of genetically engineered salmon, which would become the first such animal OK'd for human consumption.
The FDA has not yet decided whether to approve the product, but it is holding two days of hearings on the subject. Ron Stotish, CEO of AquaBounty, said at the meeting today that his company's modified fish are environmentally sustainable and safe to eat. The agency has already said the salmon is as safe to eat as the traditional variety.
Posted by globebusiness at 11:51 AM | Comments (0)
Economic panel says recession ended in June 2009
It's official: The longest recession the country has endured since World War II ended in June 2009, according to a group that dates the beginning and end of recessions.
The National Bureau of Economic Research, a panel of academic economists based in Cambridge, says the recession lasted 18 months. It started in December 2007 and ended in June 2009. That was the longest of any recession since World War II. Previously the longest postwar downturns were those in 1973-1975 and in 1981-1982. Both of those lasted 16 months.
Posted by globebusiness at 11:06 AM | Comments (0)
Genzyme says Synvisc approved in Japan
CAMBRIDGE -- Genzyme Corp. said its drug Synvisc, which treats osteoarthritis of the knee, has been approved in Japan.
Genzyme said it received marketing approval from the Ministry of Health, Labour and Welfare. The Central Social Insurance Medical Council has agreed to cover the drug. Osteoarthritis of the knee affects about 30 million people in Japan, according to Genzyme.
Teijin Pharma Ltd. has licensed Synvisc and has exclusive rights to sell the drug in Japan. Genzyme will receive milestone payments and will supply the drug to Teijin, which is based in Japan.
In morning trading, Genzyme stock rose 10 cents to $70.25.
Posted by globebusiness at 10:55 AM | Comments (0)
Local gas prices remain at $2.609 a gallon
The average price for gas in Massachusetts held steady at $2.609 a gallon in the latest weekly survey from AAA, AAA Southern New England said today.
The weekly survey focuses on the average price for self-serve, regular unleaded gas.
Tthe national average for self serve unleaded was $2.72 in the latest AAA weekly survey. A year ago at this time, the Massachusetts average price was $2.56, AAA Southern New England said.
Posted by globebusiness at 10:18 AM | Comments (0)
IBM to buy Netezza for $1.7 billion
Technology giant IBM Corp. said this morning that it plans to pay about $1.7 billion to buy Netezza Corp., a Marlborough company that sells hardware and software that helps big companies run their data warehouses.
"Netezza will expand IBM's business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost," Armonk, N.Y.-based IBM said in a press release. "The acquisition, which is subject to Netezza shareholder approval, applicable regulatory clearances and other customary closing conditions, is expected to close in the fourth quarter of 2010."
The proposed deal values publicly traded Netezza at $27 a share, IBM said. Netezza shares closed Friday at $24.60.
According to the Globe 100, the Globe's annual report on top businesses in Massachusetts, Netezza had 2009 revenues of $190.6 million and a head count of 425 employees.
Over the past four years, IBM said it has invested more than $12 billion in 23 analytics related acquisitions.
On a geographical note, IBM has bought more than a dozen company in Massachusetts since 2003.
IBM recently agreed to buy Unica Corp. of Waltham for $480 million. That deal will help IBM establish itself in marketing automation software, which helps firms analyze information about their customers, such as age, gender, and previous purchases.
IBM also just closed a deal to buy data storage company Storwize Inc. of Marlborough.
Other local acquisitions include Guardium Inc., Ounce Labs Inc., and data storage businesses FilesX Inc. and Diligent Technologies.
Posted by globebusiness at 8:19 AM | Comments (0)
Aeris gets a regulatory OK
Aeris Therapeutics said it has been given regulatory approval to move forward with commercialization of its AeriSeal System in Europe.
The Woburn company specializes in developing treatments for patients with emphysema and other advanced lung diseases.
Its AeriSeal System, which is designed to "provide a safer non-surgical alternative to lung volume reduction surgery," has received CE Mark approval, Aeris Therapeutics said in a press release.
Posted by globebusiness at 7:39 AM | Comments (0)
Today in Globe Business
KRASNODAR, Russia — He has exchanged Red Sox Nation for the Black Earth region, Newbury Street for Ulitsa Krasnaya, bagels at Baker’s Best in Newton Highlands for bulochki in this southern Russian city that bestrides the country’s breadbasket.
Timothy Post, raised in Chestnut Hill and Duxbury, is a fixture in Krasnodar, an entrepreneur who always has a hand in several prominent ventures at a time, an almost legendary capitalism coach here who has helped nurture new Russian free-marketeers, and a visionary with a business plan seemingly for everyone he meets.
And if his latest idea is successful, he will help turn this provincial capital into a magnet for Internet start-ups from across Russia’s nine time zones, and transform Krasnodar into a hotbed of business for hundreds of innovative Russian geeks.
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Researchers on path toward artificial ovary
A cancer diagnosis for a young woman can involve more than just the ordeal of undergoing treatment with drugs or radiation — the therapies may also ruin her dream of having children.
But as survival rates for young cancer patients have increased, scientists have increasingly focused on creating new options, including an artificial human ovary that could allow women to more easily preserve their fertility.
In a step that combines biology and engineering, researchers at Women & Infants Hospital of Rhode Island and Brown University have built a honeycomb structure of cells that mimic the ovary, allowing an egg to mature outside the body. Their work was published last month in the Journal of Assisted Reproduction and Genetics.
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INNOVATION ECONOMY: Bay State entrepreneurs are swinging for the fences
Highlights from Scott Kirsner’s Innovation Economy blog.
Listening to Governor Deval Patrick address venture capitalists this month, something bugged me. In comparing Massachusetts entrepreneurs and investors to their California counterparts, the governor said chief executives of big tech companies like EMC and Cisco have told him that we:
■Are too insular.
■Don’t give entrepreneurs a second shot after a failure.
■Don’t network enough.
Posted by globebusiness at 6:12 AM | Comments (0)
September 17, 2010
Houghton Mifflin partners with A&E TV Networks
Houghton Mifflin Harcourt, a Boston education company whose products include textbooks, said it is partnering with A&E Television Networks to launch an initiative that seeks to "revolutionize the way students learn and educators present social studies and history subjects."
The initiative will use content from HISTORY, the A&E division formerly known as the History Channel, as Houghton Mifflin Harcourt and A&E look to "deliver both traditional and digital education materials and tools to create dynamic learning environments for students that weave compelling historical stories with innovative, experience-based assets, and content," the two entities said in a press release.
“This is the breakthrough students and teachers have been waiting for — a huge technological leap forward,” Barry O’Callaghan, Houghton Mifflin Harcourt's chief executive, said in a statement.
Posted by globebusiness at 2:24 PM | Comments (0)
IRS open house to help vets, people with disabilities
The Internal Revenue Service said it will host a special nationwide open house on Saturday, Sept. 25, to help taxpayers, especially veterans and people with disabilities, solve tax problems and respond to IRS notices.
In a press release, the IRS said its office at the JFK Building (15 New Sudbury St., Boston) will be open from 9 a.m. to 2 p.m. on that day as part of its nationwide effort. IRS staff will be available on site or by telephone to help taxpayers work through issues.
Taxpayers who have attended previous open houses "have had great success solving their tax issues," IRS spokesperson Peggy Riley said in a statement. "We encourage people that need assistance preparing a return, setting up a payment plan or figuring out what a notice means to come to the open house on Saturday, Sept. 25.”
Posted by globebusiness at 1:46 PM | Comments (0)
Alere boosts debt offering to $400 million
Medical diagnostic company Alere Inc. has increased the size of a previously announced debt offering to $400 million from $350 million.
The Waltham company said late Thursday it entered an agreement with the initial purchasers of the 8-year senior subordinated notes on Sept. 15. The notes have a coupon of 8.625 percent. Alere expects to complete the offering around Sept. 21. The company intends to use the proceeds for working capital and other general corporate purposes.
Alere shares rose 12 cents to $30.08 in midday trading.
Posted by globebusiness at 12:50 PM | Comments (0)
$6m weekend getaway in the Hub, Jaguar thrown in
Are you a well-heeled patron of the arts with a few extra bucks to spare? Then the Taj Boston has a "unique legacy opportunity" for you.
Book the hotel's "$6 million suite" for the weekend of October 15-17, and "your name will grace the dramatic new performance complex at the Boston Conservatory," the Taj Boston and the conservatory said in a press release.
The conservatory, a performing arts college offering undergraduate and graduate degrees in music, dance, and musical theater, has scheduled the formal opening of its new $32 million theater building for mid October. During the opening festivities, the conservatory promises to give the person who books the $6 million suite plenty of VIP treatment. For more details, please click here.
Besides theater naming rights, the $6 million package includes two nights' accommodations in Taj Boston Presidential Suite and a "new Jaguar XJ to enjoy during your stay and then to take with you, or garage in Boston, with lifetime valet parking privileges at Taj Boston," the release said. The package also includes lifetime tickets for two to all Boston Conservatory performances, arranged by the Taj Boston concierge staff.
The rendering above this post was provided by the conservatory.
Posted by globebusiness at 10:47 AM | Comments (0)
HFF arranges refinancing for Malden office building
The Boston office of Holliday Fenoglio Fowler LP, or HFF, said that it has arranged an $8.5 million refinancing for Riverview Business Park, a 90,000-square-foot office building in Malden.
HFF said it placed the seven year, fixed-rate loan with Aetna Life Insurance Company. HFF said it worked on behalf of Combined Properties, a real estate investment and development firm specializing in high-quality office, R&D, industrial, and retail properties in the northern suburbs of Boston.
Riverview Business Park is situated on a 6.2-acre site at 300 Commercial St. in downtown Malden, about five miles north of Boston. The property is fully leased to three tenants: Comcast Communications, Mystic Valley Elder Services, and Combined Properties, HFF said.
Posted by globebusiness at 9:40 AM | Comments (0)
RI unemployment drops to 11.8 percent
Rhode Island's unemployment rate has dropped for the sixth consecutive month to 11.8 percent, but still remains well above the national rate.
The state Department of Labor and Training announced Friday that the August unemployment rate was down from 11.9 percent in July and at the lowest level since August 2009. The US unemployment in August was 9.6 percent. The number of unemployed Rhode Islanders dropped in August by 800.
Not all the news was good. The state's labor force declined by 1,700 compared with July, which means people are either leaving the state or have given up looking for work. The state added the most jobs in the construction and health care sectors, but lost the most in manufacturing and the hospitality industry.
Posted by globebusiness at 9:27 AM | Comments (0)
Ahead of the Bell: Alkermes rises on Vivitrol vote
Shares of Alkermes climbed in premarket trading Friday after a government panel recommended approval of a second use for its addiction drug.
The Waltham company has asked the Food and Drug Administration to allow it to market Vivitrol as a treatment for addiction to opioid drugs like heroin. It is currently approved for the treatment of alcoholism. The advisory panel voted 12-1 that the drug should be approved.
Trading in company shares was halted Thursday before the panel's decision on Vivitrol was released after the markets closed. Shares of Alkermes Inc. rose 5.5 percent, or 78 cents, to $15 before the market opened, putting them on pace to break a new 52-week high.
The FDA is not required to take the panel's advice, but according to Jefferies & Co. analyst David Windley, "approval looks like a near certainty." Windley said the panelists felt there was a significant need for Vivitrol as a treatment for opioid addiction, and they had few concerns about its safety or about the applicability of clinical trials that were done in Russia.
A final decision by the FDA is due by Oct. 12. The analyst said some physicians already prescribe Vivitrol off-label as a treatment for opioid addiction, so if the FDA grants the new approval, sales are not going to jump. Windley said he thinks they will increase over time and eventually reach $100 million. Sales totaled $20.2 million in Alkermes' last fiscal year, which ended March 31.
Posted by globebusiness at 9:17 AM | Comments (0)
Taylor Exhibitions is moving to larger space
Taylor Exhibitions Services Inc., a global event design and integrated communications agency whose services include strategy, design, fabrication, installation, site services, lead management, is moving to larger space in Franklin, said a broker involved in the transaction.
The broker is the Boston office of Lincoln Property Co., which represented Taylor Exhibitions in the transaction.
Taylor Exhibition occupies 27,000 square feet of space at 12 Forge Rd. in Franklin, a Lincoln Property spokesman said, and the company recently signed a lease to relocate into 37,536 square feet of space at 10 Liberty Way in Franklin. The new space provides Taylor Exhibitions with "significant flexibility to expand and contract moving forward," Lincoln Property said.
According to Lincoln Property, 10 Liberty Way, owned by Liberty Realty Trust, is a 55,023-square-foot industrial building located in the Franklin Industrial Park. The building was constructed in 1988 and previously acted as the long time headquarters for E.C. Hilliard Corp. The landlord was represented in the transaction by O’Brien Commercial Properties Inc.
Posted by globebusiness at 9:07 AM | Comments (0)
Today in Globe Business
Mass. jobless rate falls to 8.8 percent
The state’s unemployment rate has slipped below 9 percent for the first time in a year, as Massachusetts employers added jobs for the seventh consecutive month and the economic recovery advanced at a solid, if slowing, pace.
The drop in unemployment to 8.8 percent, detailed in data released by the state yesterday, was partly due to discouraged workers who gave up searching for a job and dropped out of the labor force, officials said. Only those who actively seek work are counted as unemployed.
Still, the news was further evidence that Massachusetts is rebounding faster than the rest of the nation, analysts said.
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French firm plans Waltham campus
A new corporate campus is coming to Route 128 in Waltham.
Dassault Systèmes, a French product design software firm, is expected to say today that it is establishing an Americas campus on a prominent 27-acre site along the northbound side of the highway that will feature two new buildings, a 1-acre courtyard, and a stylish cafeteria in a Harvard Yard-like setting.
Jones Lang LaSalle, the real estate firm that brokered the deal, said the project represents the largest lease per square foot in Greater Boston this year, but it would not reveal financial details.
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TOLLAND — The owners of 843 acres of Western Massachusetts, complete with its own 125-acre lake and a long stretch of land along the Farmington River, will auction the property next month — and the state could potentially be a bidder.
Nestled in the Berkshires near the state’s border with Connecticut, the 843 acres of unspoiled, undeveloped forest is the largest property for sale in Massachusetts, according to the broker selling the land. An entry on www.landsofmassachusetts.com, a website that specializes in rural property sales, lists a $6.95 million asking price.
With the waters of the man-made Twining Lake at its heart, and with frontage on the idyllic Farmington River, the property in the little town of Tolland features fields of goldenrod and tree-covered foothills that must offer spectacular views once the foliage turns.
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Skyhook Wireless defends turf against giants
Skyhook Wireless Inc. is a tiny Boston company that had an idea so big, that two of the mightiest tech companies on earth — Google Inc. and Apple Inc. — are trying to imitate it. And that means a rough road ahead for the 32-person firm, which pioneered the concept of mapping the world according to signals from Wi-Fi Internet routers.
“You always want to build a company that matters, in a space people care about,’’ said Ted Morgan, Skyhook’s chief executive. “The downside is when it’s a space people care about, people are going to fight you for it.’’
On Wednesday, Skyhook filed two lawsuits against Google, the giant Internet search service it claims is muscling its way into the smaller company’s business. One suit, lodged in federal court, attacks Google’s technology to track the location of cellphones by using nearby Wi-Fi signals violates four Skyhook patents. The other suit, filed in Suffolk Superior Court, charges Google with breaking state law by strong-arming Skyhook’s business partners into halting their use of its location system.
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BOSTON CAPITAL: A rare anniversary
Mutual fund managers don’t last 20 years, as a rule. Over time, they get pushed out or burn out in a job that comes with long hours and measures performance every day to the tenth of a percent. Others just decide to move on.
On that basis alone, it’s worth noting that Will Danoff has been sitting in the manager’s chair at Fidelity Contrafund for 20 years as of today. What’s worth an entire column is how Danoff beat the market for two decades and build Contrafund into one of the investment world’s biggest and most important stock mutual funds.
Danoff was a 30-year-old assistant on Fidelity Magellan when he was named to succeed Jeff Vinik as manager of Contrafund. Vinik had been promoted to lead Magellan, and Danoff took over his job of running a $300 million portfolio.
Posted by globebusiness at 6:05 AM | Comments (0)
September 16, 2010
Capital Grille will move to the Hynes
The Capital Grille restaurant will move from its current Newbury Street location to much larger space at the nearby John B. Hynes Veterans Memorial Convention Center in 2011, the Massachusetts Convention Center Authority announced today.
The Capital Grille's new location will be at the corner of Dalton and Boylston streets and will "bookend" the Hynes with two restaurants, said the authority, which operates the Hynes. The other restaurant is Towne Stove and Spirits on the Prudential Plaza, which was opened earlier this year by local restaurateurs Lydia Shire, Jasper White, and Patrick Lyons, the authority said.
The Capital Grille will occupy about 10,300 square feet at its new location, compared with about 5,500 square feet at its current site. Plans call for the Capital Grille to continue to do business at its present location on Newbury Street until the new location is ready to open, something expected to happen by summer 2011, the authority said. At the new location, the Capital Grille will be open for lunch, something the restaurant is unable to do in its present location, said the authority, which added that the Capital Grille was unable to renew its lease at its current location.
The rendering of the Capital Grille at its new location was provided by the authority.
Posted by globebusiness at 3:15 PM | Comments (0)
State business climate is worsening, survey says
Massachusetts tax policy is the most important factor in determining the competitiveness of the state’s business climate, and the state's business climate is deteriorating because of poor tax policy decisions in recent years, according to a survey of chief executives of companies doing business in the Bay State.
The survey was conducted by the Massachusetts High Technology Council, a nonprofit business trade group in Waltham that seeks to promote the state as a mecca for high-tech companies and high-tech job creation. Roughly 100 companies are council members, and chief executives for about half those companies participated in the survey, the council said.
According to the council's 2010 annual CEO survey, 40 percent of respondents believe the business climate is “worsening." That's the highest level of pessimism since its 1991 survey, the council said.
Given the findings of the 2010 survey, the council said it is collaborating with the Pioneer Institute, a local public policy research organization, and IHS Global Insight, a consulting firm in Lexington, to develop a "dynamic analysis" of recommended tax policy changes that would improve the Massachusetts business climate. The council said it expects to make that analysis public in early October.
The analysis is tentatively titled "Keeping Massachusetts Competitive: The Business Climate in Context," and it is expected to argue that stable and predictable tax policies are needed to promote a healthful business climate, the council said.
The council and the Pioneer Institute issued a brief today that outlines some of the issues that the analysis will delve into in greater detail.
According to the brief, the analysis will focus on the corporate income tax rate, the personal income tax rate, research-and-development tax credits, unemployment insurance taxes, and the investment tax credit. The brief added that Massachusetts, in an effort to increase short-term revenues, has made numerous tax increases in recent years, including many changes to the corporate tax structure.
Posted by globebusiness at 2:52 PM | Comments (0)
Ex-Mass. seafood co. owner pleads guilty to fraud
Federal prosecutors say the former owner of a North Attleborough seafood wholesale company has pleaded guilty to defrauding a bank of $7 million.
Robert Coutu of Cumberland, R.I., pleaded guilty in federal court in Boston on Wednesday to conspiracy to commit bank fraud, bank fraud and money laundering.
Prosecutors say starting in 2002, the 59-year-old Coutu and some of his employees falsely inflated the company's receivables and inventory balances to make it appear the company was buying and selling more seafood than it was, in order to borrow millions of dollars from Wells Fargo Business Credit Inc. Coutu faces a maximum of 30 years in prison at sentencing scheduled for Jan. 19.
His lawyer declined comment when contacted by The Associated Press on Thursday.
Posted by globebusiness at 2:02 PM | Comments (0)
Logan is lowering airline fees
The Massachusetts Port Authority is lowering the fees it charges airlines at Logan International Airport, a result of low natural gas prices and spending cuts, according to the agency.
This will be the third year in a row that fees will remain flat for airlines at Logan. As approved by the Massport board this morning, the agency is giving back $9.8 million in fees it charged airlines in fiscal year 2010, which ended June 30, and is lowering its landing fees by 7 cents per 1,000 pounds, trimming its baggage screening fees by 21 cents per bag, and reducing rental rates in Terminal A and Terminal C.
"These savings were the result of belt-tightening measures management undertook that, among things, including freezing vacant positions, modifying employee health insurance benefits, reducing spending on consultant contracts and other miscellaneous items, and lowering operational contracts where reduced service levels allowed," Thomas Kinton, executive director of Massport, said at the board meeting. "We will also be able to pass along another $5 million in utility savings to airlines thanks to our success in purchasing natural gas at historically low prices."
Posted by globebusiness at 12:40 PM | Comments (0)
Who, What, Where
Thijs Spoor is the new chief executive at FluoroPharma, a Boston biopharmaceutical company engaged in the discovery and the development of imaging radiopharmaceuticals for use in cardiology and Alzheimer's disease. Most recently, he was the chief financial officer of Sunstone BioSciences.
Peter Blume-Jensen, MD, Ph.D, has been appointed chief scientific officer at Metamark Genetics Inc., a Cambridge-based molecular diagnostics company developing personalized medicine approaches to optimize cancer care. From 2001 to 2008 Blume-Jensen was department head at EMD Serono Inc. and later at Merck Research Laboratories, where he established integrated oncology R&D programs linking therapeutics to patient responder populations. Since 2008, he served as executive director, external scientific affairs and vice president of Daiichi Sankyo Research Institute, where he helped formulate a global oncology R&D strategy.
Sean Thompson will join the soon-to-open Amsterdam office of Boston ad agency Arnold Worldwide. In this newly created position, Thompson will serve the dual role of managing partner and global executive creative director of Team Volvo as well as managing partner and executive creative director of Arnold Amsterdam. The Volvo automotive brand is an Arnold client. Since 2006, Thompson has served as creative director at 180 Amsterdam, where he was responsible for creative work for BMW and Adidas.
Michael MacConnell is the director of corporate partnerships for Delaware North Cos.-Boston, operators of the TD Garden. In this role, he will be working to develop new corporate partnership opportunities for the TD Garden and the Boston Bruins. Before joining the TD Garden, he worked for Zone Labs as the director of sales and marketing.
Posted by globebusiness at 12:38 PM | Comments (0)
Organic products groups moves from Mass. to Vt.
An organization that represents 1,500 North American businesses in the organic products industry is moving its headquarters from Massachusetts to Vermont.
The Organic Trade Association has announced that it will move operations about 20 miles from Greenfield, Mass., to Brattleboro, Vt. this fall. About a dozen employees will make the move.
A spokeswoman for the organization founded in Massachusetts in 1985 tells The Recorder of Greenfield that the move was sparked by a desire for a more modern, handicapped-accessible space; an $86,300 grant from the Vermont Economic Progress Council; and Vermont's reputation as a top organic food producer.
The organization, which represents businesses of all sizes, also has an office in Washington, D.C.
Posted by globebusiness at 11:43 AM | Comments (0)
We don’t hate bosses as much as we used to
Once bosses were despised, derided, and detested, but hard times have apparently mellowed workers thankful to still have a job.
Monster.com, the job-search website with a big presence in Maynard, said it recently surveyed roughly 2,150 US visitors to its site to determine their feelings towards bosses.
"The polls' findings reflect an increasing tolerance among Americans for 'nightmare' bosses, an increasing willingness to accept less, namely in the form of bonus/compensation, and a need for companies to be more flexible when it comes to issues such as working remotely," Monster said in a press release.
One finding of the August poll: Just over 40 percent of respondents said they would never quit a job because of their relationship with a supervisor.
One survey conclusion: "Current economic conditions and an uncertain job market have changed Americans' perceptions of their supervisors," Monster said.
Monster has business relationships with many media companies, including The New York Times Co., owner of The Boston Globe and Boston.com.
Posted by globebusiness at 11:32 AM | Comments (0)
Penalty-free football. What's your policy?
Liberty Mutual Insurance, whose marketing mantra is "Responsibility. What's your policy?," said it is putting a premium on penalty-free college football.
In a press release, the Boston-based company unveiled the "Million Dollar Game," an opportunity for college football teams across all Football Bowl Subdivision (formerly Division I-A), Football Championship Subdivision (formerly Division I-AA), Division II, and Division III institutions to "strive to remain penalty-free for an entire 2010 regular season game."
The release added: "If a regular season game is completed in which neither team commits an on-field penalty, Liberty Mutual will donate a total of $1 million (up to $500,000 per team) to a charity selected by each school. If more than one game is completed penalty-free, the million-dollar donation will be split among all winning schools' charities."
The "Million Dollar Game" initiative is in conjunction with the Liberty Mutual's Coach of the Year Award, the company said.
The release included a statement from Greg Gordon, Liberty Mutual's senior vice president of consumer marketing.
"Performance through excellence and sportsmanship, on and off the field, are pillars upon which the Liberty Mutual Coach of the Year Award stands," Gordon said. "We know that ultimately it's about winning, and coaches and their teams play to win. We don't want to change that but if a team can achieve that win - without a penalty on either side - we want to celebrate that accomplishment."
Posted by globebusiness at 11:03 AM | Comments (0)
Clean Harbors raises 2010 revenue estimate
NORWELL -- Clean Harbors Inc., which provides hazardous waste management services, raised its revenue forecast because it has done more business than it expected during the third quarter.
Shares rose 1 percent, or 79 cents, to $66.82 before the market opened.
The company now forecasts $1.63 billion to $1.68 billion in revenue for 2010. Previously it called for $1.6 billion to $1.65 billion in revenue. Last month Clean Harbors said its participation in the cleanup of the Gulf oil spill was more extensive than it had expected.
Wall Street already expected the company to exceed its prior figures, as Thomson Reuters says analysts were looking for $1.66 billion in revenue on average.
Clean Harbors also forecast a larger profit before interest, taxes, depreciation and amortization. The company is also planning greater capital spending, and now estimates a total of about $100 million this year, rather than a figure in the mid-$80 million range.
The company said it will pay back about $30 million on Sept. 28 by redeeming some of its senior secured notes. Clean Harbors said it has about $300 million in long term debt. It will take a $2.4 million pretax charge in the third quarter related to the debt payment, but the move will save the company about $2.3 million per year in interest payments.
Posted by globebusiness at 10:52 AM | Comments (0)
Special Dunkin’ donut benefits Alzheimer group
Dunkin’ Donuts and the Alzheimer’s Association said they are teaming up for the second annual “Purple with a Purpose” campaign to help raise awareness for World Alzheimer’s Day on Sept. 21
One feature of the campaign is a special white-frosted and purple-sprinkled donut that will be available at 1,100 Dunkin’ Donuts locations across Eastern Massachusetts and Southern New Hampshire.
Dunkin’ Donuts, the Canton-based coffee-and-baked goods chain, said it will make a minimum donation of $10,000 to the Dunkin’ Donuts & Baskin-Robbins Community Foundation to support the Alzheimer’s Association based on the number of donuts purchased on World Alzheimer’s Day. Baskin-Robbins ice cream is Dunkin's sister chain.
The photo of the special donut that appears with this post was provided by Dunkin'.
Posted by globebusiness at 10:36 AM | Comments (0)
Phillips Design helps launch Black Fig Vodka
Phillips Design Group said it has completed work on the recent launch of Black Fig Vodka, a natural Calimyrna fig-infused vodka created by Randy Nason and Mitchell Maxwell at their Maxwells restaurant in Natick.
Black Fig Vodka retails from $58.99 to $65.99 and is available at Maxwells and in select restaurants and package stores, Phillips Design Group said in a press release.
Phillips Design Group is a Boston-based strategic brand development and design firm serving the consumer products, fashion, technology, legal, and financial industries.
The photo of Black Fig Vodka that appears with this post was provided Phillips Design Group.
Posted by globebusiness at 10:12 AM | Comments (0)
Interactive Data Corp. has a new CEO
Mason Slaine has been named chairman, president, and chief executive of Interactive Data Corp., a Bedford-based provider of financial market data, analytics and related solutions, effective immediately, the company said.
Slaine replaces Raymond D’Arcy, who will now serve as vice chairman of Interactive Data, the company said in a press release.
Slaine is currently chairman of MLM Information Services, a vendor of corporate tax compliance software and services, which he founded in 2005 with the private equity firm Warburg Pincus.
Earlier this year, Interactive Data was acquired by investment firms Silver Lake and Warburg Pincus for $3.4 billion.
Posted by globebusiness at 9:48 AM | Comments (0)
Mass. unemployment rate drops to 8.8 percent
The Massachusetts unemployment rate dropped to 8.8 percent in August as the state's labor market added 4,000 private sector jobs, the state's Executive Office of Labor and Workforce Development said today.
It was the state's seventh straight month of job growth; the Massachusetts unemployment rate was 9 percent in July.
In August, the Bay State's private sector added 4,000 jobs with the largest gains in the leisure and hospitality; professional, scientific and business services; and construction segments of the labor market, the Executive Office of Labor and Workforce Development said in a press release.
The state continues to outpace the national recovery. The nation shed jobs in each of the past three months as private sector job growth was too weak to offset layoffs of temporary US Census workers and cuts in state and local government payrolls. The national unemployment rate rose to 9.6 perecent last month from 9.5 percent in July.
Massachusetts has been helped by a local economy that depends more on technology, health care, and education, and less on construction, housing, and consumer goods, which were hardest hit in the recent recession.
To read the Globe story about Massachusetts unemployment numbers for July, please click here.
Posted by globebusiness at 9:18 AM | Comments (0)
American Science & Engineering gets $10m order
American Science and Engineering Inc. announced today the receipt of a $10 million order from the US government for the service and maintenance of military trailers that use the company's screening technology.
In a press release, Billerica-based American Science and Engineering noted that its ZBV military trailer is a "rugged X-ray screening system" built onto a standard military trailer.
With the system's X-ray detection technology, security officials can use the ZBV military trailers for "screening vehicles, containers, and other cargo for terrorist threats and contraband" by simply by towing the trailer past the subjects or by remaining stationary while vehicles drive past the trailer, the company said.
Posted by globebusiness at 8:53 AM | Comments (0)
Alkermes stock trading halted today
Alkermes Inc. said that NASDAQ has halted trading of the company's common stock this morning.
In a press release, Waltham-based Alkermes said, "The Psychopharmacologic Drugs Advisory Committee appointed by the US Food and Drug Administration (FDA) meets today to review the company's supplemental New Drug Application (sNDA) for Vivitrol (naltrexone for extended-release injectable suspension) for opioid dependence."
Bloomberg News reported earlier this week that US regulators have determined that Alkermes' alcoholism drug, Vivitrol, works as a treatment for opiate addiction, though additional study may be required.
Vivitrol injections helped prevent relapse in patients addicted to heroin and painkillers who were trying to stop using drugs in a Russian study, according to an FDA report.
Alkermes's revenue from Vivitrol as a treatment for alcohol dependence has been "disappointing," with sales insufficient to cover costs, said Steve Yoo, an analyst at Leerink Swann & Co. An added approval for opiate addiction, where pharmacologic treatment is standard, may make the drug profitable, Yoo said in a note quoted in the Bloomberg report.
Outside advisers to the FDA will meet to review the findings and make recommendations on the proposed use. The agency is scheduled to decide on the supplemental new drug application by Oct. 12, Bloomberg said.
Posted by globebusiness at 7:38 AM | Comments (0)
Today in Globe Business
Three egg producers in Maine that supply many New England grocery stores are under scrutiny by congressional investigators because of their ties to Austin “Jack’’ DeCoster, whose Iowa farm was at the center of the recent egg recall.
The House Committee on Energy and Commerce has requested that DeCoster turn over inspection records and documents related to any allegations of egg contamination, or violations of health, safety, environmental, or animal cruelty laws at Dorothy Egg Farms, Mountain Hollow Farms, and Quality Egg of New England. Together, the three Maine farms provide about 100 million cartons of eggs a year to grocery stores throughout the region.
“The companies appear to be linked to DeCoster, but we don’t know what role, if any, they played in the recall,’’ said Karen Lightfoot, a spokeswoman for the congressional panel. This summer more than 1,500 people were sickened by eggs suspected of being contaminated by salmonella, prompting a major recall by two farms in Iowa. No illnesses were reported in New England.
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Hospitals seek rules for Caritas after sale
A coalition of community hospitals that compete with Caritas Christi Health Care across eastern Massachusetts is appealing to the state attorney general’s office to impose strict rules on the proposed sale of the nonprofit chain to a New York private equity firm.
Among the conditions being sought by the Healthcare Access Coalition are measures to prohibit the buyer, Cerberus Capital Management, from using “improper’’ incentives to recruit doctors from rival hospitals, a three-year ban on price increases for hospital services, and restrictions on “limited network’’ insurance contracts that exclude other providers. The community hospitals also want Cerberus to commit to not selling Caritas for seven years instead of three.
Members of the coalition, made up of Lawrence General Hospital, Signature Healthcare Brockton Hospital, and Southcoast Hospitals Group in New Bedford, said the restrictions are needed to keep them viable and ensure that low-income patients have access to health care services at reasonable prices.
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TECH LAB: With sweets added to iPod, it's tough to resist taking another bite
Apple Inc. began pouring music into our pockets in 2001. Nine years and 275 million iPods later, the company keeps inventing good excuses for buying the latest versions of the portable devices.
The iconic little music players get a face lift every autumn, with just enough technical and cosmetic improvements to send the fans scurrying to the nearest Apple store. Don’t expect me to discourage them. I like to think I’m a tough grader, but after a few days with the three latest iPods, I’ve gone all squishy.
The cheapest iPod, the Shuffle, was a good deal when it was $59, and it’s better now at $49. It’s got two gigabytes of memory on board, plenty for listening to tunes on the subway. Gone is the control system mounted on the Shuffle’s headphone cable. There’s now a clickwheel right on its 1-inch-square face. That leaves no room for a video display, but then Shuffles have never had those. Instead, there’s a pushbutton on the upper edge that activates VoiceOver, a smart feature that reads album and podcast titles out loud, guiding you to the right recordings.
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City revamps way airport sells liquor
The Boston City Council cleared the way yesterday for vendors at Logan International Airport to be granted special liquor licenses, potentially freeing up 13 sought-after liquor licenses being used at the airport to establishments throughout the city.
Currently 40 vendors at the airport, including restaurants and airline clubs, share 13 regular liquor licenses. If the special license rule goes through, each Logan vendor would have to purchase a new airport license — $2,500 for an all-inclusive license, $1,000 for beer and wine only — and the city licenses would be sold to Boston establishments outside the airport.
The proposal will go to the state Legislature and the governor for approval.
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Cambridge firm hopeful, cautious on gene therapy
A Cambridge biotechnology company has developed a gene therapy that successfully treated a 21-year-old French man who suffers from an inherited blood disorder called beta thalassemia, allowing him to forgo monthly transfusions that he has depended on since childhood.
The case, reported yesterday in the journal Nature, is the latest example of progress in the field of gene therapy. Bluebird Bio, the company developing the therapy, plans to recruit nine additional patients for its clinical trial, which will include patients with beta thalassemia and sickle cell anemia.
“Now, the patient has been without any transfusions for two years. . . . I must say we want to be cautious — nevertheless, at this point it’s good to see the patient lives a normal life for the first time, has a full-time job in a restaurant in Paris as a cook,’’ said Dr. Philippe Leboulch, a visiting professor at Harvard Medical School and a professor of medicine at the University of Paris, who is the senior author of the study.
Posted by globebusiness at 6:08 AM | Comments (0)
September 15, 2010
Coakley opposes National Grid’s proposed rate hike
Massachusetts Attorney General Martha Coakley is urging state utility officials to reject a proposed $104 million natural gas hike for customers of National Grid, saying the company is overcharging local customers, and trying to charge them even more.
The price jump requested by National Grid, one of the state's major utilities, would be the largest hike in distribution charges in state history if approved by regulators, according to Coakley's office, which acts as an advocate for ratepayers and has been scrutinizing the utility company's expenses.
National Grid recently agreed to cut $1.5 million from the rate proposal after Coakley found what she called "inappropriate expenses" the utility planned to pass on to customers, including the cost of shipping a utility executive's wine collection from great Britain to the US, money spent to send executives to the Presidential inauguration, and the tuition paid by a National Grid executive to send his children to an exclusive private school in the UK.
It's the second time in recent weeks that Coakley, who is the state's offical advocate for ratepayers, has fought to lower energy prices charged by National Grid. Last month, her office negotiated a 10 percent reduction in the price National Grid agreed to pay for electricity from Cape Wind, the controversial energy project scheduled to begin operations in 2013.
Coakley called for a full audit of National Grid's rate proposal today, saying she believes at least $100 million in costs were charged to Massachusetts customers when they should have been allocated to the utility's New York, New Hampshire, and Rhode Island subsidiaries.
"National Grid has removed many of the inappropriate expenses that we uncovered in our review, but those costs only scratch the surface," Coakley said in a statement. "We believe that National Grid has attempted to pass on millions in unnecessary costs to Massachusetts consumers and businesses."
National Grid defended the rate hike proposal, saying it has invested $1.2 billion in its Massachusetts gas system since 2002.
"We believe that our proposal is in the best interest of customers because it will enable us to continue to provide safe and reliable service," the utility said in a statement to the Globe. "We already have removed all costs for expatriate and officer expenses from our proposal, and we are hiring an independent firm to conduct a comprehensive review of our practices on these expenses."
Posted by globebusiness at 5:00 PM | Comments (0)
Novell shares surge on sale rumor
Shares of software maker Novell Inc. jumped after a published report said the company is a few weeks away from selling itself in two parts.
Waltham-based Novell plans to sell a division that provides Linux operating system software separately from the rest of the company, the New York Post reported on its website, citing unnamed sources familiar with the deal. Novell spokesman Ian Bruce declined to comment on the report or speculation about a sale.
Novell has been considering a sale since March after it rejected a bid of $5.75 per share from the New York-based private equity firm Elliott Associates LP.
Novell shares rose 32 cents, or 5.8 percent, in mid-afternoon trading.
Posted by globebusiness at 3:18 PM | Comments (0)
Local firms well represented in biotech’s Fierce 15
Massachusetts companies account for just over half of the Fierce 15, an annual list of the most promising biotechnology companies compiled by FierceBiotech.
Based in Washington, D.C., FierceBiotech is an online newsletter that focuses on drug discovery, clinical drug trials, and Food and Drug Administration approval news.
This is the eighth Fierce 15 list developed by FierceBiotech, and editor John Carroll said he cannot recall one region dominating the list as Massachusetts does this year. Eight of this year's Fierce 15 are from the Bay State, and another company is from Lebanon, N.H. Only one company from outside the United States made this year's list.
Local companies on the 2010 Fierce 15 are Acceleron Pharma of Cambridge, Anchor Therapeutics of Cambridge, Avila Therapeutics of Waltham, Catabasis Pharmaceuticals of Cambridge, Dicerna Pharmaceuticals of Watertown, Eleven Biotherapeutics of Cambridge, and Tetraphase Pharmaceuticals of Watertown.
In addition, Boston-based Gelesis was cited as the "readers' choice" for the Fierce 15.
"Biotechs tend to follow the money," said Carroll, noting that Greater Boston's concentration of venture capital firms is one reason for the region's cluster of biotechs. "You need that fertilizer to grow."
A difficulty in obtaining VC funding may be why there is only one European company on this year's list, he added. Greater San Diego and the San Francisco Bay Area, meanwhile, were well represented on this year's Fierce 15.
Carroll offered a theory on why so many local companies made the Fierce 15 this year.
"There's been a tightening of VC money all round" because of the recession, he said. "The Boston area has weathered the storm better than most."
Posted by globebusiness at 2:00 PM | Comments (0)
FAO Schwarz store is open in Chestnut Hill
FAO Schwarz, the toy retailer, said it plans to open 10 "pop-up" stores for the 2010 Christmas season, including a recently opened store at the Mall at Chestnut Hill.
"These stores will offer a distinct collection of the exclusive toys and specialty brands found in our flagship store in New York City," Jerry Storch, Toys 'R' Us Inc. chairman and chief executive, said in a statement.
Toys'R' Us acquired the exclusive rights to operate the FAO Schwarz brand in May 2009, the company's press release noted.
FAO Schwarz pop-up stores have already opened at Tysons Galleria in McLean, Va., and the Mall at Chestnut Hill, the company said.
Other pop-up, or seasonal stores, are set to open at locations in California, Florida, Illinois, New Jersey, and New York. The stores occupy roughly 2,500 square feet of space, and they are expected to close in mid January.
(The photo of the plush toy that appears with this post was taken from the FAO Schwarz website.)
Posted by globebusiness at 1:17 PM | Comments (0)
Millennium sales force tops oncologist survey
Millennium: The Takeda Oncology Company said that its sales force ranked first in a survey of hematology/oncology sales teams from US cancer companies.
"The survey was conducted by Health Strategies Group, an independent consultant and market research company, and ranked the sales teams of leading hematology/oncology companies based on their ability to build valuable relationships with oncologists," Cambridge-based Millennium said in a press release.
In a statement, Millennium vice president of US sales Joseph Regan: "Perhaps most impressive is Millennium's ability to secure these high-quality relationships while marketing only one product, Velcade, for the treatment of multiple myeloma and mantle cell lymphoma. Our product benefits greatly from having an experienced and diligent sales team handling promotion, and in turn, our field is privileged to sell a product that is such an important treatment option for patients."
Velcade is co-developed by Millennium and Johnson & Johnson Pharmaceutical Research & Development. Millennium is responsible for commercialization of Velcade in the United States.
Posted by globebusiness at 12:13 PM | Comments (0)
IBM looks to buy another Mass. company
Technology giant IBM Corp. said it has agreed to buy OpenPages, a privately-held Waltham company that provides software that helps corporate customers to more easily identify and manage risk and compliance activities.
Financial terms were not disclosed, Armonk, N.Y.-based IBM said in a press release.
In a statement, Rob Ashe, IBM's general manager of business analytics, said: "Integrating risk management systems across once-divided units and functions is essential to seeing the bigger picture. The combination of IBM and OpenPages will provide a holistic and consistent approach to risk management helping companies combine that insight with performance management to drive better decision making."
OpenPages is the latest IBM acquisition in Massachusetts. Last month, IBM said it was purchasing Unica Corp. of Waltham for $480 million. Over the years, IBM has scooped up more than a dozen Massachusetts businesses in such fields as data storage and security
Posted by globebusiness at 9:30 AM | Comments (0)
Synageva BioPharma relocates to Lexington
Synageva BioPharma Corp. said it has relocated its headquarters from Waltham to larger space in Lexington.
In a press release, Synageva BioPharma said it needed additional space as it looks to develop its rare-disease pipeline of drug candidates. Its lead drug candidate, SBC-102, is an enzyme replacement therapy to treat Lysosomal Acid Lipase Deficiency, which is also known as Wolman Disease or Cholesteryl Ester Storage Disease. The company does not have a drug on the market yet, a Synageva BioPharma spokesman said.
Privately held, Synageva BioPharma has about 70 employees, including employees at an R&D facility in Georgia.
In a statement, company president and chief executive Sanj K. Patel said: "Over the last two years, we have developed a pipeline of novel therapeutics for a variety of rare diseases, including lysosomal storage disorders and other genetic conditions, for which there are currently no approved treatments. The move is an important step toward ensuring the successful development of our lead program as well as advancing other pipeline programs."
Posted by globebusiness at 8:31 AM | Comments (0)
Stop & Shop mobilizes to fight hunger
The Stop & Shop Supermarket Co. and consumer-products giant Unilever announced a partnership to donate $150,000 for Feeding America and its local member food banks this September, which has been designated Hunger Action Month.
"The donation will provide more than one million meals to children and families in need through Stop & Shop's Family Foundation," Quincy-based Stop & Shop said in a press release.
Customers can help the effort by making donations or by delivering canned and non-perishable food items during Stop & Shop's Fill-A-Truck events this fall.
To date, Stop & Shop said it has donated more than $30 million to hunger relief efforts since launching its Food for Friends program in 1989.
"As a company, we are always exploring new ways to support the communities we serve," Stop & Shop director of public affairs Faith Weiner said in a statement.
Posted by globebusiness at 7:54 AM | Comments (0)
IDC report studies mobile payment methods
A new study of a range of mobile payment methods finds that so far, no single model is emerging as a consensus choice.
Titled "Best Practices: Mobile Payments in Action - Five Case Studies from Around the World," the study is by IDC Financial Insights, an affiliate of IDC, a market intelligence firm headquartered in Framingham.
"Mobile payments are still an embryonic technology, with dozens of alternative methods in use," the firm said in a press release. "IDC Financial Insights believes that there is no one best model toward which all mobile payment systems will converge, rather different models will be favored depending on the concentration of telecommunications and financial assets in each country."
Posted by globebusiness at 7:36 AM | Comments (0)
Today in Globe Business
Despite cuts, Genzyme hiring in Mass.
Even as it moves to shed 1,000 jobs by the end of next year, Genzyme Corp. is accelerating the hiring of manufacturing and quality control workers in Massachusetts, where it recently built a plant in Framingham and expanded its Allston Landing site.
Overall, the Cambridge biotechnology company plans to add 500 to 600 production jobs in the state between July 1 of this year and the end of 2011, a senior executive said yesterday.
The new hiring in critical positions is taking place at the same time Genzyme is cutting back in other parts of its business worldwide, including here. Genzyme hasn’t yet mapped out job cuts by function or geography. But it’s possible that Massachusetts, where about 4,500 of its 12,800 employees work, could see a net employment gain or be hurt proportionately less than elsewhere, said Ann Merrifield, Genzyme’s senior vice president for business excellence.
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Affordable housing law called a big boon
The state’s contentious affordable-housing law, up for repeal by voters in the Nov. 2 state election, has generated more than $9.25 billion in construction and related spending over the past 10 years, according to a study scheduled to be released today by the University of Massachusetts Donahue Institute.
The report, commissioned by a nonprofit group that supports the 1969 law known as Chapter 40B, also found that more than 21,000 housing units that are part of planned 40B developments would result in more than 54,300 jobs and another $10.42 billion in spending.
Aaron Gornstein, executive director of the Citizens’ Housing and Planning Association, which commissioned the study, hopes its findings will help persuade voters to reject Question 2, one of three ballot initiatives this fall.
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Citadel opens in Boston, seeks hedge fund converts
Citadel Asset Management, the Chicago hedge fund giant, has opened a Boston office, where it’s hoping to seed a new generation of hedge fund managers.
Citadel, with $11 billion under management, was founded by famous trader Kenneth Griffin, who, the story goes, started investing from his Harvard University dorm room in the late 1980s. The part of the firm that’s expanding to Boston is hiring investment professionals who want to move to a hedge fund model, with a big name behind them.
So far, Citadel has hired three managers, including Michael Elvin, a former technology sector specialist for Pyramis Global Advisors, a unit of Fidelity Investments. The office could grow to 30 or 40 people over the next year, according to Jon P. Venetos, a Citadel managing director, who is overseeing the launch of the Boston office on State Street.
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Green Mountain looks to tighten grip on single-serve coffee market
Green Mountain Coffee Roasters Inc.’s plan to buy Canadian coffee company Van Houtte Inc. further adds to its domination of the exploding market for single-serve coffee, a market that’s expected to double over the next year.
Green Mountain, based in Waterbury, Vt., said yesterday that it has agreed to pay $890 million to purchase Van Houtte, the largest coffee services network in North America and the last remaining independent licensee of Green Mountain’s Keurig single-cup coffee brewing business. That business, which includes the K-Cup coffee packs that fit into the machines, royalties, brewers, and accessories, accounted for 86 percent of Green Mountain’s sales in the last three quarters.
Green Mountain president and chief executive Lawrence Blanford said yesterday in a conference call with analysts that the company expects the acquisition to help “drive Keurig single-cup brewing system’s adoption across North America and particularly in Canada.’’
Posted by globebusiness at 6:10 AM | Comments (0)
September 14, 2010
Fantini & Gorga arranges Radisson financing
Fantini & Gorga, a Boston-based mortgage banking firm, said has arranged $39,700,000 in first mortgage financing for the Radisson Hotel Boston, a hotel located at 200 Stuart St. in the city’s Theater District.
The Radisson Hotel Boston is managed by JPA Management, an affiliate of the property’s original developer and long-term owner, Fantini & Gorga said; the loan was provided by Citizens Bank.
Fantini & Gorga is an affiliate of Eastern Bank. The photo with this post was provided by Fantini & Gorga.
Posted by globebusiness at 2:02 PM | Comments (0)
CEO: No easy resolution to wind turbine noise
VINALHAVEN, Maine -- The chief executive of the electric cooperative that installed wind turbines on Maine's Vinalhaven island says there's disagreement over data suggesting they're too noisy.
Fox Island Wind chief executive George Baker says his experts dispute the findings of a Department of Environmental Protection consultant who says the turbines violate nighttime noise limits. State law sets a 45-decibel limit. Baker says his experts believe it was ambient noise from wind rustling through trees that exceeded 45 decibels, not the turbines themselves.
Baker says it'll be a difficult issue to resolve. He told The Associated Press on Tuesday that slowing the turbine blades to lower the noise level by a couple of decibels may not make appease critics. And lowering it further could hurt the economic viability of the project.
To read a recent Globe story about wind turbine noise, please click here.
Posted by globebusiness at 1:01 PM | Comments (0)
Patriot Energy buys Burlington office building
Patriot Energy Group, an energy management firm specializing in electric and natural gas supply procurement for commercial, industrial, and governmental organizations, has purchased a 39,361-square-foot office building at 1 Rounder Way in Burlington from Rounder Records for $2.6 million, said a broker involved in the transaction.
The broker is Grubb & Ellis Co., a commercial real estate firm.
The purchase represents an expansion for Patriot Energy, which will move some business units currently housed in Woburn to about 10,000 square feet within the Burlington building, said Grubb & Ellis, which represented Patriot Energy in the transaction. The remaining space in the building is currently leased to Concord Music Group, Grubb & Ellis added.
Posted by globebusiness at 12:00 PM | Comments (0)
Lightower is acquiring NY network firm
Lightower Fiber Networks, the Boxborough company that was previously known as National Grid Wireless, said it is acquiring Lexent Metro Connect, a New York-based provider of custom built dark fiber networks.
Financial details of the transaction are not being disclosed, a company spokeswoman said. The addition of Lexent will add more than 150 fiber route miles and more than 200 commercial buildings to Lightower’s network, Lightower said in a press release.
In a statement, Lightower president and chief executive Rob Shanahan said: “We continue to see increasing demand for fiber-based networking and connectivity solutions throughout the greater New York City region. Lexent’s network is the premier fiber network in New York City with the most density. It is a natural fit for expanding Lightower’s reach in the region. Lexent’s network also offers many fiber routes that are optimized for ultra low latency solutions to the financial and media industries.”
Posted by globebusiness at 10:39 AM | Comments (0)
MOTT launches autumn website
Moth-ball those GPS devices, leaf peepers. Because the Bay State's tourism agency is launching a microsite with maps and suggestions for folks who want to goggle at fall foliage turning colors in the Bay State.
Ah, autumn, the poet Keats once gushed, "Season of mists and mellow fruitfulness, close bosom-friend of the maturing sun." Here in the Bay State, autumn is also the seaon for putting on a Bruins windbreaker and taking flora safaris to see leaves that glory in orange, yellow, and red hues.
To make local leaf-peeping easier, a new website at www.massvacation.com/fallfoliage, seeks to connect "travelers to statewide fall events and attractions, fall foliage driving routes, estimated foliage conditions, and enables visitors to receive season-specific alerts sent directly to their e-mail inbox," the Massachusetts Office of Travel and Tourism, or MOTT, said in a press release.
(You may recall a recent MOTT tourism offensive in July when it helped ballyhoo a list of a thousand great places to visit in Massachusetts. Click here for MOTT's press release and here for a Globe story.)
Commenting on a fall foliage in a statement, MOTT executive director Betsy Wall said: "We will bring the best of fall to travelers who visit the Commonwealth from all over the world. Fall in Massachusetts is spectacular and we want to highlight this season's leaf peeping, fall events and activities that shouldn't be missed this time of year."
The image with this post was included in MOTT's press release.
Posted by globebusiness at 9:51 AM | Comments (0)
BLS reports high compensation costs for region
At $33.76 per hour, New England had the highest total compensation costs in the country for the month of June, the US Bureau of Labor Statistics reported.
In doing its analysis of compensation costs among private industry employers, the bureau broke down the country into nine geographic divisions. New England was the division with the highest costs. The division with the lowest compensation costs was the one that includes the states of Alabama, Kentucky, Mississippi, and Tennessee. The compensation costs for that division were $21.40 per hour, the bureau said; nationwide, compensation costs among private industry employers averaged $27.64 per hour worked in June.
In looking at the components of compensation costs in New England, the bureau said that the highest-cost benefits in the region included health insurance at $2.37 and Social Security and Medicare at $1.97 per hour worked.
Posted by globebusiness at 9:14 AM | Comments (0)
Green Mountain to buy Van Houtte for $890 million
WATERBURY, Vt. -- Green Mountain Coffee Roasters says it will buy competitor Van Houtte for $890 million in an attempt to get a better foothold in the Canadian market.
Van Houtte, which is a Keurig single-cup coffee machine licensee and is based in Montreal, has coffee brands including Brulerie St. Denis and its namesake. Van Houtte CEO Gerard Geoffrion will remain with the company after the deal's closing. The acquisition will be funded with available cash and $1.35 billion in new debt financing. The deal is expected to close by year's end.
The deal is the latest in a series of acquisitions for Green Mountain, which completed its $300 million takeover of Diedrich Coffee Inc. in May. Diedrich was also a roaster licensed to produce K-Cups, which fit into the Keurig system.
"This acquisition will enhance Green Mountain's Canadian presence and is expected to strengthen our North American geographic expansion with a well-known Canadian brand platform that includes roasting, manufacturing and distribution capabilities," Green Mountain President and CEO Lawrence Blanford said in a statement.
Green Mountain will purchase Van Houtte from an affiliate of private equity firm Littlejohn & Co., based in Greenwich, Conn. The company plans to look at Van Houtte's Filterfresh U.S. coffee services division, to explore a potential sale. Proceeds from that would be used to lower Green Mountain's outstanding debt.
During the second quarter Green Mountain reported that it saw a major boost from sales of its Keurig brewing systems and K-Cup packs. The coffee company said it shipped 72 percent more K-Cup packs in the second quarter than in the prior year and nearly doubled its shipments of Keurig brewing systems.
Shares of Green Mountain slipped 49 cents to $34.75 in premarket trading.
(The photo that tops this post was taken from the company's website.)
Posted by globebusiness at 8:10 AM | Comments (0)
MIT's Diamond nominated again for Fed
President Obama sent his nomination of Massachusetts Institute of Technology economist Peter Diamond to the Federal Reserve Board back to the Senate after formal consideration of the appointment was rebuffed last month.
The original nomination from April failed to carry over through the Senate’s summer recess to September because of objections from at least one lawmaker. (Diamond is shown at right in a file photo provided by MIT.)
The former teacher of Fed Chairman Ben S. Bernanke rejoins Obama’s two other nominees pending confirmation in the chamber - - San Francisco Fed President Janet Yellen for vice chairman and Sarah Bloom Raskin for a governor slot. The central bank has been operating with four governors since former Vice Chairman Donald Kohn retired Sept. 1 after a 40-year career.
Senate Banking Committee Chairman Christopher Dodd said earlier today that lawmakers should act quickly to confirm Obama’s nominees to the Fed before adjourning for the Nov. 2 midterm elections.
“It’s very important we get it done in this three-week period if we can,” the Connecticut Democrat said.
Diamond, 70, received the most opposition of the three Fed nominees in banking committee votes in July. The panel voted 16- 7 in favor of Diamond, 17-6 for Yellen and 21-2 for Raskin, Maryland’s commissioner of financial regulation. All of the opposition came from Republican members.
Alabama Senator Richard Shelby, the senior Republican on the banking committee, said in July that Diamond, while a “skilled economist,” may not be qualified to make decisions on monetary policy.
Posted by globebusiness at 7:53 AM | Comments (0)
Ironwood, Forest boast positive IBS drug trial
CAMBRIDGE -- Late-stage clinical trials on the safety and efficacy of a drug for treating irritable bowel syndrome accompanied with constipation have produced positive results, the two companies developing the drug said Monday.
Ironwood Pharmaceuticals Inc. and Forest Laboratories Inc. said data from the Phase III clinical trials showed patients on the drug, linaclotide, achieved statistically significant improvement compared to patients treated with placebo. The companies expect to file a new drug application next year in the US
Ironwood Pharmaceutical shares added $2.26, or 23 percent, to $12 in aftermarket trading after rising 28 cents to $9.74 during the regular session. Shares of Forest Laboratories rose $1.39, or 4.7 percent, to $31.25 in aftermarket trading. The stock added 12 cents to $29.86 during the regular session.
Posted by globebusiness at 7:44 AM | Comments (0)
Loan closes for Fitchburg apartment complex
MassHousing, the state's affordable housing bank, announced a loan closing of $6.3 million to preserve affordability for low-income families at the 140-apartment Joseph’s House in Fitchburg.
As part of the loan agreement, Joseph’s House will seek to extend the Section 8 Housing Assistance Payment contract on the 140 apartments for the longest term possible, which is typically 20 years, MassHousing said. The owner also agreed to reserve 20 percent of the apartments for low-income families as long as the MassHousing loan is outstanding.
Joseph’s House was refinanced through MassHousing’s Section 8 Proactive Preservation Program, MassHousing added.
Posted by globebusiness at 7:35 AM | Comments (0)
Today in Globe Business
Genzyme sheds division to focus on biotech core
Genzyme Corp.’s agreement to sell its genetics testing business for $925 million could step up pressure on suitor Sanofi Aventis SA to buy the Cambridge biotechnology company before it unloads other assets, industry watchers said yesterday.
Whether it might also prompt Sanofi to sweeten its $69-a-share takeover offer, rebuffed by Genzyme last month, will likely depend on how much the French drug maker wants the businesses Genzyme is selling.
Sanofi chief executive Christopher A. Viehbacher has spoken of the value of Genzyme’s portfolio of drugs to treat rare genetic disorders. He has not expressed the same enthusiasm for Genzyme Genetics, the Westborough division it agreed yesterday to sell to Laboratory Corporation of America Holdings of Burlington, N.C., or for two other businesses it plans to divest.
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BOSTON CAPITAL: New era in Cambridge
This is not Henri Termeer’s old Genzyme Corp. anymore.
Termeer spent the past 25 years running Genzyme as a go-go biotech company focused on growth, occasionally to excess. In a conversation just last spring, he went on at length telling me about the Cambridge company’s internal preparations for growth that could double the size of the business before long.
Now Genzyme is selling a division it nurtured over two decades for $925 million and drawing up separate plans to ax 1,000 employees. Two other smaller divisions are on the block. The state’s most valuable biotech company is shrinking before our eyes.
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Digging in on Worcester Center
WORCESTER — Gloomy skies could not chill the sense of triumph here yesterday, as public officials and local business leaders broke ground on the long-stalled CitySquare development project, once ballyhooed as the largest private development in Massachusetts history outside Boston.
“What begins today will reshape Worcester for decades to come,’’ said Lieutenant Governor Timothy D. Murray in a speech to the crowd of hundreds of onlookers. Murray helped conceive the project, which occupies much of Worcester’s downtown core, in 2004, when he was the city’s mayor.
It was “an incredibly important day,’’ added Governor Deval Patrick. “This is what happens when you blend optimism and effort, hope, and hard work.’’ The highlight of the ceremony was when Murray threw a switch, and workers punched holes through a wall of one of the hulking parking garages along Foster Street.
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Hotel rates edging back up for first time since 2007
World travelers who have come to count on cheap hotel rooms may soon be out of luck.
Prices are still down at the levels they were six years ago, but for the first time since the end of 2007, they’re on the way up, according to a new report by Hotels.com.
Locally, Massachusetts had the second most expensive rates in the country in the second quarter, behind New York, averaging $152 a night — a 3 percent year-over-year increase. Among US cities, Boston had the fourth-highest prices, behind New York City, Washington, D.C., and Santa Barbara, Calif., with an average rate of $160 a night — up 4 percent compared with a year ago.
Posted by globebusiness at 6:07 AM | Comments (0)
September 13, 2010
Super Mario Bros., She-Ra turn 25
Did you remember to give Princess Toadstool a birthday card today?
Super Mario Bros. - the Nintendo classic that for years was the best-selling video game of all time - turns 25 years old today, although the plumbing twosome of Mario and Luigi still don't look a day over 30.The game was released in Japan on Sept. 13, 1985, and the US version followed about a month later. The old-school NES block-buster (pun intended) was the gold standard of side-scrolling jumping-based video games that dominated the home game consoles of the '80s and early '90s, and in the process sucked up the hours of many an adolescent and teenager.
Young gamers of today may look at the 8-bit graphics of this classic and chuckle, but the simple-yet-challenging gameplay (NES controllers only had two action buttons and a 4-axis directional pad) is something many current games lack, and makes Super Mario Bros. an enjoyable classic to still play today.
Super Mario Bros. wasn't the birth of Mario himself (he famously debuted in another classic, Donkey Kong, and paired with his brother in the much-less ballyhooed Mario Bros. arcade game.) But Super Mario Bros. was such a hit at the time that it spawned a TV show (starring Captain Lou Albano in the title role), a big-budget live-action movie (starring Bob Hoskins as Mario and Dennis Hopper as the evil King Koopa), and dozens of video game sequels and spin-offs.
Want to relive your childhood? You can play a Web-optimized version of the game here.
While we're on the topic of sending birthday wishes to '80s children icons, Mattel is reminding us that She-Ra - the female counterpart to He-Man, and someone who Xena the Warrior Princess likely owes a great deal of credit - also turns 25 this month.
The first volume of the cartoon's DVD series is set to be released this month to commemorate the anniversary. (Correction: Mattel is rolling out a new action figure; Classic Media is handling the DVD release.)
(Super Mario Bros. screenshots courtesy Nintendo; She-Ra image courtesy Classic Media.)
Posted by jnunes at 2:17 PM | Comments (0)
Synta expanding cancer drug clinical trial
LEXINGTON -- Shares of Synta Pharmaceuticals Corp. surged 15 percent today after the company said it is expanding a clinical trial of a lung cancer drug after an initial stage of testing produced encouraging results.
Shares added 48 cents to $3.65 in afternoon trading. The stock has ranged between $2.55 and $6.95 over the past 52 weeks. Synta said it will broaden its phase-two clinical trial of STA-9090 to 146 patients from 69. The participants in the trial are in certain stages of non-small-cell lung cancer. STA-9090 is a potent, second-generation, small-molecule Hsp90 inhibitor, the company said. The company aims to identify cancer types that will be especially responsive to treatment with STA-9090.
In the first phase of clinical trials, more than 70 percent of patients showed "a high disease-control rate," said Vojo Vukovic, Synta Pharmaceutical's chief medical officer.
"This early signal, combined with the objective responses seen following treatment with STA-9090, is very encouraging, particularly as the patients have been heavily pretreated and are refractory to many standard-of-care drugs," he added.
Posted by globebusiness at 2:01 PM | Comments (0)
Liberty Mutual subsidiary plans $1.4b IPO
BOSTON -- Insurer Liberty Mutual Group Inc. said its subsidiary Liberty Mutual Agency Corp. plans to raise about $1.41 billion through the sale of more than 70 million shares of stock in an initial public offering.
The shares include 64.3 million shares of Class A stock to be sold publicly and 6.4 million shares granted to underwriters to cover excess demand. The company, which had filed preliminary documents in May, updated the offering Monday revealing more detailed estimates of shares offered and price. The company expects the initial public offering price to be between $18 and $20 a share.
Parent company Liberty Mutual Group will own no class A shares, but will own 295.7 million shares of class B stock, which represents about 97.9 percent of the combined voting power of the outstanding common stock and about 82.1 percent of total equity ownership. Liberty Mutual Group plans to maintain a controlling interest in the subsidiary.
Each class A share has one vote while class B shares have 10 votes per share, the company said in a regulatory filing. Liberty Mutual Agency said it plans to pay quarterly cash dividend of 6 cents per share initially, beginning in the first quarter of 2011.
About $1.04 billion of the proceeds will be used to repay a portion of a $4 billion note issued to parent company Liberty Mutual in February 2010, which matures in February 2012. In addition, about $130 million will repay a portion of a note issued to Liberty Mutual before the closing of the offering to complete the transfer of Ohio Casualty to the company. About $268 million will be used for working capital, payments of dividends, debt service, and other general corporate purposes at Liberty Mutual Agency Corp.
The company has applied to Nasdaq to have shares listed under the symbol "LMAC."
Posted by globebusiness at 1:39 PM | Comments (0)
Uno announces menu revamp
Uno Restaurant Holdings Corp., the Boston company that operates 160 company-owned and franchised restaurants, said it is revamping its menu to give customers more choices such as Farro Salad and Chicken Tikka Masala.
Uno regulars needn't fret: Such signature offerings as deep-dish pizza and Rattlesnake Pasta will still be available. (Despite a menacing monicker, Rattlesnake Pasta is mercifully sidewinder-free. As for the deep-dish pizza, it is shown at right in a photo taken from the company website.)
The new menu features icons such as lightning bolts. An item with a lightning bolt denotes items that can be quickly delivered, Uno said in a press release. Healthful items are designated with a tomato icon.
In a statement, Uno president and chief executive Frank Guidara said: "From the beginning, we've looked to offer choice to our guests. From indulgent to mindful, from deeper, more intense, more interesting flavors to traditional 'comfort food' signatures, there is something for everyone at Uno."
For the record, the press release describes Farro Salad as a "side dish made from this ancient whole grain with diced tomatoes, cucumbers, and balsamic vinaigrette."
Posted by globebusiness at 1:25 PM | Comments (0)
Silver Bridge launches Investing In Girls
Silver Bridge Advisors, a wealth advisory firm affiliated with Boston law firm WilmerHale, said it is launching Investing In Girls, or IIG, an "education initiative that takes aim at empowering girls to pursue careers in financial services."
The initiative is a joint venture with the National Council for Research on Women, Silver Bridge said.
“Girls should be educated early, endlessly, and effortlessly to prepare them for leadership roles in the financial services industry,” Chelsea Mehra said in a statement.
Mehra founded IIG in partnership with her mentor, Dune Thorne, managing director at Silver Bridge Advisors, the firm said in a press release.
Posted by globebusiness at 12:12 PM | Comments (0)
Peapod unveils mobile app
Peapod, the online grocery delivery service, announced the availability of PeapodMobile,a free app that enables customers to compile shopping lists on their smartphones.
Founded in 1989, Peapod started out as an option for consumers who wanted to use their personal computers to do their grocery shopping online and schedule deliveries to their homes. Peapod shares a corporate parent with the Stop & Shop Supermarket Co. of Quincy. Peapod's service is available at many Stop & Shop stores.
According to Peapod, its new mobile app offers customers another layer of convenience. Customers can use the app to add items to their virtual shopping carts over the course of a day or two, then press a button to place the order and set up a delivery.
“Our customers are active consumers with busy lifestyles who look for ways to save time" Thomas Parkinson, Peapod's chief technology officer, said in a statement. "Imagine grocery shopping while riding the subway to work, or adding milk to your grocery list from the soccer field. In a recent Peapod survey, we learned that more than 63 percent of respondents sometimes or frequently forget to buy something they really need while grocery shopping. With PeapodMobile,customers can minimize that risk by adding items to their cart whenever and wherever they think of them.”
Posted by globebusiness at 11:17 AM | Comments (0)
A123 opens Michigan battery plant
A123 Systems, a Watertown company that develops and manufactures advanced lithium ion batteries and battery systems, announced the grand opening of a large lithium ion automotive battery production facility in Livonia, Mich.
"The opening of the Livonia factory comes just over one year after A123 was awarded a $249 million grant from the US Department of Energy (DOE) as part of the American Recovery and Reinvestment Act to help the company execute its strategy to ramp up US manufacturing capabilities to meet increasing, market-driven demand for its innovative technologies," the company said in a press release.
In a statement, company president and chief executive David Vieau said: "We are grateful to the DOE, the state of Michigan and everyone else who helped make this vision a reality. Over the next several years, we expect to create thousands of jobs in greater Detroit and plan to continue our expansion in the area as we do our part in helping the US emerge as a global leader in the production of advanced lithium ion batteries."
Posted by globebusiness at 10:37 AM | Comments (0)
Local gas prices fall a penny a gallon
The average price for gas in Massachusetts was $2.609 a gallon in the latest weekly AAA survey, down a penny from the previous week's average, AAA Southern New England said today.
The average price for a gallon of self-serve, regular unleaded gas in Massachusetts dropped for the third straight week, AAA Southern New England said.
The current national average for self serve unleaded gas is $2.70 a gallon, AAA Southern New England said. A year ago at this time, the Massachusetts average price was $2.60.
Posted by globebusiness at 10:31 AM | Comments (0)
FORGE will create ads for Nuance
FORGE Worldwide said it has been hired by Nuance Communications Inc. to develop an ad campaign to raise awareness for Nuance's Dragon Naturally Speaking voice recognition products.
"The brand campaign includes a mix of radio, outdoor, and online advertising, including video pre-roll, which will run on sites such as Hulu.com and Vevo.com," Waltham-based FORGE Worldwide said in a press release. "Radio will be running on multiple stations in seven regions across the US, including Boston, San Francisco, and Chicago. Outdoor billboards and taxi tops will be seen in Boston and transit shelters and mobile billboards will be visible in the San Francisco area."
Nuance is headquartered in Burlington.
Posted by globebusiness at 9:04 AM | Comments (0)
Genzyme to sell testing unit to LabCorp for $925m
Genzyme Corp., the Cambridge biotechnology company that is fighting a takeover attempt by a French drug giant, said this morning that it has agreed to sell its genetic testing business to Lab Corp. of America Holdings for $925 million in cash.
Related
- 2/17 Genzyme may lose some Mass. jobs
- 2/17 Genzyme patients hope sale won't sever bonds
- 2/17 | Boston Capital A little virus played key role in a big deal
- 02/16 Termeer: Genzyme sale is 'a new beginning'
- 02/16 Genzyme agrees to $20.1b sale to drug giant
- Photos Notable mergers and acquisitions in Mass.
- 02/07 Sanofi review delays deal
- 02/01 Sanofi increases offer
- 02/01 Steven Syre: Checking Sanofi's track record
- 01/25 Stalled deal brews doubts
- 01/12 CEOs offer few details
- 01/10 With Genzyme, Sanofi sees a better future
- 12/21 Genzyme talks up new multiple sclerosis drug
- 08/31 Genzyme says no to Sanofi’s $18.5b offer
- More Genzyme coverage
Genzyme's genetic testing business unit operates nine laboratories in the United States, including one in Westborough that employs 500 people, a Genzyme spokeswoman said. The purchase agreement calls for North Carolina-based LabCorp to buy those facilities along with the business, she added.
In 2009, the genetic testing business had revenues of $371 million, said Genzyme, which had total 2009 revenues of $4.5 billion.
“This transaction demonstrates the strategic value of Genzyme Genetics and the strong franchise we’ve built over a twenty year period,” Henri A. Termeer, Genzyme's chairman and chief executive, said in a statement. “It also shows how our management team is uniquely positioned to unlock the underappreciated value of Genzyme’s diverse businesses for shareholders. The completion of this sale allows us to focus our resources on core growth areas and create stronger returns on invested capital.”
Genzyme said in May that it was looking to explore the possibility of selling three business units as part of a plan to divest itself of divisions that it did not deem to be part of its core business. The genetic testing business was one of those businesses.
In its press release today, the company said, "Plans to divest the two other Genzyme business units, Diagnostic Products and Pharmaceutical intermediates, remain on track."
The agreement to sell Genzyme's genetic testing business is subject to customary closing conditions, Genzyme said, and the goal is for the transaction to close before the end of the year.
Last week, Genzyme disclosed plans to cut about 1,000 jobs, or about 10 percent of its global workforce of 12,800. The company employs about 4,500 jobs in Massachusetts. The 10-percent reduction figure does not include employees in the three divisions that Genzyme is looking to sell.
Last month, Sanofi-Aventis SA, a French drug maker, offered to buy Genzyme for $18.5 billion. Genzyme rebuffed the offer, saying it undervalued the company.
To read some recent Globe coverage of Genzyme, please click here.
Posted by globebusiness at 8:45 AM | Comments (0)
Pro-Pharmaceuticals gears up for Phase III trial
Pro-Pharmaceuticals Inc. said it has engaged Numoda Corp. to oversee the Phase III clinical trial of its lead drug candidate.
The drug candidate is Davanat, and the goal of the clinical trial is to evaluate Davanat's potential in treating patients with advanced, metastatic colorectal cancer, Newton-based Pro-Pharmaceuticals said in a press release.
"With this collaboration, we will optimize both time and cost, which we believe will provide us positive results, faster, in the continued path to a New Drug Application (NDA) for our Davanat compound," Theodore Zucconi, Pro-Pharmaceuticals chief executive, said in a statement. "By engaging Numoda for the management of the trial data and subcontractors, we believe the data accuracy and time for analysis will be significantly less."
Posted by globebusiness at 8:02 AM | Comments (0)
Today in Globe Business
CAMBRIDGE — They call it “the pipeline.’’
It’s the lineup of Genzyme Corp. drugs being developed in labs and tested in clinical trials around the world. Three are potential blockbuster treatments, nicknamed Alem, Mipo, and Ellie. Together, the products are expected to carry the Cambridge biotechnology company into the next generation.
They are also the drugs coveted by Genzyme’s French suitor, Sanofi-Aventis SA, which last month offered to buy the company for $18.5 billion. The offer was swiftly rejected, but the cat-and-mouse game between the two drug makers is likely to drag on for months.
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With new program, college takes on the mission of preventing health care from breaking the bank
Disney knows precisely how to gauge the wait for rides at its theme parks.
Major airlines know how to maintain near-perfect safety records on their aircraft.
But hospitals? Most don’t know how to avoid making patients wait — some just build bigger waiting rooms.
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INNOVATION ECONOMY: Text messages tell if the table's ready
Highlights from Scott Kirsner’s Innovation Economy blog.
Textaurant founder Josh Bob tells me his Waltham start-up just landed its first big customer in Boston: Finale Desserterie & Bakery.
Textaurant’s technology allows restaurants to use a laptop to manage their list of customers waiting for tables, sending out a text message to let them know when one becomes available. Finale will be using the system at the local chain’s two busiest locations, in Harvard Square and Boston’s Theatre District, starting this month.
Posted by globebusiness at 6:04 AM | Comments (0)
September 10, 2010
Confirmed: OneUnited misses 6th dividend payment
A US Treasury report today confirmed that OneUnited Bank did not make a sixth dividend payment to the government on the $12.1 million in Troubled Asset Relief Program funds it received in December 2008. The Boston bank had previously acknowledged that it did not make the quarterly payment.
The skipped payments add up to $904,725, according to Treasury. But OneUnited's are non-cumulative dividends, meaning the bank does not have to pay them unless it can afford to. The dividends are meant to compensate the government, and taxpayers, for the billions of dollars in assistance that was provided to shore up struggling banks amid the financial crisis.
Kevin Cohee, chairman of OneUnited, the nation's largest minority-owned bank, has said he is eager to repay the $12 million because it has become a "distraction." He also has said the bank is raising capital and intends to make good on the government's investment.
According to the Treasury report, six institutions have missed six payments. One, Saigon National Bank, has missed seven. The government has the right to name two directors to the boards of banks once they fail to pay six times, but it has not yet done so with small institutions.
Posted by globebusiness at 5:20 PM | Comments (0)
Channel 5's early newscast leads in viewership
Since its debut Tuesday, WCVB-TV (Channel 5)'s 4:30 a.m. newscast has been leading in total viewers of Boston early birds.
The station has averaged 24,000 viewers in the time slot this week, followed by WBZ-TV (Channel 4) with 7,200 and NECN with 5,300, according to figures from The Nielsen Co.
WCVB became the third station in the market to offer a 4:30 a.m. newscast, a trend that has been catching on around the country as TV managers look the early commuters and workers.
Beginning Sept. 20, WFXT-TV (Channel 25) will join the race with its own 4:30 a.m. newscast.
WHDH-TV (Channel 7) remains the lone station without a 4:30 a.m. newscast.
Posted by kstringer at 5:03 PM | Comments (0)
Genzyme plans to cut 1,000 jobs worldwide
Employees at Genzyme Corp. sites around the world were notified this morning that the Cambridge-based biotechnology company plans to cut its workforce by 1,000 jobs over the next 15 months.
Genzyme currently employs about 12,800 workers globally, including about 4,500 in Massachusetts.
Related
- 2/17 Genzyme may lose some Mass. jobs
- 2/17 Genzyme patients hope sale won't sever bonds
- 2/17 | Boston Capital A little virus played key role in a big deal
- 02/16 Termeer: Genzyme sale is 'a new beginning'
- 02/16 Genzyme agrees to $20.1b sale to drug giant
- Photos Notable mergers and acquisitions in Mass.
- 02/07 Sanofi review delays deal
- 02/01 Sanofi increases offer
- 02/01 Steven Syre: Checking Sanofi's track record
- 01/25 Stalled deal brews doubts
- 01/12 CEOs offer few details
- 01/10 With Genzyme, Sanofi sees a better future
- 12/21 Genzyme talks up new multiple sclerosis drug
- 08/31 Genzyme says no to Sanofi’s $18.5b offer
- More Genzyme coverage
Termeer wrote in the memo that the cuts represent a 10 percent reduction in its work force, not including three businesses that Genzyme is divesting. The memo did not specify how many of the cuts will be in Massachusetts.
Genzyme vice president Bo Piela said that the company will make a formal announcement next week after company managers have alerted employees.
"We're spending time over the next couple of days talking to our employees about what we're going to do," Piela said. "We think it's the right thing to do to talk to employees before we provide public comment."
Piela said the cutback is part of a broader push to streamline operations and divest non-core businesses. That campaign was unveiled at a meeting with securities analysts last May, he said, and Genzyme managers have been working through the summer to benchmark their staffing against peer companies and identify where cuts can be made.
The move is coming less than two weeks after Genzyme's board rejected an $18.5 billion takeover offer from French drugmaker Sanofi Aventis SA. Piela said the plans to streamline and strengthen the company have been in the works for months, however, before Sanofi's interest surfaced in June.
Other biopharmaceutical companies have also disclosed plans to cut jobs in recent months. Swiss pharmaceutical giant Roche Holding AG, which last year acquired California biotechnology company Genentech Inc., said last week it would eliminate an unspecified number of jobs over the next two years.
The company earned $422.3 million on sales of $4.5 billion last year, about the same as 2008, as the company struggled with production problems and supply shortages stemming from a virus at its Allston Landing plant.
Posted by globebusiness at 2:19 PM | Comments (0)
Boston is tops in innovation, survey says
Minsk, Tirana, and Montevideo may be good places to look for the next big idea in the future, but for now, Boston is truly the Hub of the universe when it comes to innovation.
So claims 2thinknow, an Australian consulting firm that said it investigated nearly 300 cities worldwide to determine which one should be ranked as the top city of the global innovation economy.
Developed in 2007, the index ranks cities based on measuring 31 common industry and community segments weighted against global trends, the firm said. After crunching all the data, 2thinknow said it determined that Boston is once again tops.
"This year, Paris and Amsterdam contested the top spot with Boston, being ranked second and third, respectively, in the 2thinknow Innovation Cities Top 100 Index," the firm said in a press release. "Since 2009 Vienna has moved to fourth place and New York to fifth place."
The index also looked at "upstart cities," which are identified as having future potential for innovation," the firm said. This year's crop of upstart cities included the "often over-looked cities of Minsk, Tirana, and Montevideo," 2thinknow said.
Posted by globebusiness at 1:27 PM | Comments (0)
Femmes fatales have locals calling Yahoo!
Crooner Jackson Browne once sang about having seven women on his mind. And the Hub, it would seem, has also been giving a lot of thought to women lately.
Every week, the search engine Yahoo.com compiles a list of fast-spiking searches. There's a list of national searches, as well as lists for large urban areas, including Boston.
For whatever reason, women dominated this week's list of fast-spiking searches in the Boston area, with locals looking to learn more about Sheila chanteuses, tennis vixens, and Hollywood actresses, Yahoo.com said.
Topping off the list is Kara DioGuardi, the American Idol judge who just got the sack. (She's shown at right in happier times in a Reuters file photo.)
Nationwide, Yahoo.com reported fast-spiking searches on physicist and mathematician Stephen Hawking and Robert Schimmel, the comic who died recently. There was also national interest in the oil rig explosion as well as in actresses Kaitlin Olson and Mischa Barton.
Olson and Barton couldn't crack Boston's top five list of fast-spiking list, though.
For good or ill, here's the Hub's list of recent fast-spiking searches, according to Yahoo.com. Besides DioGuardi, the local list includes Natalie Imbruglia, an Australian singer-songwriter, model, and actress; actress Lorraine Bracco, Nicole Vaidišová of tennis fame, and actress Bridget Fonda.
Posted by globebusiness at 12:42 PM | Comments (0)
Turbine makes Lord of the Rings Online free to play
An online video game based on the fantasy novels of J.R.R. Tolkien can now be played free of charge.
Turbine Inc. of Westwood, which makes Lord of the Rings Online under license from the Tolkien estate, is offering a free version of the game to players who don't want to pay $15 a month for a standard game subscription.
Free players will be able to enjoy many of the game's standard features. But they'll be encouraged to visit the game's online store, and buy virtual weapons and tools for use in the game's more advanced levels. Players can also keep paying monthly subscription fees. Those who do get "points" they can use to buy tools and weapons inside the game.
Turbine spokeswoman Elicia Basoli said that one of Turbine's other games, Dungeons & Dragons Online, doubled its number of players when it offered a free-to-play version last year.
Turbine, which was acquired earlier this year by Time Warner Inc., plans a major marketing effort for the free version of Lord of the Rings Online, including a television commercial during Sunday's episode of the Fox television series Family Guy.
(The image above this post is a company hand-out. It shows a scene from The Lord of the Rings online game.)
Posted by globebusiness at 11:13 AM | Comments (0)
Chamber announces small business awards
Sagamore Plumbing & Heating is the Greater Boston Chamber of Commerce "‘Small Business of the Year," the chamber said today.
"Cedar’s Mediterranean Foods will receive the ‘Business Excellence Award,’ and Joanne Chang, pastry chef and owner of Flour Bakery & Café, will be honored with the ‘Entrepreneur of the Year’ Award," the chamber said in a press release.
Sagamore Plumbing & Heating was cited partly for its use of computer-aided design and 3D modeling, the chamber said.
Plans call for this year's winners to be honored at a Oct. 14 lunch at the Colonnade Hotel.
Winners were selected from a large pool of applicants that was narrowed down to nine semi-finalists. A chamber selection committee later made site visits to the finalists to gain first-hand knowledge of their operations, the chamber said.
Posted by globebusiness at 11:00 AM | Comments (0)
Kitchen nightmares abound in the Hub
Julia Child, the late culinary guru, would have hated to hear this: In a new national survey, parents in the Boston area were more likely to describe themselves as "kitchen nightmares" than parents in many other parts of the country.
The survey is from the corporate parent of Shaw's Supermarkets Inc., and it defines a "kitchen nightmare" as someone who tries to prepare meals that "never seem to come out quite right."
The "Back-to-Routine Survey" focused on the meal-preparation and eating habits of parents and their school-age children.
Among other survey findings: The majority of Boston kids (65 percent) make their own breakfast. Children in Boston are more likely to purchase their lunch at school, compared with the national average (48 percent versus 41 percent). And cookies and milk are a more popular after-school snack in the Hub than elsewhere.
The survey is from Supervalu Inc., the Minnesota company that operates a number of supermarket chains across the country, including Shaw's. Besides Boston, the survey also looked at such cities as Baltimore, Chicago, Las Vegas, Los Angeles, Minneapolis-St. Paul, Philadelphia, and San Diego. The online survey was conducted by Harris Interactive. According to Supervalu, 3,074 parents of school-age children participated in the survey.
"Among the entire population surveyed, Boston had the highest percentage of parents who describe themselves as “a kitchen nightmare,” Supervalu said in a press release.
(Julia Child is shown at top left in a Reuters file photo.)
Posted by globebusiness at 9:54 AM | Comments (0)
RI tax revenues up by more than 11 percent
Rhode Island tax revenues were up more than 11 percent in the two-month period that ended Aug. 31 when compared to the same period last year, numbers some say could be a sign of an economic turnaround.
The state Department of Revenue reported Thursday that tax revenues totaled $358 million, with increases in withholding tax, sales tax and general business taxes.
Paul Dion, chief of the department's Office of Revenue Analysis, tells the Providence Journal that he's "cautiously optimistic," although he warned that two months do not make a trend. The department said state income tax withheld from workers' pay totaled about $145.5 million, up 9.1 percent from the same two-month period a year ago. That suggests more people are working or earning more.
Posted by globebusiness at 9:03 AM | Comments (0)
Good Start Genetics raises $18m
Good Start Genetics Inc. announced the completion of an $18 million Series A financing and added that Don Hardison has been appointed president and chief executive.
The financing was led by OrbiMed Advisors, Safeguard Scientifics Inc., and SV Life Sciences, Boston-based Good Start Genetics said in a press release.
The release added that the company plans to use the proceeds of this financing to complete the development and launch of its pre-pregnancy genetic test, which utilizes advanced DNA sequencing technology to screen for genetic disorders.
Hardison is a former chief operating officer of LabCorp and a former chief executive of Exact Sciences.
Posted by globebusiness at 7:46 AM | Comments (0)
Today in Globe Business
Troubles remain, future uncertain for OneUnited
Five years ago this month, Mayor Thomas M. Menino stood with community leaders in Roxbury to hail plans for a new OneUnited branch in the neighborhood. The bank’s president pledged to make loans worth hundreds of millions of dollars across Boston, with a special emphasis on low-income borrowers.
OneUnited said it would partner with the city to offer the mortgages to first-time and current homeowners, and provide financial literacy training to residents. “As a child of an inner-city community I can tell you, it doesn’t get any better than this,’’ the bank’s president, Teri Williams, told the crowd that day.
But no loan program ever emerged — one in a long list of failures by the nation’s largest minority-owned bank, which is controlled by Williams and her husband, Kevin Cohee, the bank’s chairman.
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Business dean is bent on change
When Nitin Nohria, the new dean of Harvard Business School, introduced himself to its entering class on Tuesday, the late-summer atmosphere was festive, with some students dressed casually in polo shirts, shorts, and flip-flops.
But Nohria didn’t waste time on pleasantries. Instead, he launched into a detailed analysis of the school’s 10-word mission statement (“to educate leaders who make a difference in the world’’), dwelling extensively on concepts like character and value.
“I didn’t want it to be just bouquets and butterflies,’’ he said in his office later, as he poured himself a cup of coffee.
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Real estate lawyer charged in mortgage fraud
Federal charges against a Framingham real estate lawyer this week bring to four the number of people charged in an expanding mortgage fraud case that led to scores of abandoned and foreclosed properties in Dorchester and Roxbury.
Michael R. Anderson, 41, was charged Wednesday in US District Court with 27 counts of wire fraud, bank fraud, and money laundering in the case involving Michael David Scott, a Mansfield developer who was indicted separately in August for allegedly working with associates to recruit “straw buyers’’ to purchase condominiums with fraudulently obtained documents.
Virginia real estate recruiter Jerrold Fowler and a former Bank of America Corp. manager, Arthur Samuels, also were charged in separate complaints in US District Court for their roles in what prosecutors say was a fraud scheme that drew buyers to purchase properties they weren’t planning to live in or even make mortgage payments to lenders.
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BOSTON CAPITAL: For biotechs, no easy task
Hepatitis C, a serious medical problem around the world, is also one of the most important disease targets for the state’s biotechnology industry.
Very different results from unrelated clinical trials for Hepatitis C treatments reported this week by two Cambridge companies — Vertex Pharmaceuticals Inc. and Idenix Pharmaceuticals Inc. — say a lot about biotechnology’s ability to engineer cures and how investors value those efforts. The cures don’t come easily. Investors can be irrational.
The development of promising new treatments for hepatitis C are closely followed because they present a rare medical and commercial opportunity. As many as 3 million people in the United States alone suffer from the virus, but current treatments take a year, come with debilitating side effects, and fail half of the time. A new generation of drugs has the real potential to offer dramatic medical improvements to millions of people, a legitimate biotech breakthrough.
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Posted by globebusiness at 6:10 AM | Comments (0)
September 9, 2010
Harvard endowment climbs 11% but underperforms market
Harvard University's endowment climbed 11 percent for the year ending June 30, adding $1.4 billion to the school's wealth but underperforming other large funds and the stock market.
The nation's largest endowment, with $27.4 billion in assets, benefited from rebounding markets, as stocks rallied and nearly every investment category posted gains through the first few months of this year, according to the annual endowment report from Harvard Management Co.
US and foreign stocks were among the best performers, with double-digit gains, along with private equity -- investments that had helped drive the fund down a stunning 27.3 percent amid the financial crisis in fiscal 2009.
"In comparison to one year ago, our portfolio and our organization are now significantly better positioned to continue to deliver strong long-term returns as well as actively manage our risks,'' the endowment's chief, Jane L. Mendillo, wrote in the annual report released today.
The fund's 11 percent return compared with a median 13.3 percent return for large funds tracked by the consulting firm Wilshire Associates, and a 13.9 percent return for the Standard & Poor's 500 Index. The state's $41 billion pension fund also beat Harvard's return, with a 12.8 percent gain for the year ended June 30.
Mendillo has characterized the two years since she took over the fund as a restructuring period. She has reorganized the staff, hired a number of new top reports and has focused on keeping the endowment more liquid, after the market's historic turmoil in late 2008 left the fund, and the university, in a cash crunch.
Two percent of the endowment was kept in cash last year, an about-face from many years in which it had negative cash, having instead borrowed to invest more than 100 percent of its money.
The endowment provides 35 percent of the university's total annual budget. Harvard, which had also invested its operating cash in the endowment, had to issue debt last year to make up for sharp losses. The school also laid off workers and halted its Allston campus expansion.
Posted by globebusiness at 4:30 PM | Comments (0)
Sanofi-Aventis sticking to first offer for Genzyme
French drugmaker Sanofi-Aventis SA says it's sticking to its original offer of $69 per share to buy Cambridge biotechnology company Genzyme Corp.
That's despite rumors that Paris-based Sanofi has upped its offer by $2 a share, two months after its first overture to Genzyme. Genzyme has rejected the $69 offer, which would make the deal worth $18.5 billion, saying that undervalues Genzyme.
With media in Europe today reporting a higher offer of $71 per share, a Sanofi spokesman in the US says the company hasn't changed the price it proposed two months ago. Meanwhile, spokesman Jack Cox confirms that Sanofi chief executive Chris Viehbacher has been meeting privately with Genzyme shareholders in the US this week to promote the offer.
Posted by globebusiness at 3:19 PM | Comments (0)
Timberland gears up Nature Needs Heroes campaign
A new marketing campaign from Timberland Co. notes that one and a half plastic bottles are used in the making of each pair of the company's Earthkeepers boots.
Headquartered in Stratham, N.H., Timberland has long incorporated environmental messages into marketing efforts designed to highlight its outdoor footwear and apparel.
The new Timberland campaign is titled "Nature Needs Heroes," and it is scheduled to launch over the next several weeks, Timberland said in a press release. A leitmotif of the campaign seeks to "inspire consumers to consider what actions they might take to be 'heroes' for the outdoors themselves," the release added. To that end, the campaign notes that even small acts of environmental action can make a difference.
“This campaign marks the culmination of our work to connect consumers to what we’re doing as a company to have a positive environmental impact,” Jim Davey, Timberland's vice president of global marketing, said in a statement. “It’s our biggest and best effort to date to not just share our own stories and initiatives, but to also engage consumers in a broader effort to care for the environment.”
The photo with this post was taken from a Timberland website.
Posted by globebusiness at 1:51 PM | Comments (0)
New Bedford is top fishing port
New Bedford is once again the nation's top commercial fishing port while the value of the catch continues to fall in Portland, Maine.
The National Marine Fisheries Service has released its annual report detailing the nation's fishing catch for 2009. New Bedford was tops in value of its catch, largely due to sea scallops, bringing in $249.2 million. Dutch Harbor-Unalaska, Alaska, was tops in terms of poundage, with 506.3 million pounds. In Maine, the value of the seafood brought to Portland dropped to $16.6 million, down from $22.6 million in 2008. The report says Stonington was Maine's top port, at $26.5 million. Portland was the No. 56 fishing port by value in 2009, down from 36th a year earlier. The port routinely ranked among the Top 10 in the 1990s.
Posted by globebusiness at 12:28 PM | Comments (0)
DOT approves $13m for Barnstable airport terminal
State transportation officials have approved more than $13 million to build a new terminal at Barnstable Municipal Airport.
The grant, however, comes with conditions. The Department of Transportation board voted unanimously to approve the money for the project under the condition that any litigation related to a legal dispute with a nearby fast food restaurant be resolved before the state reimburses the airport for money spent on the 35,000-square foot terminal.
Construction has already started. Airport commission chairman Daniel Santos tells the Cape Cod Times he hopes to settle the dispute out of court. A manager for the company that owns the restaurant says he's amenable to an out-of-court settlement, but says he does not expect a breakthrough.
Posted by globebusiness at 12:23 PM | Comments (0)
Thermo Fisher board OKs $750m share buyback deal
Scientific instrument maker Thermo Fisher Scientific Inc. said its board authorized a $750 million share repurchase program in effect through Sept. 8, 2011.
The Waltham, company said shares will be repurchased on the open market or in negotiated transactions. The company still has $188 million remaining on an earlier repurchase authorization that is in effect until April. Thermo Fisher shares climbed 95 cents, or 2 percent, to $45.47 in morning trading.
Posted by globebusiness at 10:51 AM | Comments (0)
iRobot will school students in robotics
Bedford's iRobot Corp. said it will mark its 20th anniversary by deploying a team of its specialists to give hands-on demonstrations about robotic technology to a number of Massachusetts schools.
"The goal of the program is to help excite young students about science, technology, engineering and math (STEM) subjects through robotics and inspire them to pursue STEM-related careers," iRobot said in a press release.
IRobot makes everything from battlefield robots to robots that perform such household tasks as vacuuming the living room.
Among the schools that the iRobot team plans to visit are several in Boston. They include Sarah Greenwood School, John D. O’Bryant School of Mathematics and Science, Madison Park High School, and Orchard Gardens Middle School, iRobot's release said.
In a statement, iRobot chairman and chief executive Colin Angle said: “To ensure that America remains competitive in both math and science on the global stage, we need to reach our students early on by putting the technology in their hands so they can experience it firsthand. Our objective is to ensure that every student we encounter understands the considerable possibilities of robotics and careers in emerging STEM fields.”
Posted by globebusiness at 10:32 AM | Comments (0)
AS&E receives $42.2m order
American Science and Engineering Inc., or AS&E, said it has received a $42.2 million service and maintenance renewal order from the US government to extend support of the screening systems that the company provides to the government.
Headquartered in Billerica, American Science and Engineering specializes in X-ray detection technology that can be used to find everything from plastic explosives to contraband.
To read the company's press release, please click here.
Posted by globebusiness at 10:01 AM | Comments (0)
Patriot games have 2nd worst traffic jams in NFL
New England Patriots fans have to endure some of the worst traffic in the football world, according to a TomTom study that looked at gridiron gridlock.
With offices in Concord, Tomtom is a provider of location and navigation solutions. To develop its study, TomTom said it examined anonymously contributed GPS measurements and data during the home games for most pro football teams during the 2009 season. Those findings were then compared with information from a historical speed database that the company maintains.
"According to the TomTom study, the 10 professional football stadiums with the greatest traffic delays were based in Washington, D.C.; New England; Buffalo; Dallas; Jacksonville; Carolina; Miami; Tennessee; Green Bay; and Atlanta, respectively," TomTom said in a press release. "While most roadways experienced a slowdown in speed of more than 30 percent, fans in Washington, D.C.; New England; and Buffalo drove 50 percent slower than typical speeds for the same roads."
Game day traffic is least affected in such pro football cities as Oakland, San Diego, New York, Seattle, and San Francisco, TomTom added.
Posted by globebusiness at 9:29 AM | Comments (0)
CombinatoRx changes name to Zalicus
CombinatoRx Inc. of Cambridge said it has changed its name to Zalicus Inc. to reflect its "evolution as a pain and inflammation focused biopharmaceutical company."
The company will begin trading under the new ticker symbol ZLCS on the NASDAQ Global Market, Zalicus said in a press release.
In a statement, Zalicus president and chief executive Mark H.N. Corrigan said: "We have evolved into a new, multidimensional company following the completed integration of Neuromed and CombinatoRx and the commercial launch of Exalgo (a pain medication) by Covidien. Under the Zalicus name, we look forward to bringing innovative treatments to patients using the assets, expertise and focus of the merged company."
Just over a year ago, CombinatoRx disclosed what it billed as a merger of equals. The company said then that it had found a Canadian merger partner --- Neuromed Pharmaceuticals Ltd. of Vancouver, British Columbia --- that would would bring product revenues and help to create a stronger pipeline of drugs. To read a Globe story about the deal, please click here.
Posted by globebusiness at 8:30 AM | Comments (0)
Acceleron Pharma and Shire announce joint venture
Acceleron Pharma Inc. of Cambridge and British drug maker Shire plc announced a joint venture to develop muscle therapeutics for rare diseases.
If all objectives of the venture are met, the deal could be worth as much as $498 million to Acceleron, the two companies said in a press release; Shire will make an upfront cash payment to Acceleron of $45 million. Shire has a business unit in Lexington that focuses on rare disease. Shire employs roughly 1,500 people in Massachusetts.
The collaboration will initially focus on ACE-031, an Acceleron drug candidate that is currently in a Phase 2a trial for the treatment of patients with Duchenne Muscular Dystrophy. Duchenne Muscular Dystrophy is a fatal orphan muscle disease with no currently approved treatment, the release noted.
"This collaboration is an excellent strategic fit to the work that Shire is already doing on behalf of patients with rare diseases," Sylvie Gregoire, president of Shire Human Genetic Therapies, said in a statement.
Shire recently began marketing a drug for a rare disease called Gaucher disease. That drug competes with one of the most important drugs of Genzyme Corp., the Cambridge biotechnology company.
Posted by globebusiness at 8:00 AM | Comments (0)
Today in Globe Business
Chain finds a way to fulfill the fickle
Teens and tweens can be fickle shoppers. But when the economy is bad and parents are cutting back on spending, young people can be nearly impossible for retailers to reach.
That’s where Five Below, a Philadelphia-based teen retailer that sells things like school supplies, sports gear, DVDs, and iPhone accessories — all for between $1 and $5 — comes in.
The 124-store chain, begun in 2002, is planning an aggressive expansion nationwide, including in New England. Last month, it opened three stores, in Mansfield, Natick, and Stoughton.
Five Below is betting that its value-oriented merchandise will appeal to cost-conscious consumers who are looking for inexpensive everyday goods. Retailers overall have been suffering during the down economy, but the discount segment, including Framingham-based TJX Cos., grew 3.3 percent between 2000 and 2009, according to Kurt Salmon Associates, a management consulting firm. It was the only retail sector that gained ground.
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Missing files little threat, hospital says
Missing computer files that possibly contained personal information on about 800,000 people connected to South Shore Hospital are “unrecoverable,’’ the hospital said yesterday after an investigation that also concluded there is little chance that individuals would be harmed by the data breach.
“All available evidence indicates that the files are unrecoverable and that there is little to no risk that information on the files has been or could be acquired,’’ the hospital said in a statement.
The Weymouth hospital disclosed the lost files on July 19. Back-up computer tapes from Jan. 1, 1996, through Jan. 6, 2010, were lost by a subcontractor working for a company South Shore had hired to destroy three boxes containing unmarked computer tapes. One box was destroyed but two boxes never arrived at their destination in Texas.
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TECH LAB: New motion-reading controller is a good move for Sony's PS3
How far ahead of its time was the Wii, Nintendo Co.’s wildly successful video game console? It was so far ahead that it’s taken Nintendo’s chief rivals four years to catch up.
Actually, the Wii is relatively primitive compared to Microsoft Corp.’s Xbox 360 and Sony Corp.’s PlayStation 3. It doesn’t support true high-definition video, for example, at a time when two-thirds of American households have upgraded to HD. But the Wii led the way with its famous hand-held controller, which lets users play games by moving their bodies.
At last, both Sony and Microsoft have developed hardware devices that will add motion control to their existing consoles. Sony will go first; on Sept. 17, the company introduces PlayStation Move, a $100 upgrade that supplements the familiar game push buttons with light and pictures, as well as motion.
Posted by globebusiness at 6:07 AM | Comments (0)
September 8, 2010
Magic Johnson firm hopes to jumpstart NorthPoint
A real estate investment fund co-managed by former Los Angeles Lakers superstar Earvin "Magic" Johnson's company said today that it is partnering with two other firms to move forward with the stalled NorthPoint mixed-use development in Cambridge.Canyon-Johnson Urban Funds, said it will work with HYM Investment Group, LLC, of Boston and Atlas Capital Group in New York to develop the 44-acre site, a former Pan Am rail yard across the Charles River from Massachusetts General Hospital, a few blocks from Kendall Square.
Canyon-Johnson Urban Funds -- a joint venture between Canyon Capital Realty Advisors and a subsidy of Magic John Enterprises -- was created in 2001 to redevelop real estate in densely populated urban areas.
"We are thrilled to be back in the Boston area, and to breathe new life into a large, strategically located piece of land that has been under-utilized for too long," said Canyon Managing Partner Bobby Turner. He said the project "has the potential to create a new focal point for the neighborhood and generate thousands of construction and permanent jobs for local residents."
Work on NorthPoint came to a halt in 2005 amid financial problems. It was originally supposed to feature about 2,700 residential units, more than 2 million feet of commercial and office space, and 150,000 square feet for retail businesses.
Posted by globebusiness at 5:46 PM | Comments (0)
Fed survey says New England companies generally upbeat
The New England economy fared better than the nation as a whole in recent weeks, as businesses in several of the region's key industries reported "upbeat" results, according to a Federal Reserve survey released today.
The survey, which comes out eight times a year, said the national economy appeared to slow significantly in recent months, while business conditions across New England were "positive on average." Still, some industries, such as retail and real estate, struggled.
The New England "outlook varies widely across sectors, from largely positive in manufacturing and software to cautious in retail and tourism and mixed among commercial real estate professionals," the Fed reported.
The survey, known as the Beige Book, collects anecdotal information from businesses around the country in advance of the Fed’s rate-setting meetings. Policy makers are expected to hold the Fed’s benchmark interest rate near zero when they meet September 21.
New England manufacturers reported solid growth recently, with many citing strong demand from Europe, according to the Fed. They continue to hire cautiously, however, and employment at most firms remains below 2008 levels.
On the other hand, many New England software firms said they've added workers as revenues increased as much as 15 percent from a year ago. Staffing firms reported the greatest demand for workers came from technology companies, as well as light manufacturers and health care providers.
Tourism in New England was stronger than expected, but retailers are struggling with weak consumer spending, the survey said. Some retailers reported sales declines of as much as 10 percent from a year ago.
Leasing activity in commercial real estate was largely flat, while housing sales fell sharply in July as a result of the expiration of the federal home buyers tax credit, according to the Fed. Some real estate firms were optimistic that record low-interest rates and an improving economy would provide new sparks to home sales, but others expected slow going without the tax credit or a significant reduction in unemployment.
Posted by globebusiness at 4:54 PM | Comments (0)
Investors to develop Cambridge land parcel
Canyon-Johnson Urban Funds said today it has formed a joint venture with two investment firms to develop the largest vacant land parcel in Cambridge.
Atlas Capital Group and the HYM Investment Group LLC round out the venture, which plans to develop the 44-acre NorthPoint property into a mixed-use community.
The property used to be a rail yard and is located across the Charles River from Massachusetts General Hospital.
When completed, NorthPoint will feature a mix of residential, commercial office, retail, hotel and other properties surrounding a 10-acre central park.
Posted by globebusiness at 4:01 PM | Comments (0)
Cubist plans to add 58 jobs
Cubist Pharmaceuticals Inc., a biotechnology company developing antibiotics to treat infections and viruses, today began construction of an additional 104,000 square feet of laboratory and administrative space in Lexington.
The project, which is set to be completed in early 2012, will use a $1.7 million state tax incentive.
As part of its incentive agreement with the Massachusetts Life Sciences Center, which is administering the state's 10-year, $1 billion life sciences initiative, Cubist has committed to adding 58 jobs this year.
Governor Deval Patrick and Susan Windham-Bannister, president of the life sciences center, attended a ceremony at Cubist today marking the start of the expansion project.
Posted by globebusiness at 3:41 PM | Comments (0)
Reebok unveils NFL-themed maternity line
Reebok, the official outfitter of the NFL, said that it has partnered with A Pea in the Pod to offer moms-to-be Reebok's NFL Maternity collection.
Elisabeth Hasselbeck, co-host of ABC's The View the wife of former NFL player Tim Hasselbeck is the face of the line, Canton-based Reebok said in a press release.
The collection will be available to consumers at A Pea in the Pod and Destination Maternity stores across the country, Reebok said in a press release. The new line includes "figure-flattering" cotton T-shirts featuring "catchy sayings and vintage NFL team logos." Reebok said.
"Expectant moms can now watch their favorite NFL team with the family in comfort and style in the new Reebok maternity tee," Elisabeth Hasselbeck said in a statement.
She is shown at right in an AP file photo.
Posted by globebusiness at 1:37 PM | Comments (0)
Houghton Mifflin takes the iPad to school
Some folks regard the iPad as an entertainment device, a tablet computer from Apple Inc. that's great for watching videos or playing games, but now a venerable Boston company is launching an app that looks to re-purpose the iPad into an educational tool that can help young students to do math and learn algebra.
The company is Houghton Mifflin Harcourt, or HMH, which has a long history in the text-book industry. Now HMH looks to take the text book to the next frontier as it announced a year-long pilot of the "first-ever full-curriculum algebra app" for the Apple iPad.
"The pilot also represents the launch of Fuse, HMH’s new mode of curriculum delivery where interactive platforms and mobile devices allow learning to come to life for students by moving beyond the one-way experience of a print or digital textbook," HMH said in a press release.
Through the iPad environment, students will be able to receive instant feedback on practice questions, write and save notes, receive guided instruction, and access video lessons with the touch of a finger, HMH said.
Plans call for the algebra app to be unveiled at a middle school in Long Beach, Calif., said HMH, which provided the photo that appears with this post.
The launch of the algebra app "signals the beginning of a new era in curriculum development, where the goal is not just providing world-class content, but also delivering it in a variety of ways so that students and teachers can individualize the learning experience,” HMH chief executive Barry O’Callaghan said in a statement. “We believe this pilot will provide the nation with a glimpse into the future of education.”
Posted by globebusiness at 1:01 PM | Comments (0)
JetBlue plans flights to Turks and Caicos Islands
JetBlue Airways plans to start flying to the Turks and Caicos Islands in February, its 17th Caribbean destination and 40th nonstop destination out of Boston, filling a void created when US Airways and American Airlines stopped flying the route from Logan International Airport in May
JetBlue's weekly service to the Providenciales International Airport will begin Feb. 19 and will operate seasonally, from November to April.
Tickets are expected to go on sale in October. JetBlue will be starting daily service to Turks and Caicos from John F. Kennedy International Airport in New York on Feb. 17.
Posted by globebusiness at 12:33 PM | Comments (0)
First 'flying cars' to be built in Mass.
Production of the world's first "flying car" will be taking off from Massachusetts.
Terrafugia Inc. announced today that it plans to begin low-volume production of the company's Transition Roadable Aircraft at 19,000-square-foot facility in Woburn.
The company -- which is headquartered in Woburn -- said it considered several other locations around the US and the world for initial production, which could begin by late next year.
To read some Globe coverage of Terrafugia, please click here.
Terrafugia says plans for long-term high volume production have yet to be determined.
Posted by globebusiness at 11:57 AM | Comments (0)
Hospital workers ratify labor contract
Service workers who organized last year at the 147-bed Union Hospital in Lynn, part of the North Shore Medical Center, have ratified their first labor contract as part of Local 1199 of the Service Employees International Union. The pact gives the SEIU its largest foothold at Partners HealthCare System, the state's largest hospital group.
The new two-year contract, covering 438 housekeepers, nursing assistants, mental health workers, anesthesia technicians, medical interpreters, cooks, food service workers, and other Union Hospital employees, includes wage increases, a ratification bonus, and a training program designed to help workers advance their careers.
All workers will receive a minimum 3 percent wage boost effective Oct. 3, while the average hourly wage increase over the life of the contract will be 6.8 percent, according to SEIU Local 1199, the largest health care union in Massachusetts.
Posted by globebusiness at 10:46 AM | Comments (0)
Zipcar talks up 'low-car diet'
Zipcar, the Cambridge-based car-sharing service, is urging customers and non-customers alike to participate in its third annual "low-car diet."
The official kick-off is Sept. 14, and folks who sign on to the Zipcar challenge pledge to give up their vehicles for 30 days and find other ways to meet their transportation needs, Zipcar said.
Participants nationwide will be given a Zipcar membership and other incentives from national partners including Honest Tea, Zipcar said in a press release. Folks interested in participating can join Zipcar's Low-Car Diet by signing up at www.zipcar.com/lowcardiet.
A company spokesman added: "If you’re a grad student moving back to Boston, there’s no need for a car. Between the T and Zipcar, you can meet 100 percent of your transportation needs.”
Last year, locals who participated in the low-car diet reported 124 percent increase in miles walked, a 204 percent increase in miles biked, and an 80 percent increase in trips on public transportation, Zipcar said.
Posted by globebusiness at 10:28 AM | Comments (0)
Who, What, Where
Mark Connon is the new corporate development and chief privacy officer at Umber Systems, a mobile data analytics company based in Concord. In this role, Connon is responsible for driving the execution of Umber's data monetization strategies and overseeing the company's privacy strategy, business and corporate development, and compliance initiatives. He most recently served as chief privacy officer with OwnerIQ, an online, interest-based advertising company.
Daniel L. Leonard has joined Leerink Swann, a Boston-based health-investment bank, as director and senior research analyst covering life science tools and diagnostics. Before joining Leerink Swann, Leonard was a vice president and research analyst at First Analysis in Chicago, where he spent the last five years supplying sell-side research coverage on a full roster of companies in the tools and diagnostics area.
Matthew Wohl is the new chief marketing officer at Welch’s, the Concord-based marketer of Concord and Niagara grape-based products. Wohl joined Welch’s following a 16-year career at Gillette, the razor-and grooming brand of Procter & Gamble Co., the consumer products giant.
Chris Lindner has been appointed to the newly created role of senior vice president/chief marketing officer at Saucony, a Lexington-based supplier of performance athletic footwear and apparel. Prior to his new role at Saucony, Lindner was vice president of global marketing at Converse Inc., a subsidiary of Nike Inc.
Posted by globebusiness at 9:47 AM | Comments (0)
Talbots returns to 2Q profit, offers weak outlook
HINGHAM -- Women's clothing seller Talbots Inc. returned to a profit in the fiscal second quarter as the company cut costs to offset slightly lower revenue.
The company raised its yearly outlook on the results, but trimmed its revenue outlook due to the continued weak economy. It also offered third-quarter guidance below expectations and shares fell in premarket trading.
Net income for the three months ended July 31 totaled $941,000, or a penny per share, compared with a loss of $24.5 million, or 45 cents per share. Excluding one-time items, net income was 14 cents per share.
Revenue fell 1 percent to $300.7 million from $304.6 million, a year earlier. Analysts polled by Thomson Reuters, on average, predicted net income of 5 cents per share on revenue of $313.9 million.
Women's clothing sellers have cut costs and lowered inventory to offset weak sales during the recession and continued uncertain economy.
Chief executive Trudy F. Sullivan said the company continued to see double-digit increases in sales of full-priced items, "which is in line with our focus on improving margins through strong inventory management."
The company now expects yearly net income for 84 cents to 92 cents per share, excluding one-time items. From prior guidance of 75 cents to 83 cents per share. Analysts expect net income of 83 cents per share.
But it now expects yearly revenue to rise in the low single digits, compared with prior guidance of a 3 percent to 5 percent rise.
For the third quarter, Talbots predicts net income of 22 cents to 28 cents per share. Analysts expect net income of 30 cents per share.
Shares fell $1.12, or 10 percent, to $9.99 in premarket trading.
Posted by globebusiness at 9:27 AM | Comments (0)
Rhythm closes $40m Series A financing
Rhythm, a Boston biotechnology company developing peptide therapeutics for metabolic diseases, said it has completed its Series A financing, increasing the total funding raised to $40 million.
"The first closing on the previously announced $21 million Series A financing was led by MPM Capital and New Enterprise Associates," Rhythm said in a press release. "Third Rock Ventures joined MPM and NEA in the expanded second round."
MPM and Third Rock have offices in Boston.
Rhythm said it is working on drug candidates that seek to treat gastrointestinal functional disorders as well as obesity and diabetes.
Posted by globebusiness at 8:47 AM | Comments (0)
Vertex hepatitis C drug helps the hard-to-treat
CAMBRIDGE -- Vertex Pharmaceuticals Inc. said Tuesday that a late-stage clinical trial showed its hepatitis C drug candidate telaprevir proved effective for patients who hadn't been helped by other treatments.
Vertex said 65 percent of patients who were treated with a drug cocktail including telaprevir were cured, meaning the hepatitis C virus could not be detected in their bodies. That compares with just 17 percent of patients who were treated with only the drugs pegylated interferon and ribavirin.
The 48-week study included 662 people split up into three groups: some who were treated successfully in the past but later relapsed, some who had a partial response to other therapies, and some who had almost no response to other treatments. The study, called REALIZE, is the third and last of the planned late-stage trials of telaprevir. The others involved patients who had not taken other hepatitis C drugs.
For telaprevir and for the standard therapies, the best results came in patients who previously suffered relapses. The partial responders were the second most likely to be cured, followed by those who had almost no response to other drugs. The most common side effects for telaprevir were fatigue, itching, rash, flulike symptoms, nausea, and anemia.
The trial was conducted by Vertex's partner Tibotec, which has the commercial rights to telaprevir in Europe, South America, Australia, the Middle East, and some other countries. Mitsubishi Tanabe Pharma has the rights to sell the drug in Japan and some other Asian countries.
Vertex said it plans to complete regulatory filings for telaprevir later this year.
Analysts have estimated the total market for hepatitis C drugs at $9 billion. About 300,000 people in the US have hepatitis C, a virus that can cause liver damage. Other potential hepatitis C drugs in development include Merck & Co.'s boceprevir. Merck acquired the drug when it merged with Schering-Plough.
Posted by globebusiness at 8:05 AM | Comments (0)
Viking gets an OK for 3D visualization system
Viking Systems Inc. said it has received a regulatory clearance for its next-generation 3D visualization system that is designed to be used by surgeons during minimally invasive procedures.
"Nearly all minimally invasive procedures are currently performed with a 2D camera," Westborough-based Viking Systems said in a press release. The company's 3D system has the potential not only to improve the quality of care but also to reduce the time and costs of procedures, the release said.
The release included a statement from Jed Kennedy, Viking president and chief executive.
"We are very pleased to have received timely FDA 510(k) clearance of our Next Gen system for a broad base of minimally invasive procedures including general surgery, urology, gynecology, spinal, bariatric, ENT, and thoracic." Kennedy said.
Viking said it plans to officially launch its new product at the American College of Surgeons' Annual Clinical Congress in Washington, D.C., next month.
Posted by globebusiness at 7:43 AM | Comments (0)
Today in Globe Business
Alliance to push for medical innovation
Worried that pressure to control health care costs will lead to lower prices for drugs and medical devices, making it less attractive to invest in life sciences companies, a group of venture capitalists and entrepreneurs is set to launch a national alliance today to promote policies and regulations that favor US medical innovation.
The group, called the Medical Innovation and Competitiveness Coalition, or MedIC, will push for tax breaks and speedier approval of new products. It will be affiliated with the National Venture Capital Association, a trade organization representing investors in high-tech and life sciences start-ups, including hundreds in the Boston area.
MedIC coalition members fear the drive to control medical costs, combined with a lack of government incentives and a cumbersome approval process for drugs and devices, threatens the country’s long-held global leadership position in biotechnology, medical gear, and other life sciences niches.
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NATICK — Until a few months ago, Hybrivet Systems Inc. was a small business here, with four employees and about $1 million in sales from the kits it makes to help people test for lead in their homes.
Then, in April, the US Environmental Protection Agency implemented a new rule requiring contractors to use lead-safe work practices and check for lead whenever renovating, repairing, or painting a building constructed before 1978. Hybrivet’s test,
LeadCheck, is one of only a few kits currently recognized by the EPA to check for the substance, which can be extremely toxic even at low levels.
All of a sudden, Hybrivet couldn’t make its product fast enough. Almost overnight, the company needed more employees, more work space, and more office equipment.
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Craigslist sex-ad ban doesn't end Web listings
Craigslist’s newly implemented ban on advertisements for adult services does not mean such online classifieds have vanished from the Internet.
Many sites, including Backpage.com, owned by Village Voice Media, and the online version of The Boston Phoenix, continue to feature ads that appear to promise sex for money.
Massachusetts Attorney General Martha Coakley has said she plans to hold public hearings on how to address the issue, but Internet specialists say it will be difficult for law enforcement officials to curb illegal activities online.
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US carmakers betting on fuel efficiency, upgrades
Detroit automakers are hoping to finally persuade American car buyers to buy American.
But instead of using patriotic messages to appeal to consumers, they are betting on a handful of higher-quality, more fuel-efficient cars — both old and new.
That General Motors Corp., Chrysler Group LLC, and Ford Motor Co. have tried — and usually failed — to stunt the growth of import brands like Toyota and Honda is an old story.
As Chrysler repays interest on its $12.5 billion federal loan, though, and GM prepares for what may be one of the largest initial public offerings of stock of all time — possibly as high as $20 billion — US automakers are under increasing pressure to improve their products.
Posted by globebusiness at 6:09 AM | Comments (0)
September 7, 2010
Generex signs Mexican distribution agreement
Generex Biotechnology Corp. said today that it reached a long-term marketing and distribution agreement for its glucose spray product with Merck S.A. de C.V. in Mexico.
Merck will sell the company's over-the-counter Glucose RapidSpray in Mexico as Diabion GlucoShot. The spray delivers glucose in the mouth, where it is absorbed.
Generex shares rose nearly a penny to about 42 cents in today's afternoon trading.
Posted by globebusiness at 2:40 PM | Comments (0)
FDA halts Idenix drug studies due to side effects
Shares of Idenix Pharmaceuticals were cut nearly in half today after federal regulators halted development of its two hepatitis drugs due to its potential side effects.
The Food and Drug Administration issued a clinical hold after Idenix reported three cases of liver side effects in patients taking IDX-184 and IDX-320, the company said. Both drugs are experimental treatments for hepatitis C, a type of infection that damages the liver.
Idenix said liver function in all three patients later returned to normal.
Idenix received verbal notice of the FDA's decision Friday. The company had been studying a combination dose of the two drugs in healthy volunteers.
"We remain committed to the future potential of these drug candidates" said Idenix Chairman and Chief Executive Jean-Pierre Sommadossi. "We will work closely with independent experts and our external safety committee to better understand the cause of these serious adverse events."
Shares of Idenix Pharmaceuticals tumbled $2.87 to $3.12 in midday trading.
Posted by globebusiness at 1:50 PM | Comments (0)
Boston University, Sovereign Bank launch partnership
At the signing of the partnership, (l to r) Santander Chairman Emilio Botín, Boston University President Robert Brown, and Sovereign Bank CEO Gabriel Jaramillo.
Boston University has signed an agreement with Sovereign Bank, a part of Banco Santander, that will provide academic scholarships in the University’s School of Public Health and establish a new undergraduate Spanish language and cultural community program.
Sovereign Bank will provide support through Santander Universities, an initiative through Banco Santander in support of higher education and the expansion of knowledge and experience throughout the world.
“We are proud to announce our first partnership with Boston University in support of student scholarships that will further advance higher education and international collaboration – components that are crucial to Santander Universities and its mission,” said Banco Santander Chairman Emilio Botín. “This innovative agreement also establishes a new undergraduate program that connects students with the Greater Boston community by strengthening Spanish and cultural ties.”
Through the new undergraduate Spanish language and cultural program, named “The Hispanic Voices Program,” undergraduate curriculum will now include a unique community service course that enables students to introduce Spanish-language theatre into Boston-area high schools. The Hispanic Voices Program also includes the renovation of “Casa Hispanica” (Spanish House), a center that will provide a place for students to interact with the Greater Boston community through Spanish language and culture courses offered to community groups in Boston’s Roxbury neighborhood, and series of cultural events sponsored by the Department of Romance Studies for the Hispanic Community at Boston University.
In addition, the agreement will provide scholarships for students enrolled at the Boston University School of Public Health for overseas study via the school’s Center for Global Health and Development, further enhancing the University’s growing commitment to global health initiatives.
The agreement includes scholarships to ten low to moderate income undergraduate students in support of their studies, scholarships to ten Latin American Students to pursue their field of interest, and a special fund to help support up to twenty-five students to participate in BU’s Kenya Field Practice Program.
Posted by globebusiness at 12:55 PM | Comments (0)
Confidence among Mass. employers on decline
After more than a year of steady gains, business confidence has now declined for two straight months in Massachusetts as employers worry about the national economy.
Associated Industries of Massachusetts said today that its Business Confidence Index dropped eight-tenths of a point in August to stand at 47.7 on a scale of 100. The index had risen to 53.3 -- its highest level since the recession -- in June before dropping the last two months.
Any reading below 50 means employers are more pessimistic than optimistic about business conditions.
The chairman of AIM's Board of Economic Advisors, Raymond Torto, said businesses are clearly concerned about national economic conditions. But he also noted that most rated the business climate in Massachusetts better than the nation as a whole.
Posted by globebusiness at 12:12 PM | Comments (0)
Mass. gas prices down another 2 cents
Gasoline prices in Massachusetts have dropped another two cents and have now fallen seven cents in two weeks.
AAA Southern New England reported today that a gallon of self-serve, regular is now selling for an average of $2.61. That is seven cents below the national average and the exact same price as at this time last year.
AAA found self-serve, regular as low as $2.45 and as high as $2.89 per gallon.
Posted by globebusiness at 12:04 PM | Comments (0)
Lightower completes purchase of Veroxity
Lightower Fiber Networks in Boxborough, which runs big bandwidth data networks for corporate clients, has completed its acquisition of data services provider Veroxity Technology Partners in Westford. Financial terms of the deal were not disclosed.
Veroxity's 35 to 40 employees will join Lightower's 140 workers. No jobs are being cut, said Lightower director of marketing Chris Knight.
"This is a continued-growth play," Knight said.
The Veroxity network adds 2,000 network route miles to Lightower's 4,500 network route miles in New England and New York City, and the combined fiber reaches 2,000 commercial buildings, according to the release.
Posted by globebusiness at 10:27 AM | Comments (0)
Pending home sales down year-to-year for fourth straight month
The number of single-family homes placed under agreement to be sold in Massachusetts was down 10 percent in August from the same month a year ago, the fourth straight month of year-to-year declines, but was up slightly from this past July, according to a release from the Massachusetts Association of Realtors.
There were 4,117 new pending sales of single-family homes in the state in August, down from 4,570 in August 2009. Newly pending sales rose 1.7 percent from this past July.
Condominium sales in Massachusetts fell 19 percent in August from the same month last year. There were 1,435 units placed under agreement last month, down from 1,770 in August 2009. The number fell 2.1 percent from the previous month.
The numbers reflect the "post-tax credit" period, said Eric Berman, spokesman for the association. "Everyone was rushing top get the deals in place before April 30," when the $8,000 federal tax credit for first-time home buyers ran out.
The results follow a 26 percent drop in home sales in Massachusetts in July from the same month a year earlier, according to figures from the Warren Group. The number of Massachusetts home sales in July reached a 20-year low for the month, and a similar drop occurred across the country.
The August numbers from the association are based on newly signed purchase and sale agreements, and are compiled from the Multiple Listings Service. They do not include transactions that are not listed on MLS.
Posted by globebusiness at 9:23 AM | Comments (0)
Today in Globe Business
Breakfast meetings the toast of the town
Forget about the power lunch — breakfast is back as the business meeting meal of choice.
Many executives, facing smaller expense budgets and slimmer staffs, are turning to daybreak dining as a less expensive and quicker way to do business compared with more traditional lunch and dinner gatherings. And restaurants are expanding menus and operating hours to accommodate the surge in interest.
Suits are showing up early at Stanhope Grille at the Back Bay Hotel, where the breakfast business is up 20 percent over the past year, while lunch and dinner sales are down more than 5 percent.
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Crackdown apt to cut US aid to many for-profit schools
More than 1,000 for-profit colleges across the country, including dozens in New England, could run afoul of new federal regulations because they have student loan repayment rates below new federal standards, a Globe analysis of new federal education data shows.
The Department of Education plans to limit federal aid to some for-profit career schools with low repayment rates because of concerns that too many institutions are saddling students with thousands of dollars in debt, without giving them the training they need to land jobs to repay the loans.
The crackdown comes at a time when the for-profit sector has been exploding, fueled in part by federal student aid. Nationwide, there are now nearly 3,000 for-profit colleges, ranging from culinary academies to technical schools.
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Tech remains vital to Bay State economy
The state’s technology sector shrank over the past decade, but remains vital to the Massachusetts economy, providing one in 10 jobs, generating high wages, and encompassing industries that are projected to grow quickly in coming years, according to a study being published by the US Bureau of Labor Statistics.
The study, which examines employment in 11 technology-based industries, provides a comprehensive picture of a sector that has soared, collapsed, rebounded, and reinvented itself since the dot-com bubble peaked in the early part of the last decade.
Even though the sector employs nearly 50,000, or 15 percent, fewer workers than in 2001, Massachusetts still has a high concentration of technology-based industries expected to rank among the nation’s fastest growing over the next several years, said Denis McSweeney, regional commissioner of the bureau.
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Sidetracked, Wonderland puts its bets on future
REVERE — About the only working vestige of Wonderland Greyhound Park’s racing past is the blinking green sign that invites drivers speeding past on Route 1A to “Join us seven days a week for simulcast racing from noon to one a.m.’’
The owners of the now-shuttered park are looking for new ways to lure business to the sprawling site. But with the economy still hostile to large-scale real estate development — and Wonderland’s location limiting its potential — it does not appear the racing sign will soon be replaced.
Wonderland closed just over two weeks ago, after the campaign on Beacon Hill to pass a bill to legalize casino gambling collapsed. Proponents had hoped for new legislation that would throw a lifeline to the track. Its main business, dog racing, was banned by Massachusetts voters in 2008, but the dog track figured in the plans of the owners of nearby Suffolk Downs, who had envisioned a huge casino resort at their horse track.
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Posted by globebusiness at 5:59 AM | Comments (0)
September 3, 2010
Troubled OneUnited Bank seeks to close branch
OneUnited Bank has filed with state banking regulators to close its Lauderdale Lakes, Fla., branch, leaving it with only a Miami office in that state. The Boston-based bank is the nation's largest minority-owned lender and has been under scrutiny since the financial crisis for seeking political favors to obtain a $12 million federal bailout.
The bank's application to close the branch, filed with state and federal regulators in July, said it cannot afford to operate the Lauderdale Lakes facility profitably "due to the low level of deposits and lack of growth over the last several years." The branch has $2.1 million in deposits and is losing about $285,000 a year, according to the filing.
The bank's chief counsel, Robert Cooper, said it is selling the Lauderdale Lakes building because it's too large. "We have been exploring alternative locations to lease," Cooper said. "We also want to concentrate our focus on Miami Dade County, where our main branch is located." The bank is asking $3.3 million for the 10,585 square foot building.
The regulatory comment period ended today on whether the branch should be allowed to close by Oct. 31. Kenneth Thomas, a Miami Community Reinvestment Act consultant and longtime critic of OneUnited, said he was concerned about the bank's apparent lack of commitment to the area.
It has five offices in the Los Angeles area and three in Boston.
Posted by globebusiness at 5:29 PM | Comments (0)
Colony Place gears up for Best Buy opening
Best Buy, the consumer electronics retailer, is gearing up for a grand opening ceremony tomorrow of its new store at Colony Place, a roughly 40-store shopping center in Plymouth, Colony Place said.
Festivities will include face painting, live music, and a Wii bowling tournament, Colony Place said. Most grand opening events are indoors, and they are expected to go on as planned and not be affected by the weather, a Colony Place spokeswoman said this afternoon.
The new Best Buy is replacing a store in Kingston that was recently closed, Colony Place said.
In addition to Best Buy, two other permanent stores are scheduled to open at Colony Place in November. They are an Aspen Dental clinic and a Verizon Wireless store, Colony Place said. Two temporary seasonal stores are also scheduled to open. They are Spirit Halloween and Toys R Us Express, Colony Place said.
Posted by globebusiness at 3:17 PM | Comments (0)
Bruker Energy & Supercon plans $100m IPO
Bruker Energy & Supercon Technologies Inc., a division of Bruker Corp. that provides technology for equipment such as MRI machines, plans to raise $100 million through an initial public offering.
That figure is estimated in order to meet Securities and Exchange Commission filing requirements and may change. In the filing, made today, the company said it will use the cash from the IPO to pay down debt, expand its production capacity, and fund research and development.
The Billerica company plans to trade under the symbol "ESCT" on the Nasdaq. Bruker Corp. said it plans to keep a controlling stake in the unit "for the foreseeable future."
Posted by globebusiness at 1:47 PM | Comments (0)
Economy puts kibosh on retirement, workers fear
Get a sinking feeling every time you look at the 401(k)? Loading up on Spam and Hamburger Helper because of pay cuts at work? Such anxieties are now so common that nearly two out of three Americans doubt that they'll ever be able to retire, according to a new survey.
The survey on retirement and attitudes in the work place is from StrategyOne, a New York public opinion polling firm that conducted an online survey of 1,043 Americans between Aug. 20 and Aug. 23. The firm released the survey results just in time for Labor Day weekend.
Once upon a time, hard working people could count on a gold watch and a retirement-party sheet cake when they reached their 65th birthdays, not to mention a pension. But that's not necessarily the case anymore. Now retirement may be regarded as a luxury only for a few well-heeled octogenarians.
In fact, 64 percent of respondents in the StrategyOne survey said they believe that they won’t ever be able to stop working and retire.
"The current economic downturn has produced a situation where almost half (46 percent) of workers have had their wages or salaries reduced over the past couple of years, and a similar segment are concerned about losing their jobs (44 percent) or having their hours cut back (48 percent)," StrategyOne said in a press release.
The release included a statement from Bradley Honan, senior vice president of StrategyOne.
"While employed Americans on the whole enjoy their work and get satisfaction from it, there is a real sense that the retirement ‘light at the end of the tunnel’ may not be there for them," Honan said.
Posted by globebusiness at 12:27 PM | Comments (0)
Hospital nurses reach tentative labor deal
NORTH ADAMS -- Unionized nurses at North Adams Regional Hospital have reached a tentative agreement with hospital management on a new labor contract.
The agreement was reached Thursday after 24 hours straight of negotiations, and a day before the hospital's roughly 100 nurses were scheduled to strike.
The sides differed on staffing levels and overtime rules. The nurses claimed the hospital's proposals would have compromised patient care. The nurses were not asking for pay raises. Union official Ruth O'Hearn said the nurses were "satisfied and relieved" by the deal. While not revealing specifics of the deal, management said in a statement that the settlement addresses "flexible staffing policies and fiscal responsibility." The two-year deal must still be ratified.
Posted by globebusiness at 12:05 PM | Comments (0)
Seven45 reveals more songs for Power Gig
Boston video game developer Seven45 Studios issued an expanded list of songs that will be included in its upcoming "Power Gig: Rise of the SixString" video game, which will feature a six-string guitar as a wireless controller.
The game's play list will include tracks from "across multiple rock genres including alternative, classic, indie, metal and punk, with more than 80 percent of the tracks making their band game debuts with this game," the company said. Featured artists include Eric Clapton, the Dave Matthews Band, and Kid Rock (shown at right in a handout photo).
To read the company's press release, which includes a list of many of the songs that will be featured in the game, please click here.
The game will will be available for the PlayStation 3 entertainment system and Xbox 360 system in October, the company said.
Posted by globebusiness at 11:15 AM | Comments (0)
Pfizer ends brain cancer drug deal with Celldex
NEEDHAM -- Pfizer Inc. is pulling out of a development deal with Celldex Therapeutics Inc. on a potential brain cancer drug, saying it is not a strategic priority, Celldex said.
Celldex said it will regain full worldwide rights to develop and sell rindopepimut from Pfizer. The drug candidate is also called CDX-110. In May, the company reported positive results form a midstage study on the drug.
Celldex regains rights to the drug candidate on Nov. 1.
Shares of Celldex plunged $1.58, or 33 percent, to $3.20 in morning trading. The stock reached a 52-week low of $2.91 earlier in the trading session.
Shares of Pfizer rose 13 cents to $16.53.
Posted by globebusiness at 10:42 AM | Comments (0)
Sword Insurance relocates Boston office
Sword Insurance said it has relocated its Boston office, which serves as the company's North American headquarters, to larger space at 51 Sleeper St.
Previously, the company's roughly 100 employees occupied 12,000 square feet of space on two floors at 211 Congress St., a company spokeswoman said; now Sword Insurance has about 20,000 square feet of space on one floor at its new office on Sleeper Street.
“With the formal launch of Sword Insurance and the associated growth strategy, we have outgrown our current headquarters. In an effort to maintain our commitment to customer service, delivery, execution and innovation we needed a more efficient location to handle our expansion.” Sword Insurance chief executive Steve Hauck said in a statement. “In the new space, we can accommodate more client meetings and also have all of our Boston staff on one floor to enhance collaboration between client delivery, research & development, account management, marketing and sales.”
According to its website, Sword specializes in software, tools, technologies, and services for the insurance industry.
Besides Boston, Sword Insurance has offices in New York, San Francisco, and Chicago; its European headquarters is in London.
Posted by globebusiness at 9:15 AM | Comments (0)
Big Y deploys NCR deli ordering kiosks
NCR Corp. said that Big Y Foods Inc., the Springfield-based supermarket chain, has completed its initial deployment of NCR's automated deli ordering kiosks.
To use the kiosks, Big Y customers swipe their Big Y Express Savings card, NCR said. A touch screen then enables shoppers to place their meat or cheese order from the in-store deli.
"The NCR software determines the appropriate time for the customer to return to the deli counter to pick up their order, which is then printed at the bottom of the customer’s receipt, Georgia-based NCR said in a press release. "An in-store announcement also alerts customers when their order is ready."
The kiosks are currently featured in 18 Big Y stores, and all future Big Y stores will feature the combined NCR kiosk software and hardware solution, NCR said.
The release included a statement from Bill Classen, Big Y's deli sales manager.
“Our customers appreciate the option to place their deli orders without waiting in line and the extra convenience the kiosks provide,” Classen said.
Posted by globebusiness at 8:10 AM | Comments (0)
Today in Globe Business
Caritas Christi Health Care yesterday said it plans to convert Landmark Medical Center of Woonsocket, R.I., into a Catholic hospital if its agreement to acquire the financially ailing 214-bed community hospital is approved by a Rhode Island judge and state regulators.
The conversion would mean Landmark could no longer provide sterilization services — such as tubal ligation — barred by the ethical and religious directives of the US Conference of Catholic Bishops, the rules governing Catholic health care organizations.
Landmark does not perform abortions, another procedure prohibited by the conference’s ethical and religious directives.
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Lasell College agrees to settle lender gift allegations
Lasell College agreed to pay more than $191,000 to students to settle allegations it steered student loan applicants to Citizens Bank after the lender showered the school’s financial aid officers with free trips to sunny resorts and other gifts.
It was the second such settlement that Massachusetts Attorney General Martha Coakley has reached with a local college, part of a wave of actions by government agencies against schools across the country over their cozy relations with student loan lenders.
In Lasell’s case, Coakley accused the Newton private college of falsely telling students they were required to borrow from Citizens, even though other lenders offered cheaper loans. At the same time, Lasell employees secretly received free entertainment, meals, and other gifts between 2003 and 2007. For instance, Citizens allegedly paid for the director of Lasell’s financial aid office to take trips to Disney’s Yacht and Beach Club Resort in Florida and Sanctuary on Camelback Mountain in Arizona through her involvement with Citizens’ “Educational Finance Advisory Board.’’
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August data show 'glimmer of hope" for US retailers
NEW YORK — This year’s back-to-school season isn’t as big a bust for retailers as they feared — or as big as last year’s — but it’s not great either.
Americans are spending only when the item and price are just right, according to August reports released yesterday by major retail chains. And analysts expect stores will need to keep discounting to keep shoppers spending this fall and in the holiday season while they grapple with job worries and tight credit.
“It’s a glimmer of hope that the numbers are coming in ahead of low expectations,’’ said Ken Perkins, president of research firm RetailMetrics.
Posted by globebusiness at 6:07 AM | Comments (0)
September 2, 2010
Second Wind to move manufacturing to Newton
Second Wind Inc., a privately held company that makes instruments for collecting wind data, said it is relocating manufacturing operations in Somerville to a larger space in Newton.
The company's technology helps firms site wind farms and operate wind-power facilities efficiently. At 20,000 square feet, the Newton facility will be larger than the roughly 12,000 square feet of space the company operated in Somerville. The company's headquarters will remain in Somerville, company chief executive Larry Letteney said.
Letteney confirmed a Boston Business Journal report that Second Wind plans to hire 75 additional employees over the next three years. The company's current head count is 60.
Posted by globebusiness at 3:37 PM | Comments (0)
Hurricane is bad ending to good travel season
As Hurricane Earl bears down on Cape Cod and the islands on one of the busiest weekends of the summer, local tour operators are gearing up for what could be a disappointing end to a bright tourist season.
But with the worst of storm expected to pass by Saturday afternoon and sunny skies forecast for Sunday and Monday, business owners are hopeful the majority of the weekend won't be lost.
Overall, it's been a better summer than last year, with the slowly rebounding economy and hot, dry weather helping drive up hotel occupancy up around the state -- all of which makes Hurricane Earl's timing even more frustrating.
"It's sort of like a bad movie," said Dan Wolf, president and founder of Cape Air and Nantucket Airlines, which are canceling about 250 flights between Friday afternoon and Saturday morning. "You pick the worst weekend of the year to have this happen and the worst day, which is Friday."
The hurricane hasn't caused mass cancellations, hotel owners say, but it has made some people nervous. Jeff Popkin of Needham ditched his reservations on the high-speed ferry from Hyannis to Nantucket, as well as his Friday and Saturday night reservations at Nantucket Inn. "It doesn't sound like the safest place to be," he said.
Nantucket Inn is still sold out, to general manager Scott Thomas's surprise, partly due to the utility repair crews and media moving in to cover the hurricane. The summer season hasn't been record-breaking, Thomas said, but it has been an improvement, something he was hoping to add to this weekend.
"It could not be a worse possible time, quite honestly," he said of the rain and 80-mile-an-hour gusts expected Friday night on Nantucket. "Why would you want to come and sit in your room in the rain in the dark?"
But the coast's loss could be the Berkshires' gain. "We were thinking about going to Western Mass. and enjoying a spot where there may not be any rain," Popkin said.
Posted by kstringer at 2:35 PM | Comments (0)
Deutsche Bank remains title sponsor, EMC expands role in PGA
Deutsche Bank will retain title sponsorship of the state’s only PGA Tour golf event for at least the next two years, the company announced today.
At the same time, data storage giant EMC in Hopkinton is stepping up its sponsorship. The company will become local presenting sponsor of the tournament, a newly created role.
“We are extremely pleased to continue our title sponsorship of the Deutsche Bank Championship over the next two years,” Seth Waugh, chief executive of Deutsche Bank Americas, said in a statement.
“We’ve supported the Deutsche Bank Championship since its inception, and we’re proud to continue to be a sponsor of the prestigious championship,” said EMC spokesman Patrick Cooley. “We believe the tour is really great for the community.”
Financial terms of the deal were not disclosed.
The announcement contradicts a online report earlier in the week that said EMC was set to take over title sponsorship of the event.
Officials from both companies disputed that report when it came out.
Deutsche Bank has been title sponsor of the event since its inception in 2003.
Posted by globebusiness at 2:21 PM | Comments (0)
Sycamore Networks reports 4Q profit
CHELMSFORD, -- Sycamore Networks Inc. reported a small profit for its fiscal fourth quarter today, shifting from a loss a year ago, with a 29 percent jump in revenue.
The results sent Sycamore shares soaring $5, or 22 percent, to $27.22. The stock has traded between $16.18 million and $32.60 over the past year.
The communications equipment provider earned about $520,000, or 2 cents per share, in the three months that ended July 31. That compares with a loss of $34.9 million, or $1.23 per share, in the same quarter a year ago.
Stripping out unusual items, Sycamore said it would have earned $1.3 million, or 5 cents per share, compared with a net loss of $6.5 million, or 23 cents per share, a year ago. Revenue climbed to $22.2 million from $17.2 million.
For the full year, the company booked a net loss of $14.8 million, or 52 cents per share, down from a loss of $53.6 million, or $1.89, the year before. Revenue edged up to $68.6 million from $67.4 million.
Posted by globebusiness at 1:44 PM | Comments (0)
Monkey donut from Dunkin’ could set world on fire
And the winner of the "Create Dunkin's Next Donut" contest is a creation with a "bananas foster filling" and a mouthful of a moniker - the "Monkey-See Monkey-Donut," Dunkin' Donuts said.
While the competition is nationwide, the winner is local, the Canton-based chain noted in a press release. According to Dunkin', this year's sinker uber chef is Rachel Davis of Sharon, and her recipe was tops from among nearly 90,000 submissions in this year's competition. (Davis is shown at right in a photo provided by Dunkin'.)
In a press release, Dunkin' described the winning entry as "a bananas foster-filled donut topped with chocolate icing and chopped Reese's Peanut Butter chips." Customers will be able to sample the Davis creation now through Sept. 12 at participating Dunkin' Donuts restaurants nationwide, the chain said.
As fans of the dessert trolley know, lore has it that the original bananas foster was named after a New Orleans crime commissioner. Many recipes call for the dessert to be drenched in civilizing liqueurs and ignited. No word yet on how the "Monkey-See Monkey-Donut" will stand up to a flambe treatment.
Posted by globebusiness at 10:42 AM | Comments (0)
BJ's same-store sales rose 2.4 percent
NATICK -- BJ's Wholesale Club Inc. said that sales at its warehouse clubs open at least a year rose just 2.4 percent as more customers came to its stores but spent less. The results came in shy of the 3.3 percent increase that analysts were expecting.
Stores at sales open at least one year are known as same-store sales. Excluding sales at the gas pump, sales at clubs open at least a year rose 1.9 percent, also missing analysts' 2.4 percent projection, according to a Thomson Reuters poll. Sales at locations open at least a year, or same-store sales, are important because they measure performance of established stores rather than newly opened ones. For the month total sales rose 4.9 percent to $794.6 million from $757.7 million.
BJ's said departments with the strongest sales growth were bakery, cigarettes, computer equipment, dairy, frozen, housewares, meat, milk, produce, small appliances and snacks. Departments with weaker sales compared with last year were air conditioners, health and beauty aids, household chemicals and prerecorded video.
BJ's sales rose in all major regions with the exception of metro New York, which saw a slight decrease. Excluding sales of gasoline, 3 percent more customers came to BJ's stores but the average transaction amount dropped about 1 percent. Sales of food increased by 4 percent while sales of general merchandise decreased by about 1 percent.
The company currently operates 189 BJ's Wholesale clubs in 15 states.
Posted by globebusiness at 10:14 AM | Comments (0)
Rosengren urges holistic approach to foreclosures
Federal and state policy makers should take a broader approach to the foreclosure crisis, not only adopting measures to prevent foreclosures and stabilize housing, but also providing aid to help the hardest hit communities address underlying social and economic issues, said Eric Rosengren, president of the Federal Reserve Bank of Boston.
In these communities, high foreclosure rates appear symptomatic of deeper problems such as poverty, crime, and failing schools, said Rosengren, speaking today at a Federal Reserve conference in Washington. As a result, Rosengren said, a solution to the foreclosure crisis might be to send more money to local governments and nonprofits to tackle these broader challenges.
"Too little focus has been on community problems because the focus has been targeted to housing and foreclosures,'' Rosengren said. "Rather than treating the symptom -- the high [foreclosure] problem -- we need to better understand how to resolve the more general problems in communities that lead to higher concentrations of [foreclosed properties] and exacerbate the effects."
Rosengren was among several officials from Federal Reserve, local government, and community groups participating in the two-day conference focusing on stabilizing neighborhoods blighted by record foreclosures that have left many vacant, deteriorating buildings. Foreclosures remain at high levels even years after the housing bubble burst.
In Massachusetts, for example, completed foreclosures soared nearly 80 percent in July from a year earlier, according to the Warren Group, a Boston firm that tracks real estate. Lenders initiated fewer foreclosure proceedings compared to a year ago, but they remain at high levels.
Rosengren said that policy makers have tended to view the crisis as primarily a foreclosure and housing problems, and focused on approaches aimed at mitigating foreclosures or helping people become long-term homeowners, or at providing financial education, or efforts to prevent predatory lending.
While acknowledging the importance of such efforts, Rosengren called for a "holistic" approach that also tackles broader social and economic issues in communities hardest hit by foreclosures. Rosengren cited a recent Boston Fed study that analyzed foreclosed properties in New England by zip code.
The study found that areas with the highest concentration of foreclosed properties also had higher rates of unemployment, property crime, low birth weight babies, school drop outs, and small business closings. For example, zip codes with more then four foreclosed properties had higher unemployment rates before the housing bubble burst, 4.6 percent in 2005 in high foreclosure areas compared to 3.8 percent in others.
Property crime rates in high foreclosure areas were nearly double those of the other areas in 2006. The high school drop out rate in high foreclosure areas was more than triple that of other areas in 2005-to-2006.
All this indicates that addressing foreclosure and housing issues alone is not enough, said Rosengren. He suggested a federal revenue sharing program that would focus on high foreclosure communities to provide money to improve schools, code enforcement, policing, and other services.
"If these are community problems, we may need to search for community solutions,'' Rosengren said. "If a more holistic approach is needed, states and the federal government may need to examine the most effective and efficient ways to address the broader problems in these communities."
Posted by globebusiness at 9:54 AM | Comments (0)
TJX August same-store sales rose 2 percent
Off-price retailer TJX Cos., which runs the T.J. Maxx and Marshalls chains, said that revenue in stores open at least one year, a metric known as same-store sales, rose 2 percent in August, a bit short of what analysts had expected.
Analysts surveyed by Thomson Reuters, on average, expected revenue in stores open at least one year to rise 2.4 percent.
Total revenue for the four weeks ended Aug. 28 rose 6 percent to $1.7 billion from $1.6 billion last year.
Revenue at stores open at least a year is a key indicator of a retailer's performance.
Year-to-date, revenue in stores open at least one year rose 6 percent while total revenue rose 10 percent to $11.7 billion from $10.7 billion.
The company reiterated third quarter net income guidance of 86 to 91 cents per share. Analysts expect net income of 89 cents per share.
TJX predicts revenue in stores open at least one year to be down 1 percent to up 1 percent in September.
TJX operates T.J. Maxx, Marshalls, HomeGoods, and AJWright stores in the United States and Winners, HomeSense Stylesense in Canada. It operates T.K. Maxx and HomeSense in Europe.
Posted by globebusiness at 9:27 AM | Comments (0)
JetBlue starts nonstop Boston-Phoenix service
JetBlue Airways said it is launching today daily nonstop service from Logan International Airport to Phoenix.
To mark the new route, JetBlue said it will launch the nonstop Boston-to-Phoenix service by offering a $99 introductory fare, provided that the flight is booked by Sept. 4 for travel through Oct. 30, the airline said in a press release.
Phoenix is JetBlue's 38th nonstop destination from Logan, the airline said. Earlier this week, JetBlue announced plans to offer new daily nonstop service between Logan and Newark, starting next May.
Posted by globebusiness at 9:14 AM | Comments (0)
Mobile phone industry faces a long road to green
Mobile phone recycling is "amazingly low," with rates of 10 percent considered good, according to a new study from International Data Corp., or IDC.
The Framingham-based market intelligence firm looked at where the mobile phone industry stands on sustainability.
"IDC used a variety of primary and secondary sources to obtain information on mobile device manufacturers' packaging, materials, energy, end-of-life programs, and overall sustainability efforts to develop the green ranking methodology," Stephen Drake, IDC's program vice president for mobility and telecom, said in a statement.
In alphabetical order, the top five mobile device manufacturers in terms of their sustainability policies and practices are Apple, LG, Nokia, Samsung, and Sony Ericsson, IDC said in a press release.
Posted by globebusiness at 8:32 AM | Comments (0)
Ohio school system taps Houghton Mifflin Harcourt
Houghton Mifflin Harcourt, the Boston-based education company whose products include textbooks, said it has been selected by Ohio's Department of Education as an official partner of the state's school improvement plan.
The department will use the company's Alliance Initiative, which combines best-in-class content with innovative assessment and professional development services to help states realize a three-year transformation of the bottom 5 percent of schools, Houghton Mifflin Harcourt said.
In a press release, the Houghton Mifflin Harcourt said, "The Alliance Initiative has already earned the company valuable school improvement partnerships with Tennessee, Arkansas, West Virginia, and Michigan."
Posted by globebusiness at 7:50 AM | Comments (0)
BOND tops off Wheaton College science center
BOND Construction said it has just participated in a a topping off ceremony held at Wheaton College’s campus in Norton.The ceremony marked a construction milestone for Wheaton College’s Mars Center for Science and Technology, a new space that reflects Wheaton’s commitment to the study of the sciences in a liberal arts environment, Everett-based BOND Construction said in a press release.
The project, a $42 million contract, includes both construction of a new three-story 77,800 square-foot building and the renovation of the first floor of the existing science center, BOND Construction said.
The project, the most ambitious construction project in Wheaton’s history, is a $42 million contract. The project is expected to be completed in the summer of 2011.
Posted by globebusiness at 7:31 AM | Comments (0)
Today in Globe Business
Weymouth contractor may be witness in campaign fraud case
The owner of a Weymouth construction company appears to be the key witness federal prosecutors used to charge a former executive of Boston developer WinnCompanies this week with making illegal campaign contributions to politicians in order to advance the company’s business interests, according to a Globe analysis of campaign financial records.
The witness is not named in the document federal prosecutors used Tuesday to charge Martin Raffol, onetime executive vice president of the residential arm of WinnCompanies, with hiding the true source of contributions he solicited from vendors that worked for the company and whom he allegedly reimbursed in secret. The WinnCompanies donor is identified only as Contractor 1.
But the contributions prosecutors attributed to Contractor 1 and his spouse match those of Michael A. Travers, who operates Nightingale Construction Co., and his wife, Margaret M. Travers.
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Stocks charge ahead on manufacturing data
NEW YORK — Manufacturing reports that showed growth in the United States and China helped propel stocks yesterday, providing an upbeat start to a new month.
Markets were higher in Asia and Europe after reports showed manufacturing activity picked up slightly in China in August after several months of slender declines. Investors on Wall Street took notice, and the market charged ahead more than 200 points shortly after the open. It never looked back after the Institute for Supply Management’s manufacturing survey of hundreds of companies showed surprising growth. Previous regional surveys had appeared weak.
Anthony Chan, chief economist for JPMorgan, said the economic reports gave the markets the momentum they needed to sustain gains through the markets’ close, just ahead of the much anticipated national jobs report tomorrow.
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TECH LAB: Fastest wireless in town - for what it's worth
At last, 4G has come to Boston, and I feel like a man who’s gotten a shirt for Christmas. I’m grateful, of course, but I was expecting something a bit more exciting.
The 4G name is the generic label for high-speed data networks being built by the nation’s cellphone companies. We’ve learned to love the current 3G system, with its ability to let us watch video snippets and read news headlines on our phones. But 4G is designed to handle data two to three times faster, making it possible to look at higher-quality video streams or play demanding multiplayer video games.
This week, Sprint Nextel Corp. launched 4G in Boston. Is the new network faster than standard 3G? Sort of. I tried it on a pair of 4G-compatible phones, and on a nifty little mobile hotspot, a device that lets multiple gadgets share a single 4G connection. According to the online testing service Ookla, I got some amazing bursts of speed — as high as 10 million bits per second, dramatically faster than the usual 1.5 million bits 3G delivers. But in a more mundane challenge — downloading a really big file — the 4G network was something of a letdown.
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Brokerage, ex-manager still sparring
Oppenheimer & Co. warned its former Boston office manager and his lawyer in an e-mail not to give documents relating to the Wall Street brokerage to federal regulators. If they did, a lawyer for the firm wrote, “You do so at your peril.’’
The e-mail threat is the latest salvo in a bitter fight between James Dever and his former employer over the confidentiality of records in his legal ordeal with Oppenheimer. Dever says he needs the records to clear his name and alleges they show wrongdoing at the firm.
In all, four lawyers, including Oppenheimer’s deputy general counsel, weighed in last Friday to say Dever should not give the documents to the Securities and Exchange Commission.
Posted by globebusiness at 6:05 AM | Comments (0)
September 1, 2010
Channel 25 is fourth station to add early newscast
WFXT-TV (Channel 25) is the latest station to jump into the 4:30 a.m. news race.
Station officials announced today that they are adding the 4:30 a.m. newscast beginning Sept. 20.
The station's morning program called "Fox25 Morning News" will also add another hour from 9 to 10 a.m. That will be helmed by co-hosts Gene Lavanchy and Kim Carrigan, meteorologist Cindy Fitzgibbon and news commentator Doug V.B. Goudie.
"The consumer is up earlier,'' said Gregg Kelley, vice president general manager of WFXT, which launched its morning news show in Sept. 2003. He noted that with the new expansion, his station will produce 40 hours of news a week. "It reflects our commitment to the morning newscast."
The station becomes the fourth one in the Boston market to add the early morning newscast. Last week, WCVB-TV (Channel 5) said they would launch their own 4:30 a.m. newscast beginning on Sept. 7. In April, NECN became the first local news outlet to add the newscast, called "First Thing in the Morning." WBZ-TV (Channel 4) followed with a 4:30 a.m. newscast in May.
At least 24 news stations nationwide have been launching these early morning newscasts this past year to appeal to the changing habits of today's worker, many of whom have longer commutes and workdays that require them to get up earlier. As audiences and ad revenue decline in late news, general managers are looking to their morning programs to replenish viewers.
Posted by kstringer at 5:41 PM | Comments (0)
Kenexa to buy Salary.com for $80 million
Kenexa Corp., which makes employee management software, has agreed to acquire Needham-based Salary.com Inc. for $80 million in cash, the companies said today.
The purchase price works out to $4.07 per share. Kenexa expects to complete the deal in the fourth quarter. Kenaxa said Salary.com's compensation structure software will blend well with its employee acquisition and retention software. The acquisition is subject to a majority of the outstanding Salary.com shares being tendered, regulatory approvals and other closing conditions.
Also today, Kenexa reiterated its third-quarter earnings prediction from earlier this month. The company currently expects adjusted earnings, excluding some one-time items, or 12 to 13 cents per share. It predicts revenue of $45 million to $47 million. Analysts polled by Thomson Reuters, who generally leave out one-time items from their estimates, expect earnings of 13 cents per share on revenue of $46.3 million.
Kenexa plans to update its earnings forecast when it reports third-quarter results.
Posted by globebusiness at 2:22 PM | Comments (0)
Kayem inks another Fla. hot dog sponsorship
The Kayem hot dog, a Fenway Park favorite, is going on a road trip - with Florida State University just announcing that Kayem will provide the official hot dog and sausage of the Florida State Seminoles.
Florida State described its deal with Kayem Foods Inc. of Chelsea as a new multi-year sponsorship and licensing agreement to manufacture and distribute Kayem Beef Hot Dogs and Sausage at all sporting and school events held at three university stadiums.
A press release noted that in 2009, Kayem Foods began manufacturing and distributing its Fenway Franks line of hot dogs, the Official Hot Dog of the Boston Red Sox and Fenway Park.
In a statement, Bob Kufferman, Kayem senior brand manager, said: "Similar to Kayem, Florida State University is a school rich in tradition, and we are proud that they have chosen to partner with our brand. Earlier this year, we became the official hot dog and sausage of the Tampa Bay Rays' Tropicana Field and also offer Kayem Franks at select retail and restaurant locations throughout Florida. As we look ahead, we are committed to expanding the distribution of Kayem products in both the Tallahassee and Tampa area."
(The photo with this post is a Kayem handout from earlier this year.)
Posted by globebusiness at 1:35 PM | Comments (0)
iPhone app can help find hummus and natural foods
Here's an iPhone app that promises to give a gourmet the food homing instincts of a French pig on a truffle hunt.
The app is from Tribe Mediterranean Foods, a Taunton manufacturer of all-natural hummus, and according to Tribe, its Apple iPhone app allows users to locate natural food stores and farmer's markets based on their current or pending location, wherever they may be in the United States.
Not only does the app claim to help locavores and naturalists alike to find places and stores well stocked with hummus, tofu, and rain-washed nut meats, it also "offers consumers a list of delicious and healthy recipes for any occasion, courtesy of Tribe's website," the company said in a press release.
Tribe said its app is free for download through the Apple iPhone app store. Visitors to Tribe's website can access the download page via the address www.tribe hummus.com/promotions-and-events/i-phone-app, the company said.
"At Tribe, we understand how busy consumers are, yet we also know their desire for healthy and delicious all natural foods," Carlos Canals, president and chief tribal officer of Tribe Mediterranean Foods, said in a statement. "Our new iPhone app provides increased mobility, convenience, and recommendations to satisfy the need for simple all natural nutrition on-the-go."
(The photo with this post was taken from Tribe's website.)
Posted by globebusiness at 12:44 PM | Comments (0)
Silver Bridge expands financial planning services
Silver Bridge, a wealth advisory firm affiliated with Boston law firm WilmerHale, said it has hired Mark Mathers and two colleagues from the financial planning practice team at the Bostonian Group.
As a principal and a senior client advisor, Mathers will join forces with the Silver Bridge client team led by Todd Mills, Silver Bridge said.
Silver Bridge seems to be in the expansion mode. In July, it disclosed plans to buy H&S Financial Advisors, a wealth advisory boutique in San Francisco.The H&S acquistion, and Silver Bridge now has an estimated $2 billion in assets under advisement and 50 employees.
Posted by globebusiness at 12:07 PM | Comments (0)
CallMiner raises $4m in VC money
CallMiner Inc., a speech analytics company with offices in Boston; Fort Myers, Fla.; and London, said it has closed a $4 million in Series C financing from Sigma Partners, Intersouth Partners, Inflexion Partners, and an undisclosed strategic partner.
Sigma Partners has offices in Boston. Including this funding round, CallMiner has raised about $22 million to date, a company spokeswoman said.
CallMiner says its Eureka! products enables organizations to hear and act on the voice of their customers as captured in contact center conversations.
In a press release, CallMiner said it plans to use the proceeds from the Series C financing to fuel its growth and expansion activities.
Posted by globebusiness at 10:57 AM | Comments (0)
Mascoma buys SunOpta BioProcess Inc.
Mascoma Corp., a New Hampshire biofuels company, said it has bought SunOpta BioProcess Inc., or SBI, a division of SunOpta Inc. of Canada, for $51 million.
Mascoma's press release did not include financial details of the transaction. According to the release, this combination brings together the fiber preparation and pretreatment technologies of SBI and the consolidated bioprocessing technology of Mascoma, and the result will be a company with comprehensive capabilities for converting non-food cellulose such as wood chips, energy crops, and organic solid waste into ethanol and high value co-products.
SBI, which has annual revenue of about $7 million and 28 full-time employees, will operate as Mascoma Canada, a wholly-owned Canadian subsidiary of Mascoma, Mascoma said.
SunOpta Inc. has an 18 percent ownership position in Mascoma Corp., Mascoman's press release noted.
Posted by globebusiness at 9:33 AM | Comments (0)
InfraReDx gets OK to market imaging system
InfraReDx Inc., a Burlington medical device company, said it has gotten a regulatory clearance to market a coronary imaging system.
Specifically, the Food and Drug Administration has given 510(k) clearance to the company to market the LipiScan IVUS Coronary Imaging System, a cardiac catheter that combines intravascular ultrasound and near-infrared spectroscopy to help cardiologists identify and characterize the plaques that complicate stenting and are associated with acute coronary events, InfraReDx said in a press release.
InfraReDx added that it expects to conduct a broad commercial launch of the system within the United States by the end of the year, and it also expects regulatory approval and launch in Europe during 2011.
Posted by globebusiness at 9:20 AM | Comments (0)
BAE Systems gets $123m order from the Army
BAE Systems, a global defense, security, and aerospace company with operations in Lexington, said that it has been awarded a $123 million contract by the US Army for continued production of thermal weapon sights.
In a press release, BAE Systems said, "The order - the most recent under a five-year, indefinite-delivery/indefinite-quantity contract - increases BAE Systems' total thermal weapon sight contract value to more than $1 billion since 2004."
The photo with this post was included with the company's press release.
Posted by globebusiness at 9:03 AM | Comments (0)
Pfizer buying FoldRx for undisclosed amount
Pfizer says it will buy privately held FoldRx Pharmaceuticals for an undisclosed amount, expanding its pipeline of potential products.
FoldRx, based in Cambridge, is developing potential treatments for diseases caused by protein misfolding, which is increasingly recognized as an underlying cause in many chronic degenerative diseases. The lead product candidate is tafamidis meglumine, aimed at treating TTR amyloid polyneuropathy, a progressively fatal genetic neurodegenerative disease. Liver transplants are currently the only treatment option.
In premarket trading, shares of New York-based Pfizer edged up to $16.02 from Tuesday's close of $15.91.
Posted by globebusiness at 8:54 AM | Comments (0)
Genzyme presents cholesterol drug data
Genzyme Corp., the Cambridge biotechnology company that a French drug company wants to buy, said that it told a society of cardiologists that tests for its potential cholesterol drug have yielded encouraging results.
The drug candidate is called mipomersen, and Genzyme is collaborating on mipomersen with Isis Pharmaceuticals Inc. of California.
In a press release, the two companies said that data from a Phase 3 study of mipomersen were just presented at the European Society of Cardiology's Congress 2010 in Sweden.
"The study met its primary endpoint with a 28 percent reduction in LDL-cholesterol, compared with an increase of 5 percent for placebo," the companies said.
The press release included a statement from Paula Soteropoulos, vice president and general manager of Genzyme's cardiovascular business.
"Having these data presented is a great milestone for the mipomersen program," Soteropoulos said. "The data underscore our belief that mipomersen has the potential to help those familial hypercholesterolemia patients who are 'left behind' by current therapies, and are in need of new treatment options."
Familial hypercholesterolemia, or FH, is one of the most common genetic disorders, and results in elevated LDL cholesterol levels, the press release said.
Much of the data presented to the congress was included in a press
release that the two companies issued in February.
In other Genzyme news, the company said yesterday that it might be open to being sold if the price were right. France's Sanofi-Aventis has offered to buy Genzyme for $18.5 billion, but Genzyme has rejected that offer as too low. To read a story in today's Globe about Genzyme, please click here.
Posted by globebusiness at 7:41 AM | Comments (0)
Today in Globe Business
Genzyme would sell if price is right
Henri A. Termeer, the battle-scarred chief executive of Genzyme Corp., acknowledged for the first time yesterday that he is open to selling the Cambridge biotechnology company, but not for the $69-a-share price offered by France’s Sanofi-Aventis SA.
“This is not a fixer-upper, this is beachfront property,’’ Termeer said in an interview with the Globe. They were his first public comments since Sanofi unveiled its $18.5 billion bid for Genzyme on Sunday.
Termeer, 64, has spent the past year struggling with Genzyme’s supply shortages for two key drugs and fending off an attempt to oust him from the company’s board. Though he has said frequently that he’d like to see Genzyme stay independent, Termeer conceded yesterday that he has a duty to other shareholders to consider takeover proposals.
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Executive accused of campaign fraud
A top executive of the developer behind the failed $800 million Columbus Center project in Boston was charged yesterday in federal court with illegally funneling $12,000 in campaign contributions to four Massachusetts congressmen.
Federal prosecutors said that Martin Raffol, 54, executive vice president of the residential arm of WinnCompanies, engaged in a scheme to conceal money the company donated in an attempt to win support from congressmen in a position to help its projects.
Raffol is accused of persuading WinnCompanies contractors to give donations to the congressmen and then secretly reimbursing those firms, which hid the true source of the money. Federal law prohibits companies from directly donating to political candidates. Raffol was also charged with witness tampering in allegedly telling one WinnCompanies vendor to lie to authorities if questioned.
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New era docks on the waterfront
This is not your father’s Jimmy’s Harborside. With walls of glass, exotic woods, and sharply drawn angles, the new Liberty Wharf complex on the South Boston Waterfront is everything its predecessor was not: sleek, open and inviting.
Gone from the Northern Avenue property are Jimmy’s white stone walls and massive red sign, features that made the shuttered eatery a relic of a different era, when the waterfront was the province of industry and mostly walled off from the public.
In its place is a $60 million three-building complex by Cresset Development LLC that will include four restaurants, a plaza with outdoor seating on the water, and a public marina. One of the buildings will be a Legal Sea Foods that will have its own 4,000-square-foot roof deck, with a fireplace and a large, circular bar. It is scheduled to open this winter.
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Dealers say grades could hurt car sales
A new window sticker proposed by the Environmental Protection Agency that would assign new cars a letter grade based on their emissions has the support of some local car buyers, but some auto dealers are worried the labels might hurt sales.
The fuel economy stickers, which have been required to be displayed on all new cars since 1977 and were only redesigned once, in 2007, would show a large letter grade from A+ to D based on the car’s carbon dioxide emissions and combined fuel economy. It’s similar to the rating system in the United Kingdom, where cars are taxed on their carbon dioxide emissions.
The rating system is designed to promote electric cars — those vehicles get an A+, while most average cars would get a B. About 1,980 models would rank in the B and C ranges, whereas only 14 current models would receive an A-.
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Sprint, T-Mobile bring higher speeds to Hub
Greater Boston’s airwaves have become a broadband battleground, as two wireless carriers launch new, high-speed data services today designed to leave current 3G cellular services in the dust.
Sprint Nextel Corp., the number three US cellular carrier, unveiled its 4G service, promising Internet download speeds that are two to three times as fast as standard 3G service. Meanwhile, rival T-Mobile USA Inc., the fourth-largest US cellular carrier, announced an upgrade to its Boston-area 3G network. T-Mobile claimed its improved technology, called HSPA+, can match or beat Sprint’s 4G network performance.
A typical 3G connection can download about 1.5 million bits of data per second. Sprint’s 4G network offers speeds up to 6 million bits per second, with short bursts as high as 10 megabits.
Posted by globebusiness at 6:02 AM | Comments (0)