EXPLORING THE TECHNOLOGIES THAT CHANGE THE WAY WE LIVE
New Jersey
Technology Council
www.njtc.org
September 2014
Vol. 13 Issue 3
$3.50
4
Meet Rick Weiss
President, Founder and Chief
Wellness Engineer of Viocare
12
14
Rowan University Partners on
R&D Initiatives with and for
New Jersey Businesses
The New Jersey Technology Council
and Education Foundation
1001 Briggs Road, Suite 280
Mt. Laurel, N.J. 08054
New Jersey
Technology Council
PAID
Non-profit Org.
U.S. Postage
Learn How to
Effectively Market
to Bio Technology
Companies
contents
PRESIDENT’S MESSAGE
On the Cover
It is a time for new beginnings here at the New Jersey
Technology Council. It is with great pleasure that I look
forward to working with my successor James Barrood
who joined the Council on August 11th. Jim is the
former executive director of the Rothman Institute of
Entrepreneurship at FDU. Please join me in making him
feel at home. He is looking forward to meeting all our
members as he leads us into NJTC 2.0. n
Plugged In
—Maxine Ballen, Founder, NJTC
First and foremost, I am honored to succeed Maxine
and look forward to building on the remarkable
foundation she has established over the past 18
years. Over the next few months, I hope to meet
with as many of our members and community
leaders as possible. I need to hear what you need
from the Council and want to discuss how we can
work together in new ways.
So come out and meet me at our upcoming
events. NJTC’s Leadership Summit on October
7th will focus on the personal side of leading a
company. CEOs will join us to discuss the issues that
keep them awake at night; developing leadership skills, managing staff, hiring,
communicating with customers and more. And, during lunch, we will celebrate
our 2014 class of CEOs of the Year.
Next, on November 20th, we’ll hold our Annual Awards Celebration. We
are so excited about this year’s distinguished and impressive list of winners.
The NJTC Awards Celebration has long been identified as the region’s premier
networking event for the technology community. So mark your calendars now
and get ready to celebrate another year of success!
I look forward to seeing you soon and working together to make our
technology, entrepreneurship and innovation ecosystems throughout this great
state even stronger. n
—James C. Barrood, President and CEO, NJTC
TechLifeSciNews
PUBLISHER
James Barrood • james@njtc.org
September 2014 • Vol. 13 No.3
New Jersey Technology Council
& The Education Foundation
1001 Briggs Road, Suite 280
Mount Laurel, N.J. 08054
phone (856) 787-9700
fax (856) 787-9800
www.njtc.org
VP OF PUBLICATIONS
Leo M. Mennitt • lmennitt@njtc.org
CONTRIBUTING EDITOR
Carly Bohach • bohachc.njtc@yahoo.com
NJTC CONNECTIONS EDITOR
Judy Storck • jstorck@njtc.org
GRAPHIC DESIGNER
Bonnie Jacobs • njtc@bonniejdesign.com
LifeSciTrends is published by the New Jersey Technology Council and The Education
Foundation. We are located at 1001 Briggs Road, Suite 280, Mt Laurel, N.J. 08054.
©2014 NJTC All rights reserved. Reproduction or use, without permission, of editorial
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12 EDUCATION
Rowan University Partners on R&D Initiatives
with and for New Jersey Businesses.
By Patricia Quigley
Engineering, medical and science professors and students at
Rowan University continue to partner on R&D initiatives
with and for small New Jersey businesses, Find out what new
partnerships and initiatives are on the horizon.
ADVERTISING
Ellen Stein • Ellen@njtc.org
6 Stevens Receives Funding to Study Coastal Adaption
Impacts on Jamaica Bay’s Water Quality
8 PDI Introduces PD One to Fill the
Life Science Promotion Gap
10 Next-Generation Proton Therapy Tool Boosts Accuracy,
Further Minimizing Radiation Exposure to Healthy Tissue
Features
14 Effective Marketing to Bio Technology Companies
By Joseph T. Roman
There are many potential potholes and complexities to consider
when getting a product or service to market. In this article,
learn how to effectively market to your target clients.
16 Top Risk Factors for Life Sciences Companies
By Ryan Starkes
Explore BDO’s analysis of the business challenges and top risks
facing life sciences companies.
Columns
4 CORNER OFFICE
Rick Weiss the President, Founder & Chief
Wellness Engineer of Viocare
By Carly Bohach
18 DOLLARS AND CENTS
Pharmaceutical companies continue to plan
corporate inversions despite government protests
By Susan San Filippo
NJTC Connections
20 NEW MEMBERS
21 PHOTO GALLERY
22CALENDAR OF PROGRAMS
CONNECT@NJTC
NJTC TechWire
www.njtc.org
NJTC on
NJTC Group on
TechLifeSciNews | www.njtc.org | September 2014
@NJTC
NJTC
3
Rick Weiss
President, Founder & Chief Wellness Engineer of Viocare
BY CARLY BOHACH
How did you become CEO?
I started my career as a digital communications applied researcher at Bell Labs
during the AT&T monopoly period, great job and place to work but nothing I
worked on became a product which was frustrating. I moved on to work at Squibb
in the Princeton area and later at Digital Equipment Corporation where I decided
that maybe starting my own company was want I really wanted. I wanted a
company to create a special environment, culture and passion for a technologybased product. Since I had never worked at a small company, I wanted to get
exposure to what it takes to run a small company so I joined Health Information
Technologies (HIT), a VC backed company in the Princeton area that developed
electronic claims processing systems. We had a great product but we lost our
VC funding and the company shut down. At that time, I started thinking more
about how to start Viocare and what product we’d build. I was introduced to the
Small Business Innovation Research (SBIR) federal grant program by Katherine
4
O’Neill. At this time, I became a competitive cyclist and start applying nutritional
changes to my own diet for my cycling, which resulted in significant improvements
in my performance. This was my inspiration to consider converting nutritional
information into tools to help athletes and individuals with metabolic conditions.
I wanted a business that would help individuals eat better to prevent disease. I
submitted my first of 24 NIH grants the day after HIT closed down which we won
and created our first product ProNutra that supports most of the dietary feeding
studies in this country. So I started out as CEO when I created the company in my
garage and have remained the CEO since then.
What qualities do you feel you need to have in order
to be a successful leader in the Life Sci industry?
The life sci industry is very complex and to be a successful leader one has to have
a handle a large number of diverse efforts, more than many other industries. For
TechLifeSciNews | www.njtc.org | September 2014
CORNER
OFFICE
us this means knowing the current technology options, following regulations,
understanding healthcare’s clinical care model and the reimbursement model,
where to obtain capital, identify great talent, and maybe most importantly have
the vision towards where to lead the company while healthcare is changing and
rally the team behind that vision. The other unique component to success in the
life sci industry is having patience. It might take a long time to demonstrate
efficacy in many products or services offered within healthcare, patience and
persistence really helps.
What do you want people to know about Viocare?
Viocare is an industry leader in providing dietary assessment and behavioral
modification technology that is easy to use, scientifically validated, creates value
for our customers and drives their end users to adopt healthy dietary behavior. We
are very creative, innovative, customer driven, and passionate about what we do.
Our customers are the leading clinical and research institutions in the world and
once they become a customer, they stay with us. We are recognized as a world
leader in dietary assessment technology.
Talk about the importance of nutrition and physical
activity in what VioCare does?
Talk about the online community programs you
provide?
We started working on an online community wellness portal as a result of the
Princeton Health Department’s program Lighten Up Princeton. We obtained a
NIH grant that funded our Princeton Living Well system. The concept was to
create a centralized online resource to engage residents to eat better and be
more physically active. It aggregated community events/resources and provided
one stop viewing of all things healthy in the metro community area. It also
created a unique rewards program that gave members points for doing things
healthy online and for participating in events within the community (at the
Princeton Hospital and Whole Foods for instance) and provided rewards from
local merchants. We had 72 local retailers participating at one point. Working
with University of Kentucky and The Ohio State University we developed a custom
version of this program for the Appalachia Community Cancer Network called
Faithfully Living Well. This program is being operated in 20 communities within
the 5 Appalachia states and impacting the health of those residents participating.
We just started another partnership with a group of researchers in the Delta
region of Mississippi.
What inspires you?
Our goal is to help prevent or help those with chronic diseases like hypertension,
congestive heart failure, diabetes, kidney failure, and GI diseases where lifestyle
such as diet and physical activity are critical. Although physicians have repeatedly
reported that their patients would benefit from nutrition counseling; lack of
time, inadequate reimbursement, and insufficient formal training in nutrition
and behavior change counseling remain key barriers. We are addressing this
by developing technology to improve dietary assessment and to making it
cost-effective and feasible to include “tailored” behavior feedback based on
comprehensive dietary assessment as a component of clinical interventions.
Talking to our customers and hearing their stories of how our technology has
helped them and their clients. It’s great to hear about patients who no longer
need their diabetes medications or have lost significant weight or seeing
published papers from a major study using our dietary assessment that has
significant implications on the way we practice healthcare. It’s also great to hear
how we help some of our clients to now be able cost-effective dietary based
interventions as a result of integrating our technology within their systems.
How do you continue to be innovative?
Networking is our key marketing effort. We recognized several years ago when
we present at conferences related to our field we connect with others looking
for solutions related to our products. We also have become active members
within associations and nonprofits like the American Heart Association or Dr.
David Katz’s Turn the Tide organization that are focused on improving health. The
people we meet through these conferences and meetings get to know us and
become our best sales people.
Our source for our innovation methodology came from my 5 years as an applied
researcher at Bell Labs in the early 80’s, the best innovator in the world. In starting
Viocare, a key focus of the company was creating a company culture that values
innovation and includes listening to our customer needs, experimenting with big
idea concepts, and obtaining NIH SBIR grants to fund a majority of our research
efforts. We’ve been awarded 24 NIH awards worth almost $11 million so far.
Our customers, Mayo Clinic, Harvard, NIH, USDA, and Ohio State are a who’s
who in diet research and provide us with some of our best ideas and research
partnerships. We listen to their biggest problems for either assessing a subject
in a research study or providing technology to support the newest behavioral
modification protocols.
Discuss mobile technology and its importance in the
Life Sci field?
The best way to answer this is to describe one of our major NIH grants to develop
a food tracker that greatly reduces the burden for individuals to track what they
eat. This grant was part of the NIH Genes, Environment, and Health Initiative or
GEI. The point of the GEI program which funded numerous efforts was to move
the science forward on collecting environmental data of individuals allowing a
better understanding between the relationship between someone’s environment,
their genes, and resulting health. Mobile technology allows for better health
research and better patient support to collect the data necessary to make the best
healthcare decisions.
How important is networking and what do you do to
network?
Think ahead. Where do you see Viocare in the next
five years?
Where most of our clients are focused on research today and our clinical
organizations are part of academic environments (the early innovators) I see our
products in the next five years becoming a standard of care for dietary lifestyle
management for mainstream healthcare providers to help their patients. We
will have more research studies using our tools. We will see one of our partners,
the UCSF Health eHeart study, have 1 million participants using our dietary
assessment on a yearly basis and becoming a key source for analyzing dietary
behavior and its relationship to heart disease (an online modern version of the
Framingham study).
We will continue to innovate and work with the world’s best researchers to
extend our product offerings. Our products will provide more extensive feedback
on specific diseases such as hypertension and diabetes and be used in other
countries as well. Our customers will span researchers, clinicians, health plans,
corporate wellness, and the food industry such as supermarkets. We currently
are working on a version of our dietary assessment for Nestle for their use in
Switzerland. n
TechLifeSciNews | www.njtc.org | September 2014
5
P L UGGED I N
LEGAL
Q
Does paid time off count for
overtime calculation purposes?
A
NO, gratuitous paid time
off, such as vacation time,
sick time, holidays, even a
paid lunch break, does not count as
“actual time worked” for overtime calculation purposes for non-exempt employees. The fact that an employee is paid for
the equivalent of 40 hours in a workweek,
or even is on a schedule for 40 hours in a
workweek, is not dispositive of whether
someone is entitled to overtime or not.
Overtime is based on the actual time
worked during that workweek. New
Jersey law requires employers to pay time
and a half for all actual time worked over
40 hours in a workweek. It does not matter if one works on a weekend, during the
night shift, or even for 24 hour shifts---the
magic number is 40 hours in a 7 day workweek, and the magic words to be eligible
for overtime are “actual time worked”.
Thus for example, if an employer pays
the equivalent of 40 hours which includes
1 hour each day for lunch, the reality is
that the employee only actually worked
35 hours that week, and still have 5 more
hours of actual time to be worked before
being eligible for overtime. Likewise, if
an employer pays for a full 8 hour a day
workweek, but there was no work on one
day because of a holiday, in reality, that
employee only worked 32 hours, and the
employer is entitled to 8 more hours of
work before it is required to pay OT.
Jay S. Becker, Esq.
is a shareholder at
Giordano, Halleran &
Ciesla and co-chair of
the firm’s Labor and
Employment Practice
Area. He can be reached
at jbecker@ghclaw.
com or 732-741-3900.
6
Stevens Receives Funding
to Study Coastal Adaption Impacts
on Jamaica Bay’s Water Quality
For most people, Superstorm Sandy was a wake-up call that something needs to be done to adapt
our urban coasts to the threat of coastal flooding, which is only expected to worsen due to sea
level rise and climate change. A recent MarketWatch report said the value of homes vulnerable
to coastal flooding in New York City metropolitan area alone was estimated to be $250 billion.
However, making sure protective measures are done the right way is of dire importance, not only
in mitigating storm surge, but also in ensuring water quality is not harmed in the process.
Three Stevens Institute of Technology professors in Hoboken, NJ are working to ensure just that, as
they are receiving $700,000 in funding to study the impact coastal manmade adaptations will have on
the water quality in Jamaica Bay, NY. Professors Philip Orton, Alan Blumberg and Georgas Nickitas
see this as a real need.“There’s already a lot of pollution in Jamaica Bay’s watershed,” said Orton.
“Before these modifications are made to prevent flooding we need to know whether or not they’ll
weaken Jamaica Bay’s natural flushing with nearby open ocean waters.”
Adaptations to coastal flooding include projects such as storm surge barriers or the creation
of wetlands or islands to reduce flooding and block waves.
“Municipalities across the region are moving quickly to shore up their coastal defenses,” said
Blumberg. “We are excited to be able to help quantify the efficacy of these defenses, as well as
their effects on water quality, with our computer modeling.”
The professors, along with partner Mr. James Fitzpatrick of HDR (formerly HydroQual), will
conduct the two-year study using a computer model that simulates the physics and chemistry
of the bay’s waters, within which they can manipulate the landscape to add barriers, wetlands,
and other protective features.
The project is among nine others supported by The Science and Resilience Institute at
Jamaica Bay (SRI), a research consortium led by The City University of New York (CUNY),
which was recently awarded $3.6 million from the Department of the Interior’s Hurricane
Sandy Mitigation Funding.
“The Institute’s mission is to increase understanding of how disturbances impact natural and
human systems in urban water sheds through resiliency-focused research of Jamaica Bay, and
to engage government and community stakeholders in the translation of that knowledge toward
a more resilient system” said Gillian Small, CUNY Vice Chancellor for Research. “This new
funding from The Department of the Interior will significantly advance that mission.”
Stevens Institute of Technology, The Innovation University®, is a premier, private research
university situated in Hoboken, N.J. overlooking the Manhattan skyline. Within the university’s
three schools and one college, more than 6,100 undergraduate and graduate students collaborate
with more than 350 faculty members in an interdisciplinary, student-centric, entrepreneurial
environment to advance the frontiers of science and leverage technology to confront global
challenges. Stevens is home to three national research centers of excellence, as well as joint
research programs focused on critical industries such as healthcare, energy, finance, defense and
STEM education and coastal sustainability. The university is consistently ranked among the
nation’s elite for return on investment for students, career services programs, and mid-career
salaries of alumni. Stevens is in the midst of implementing a 10-year strategic plan, The Future.
Ours to Create., designed to further extend the Stevens legacy to create a forward-looking and
far-reaching institution with global impact.
The Science and Resilience Institute at Jamaica Bay (SRI) is a joint initiative among the
National Park Service, the City of New York, and a consortium of nine top-tier research
institutions. Led by City University of New York, the consortium includes Columbia University,
Cornell University, the Institute of Marine and Coastal Sciences at Rutgers University, NASA
Goddard Institute for Space Studies, New York Sea Grant, Stevens Institute of Technology,
Stony Brook University (SUNY), and the Wildlife Conservation Society. The SRI will host
visiting scientists, provide lab facilities for students and researchers, and convene events to
share and disseminate their findings. It will not only coordinate and lead resilience research; it
will contribute toward science-based policy to ensure the sound management of the Bay. Those
policies will in turn serve as a model for cities around the world. n
TechLifeSciNews | www.njtc.org | September 2014
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P LUGGED IN
PDI, Inc. Introduces PD One™
to Fill the Life Science Promotion Gap
Big Pharma has arguably experienced more disruptive change than
any other industry in recent years. Not only has an unprecedented
consolidation of companies taken place, but the number of new
products approved each year has also not come close to the pace at
which products are losing patent protection. In 2012 alone, prescription
drug sales dropped by $714 billion, with an additional $230 billion
at risk by 2018. And today, the Affordable Care and
Sunshine Acts are just beginning to impact the industry
in ways we have yet to fully understand. These trends
are accelerating the industry’s contraction across all
functions from R&D through commercialization.
With fewer products and resources, life science
companies have had to dramatically reduce the number
of field-based sales representatives who support their
brands. Pharma alone has reduced its sales forces,
particularly in North America, by tens of thousands.
Ever-resourceful, these companies’ sales organizations
are managing through these constraints with an array
of adaptations, including the use of temporary contract
sales teams, tele-selling and increased in-house support,
mobile technologies and the use of analytics to find
ways to increase the efficiency and effectiveness of their
remaining sales professionals.
Meanwhile, the advent of new digital technologies and
channels has enabled the marketing side of the business
to engage with health care providers (HCPs) in novel
ways amid equally constrained resources. Multichannel
platforms, online tools and other integrated marketing
approaches now occupy a significant place in the industry
armament for extending brand reach.
However, these new sales and marketing approaches
are seldom executed in a coordinated manner, leaving a
missed opportunity to synergize and reinforce the benefits
of both personal sales and non-personal promotion.
Going one step further, such e-marketing, e-detailing
and emerging engagement channels should not only be
integrated, but should educate and influence HCPs in ways that are
personalized to individual interests and busy schedules.
The Solution
Parsippany-based PDI, Inc., whose core business since 1988 has been
providing pharma with contract sales professionals to supplement or
substitute for traditional sales forces, recognized the digital sales and
marketing integration opportunity. PDI acquired Group DCA, one of
the pioneers in creating multi-channel marketing programs for the life
science industry, and quickly began to develop ways to unite the arms
of its businesses.
With the launch of PD One™ earlier this year, PDI’s vision became
reality, delivering a new online platform that bridges the gap between
the personal in-office sales rep and non-personal promotion of digital
8
marketing and engagement programs, with the ultimate goal of
delivering sales and marketing efficiency. PD One provides the platform
for industry to connect with customers on a personal level by sharing
tailored, compliant content within a secure, yet accessible network.
In essence, this extends the office visit and helps to further build the
relationship between the rep, the provider and the brand.
Because interactions take place in a closed network, the ability to
capture comprehensive data can provide better insights about the
effectiveness of new or ongoing initiatives. Subscribers can see which
messages work and those that don’t; what pages HCPs view and how
long they spend on them; how often viewers go back to review materials;
and what the optimal campaign cadence is. The next in-person visit can
hone on the specific areas of interest demonstrated by the customer to
fully close the loop. Further, all of these measures may be tied back to
elicit what has the greatest impact on business outcomes.
The cost of direct sales is by far the single largest marketing cost
that sales and marketing, and some estimates have it as high as all
other channels combined. While PD One was developed to increase the
effectiveness of this budget, companies will likely leverage the additional
TechLifeSciNews | www.njtc.org | September 2014
reach and flexibility that comes with the platform based on their organization’s unique needs.
Some might increase the frequency by which they reach customers while others reduce the
number of in-person calls but increase the number of HCPs assigned to each rep. Regardless
of the implementation model, the platform holds the promise to delivery concierge-level service
for many customers.
At the time of this writing PD One’s rollout is still early, but preliminary data shows the
expected increase in marketing effectiveness. The percentage of emails opened upon receipt
through the portal is significantly higher than typical e-marketing pieces, and recipients are more
likely to revisit the shared materials. This makes sense, as the presumption is that information
was sent by someone the HPCs know and trust. The content is also personalized, based on a
specific conversation, request, or targeted to interests demonstrated through online behaviors.
HCP Access through MedicalBag.com
As healthcare providers increasingly turn to technology for more information, industry is
working to help them leverage this shift and the use of mobile solutions to find what they
need. PDI created a website called The Medical Bag as the interface for HCPs that provides
the conduit to PD One and increased communication with pharma and other manufacturers.
Accessed at MedicalBag.com, it is an engagement environment in its own right.
The Medical Bag was designed to attract and serve the broad interests of HCPs as single
destination with a mix of clinical information, practice support and entertainment. Its features
include medical news, focus pages for clinical specialties, continuing medical education
(CME) courses and detailed drug information and sample ordering, in addition to the direct
connections with their sales reps. And, the information provided to HCPs through The Medical
Bag offers targeted, timely and intellectual content and information when they want to access it.
Features include new blogs from well known medical personalities and edgy content such as
a regular “What Killed ‘Em” column. Quick polls provide a snapshot of peer opinions, while
practice management pieces offer practical advice for the entrepreneurially-minded.
PDI’s plans include the ongoing addition of functionality to MedicalBag.com in order to
grow its regular following of roughly 60,000 monthly visitors and to provide increasing value
for the more than 400,000 HCPs contained in its network.As PD One adds clients, providers
can conveniently connect with their industry contacts from multiple manufacturers in one
online location rather than through
individual company site. Think of
it as a cloud-based Rolodex of
industry representatives.
PD One brought together
the region’s best tech marketing
minds with industry veterans
possessing an acute understanding
of profound changes taking
place in pharma and the greater
healthcare environment. It aligns
the sales management, marketing
leadership and the legal and
compliance teams to truly make
a positive change in combining
personal and digital engagement
for a more efficient relationship
with customers. n
TechLifeSciNews | www.njtc.org | September 2014
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IDEA AND WATCH
IT GROW INTO A
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9
P LUGGED IN
Next-Generation Proton Therapy Tool
Boosts Accuracy, Further Minimizing
Radiation Exposure to Healthy Tissue
Proton beam therapy has taken a major technological leap forward
with the introduction of pencil beam scanning at the ProCure Proton
Therapy Center in Somerset, NJ, the only proton facility in the New
York – New Jersey – Connecticut tri-state region. Doctors can now use
an ultra narrow proton beam to deposit dose even more precisely within
a cancer, thereby minimizing the dose to surrounding normal tissues to
reduce the risk of side effects.
“With the increased accuracy of pencil beam scanning, we can now
use proton therapy to treat some of the most challenging tumors,
helping to ensure that more patients will have access to a precise
radiation treatment with reduced risk of side-effects,” said Dr. Oren
Cahlon, Medical Director of the ProCure Proton Therapy Center and
a partner of Princeton Radiation Oncology.
Unlike conventional radiation treatments in which the beam
penetrates all the way through the target tumor into the normal tissues
behind the cancer, proton beams deliver their dose to the tumor
without any dose reaching the deeper tissues. Pencil beam scanning
couples this unique property of the proton beam with an electronically
guided scanning system that delicately and precisely moves a beam of
pencil point sharpness back and forth across each layer of the tumor’s
thickness to paint the tumor with radiation in three dimensions while
eliminating dose to the normal tissues on the other side of the cancer.
This ultra precision makes pencil beam scanning an ideal treatment for
irregularly shaped tumors that are located next to critical tissues and
organs, such as tumors of the prostate, brain or eye.
Proton therapy is clinically proven to be beneficial in treating a broad
range of tumor types including prostate, head and neck, brain, central
nervous system, lung, sarcomas, gastrointestinal and many pediatric
cancers. Because of its unique precision compared to standard radiation
treatment, proton therapy minimizes the risk of radiation exposure
to surrounding healthy tissue. The addition of pencil beam scanning
enables physicians to configure the proton beam’s range and dosage
to an even more precise three-dimensional target area, further limiting
side-effects patients may experience.
“Pencil beam scanning is one of the most highly developed tools
available to radiation oncologists today, and we are very pleased to offer
our patients this new dimension of precision and flexibility in planning
radiation treatments,” said Dr. Cahlon. “With the increased accuracy
of pencil beam scanning, we can now use proton therapy to treat some
of the most challenging tumors, helping to ensure that more patients
will have access to a precise radiation treatment with reduced risk of
side-effects.”
Michael Cutilo, two-time cancer survivor and one of the first prostate
cancer patients to be treated with pencil beam scanning for a recurrence
after undergoing a prostatecomy, states, “Anytime you can treat
someone with cancer through a minimally invasive technology such as
proton therapy, it’s a step in the right direction. I’ve received proton
therapy for the last month – my treatment duration has been short, and
I’m feeling little to no side-effects.”
While traditional proton therapy achieves treatment precision through
the use of custom-made compensators and apertures designed to shape
and limit penetration of the beam, these devices must be designed for
each patient and changed throughout the course of therapy as tumors
change shape or position. Doing away with these components through
the use of pencil beam scanning technology will reduce the time it takes
to deliver proton therapy to patients.
“Embracing advanced technology at our Center is an important
element as we look for ways to provide patients with the most effective
and efficient treatments,” said Dr. Cahlon. “It is our mission at ProCure
to improve the lives of patients with cancer by expanding access to
proton therapy to optimize both the chance of cure and the quality of
life for our patients.”
ProCure Proton Therapy Center in Somerset, NJ center opened in
March 20, 2012, and its medical team has treated nearly 600 patients
to date.
About Proton Therapy
Proton therapy is a unique form of precision radiation that directly
attacks tumors while minimizing potentially damaging radiation to
surrounding healthy tissues and organs. As with standard radiation
therapy (which uses photons or X-rays), proton therapy kills cancer
cells by preventing them from dividing and growing. The difference
between protons and conventional radiation is that protons deposit
most of their energy (radiation) directly into the tumor with less dose
delivered to adjacent normal tissues, allowing patients to receive higher,
more effective doses while simultaneously reducing damage to healthy
tissue near the tumor.
About ProCure Treatment Centers, Inc.
ProCure Treatment Centers, Inc. is a privately held health care
company dedicated to improving the lives of patients with cancer by
increasing access to proton therapy. The company was founded in 2005
in Bloomington, Ind. and is the first to develop a network of proton
therapy centers in cities across the United States. The ProCure Proton
Therapy Center in Oklahoma City opened in July 2009, ProCure
Proton Therapy Center in Somerset, N.J. opened in March 2012, and
the Seattle Cancer Care Alliance Proton Therapy, A ProCure Center,
opened in Seattle, WA in March 2013. In 2013, Best in Biz Awards
named ProCure Treatment Centers, Inc. a Bronze winner in the Most
Customer Friendly Company of the Year category for demonstrating
superior customer satisfaction and customer support success rates. n
For more information, visit www.procure.com.
10
TechLifeSciNews | www.njtc.org | September 2014
November 20, 2014
Renaissance Woodbridge Hotel
The NJTC recognizes and celebrates technology companies in the region for their business
accomplishments in technological collaboration, partnership and innovation.
The Awards Celebration begins with a cocktail reception followed by an awards ceremony and
dinner. The Celebration is a unique opportunity to meet colleagues, clients and prospective clients in
a social setting that links your company to the success of the technology and life science industries.
NJTC 2.0 Ready. Set. Go!
Awards will be presented in the following categories:
SUPER AWARDS
Master Technology Company
Public Company • Private Company
SUSPENSE AWARDS
Innovative Technology Company • Impact Company
INDUSTRY AWARDS
Trailblazer • Rising Star
Outstanding Technology Development
Consumer Product • Beacon of Light
INDIVIDUAL AWARDS
Legislative Champion Award
Knowledge is Power Award
John H. Martinson Technology Supporter Award
Legend of Technology Award
Thank you to the 2014 NJTC Awards Celebration Sponsors
(as of print date)
Universal Display | BDO | Comcast Business | DLA Piper | Ernst &Young | Edison Partners | GHO Ventures
iCIMS | Juniper Networks | KPMG | Maloy Risk Services | Morgan Lewis | NJIT | NPS
Pharma | PwC | Robert Half Technology | SorinRand | Systech | TechXtend | Telx
SPACE IS LIMITED
Register to attend today! Visit www.njtc.org for details.
E DUCATION
Rowan University Partners on R&D Initiatives
BY PATRICIA QUIGLEY
E
ngineering, medical and science professors and students
at Rowan University have partnered for years on R&D
initiatives with and for small New Jersey businesses,
Fortune 500 firms and government organizations critical
to the well being of the United States..
Jersey and beyond to uncover solutions to crucial health care needs,
whether a cure for prostate cancer or a means to halt tissue damage
caused by a heart attack or stroke. In addition to medicine, professors
and students conduct experiments on a broad range of topics, from
alternative fuels to asphalt mixes, from robotics to sustainability, from
seatbelts to nanotechnology.
Across Five Locations in Four Communities
On the Glassboro and Camden campuses, at the Rowan University
School of Osteopathic Medicine in Stratford and Cooper Medical
School of Rowan University in Camden, and at the South Jersey
Technology Park in Mantua Township, the teams have served as de
facto R&D arms tackling technology issues, working for solutions to
engineering problems from the environmental to the medical, and
addressing health concerns from the seemingly mundane (poison ivy)
to the life altering and life threatening (autism as well as cancer and
Alzheimer’s disease among them).
With a nationally recognized College of Engineering, outstanding
physical and computer science programs in the College of Science
and Mathematics and two medical schools, Rowan University is at the
cutting edge of research and development in numerous disciplines, with
a focus on determining solutions to real-world problems for business,
government and health care organizations.
Much of the teams’ work is funded by outside organizations, such as
the National Science Foundation, National Institutes of Health, U.S.
Navy and national and international corporations.
Teams work daily in labs onsite and offsite with partners in New
12
Making a Difference
Research is not just for research’s sake at Rowan. While there are
professors and students who focus on the theoretical, the majority
of research initiatives are dedicated to solving real-world problems.
Rowan is committed finding solutions and to bringing products to
market that address.
Said Dr. Shreekanth Mandayam, executive director of the South
Jersey Technology Park, “As the newest state-designated comprehensive
research institution in New Jersey, Rowan recognizes its responsibility
to expanding research across many disciplines that will positively
impact New Jersey’s citizens and those beyond our State. We have
exceptional faculty leading teams on studies that will make a difference
in our health, our environment and our technology and in many more
areas that impact our daily lives.”
Entrepreneurship Critical
Research at Rowan also embraces a strong entrepreneurship focus,
and both research and entrepreneurship are woven into the curricula,
providing students in small classes with hands-on experience and
TechLifeSciNews | www.njtc.org | September 2014
with and for New Jersey Businesses
opportunities that lead to internships and full-time positions upon
graduation. In the College of Engineering, for instance, students work
in interdisciplinary teams from freshman year through graduation on
dozens of hallmark engineering clinic projects a semester.
The benefits of research do not stop with Rowan students, who enjoy
a unique integration of classroom and research work. Partners, such as
those firms that sponsor College of Engineering clinics, are treated like
clients, gaining professional-level work that they might not have the staff
To learn more about Research at Rowan
visit www.rowan.edu/home/research
For more information on Research at Rowan in general or how to
partner with the University, contact:
•
Dr. Kenneth Blank, vice president for Health Sciences, at
(856) 256-5851 or blank@rowan.edu
• Dr. Shreekanth Mandayam, executive director of the South Jersey
Technology Park, at (856) 256-5333 or shreek@rowan.edu.
Mandayam also can supply information about the expansion of
the Technology Park.
to support on their own. Select projects have broader benefits: some
research leads to patents and/or commercialization, and some projects
spin off into start-up businesses and many have the potential to create
jobs and improve the economy of the region. Partnerships also serve
as a pipeline for employers in the region looking for exceptional talent.
The Future
Today, outside organizations fund $25 million of research at Rowan. The
institution is committed to quadrupling that in 10 years. As it does so, it
anticipates other types of growth throughout the University, including
the construction of new buildings for the College of Engineering and
the Rohrer College of Business that will enable both colleges to virtually
double enrollment in their highly competitive programs to 2,000
students each.
Rowan also plans to expand the South Jersey Technology Park
by adding several buildings in the next five years to support the
region’s economic development. (The Technology Park, located on
approximately 500 acres of land, is seeking letters of interest from
potential development partners capable of helping to advance the
next phase of its expansion. That will include approximately 270,000
square feet of combined research, development and office space with an
anticipated delivery of winter 2015/spring 2016.) n
Patricia Quigley is the Assistant Director of Media & Public Relations at Rowan and can be reached at (856) 256-4241.
TechLifeSciNews | www.njtc.org | September 2014
13
Effective Marketing to
Bio Technology Companies
BY JOSEPH T. ROMAN
Think of any situation you encounter when the stakes are high and
you want to get something done right the first time. What you do in
this situation is hire a professional to do the job. Whether the job is
a new kitchen in your home, medical emergencies or managing legal
issues, your best bet is to hire a professional to get the job done right
and quickly. The same philosophy holds true for when you need to get
a product or service to market within the biotechnology marketplace
however there are many more potential potholes and complexities to
consider. You read all the time on the Internet that things like Google
AdWords, Social Media and Search Engine Optimization are all that it
is about when it comes to companies effectively being able to market to
their target clients. Although these things are important, they are only a
small part of what your overall marketing strategy needs to entail.
At Accelerant Sales Group, we have clients every year that call us
and say that they have spent tens of thousands of dollars on paid
AdWords and web advertising with very little to sometimes no results
at all. They think there is a magic bullet and that all of a sudden
the marketing initiative will simply take off and they can get back to
what they want to do which is providing great products and services.
The biggest thing they are missing is trust, brand recognition and
relationships with their clients.
Brand Recognition
As mentioned above there are many advantages to having an outsourced team of professionals putting their blood, sweat and tears into
the success of your product or service. When hiring the outsourced
team, your brand now becomes part of the marketing machines
results! Think of it as a shared think-tank of knowledgeable professionals that have no other goal but to acquire new clients for you and
make them happy! The combination of web strategies, marketing,
inside sales, research and field sales provided are unmatched by any
other initiative when trying to market. At Accelerant we have a methodology called Accelerant Advantage ™ that systematizes the process
all the way from initial phone calls, to web campaigns and trade events
to account management and closed business. The process never stops!
Utilizing PhD’s from NJIT as research partners, we have studied over
15,000 successful sales people and implemented the best practices
and processes into the offering. What makes this all more compelling
is that the cost of a team can range from 50-75 percent less expensive than trying to reinvent the wheel and build your own team. The
clients you acquire will be used to seeing your brand in a way that is
professionally persistent and delivered.
Relationships with your clients
Building Trust
When a company hires a direct sales representative and then gives
that person a very high sales quota a few things normally happen:
That sales representative tries aggressively to meet their number by
focusing on a small number of big deals over the first 6-12 months of
being employed. When they realize that they do not have the luxury
of a long time to cultivate trust and relationships with clients they
soon become dissatisfied and then spend their time networking and
looking for their next sales position. Looking at this from another
vantage point, a company could in less time hire a professional sales
outsourcing partner and have a team of people that are working for
them in a results driven and focused manner. Whereas the full time
salesperson would be short term focused, the outsourcing firm is
results and trust focused with clients. Since the sales company has
usually a very low turnover rate the customer would be able to see the
salesperson as a knowledgeable and consultative resource as opposed
to just another person who will work with them for a few months
and then move on. How do we know this you might ask? It comes
down to the philosophical meaning behind a person wanting to be an
outsourced sales representative by trade and the fact that if they are not
successful they will be out of business. Just imagine the differences in
trust that are built and the loyalty that the model brings for the highly
complex biotechnology market. We start with the end in mind and
trust is at the very center of every thought and engagement. Studies
of human behavior prove that when teams work together trust is the
core component that allows the organization and partnership to thrive.
When you trust someone you allow yourself to be vulnerable and open
up to them.
The research we have done shows that the modern day biotechnology
executive is not looking for friends of “yes men” when sales people
call on them. Today’s modern biotechnology executives are looking for
representatives to bring strong product and industry experience. Why is
this so important? It’s important because technologies are changing yearly,
monthly and daily. The demands of biotechnology companies to get more
out of each worker with fewer budgets also holds true for every executive.
Picture yourself as a CFO or CIO of a biotech firm and all of the conflicting
priorities between the projects, budgets and different stakeholders. Your
weeks would be consumed with travel and back to back internal meetings.
With all of this busyness who has the time to learn about new technologies?!?
This is where the outsourced sales and marketing partner shines. By having
normally 100 years plus combined industry experience among the firm’s
partners there is always a best practices approach to calling on each and
every executive. Thorough research is done on each and every prospect
from the firm’s database. A ready, aim and fire approach is taken and a
very specific and meaningful relationship is formed with each executive.
We call this development of a trusting relationship part of establishing
“equal business stature.” Bringing an enormous amount of experience
implementing and selling many biotech based services and solutions allows
the sales rep to be seen as an advisor rather than a pest or fly by night person
who will be gone in a few months. At our firm, we also make it a point to
get to know each and every executive on a personal basis and this means
their personal struggles, career goals and even the things they like to do
with their families and volunteering efforts. Many of our partners are on
boards of institutions, colleges, high schools and non for profits and at these
places many strong relationships are formed. We like to consider ourselves
advisors to the clients that we sell to and always take the high road because
we value the relationships with our customers above anything else. n
Joseph T. Roman, President of Accelerant Sales Group and Adjunct Professor at New Jersey Institute of Technology, School of Management can be reached at 973-331-0212.
14
TechLifeSciNews | www.njtc.org | September 2014
NJTC
LEADERSHIP
SUMMIT
October 7, 2014
EisnerAmper Conference Center
111 Wood Ave South
10th Floor, Iselin, NJ
presents
Are You Ready to Open Up?
The CEO’s role as leader, strategist and visionary is incredibly
demanding. Regardless of company size, industry, country or
culture CEOs confront the same Undeniable realities: a high degree
of risk, intense loneliness, lack of feedback and difficulty letting go.
THE SUMMIT WILL FEATURE
KEYNOTE SPEAKER
David B. Kinitsky
Senior Director at SecondMarket, Inc. and
General Manager of the Bitcoin Investment Trust
ROUNDTABLE DISCUSSIONS
Seated at a table of your choice
CEO PANEL DISCUSSION
Comprised of the CEO of the Year Award Winners
CEO OF THE YEAR AWARD CEREMONY
Awards will be presented to the CEO of a
public company, private company
and not-for-profit or educational institution.
Who can register to attend the Leadership Summit?
Leaders at established technology and life
science companies seeking opportunities to
exchange ideas, expand their networks,
build relationships, meet with peers and
maintain an edge over their competition.
The NJTC Leadership Summit is designed to offer a forum for
leaders to meet with their peers in a closed session to share
insights that can help them reflect on their roles as CEOs and
realize that they are not alone in what they experience.
The Summit will include engaging and successful speakers,
facilitated small group discussions with your peers and a CEO
panel discussion comprised of the CEO of the Year Award winners.
SAMPLE of the insights to be explored with your peers:
• How do you grow and develop your leaders? What’s the
worst employee situation you’ve experienced?
• What are you currently struggling with the most whether
personal or business related?
• How do you align and communicate with your Board of
Directors?
• Developing lasting customer relationships, your corporate
brand and reputation
• And more . . .
SPONSORS
(as of print date)
WeiserMazars | EisnerAmper | Comcast Business | DLA Piper
Maloy Risk Services | Morgan Lewis | TD Bank | NJEDA | Caliper
For details and to register, visit www.njtc.org
Top Risk Factors
for Life Sciences Companies
BY RYAN STARKES
The life sciences sector in New Jersey plays a significant role not only
in boosting the state’s economy, but also in positioning New Jersey as a
national leader, both in industry R&D as well as industry related export.
As growth opportunities for the sector increase, however, companies in
this space face unique industry risks that can impact operations. A
recent BDO analysis explored such business challenges and revealed
that top risks and concerns cited by life sciences companies across the
country include supply chain management, navigating the complex
regulatory environment, intellectual property protection, data security,
product commercialization and intense competition.
Number One Risk for Life Sciences Companies:
Supply Chain Vulnerabilities
This year, all 100 companies analyzed cite supply chain vulnerabilities
and concerns over suppliers/vendors as the top risk. While life sciences
companies often rely on third parties to produce critical materials and
help bring their products to market, it is important that these suppliers
comply with strict regulations around product quality. Any compliance
setback or supply chain disruption can expose companies to product
liability issues and recalls. As a result, 95 percent of companies note
significant risks related to product liability and insurance costs, while
88 percent cite product recall/complication concerns.
Supply chain disruptions can result from a number of factors, including
the shortage of necessary raw materials, natural disasters and regulatory
inspections. As such, 42 percent of life sciences companies cite the price and
availability of raw materials as a risk to their business, and 56 percent cite
risks related to natural disasters, war, conflicts and terrorist attacks.
Intellectual Property Protection and Data Security
Concerns on the Rise
In today’s competitive environment, research and development is critical
to long term growth; any infringement on intellectual property can be
financially detrimental, providing competitors with an advantageous
16
edge. With current uncertainties surrounding patent protection and a
debate in the Senate concerning patent reform, life sciences executives
are increasingly concerned about the risk of intellectual property (IP)
infringement. Ninety-eight percent of companies cite the protection
of intellectual property as a risk, and 91 percent cite concerns related
to litigation and legal proceedings, often associating patent challenges
with that risk.
Data security issues have been top of mind for life sciences companies
as well, especially in light of recent headlines surrounding data breaches
at high profile brands such as Adobe, Apple, Facebook, Google, Target
and Twitter, to name just a few. According to recent studies, the
financial impact of cybercrime is expected to grow 10 percent per year
through 2016, with the average cost to business already exceeding $5.4
million.
As recent articles have indicated, the healthcare sector faces
particular risks associated with data breaches as the industry continues
to upgrade to electronic medical records and share information over
health exchanges. Companies are now faced with strict requirements
to report, maintain and protect various types of customer and patient
data. This year, data security and privacy breaches were therefore
among the top 25 cited risk factors, with 61 percent of companies (vs.
46% in 2013) viewing this category as a risk.
Opportunities for M&A Bring Increased Risk
According to Mergermarket, pharmaceutical, medical and biotech
players rank #1 for mergers and acquisitions (M&A) this year, with
deal activity valued at $252.5 billion. While many small life sciences
companies depend on strategic investments from larger healthcare
entities to grow their businesses, related M&A risks are high. Sixty-nine
percent of companies cite concerns related to successfully managing or
completing a merger or acquisition, and 75 percent of companies cite
risks of anti-takeover or change of control provisions that could hinder
buyout opportunities (up nine percentage points from last year).
TechLifeSciNews | www.njtc.org | September 2014
continue to partner with suppliers and manufacturers to develop their
products, all parties must comply with the proper use and disposal
of hazardous materials, which can be costly, time sensitive and may
interrupt normal business operations.
Regulatory Environment Continues
to Create Obstacles for Companies
Nearly all companies (98 percent) cite federal, state and local
regulations as a notable risk, with 77 percent listing the Affordable
Care Act (ACA) as a concern. Healthcare reform has significantly
impacted the life sciences industry, not only through the introduction Barriers to Product Commercialization
of additional compliance regulations and penalties, but also through According to our findings, 97 percent of companies cite the ability
resulting revenue uncertainty due to changes in reimbursement and to effectively commercialize and market approved products as a
coverage. In addition, 85 percent of companies note the availability top concern, and 89 percent note risks related to collaborations,
often depended upon to provide
of product reimbursements by
critical resources for product
government authorities or other
commercialization. In line with
third-party payers as a risk to
Top 25 Risk Factors for the 100 Largest
last year’s findings, nearly all
their businesses, especially as
U.S. Life Sciences Companies
companies (94 percent) point
they contend with government
to risks associated with FDA
authorities
and
healthcare
2014 Rank
20142013
compliance requirements as well
providers increasingly favoring
1. Supply Chain and Supplier/Vendor Concerns
100%
93%
as with the FDA approval process.
generic products to keep the cost
2. Federal, State and/or Local Regulations
98% 100%
Remaining mindful of these
of medicine affordable.
2t. Intellectual Property Infringement
98%
96%
industry risks and working to
4. Competition and Consolidation
97% 100%
This year, 76 percent of
4t. Ability to Commercialize & Market Products
97%
96%
mitigate them should serve New
companies noted risks associated
4t. Volatility of Revenue/Stock Price
97%
92%
Jersey life sciences companies
with changes to accounting
7. Product Liability and Insurance Costs
95%
87%
well. As host to more than 350
standards and regulations, up from
8. Ability to Attract and Retain Key Personnel 94%
96%
biotech companies and a leader
68 percent in 2013. Concerns
8t. FDA Approvals and Compliance
94%
94%
in VC investments and industry
over the new revenue recognition
10. Legal Proceedings 91%
84%
patents, the region offers valuable
rules, which were released by the
11. Collaborations and Relationships with Other Companies 89%
92%
opportunities for job recruitment,
12. Product Complications, Recalls and Side Effects
88%
88%
Financial Accounting Standards
13. Delays or Unfavorable Results from Clinical Trials
87%
80%
joint ventures and research and
Board
and
International
14. Reimbursement from Third Party Payers
85%
87%
is poised for continued economic
Accounting Standards Board in
14t. Inability to Acquire Capital
85%
79%
growth.
May, likely contributed to the
16. Changes to Healthcare Laws & Regulations
77%
78%
The 2014 BDO Life Sciences
increase, as implementation will be
17. Changes to Accounting Standards and Regulations
76%
68%
RiskFactor Report examines the
a key area of focus for life sciences
18. Anti-Takeover and Change-in-Control Provisions
75%
66%
risk factors listed in the most
companies in the years ahead.
19. Environmental, Health and Safety Laws
73%
66%
recent annual shareholder filings
Our Life Sciences RiskFactor
20. Threats to International Operations
71%
79%
21. Inability to Manage or Complete M&A
69%
79%
of the 100 largest publicly-traded
Report also reveals an increase in
22. General Economic Conditions
67%
84%
U.S. life sciences companies listed
concerns related to environmental,
22t. History of Operating Losses
67%
68%
on the NASDAQ Biotechnology
health and safety laws, with 73
24. Failure to Properly Execute Strategy
66%
69%
Index by revenue. The risk factors
percent of companies (up from
25. Breaches of Technology Security, Privacy and Theft
61%
46%
were analyzed and ranked in order
66 percent in 2013), noting such
*t indicates a tie in the risk factor ranking
of frequency cited. n
risks. As life sciences companies
Ryan Starkes is the Woodbridge-based partner and Life Sciences practice leader at BDO USA, LLP.
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TechLifeSciNews | www.njtc.org | September 2014
17
D OLLA RS & CE N TS
Pharmaceutical Companies
Continue to Plan Corporate Inversions
Despite Government Protests
BY SUSAN SAN FILIPPO
Recently, Treasury Secretary Jacob Lew sent a letter to key members of
Congress calling for the nation to embrace a “new sense of economic
patriotism” and stop supporting corporations that are moving their tax
home out of the U.S. to reduce their corporate income tax burdens by
taking advantage of an existing loophole in the tax code.
The loophole, known as “corporate inversion,” is a transaction
where a U.S. based multinational group acquires a foreign corporation
located in a country whose tax rates are lower than in the U.S. These
reorganizations have the effect of changing the U.S. Corporation’s
domicile to a foreign country but typically results in little change to the
U.S. operations of the entity. Although operations in the U.S. would
continue to be subject to U.S. tax, the foreign operations conducted by
the newly formed group would be subject to the lower foreign country
tax rates. In addition, the foreign income is not taxed to the U.S.
shareholders until dividends are paid. Moreover, the U.S. Corporation
may engage in earnings stripping transactions where deductible
payments to the parent company reduce U.S. taxable income.
These transactions are particularly attractive to pharmaceutical
and medical device companies who seem to have more choices of
appropriately sized targets overseas and enjoy many benefits of a
global presence. Popular destinations seem to be Britain, Ireland and
Bermuda for their lower tax rates and other attractive R&D incentives.
Transactions involving pharma and medical device companies have
spiked in recent years, most notably the recent merger of Medtronic
and Covidien, the attempted acquisition by Pfizer of AstraZeneca, and
the AbbVie takeover of Shire, the largest inversion deal to date.
Here’s a summary of how the proposed inversion of Pfizer might
have worked:
ARE YOU READY
TO GET
®
ITIL CERTIFIED?
A newly created UK holding company would acquire the shares
of both Pfizer and AstraZeneca. In the resulting structure, Pfizer and
AstraZeneca would be subsidiaries of the UK parent and the former
Pfizer shareholders would own 73 percent of the UK company and
AstraZeneca former shareholders would own 27 percent. Pfizer hoped
to shift profits to the UK, where the tax rate is around 21 percent as
compared to 35 percent in the U.S.
For similar types of inversion transactions like the one proposed in
the Pfizer deal, the U.S. government has attempted to curb the use of
these inversion transactions:
• Where shareholders of the U.S. Corporation subsequently acquire
over 50 percent of the new foreign parent corporation, section
367(a) causes a gain on the transfer of U.S. stock to the parent corp.
• Where shareholders of the U.S. Corporation subsequently acquire
60 percent or more, but less than 80 percent of the new foreign
parent corporation, section 7874 prevents the U.S. Corporation
from using tax attributes, such as NOLs, to offset section the 367(a)
inversion gain.
• Where shareholders of the U.S. Corporation subsequently acquire
80% or more of the new foreign parent corporation, section 7874
treats the new foreign parent company as a U.S. corporation for tax
purposes, effectively removing any real U.S. tax savings from the
transaction.
•
In triangular reorganizations, section 367(b) and Notice 201432 causes a potential taxable dividend as a result of a “deemed”
distribution between parent and subsidiary on the acquisition of
the target foreign corporation in exchange for parent stock.
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TechLifeSciNews | www.njtc.org | September 2014
Under Pfizer’s proposed new structure, the corporation would not have
been considered a U.S. corporation for tax purposes under section 7874
because less than 80% of the foreign parent company would be held by
the former U.S. shareholders. The U.S. Corporation might have had
to pay tax under the other anti-abuse regulations of section 7874 and
section 367, however it planned to save over $1 billion in tax due to the
tax rate differential alone, according to some reports. In other inversion
transactions, some corporations were able to avoid the imposition
of section 367(a) inversion gain by manipulating certain aspects of
section 367(b)(“Killer B reorganization” rules), in order to make the
transaction nearly tax free. Much tax planning goes into achieving these
various tax savings from moving overseas and the transactions can get
very complicated.
The letter from Secretary Lew calls for a lowering of the U.S.
corporate income tax rate, among the highest in the world. At the very
least, he asks Congress to pass laws to prevent or deter companies from
using these inversion strategies, including retroactive laws to prevent
tax savings on restructuring deals already agreed to, such as the recent
Shire takeover. Despite bipartisan disagreement on how to address the
tax loophole, tax reform in this area is likely to occur in some form.
However, many tax practitioners and financial experts believe that
these transactions will continue to be used at an increased pace until
real reform occurs to lower U.S. corporate tax rates. In the meantime,
patriotism aside, corporate management will maintain its allegiance to
its shareholders and continue to strive to improve the corporate bottom
line in the ever increasing global economy. n
Susan San Filippo is a senior manager for WithumSmith+Brown, PC.
College of Graduate & Continuing Education
Academic Programs &
Professional Solutions
Rowan University offers the following options for
technology professionals and organizations:
• Graduate programs in Business, Computer Science,
& Engineering
• Professional development workshops & seminars
• Business services including consulting, customized
solutions, and event space rental in our State-ofthe-Art Enterprise Center
Programs feature highly credentialed faculty, competitive tuition and rates,
and convenient evening or online courses. Specializations and focus areas help
tailor your educational needs to meet organizational and individual goals.
www.RowanCGCE.com
TechLifeSciNews | www.njtc.org | September 2014
19
NJTC NEW MEMBERS
As of July 2014
CXO
Winthrop Cody
8 Adams Drive
Cranbury, NJ 08512
732-910-3265
wcody@alum.mit.edu
Founder and CEO of ExpertPlan; CIO of Copeland/
Citi Street, CitiGroups Retirement Corp.; Head of
Retirement and Wealth Management Solution,
iGate
Tom Flaherty
151 Chesterfield-Georgetown Road
Chesterfield, NJ 08515
609-610-8751
tomfnj@aol.com
INFORMATION TECHNOLOGIES
Epic Software Development
101 Hudson Street, Suite 2100
Jersey City, NJ 07302
877-960-3742
www.EpicSoftwareDev.com
John Matlosz - John.Matlosz@EpicSoftwareDev.com
Epic is known for providing its clients with the
highest quality outsourced solutions for application
software development.We are based in New Jersey,
with development centers in Costa Rica and
Eastern Europe. Our expertise is focused on web,
mobile and enterprise applications.
GSTi (Government Systems Technologies Inc.)
3159 Schrader Road
Dover, NJ 07801
973-361-2627
www.gstiusa.com
Jessica Eaton, HR Administration
jessica.eaton@gstiusa.com
GSTi provides strategic IT solutions. We cover
a wide range of services, including: Database
Administration, Data migration, IT Infrastructure
Management.
TetherView
101 Ellis Street
Staten Island, NY 10307
800-666-3996
www.tetherview.com
James Scott, CFO - jim@tetherview.com
Providers of Private Cloud Virtual Desktop
Services to SMB Market in NY Metro Region.
SERVICE PROVIDERS
Princeton Partners, Inc.
205 Rockingham Row
Princeton, NJ 08540-6618
609-452-8500
www.princetonpartners.com
Tom Sullivan, CEO
tsullivan@princetonpartners.com
Princeton Partners is an award-winning, omnichannel, brand marketing agency that focuses
on the long-term business growth and success of
our clients.
Profit Tek LLC
12 Christopher Way, Suite 200
Eatontown, NJ 07724
www.profittek.com
Based in Eatontown, New Jersey ProfitTek, LLC
provides comprehensive guidance simplifying
the goals of any organization into meaningful,
targeted and measurable segments.We collaborate
to engineer a dynamic diagnostic design allowing
for customization on demand. Our proprietary
process navigates your organization toward a
self-sustaining strategy of overall market and
financial health. If your organization desires a
sustainable business model with increasing top
and bottom lines, contact us to review your needs
and our services and pricing.
Reesa Woolf
PO Box 499
Boonton, NJ 07005
973-335-7361
reesawoolf@yahoo.com
ReesaWoolf, PhD, mentors technical professionals
to be excellent speakers. Learn to hold listeners’
attention on updates, to easily address customers,
management & the board, and get better jobs.
#1 Amazon Bestseller Executive Speaking in a
Weekend
TELECOMMUNICATIONS/MEDIA
Century Link Technology Solutions
2355 Dulles Corner Blvd.
Herndon, VA 20171
717-236-1385
www.centurylink.com
Dawn Grice, Marketing
dawn.grice@savvis.com
CenturyLink Technology Solutions delivers
innovative IT services for global businesses on
managed, virtual, dedicated and collocation
platforms. For more information, visit www.
centurylink.com/technology.
RENEWALS
Century Link Technology Solutions
www.centurylink.com
Diaspark Inc. • www.diaspark.com
Enable Healthcare Inc., DBA “EHI”
www.ehiconnect.com
Folded Structures Company, L.L.C.
www.foldedstructures.com
Genacast Ventures • www.genacast.com
Grant Thornton LLP
www.grantthornton.com
Guardian Data Destruction
www.guardiandatadestruction.com
iContracts Inc. • www.icontracts.com
Inspirity, Inc. • www.inspiritysoft.com
JETT Consulting
JTR & Associates • www.jtrinsurance.com
Lightpath • www.golightpath.com
Mitisa LLC
Natcore Technology, Inc.
www.natcoresolar.com
Navio Health • www.naviogroup.com
New York Institute of Technology
www.nyit.edu
NPS Pharmaceuticals• www.npsp.com/
Planet Associates, Inc.
www.planetassociates.com
Robert Half International, Inc.
www.rhi.com
S&A Schmitt and Associates, LLC
www.sna-llc.com
SimPhoTek Inc. • simphotek.com
Sparkway • www.sparkway.com
Sparta Systems, Inc.
www.sparta-systems.com
StederNC, LLC • www.stedernc.com
Stevens Institute of Technology
www.stevens.edu
Systech International
www.systech-tips.com
The Protocall Group
www.protocalltechnology.com
Tymac Controls Corporation
www.tymac.com
Wexford Systems LLC.
www.wexfordsystemsllc.com
Wilkin & Guttenplan, P.C. • www.wgcpas.com
Joining the NJTC Paul Frank • Ext 222 • pfrank@njtc.org
Membership Services Judy Storck • Ext 246 • jstorck@njtc.org
Member Relations Manager Ellen Stein • Ext 228 • ellen@njtc.org
20
TechLifeSciNews | www.njtc.org | September 2014
NJTC PHOTO GALLERY
NJTC ANNUAL MEETING
Almost 250 NJTC members attended the Annual Meeting at Forsgate
Country Club on July 17. The day started with our Keynote Speaker,
Keith Cooper, CEO from Connotate, Inc. Members participated in
various table discussions during lunch. Maxine Ballen presented
The “State of the Council”, providing an update on past, present
and future activities. Maxine introduced James Barrood who has
succeeded her as CEO of the NJTC. Results of the Technology Outlook
Industry Survey - presented by Giordano, Halleran & Ciesla, PC and
WithumSmith+Brown along with a panel of CEOs responded to the
Survey as it pertains to their respective industry sectors.
Thank you to our Sponsors:
SorinRand – Platinum Sponsor
Telx – Luncheon Sponsor
DeVry University – Dessert Sponsor
DATA, Inc. – Promotional Item Sponsor
Giordano, Halleran & Ciesla, PC and WithumSmith+Brown –
Technology Outlook Industry Survey Sponsors
1
Photo 1: Keynote Speaker: Keith Cooper, CEO, Connotate, Inc.
Photo 2: Maxine Ballen introduces James Barrood as the next CEO of the NJTC
Photo 3: Technology Outlook Industry Survey CEO Panelists L-R: Mark
Clifton, VP of Products & Services Division/General Manager, SRI
International Sarnoff; Moderator: Kurt Anderson, Shareholder
Representative, Giodano, Halleran & Ciesla, P.C.; Ron Gaboury,
CEO, Yorktel; Fran Pierce, President, Chairman of the Board & CEO,
DSA; Calvin Knowlton, CEO, CareKinesis; Ralph Izzo, Chairman,
President & CEO; Public Services Enterprise Group Incorporated.
2
3
TechLifeSciNews | www.njtc.org | September 2014
21
NJTC CALENDER OF EVENTS
TECHNOLOGY TOUR AND NETWORKING,
TELX, NYC
September 18 • 5:00 PM - 7:00 PM
Telx’s NYC2 Data Center
111 Eighth Avenue, New York, NY
Members FREE • Non-Members $20.00
Students $5.00
Occupying a unique position on top of the Hudson
Street-Ninth Avenue fiber highway is NYC2 at
111 Eighth Ave, the third largest building in
Manhattan. NYC2 is a premier North American
facility with Telx as its leading collocation and
interconnection provider. Telx’s NYC2 occupies over
100,000 sq.ft. on the 3rd, 5th, 6th, 8th, 14th and
15th floors. NYC2 has become a central hub for
hundreds of leading domestic and international
carriers and physical connection points for
the world’s telecommunications networks and
Internet backbones. Protecting some of the
busiest switching stations in the world, NYC2
provides low-latency access to financial exchange
and applications providers, media and content
providers, Cloud and software-as-a-service (SaaS)
providers and numerous enterprises.
CEO FORUM PRESENTS ROUNDTABLE
PLANNING MEETING - MEMBERS ONLY
September 19 • 8:30 am - 10:00 am
Morgan Lewis
502 Carnegie Center, 2nd Floor
Princeton, NJ
Members: Free
NETWORKS
NJTC Industry Networks present programs
about opportunities and challenges facing NJ
technology companies by industry segment.
Arts & Technology
Patron Sponsors:
EisnerAmper LLP
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Electronics, Advanced Materials & Logistics
Patron Sponsors:
Baker & Hostetler LLP • EisnerAmper
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Ellen Stein • Ext 228
ellen@njtc.org
Enviro-Energy Industry
Patron Sponsors:
Baker & Hostetler LLP • WeiserMazars LLP
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Ellen Stein • Ext 228
ellen@njtc.org
22
NJTC member CEOs are invited to join us for a
members-only CEO Roundtable on September
19, 2014. The purpose of this meeting is to share
ideas about topics, forums, speakers, etc. that
interest you. We need to hear directly from you so
that we can offer programming that is valuable
and worthwhile to assist you in running your
company.
Please take the time to join us for a short,
informal discussion with fellow CEOs. We’ll
provide the coffee and bagels (courtesy of
Morgan Lewis) and ask that you bring your ideas.
REGISTER TODAY
NJTC LEADERSHIP SUMMIT 2014
SEE PAGE 14
October 7 • 7:30 am - 2:30 pm
EisnerAmper LLP
111 Wood Ave South, Iselin, NJ
CFO PEER NETWORK ROUNDTABLE/
PLANNING MEETING
October 10 • 8:30 AM - 10:00 am
Ernst & Young
99 Wood Avenue, South Iselin , NJ
Members: Free
Attention NJTC Member CFOs: This is the time
of year when we reach out to member financial
leaders to learn about your current interests,
successes and challenges. We are also interested
in hearing your thoughts on plans and issues you
anticipate and where you see your company in
IT/Software
Patron Sponsor:
BDO
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Judy Storck • Ext 246
jstorck@njtc.org
LifeSci & MedTech
Patron Sponsors:
Drinker Biddle • McGladrey
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Ellen Stein • Ext 228
ellen@njtc.org
Telecommunications/Media
Patron Sponsor:
Verizon New Jersey
Contact:
Paul Frank • Ext 222
pfrank@njtc.org
Judy Storck • Ext 246
jstorck@njtc.org
the coming year. Your insight and participation
in this meeting is critical to our ability to offer
timely, worthwhile programs for the CFO.
OPEN TO NJTC MEMBER CFOs ONLY
COOL PRODUCTS & SERVICES
COMPETITION - PHILADELPHIA
October 15 • 4:00 PM - 7:15 PM
BakerHostetler LLP
Cira Center, 12th Floor
2929 Arch Street, Philadelphia, PA
Members $10.00 • Non-Members $30.00
Students $5.00 • Exhibitors $250.00
NJTC is seeking to present some of the coolest
technology products and services designed in the
US or abroad in the past four years. Products or
services should be focused in one of five industry
categories including: Electronics, Advanced
Materials & Logistics Environment/Energy
Information Technology Life Sciences Telecom/
Media Products or Services should have been on
the market to generate sales which will be taken
into consideration by the selection committee.
Submissions must include information on Clarity,
Value and Credibility. To complete a submission
form visit our website at www.njtc.org
Join us and participate (by voting) on the
final selections on either Wednesday, October
16 in Philadelphia or Thursday, October 17 in
Paramus. Workgroups, exhibit opportunities and a
networking reception will also be offered.
NJTC Peer Networks bring together like-minded
technology professionals to share common issues,
learn best practices and gain perspective across all
technology industry segments.
CEO Forum
Patron Sponsors:
Morgan Lewis
WithumSmith+Brown
Contact:
Karen Lisnyj • Ext 229
karen@njtc.org
CFO Peer Network
Patron Sponsors:
Cresa NJ – North/Central LLC
Ernst & Young, LLP
Contact:
Karen Lisnyj • Ext 229
karen@njtc.org
CIO Peer Network
Patron Sponsors:
Oracle • telx
Contact:
Karen Lisnyj • Ext 229
karen@njtc.org
TechLifeSciNews | www.njtc.org | September 2014
Government Affairs
Contact:
Karen Lisnyj • Ext 229
karen@njtc.org
Software Engineering Leaders
Peer Network
Patron Sponsors:
Sparta Systems
Szaferman, Lakind, Blumstein & Blader, PC
For updated information or
to register for NJTC events,
visit www.njtc.org
COOL PRODUCTS AND SERVICES
COMPETITION - PARAMUS
October 16 • 4:00 PM - 7:00 PM
Lincoln Technical Institute
240 Bergen Town Center
Paramus, NJ
Members $10.00 • Non-Members $30.00
Exhibitors $250.00
NJTC is seeking to present some of the
coolest technology products and services
designed in the US or abroad in the past
four years. Products or services should be
focused in one of five industry categories
including: Electronics, Advanced Materials
& Logistics Environment/Energy Information
Technology Life Sciences Telecom/Media
Products or Services should have been on
the market to generate sales which will be
taken into consideration by the selection
committee. Submissions must include
information on Clarity, Value and Credibility.
To complete a submission form visit our
website at www.njtc.org
Join us and participate (by voting) on
the final selections on either Wednesday,
October 16 in Philadelphia or Thursday,
October 17 in Paramus. WorkGroups, exhibit
opportunities and a networking reception
will also be offered.
AWARDS CELEBRATION
SEE PAGE 11
November 20
Renaissance Woodbridge Hilton
Woodbridge, NJ
SAVE THE DATE
TECHNOLOGY TOUR OF CORESITE’S
NY2 DATA CENTER
October 23 • 4:00 PM - 7:00 PM
Members $0.00 • Non-Members $40.00
SOFTWARE ENGINEERING LEADERS
November 18 • 8:30 AM - 10:00 AM
Members $0.00 • Non-Members $50.00
Council Connections
NJTC
BOARD OF DIRECTORS
Chairman of the Board
Simon Nynens, Wayside Technology Group, Inc.
Co-Chair
Virginia Alling, PNC Bank
Board Members
Mel Baiada, BaseCamp Ventures
Maxine Ballen, New Jersey Technology Council
James Barrood, New Jersey Technology Council
Joel Bloom, New Jersey Institute of Technology
James Bourke, WithumSmith+Brown, PC
Skip Braun, Deloitte
Charlene Brown, AT&T
Leslie Browne, Senesco Technologies, Inc.
Michael Christman, Coriell Institute
for Medical Research
John Clarke, Cardinal Partners
Mark Clifton, SRI International
Steven Cohen, Morgan Lewis
Kathleen Coviello, New Jersey
Economic Development Authority
Saki Dodelson, Achieve3000, Inc.
Patricia Donohue, Mercer County Comm. College
Chris Downie, Telx
Nariman Farvardin, Stevens Institute of Technology
Ronald Gaboury, Yorktel
Mark Giamo, BDO USA, LLP
Andrew Gilbert, DLA Piper
Richard Goldberg, R² Associates
Ian Goldstein, Drinker Biddle
Darren Hammell, Princeton Power Systems
Paul Hoffman, Liberty Science Center
John Houghton, Nephros, Inc.
Brian Hughes, KPMG LLP
Flint Lane, Billtrust
John Lanza, McGladrey
John Martinson, Edison Partners
Dan McGrath, Maloy Risk Services
Stephen Muretta, Ernst & Young LLP
Richard Napoli, ObjectFrontier, Inc.
Gregory Olsen, GHO Ventures, LLC
Kevin Pianko, WeiserMazars LLP
Ari Rabban, Phone.com
Marianna Rabinovitch, ECI Technology
Jeff Rosedale, BakerHostetler LLP
Douglas Schoenberger, Verizon
Stephen Waldis, Synchronoss Technologies
Alan Wink, EisnerAmper LLP
TechLifeSciNews | www.njtc.org | September 2014
PRESIDENT & CEO
James C. Barrood • james@njtc.org
FOUNDER
Maxine Ballen • mballen@njtc.org
EXECUTIVE VICE PRESIDENT
Paul A. Frank III • pfrank@njtc.org
EXECUTIVE ADMINISTRATOR
Karen Lisnyj • karen@njtc.org
MEMBERSHIP RELATIONS MANAGER
Ellen Stein • ellen@njtc.org
OFFICE ADMINISTRATION/MEMBERSHIP
SERVICES - CONNECTIONS EDITOR
Judy Storck • jstorck@njtc.org
IT COORDINATOR
Erwin Racimo • eracimo@njtc.org
ACCOUNTING
Peggy Reeve • PReeve@njtc.org
NJTC CHARTER MEMBERS
Deloitte
Edison Venture Fund
KPMG LLP
Maloy Risk Services
Morgan Lewis
PNC
NEW JERSEY TECHNOLOGY COUNCIL
www.njtc.org
1001 Briggs Road, Ste 280
Mount Laurel, NJ 08054
856-787-9700
23
is...
Office, Lab, GMP Space, Medical
Located next to Mercer Airport
7 Graphics Drive, Ewing NJ
Office, Lab, Conference Facility
1000 Waterview Drive, Hamilton NJ
6,000 SF Office, 12,000 SF AC/Production/Lab
Space, 6,000 SF Warehouse, 24,000 SF Total; 22’
Clear, 2 Tailgates, 1 Drive-in Door, 800 Amps
4,000 SF Lab and 8,000 SF Office Space for Lease
up to 180,000 SF; 3 Floors, Elevator Serviced;
Cafeteria, Fitness Center, Conference Facility
Office, Lab, GMP Space, Medical, Data Center
Matrix Corporate Campus, 259 Propect Plains Rd, Cranbury NJ
SALE
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Join Bracco Research, ADP, AmeriHealth and Innophos
www.fennelly.com | email: fennelly@fennelly.com
Phone: 609-520-0061
EdgeBrook Technology Center
GMP, Office, Production
4 Black Forest Road, Hamilton NJ
30,817 SF Building on 2.8 Acres;
8,500 SF Office, 6,000 SF Production,
2,900 SF Quarantine Storage,
15,000 SF with 32’ Ceilings;
1,200 Amp, Fully Air Conditioned;
Located near I-195 & Route 130; Exit 7A
Technology Headquarters Building
SALE