News Briefs

Development

MOBD to expand

BOSTON - The Massachusetts Office of Business Development, the state’s business development agency, will hire 12 people to help promote the state to companies looking to expand in or move to Massachusetts. Funding for the expanded staff comes from $1.5 million from a recently passed Economic Stimulus Package and an additional $600,000 from the state Legislature. In addition to the MetroWest office, the agency will add Pioneer Valley and Berkshires regions to the existing Cape & Islands, Southeast, Central, Greater Boston and Northeast regions. In addition to new regional managers, the agency will also hire four more representatives to focus on the life sciences, information technology, manufacturing and financial services.

FAA study recommends upgrades at Worcester Airport

WORCESTER - A $2.5 million study funded by the Federal Aviation Administration and Massport and prepared by The Louis Berger Group Inc., projects New England’s airports will serve about 76 million passengers by 2020, up from 42.9 million passengers in 2004. The study, prepared by the Louis Berger Group Inc., recommends that capital improvements, such as instrument landing system upgrades, continue at Worcester Regional Airport, and that roadway access be improved to handle the potential for as many as 284,000 passengers by 2020. After the departure in September of Allegiant Air, the airport’s only carrier, the Massachusetts Port Authority is working to attract other commercial carriers, business aircraft and aviation-related services.

Micron seeks tax break to expand in Fitchburg

FITCHBURG - The city’s Finance Committee has recommended a tax break for Micron Products, a subsidiary of Arrhythmia Research Technology, with the understanding that it could create additional jobs. The company is taking over two land parcels adjacent to its existing site for $175,000. It will convert an old firehouse and the former site of Caron’s Flea Market into offices. Micron has also signed a purchase and sales agreement for the 40,000 square foot building that formerly housed Harper’s Furniture.

Housing rezone requested near Union Station

WORCESTER– The City Council Land Use Committee has endorsed a petition to rezone 11.5 acres behind Union Station from manufacturing to business-general. The zone change, bounded by Franklin, Plastics and Grafton streets, is being sought by First Columbus Realty, which wants to renovate two vacant industrial buildings in that area and convert them into housing.

Fitchburg State buys warehouse

FITCHBURG – Fitchburg State College recently purchased a 57,000-square-foot warehouse building in the vicinity of its campus for $1.75 million. The college will use the facility, formerly home to paper distributor Tonkin Paper and, more recently, Davis Design, as warehouse and distribution space. Davis Design vacated the building some six months ago after outgrowing the space. The sale was brokered by David and Carl Burwick of the Worcester-based Katz Companies, which represented seller Tonkin Realty Trust as well as recruiting Fitchburg State as the buyer.

Florida firm buys Speedway Plaza

WESTBORO – Jacksonville, FL-based Regency Centers has purchased Speedway Plaza, a 185,280 square-foot shopping center, for an undisclosed sum, the Commercial Property News reports.

The seller was Westborough Commercial Associates LP. The property, which contains a Stop & Shop and a BJ’s Wholesale Club, is currently being remodeled. Regency Centers has targeted the New England market, buying the Twin City Plaza in Cambridge earlier this year, and expects to begin construction on a new site in Saugus next spring. For the past five years, Regency Centers has averaged about $400 million a year in new development, according to Barry Argalas, vice president for national acquisitions and dispositions.

Biomedical

UMass’ Mello wins Nobel for RNAi discovery

WORCESTER - Dr. Craig Mello of the University of Massachusetts Medical School has won the Nobel Prize in medicine for his role in discovering RNA interference, a gene-silencing mechanism that will give researchers a new biologic weapon against disease. Mello and Dr. Andrew Fire, identified RNAi eight years ago, working together to decipher how cells regulate genes. Studying the laboratory worm C. elegans, they found that RNA can not only convey genetic information from DNA needed to make proteins, but certain double-stranded forms of RNA can also knock out specific genes. They published their findings in 1998 in the scientific journal Nature.

Cummings research team treatment for E. coli

GRAFTON - Researchers at the Cummings School of Veterinary Medicine at Tufts University have developed a treatment that could treat the early onset illnesses caused by the bacterium E. coli. For eight years, Dr. Saul Tzipori and a team of researchers at the Grafton campus have been working on a human antibody treatment for the e. coli 0157, the strain that caused a nationwide outbreak of food poisoning this summer. The treatment, which prevents kidney and brain damage associated with the illness, is now being produced by Worcester-based Biovest for clinical trials in humans, which are expected to take place by spring at Tufts New England Medical Center. Illness caused by the 0157 strain is particularly dangerous to children.

GTC, Paris firm in $25m deal

FRAMINGHAM - GTC Biotherapeutics Inc. has made a pact with LFB Biotechnologies, a subsidiary of LFB S.A. in Paris, to develop a treatment for hemophiliacs. LFB will invest $25 million in GTC to enable GTC to develop a protein in the milk of genetically altered rabbits. The funding will be over three phases through January 2007. LFB will end up with common stock, preferred stock and convertible debt, giving it 19.9 percent of GTC’s outstanding equity. LFB will also appoint a director to GTC’s board and have the option to participate in future GTC financings. GTC will hold exclusive North American rights to the drug, while LFB will hold exclusive European rights.

U.S. Army performs altitude sickness studies

NATICK – The U.S. Army Soldier Systems Center in Natick will conduct a study to help soldiers overcome high-altitude sickness. The U.S. Army Research Institute of Environmental Medicine will lead the study. Soldiers deployed to Afghanistan, encountering an almost immediate exposure to high-altitude environments via helicopter, have little time to adjust to the thinner atmosphere. The USARIEM studies will help soldiers overcome altitude sickness when making sudden, extended ascents to heights of 5,000 to 14,000 feet. Soldiers will undergo a variety of tests in the USARIEM’s Hypoxia Room and Hybobaric Chamber, a space that replicates a high-altitude environment. Plans call for the study to document the changes in soldier performance under high altitude and low altitude conditions. The study should be completed before the end of 2006.

Abbott to file for psoriasis application for Humira

WORCESTER – Abbott Laboratories will file in Europe and the US next year to designate its Humira biotherapeutic for treatment of psoriasis after clinical trial results show patients responded twice as well to Humira as to conventional treatment. The Phase III 16-week clinical trial involved 271 patients from eight European countries and Canada who were candidates for systemic therapy or phototherapy for psoriasis. At the study’s end, 80 percent of the patients receiving Humira achieved at least a 75 percent reduction in disease activity, compared to 35.5 percent receiving Methotrexate, the standard treatment for psoriasis, and 18.9 percent receiving a placebo. The study is the first to compare a biologic drug, to a standard systemic treatment in stand-alone treatment.

Boston Scientific nets FDA approval

NATICK – Boston Scientific Corp. has received FDA approval of its Harmony HiResolution Bionic Ear System, a device that delivers 120 spectral bands that help to increase the hearing potential for the severe-to-profoundly deaf. The device also received approval from Health Canada and the CE mark in Europe. The Harmony System is designed with the aim of improving music appreciation in difficult hearing environments, and helps to create a more natural representation of sounds. In testing, 80 percent of the subjects gave the ear system a positive rating.

AstraZeneca debuts pharmacology unit

WESTBORO – AstraZeneca, a developer of prescription pharmaceuticals, opened its first clinical pharmacology unit (CPU) in the U.S. at the University of Pennsylvania’s Penn Presbyterian Medical Center. AstraZeneca will study the safety and toxicity of a medicine in the CPU, as well as the relationship between a given drug dose and its actions. The results of these tests will serve as an initial measure before the company ventures into deeper clinical studies. The new CPU also serves the needs of patients by allowing researchers to more quickly develop novel therapies for unmet medical needs.

CytRx wins SBIR grant

WORCESTER – CytRx Corp., a developer of molecular medicines for the treatment of metabolic diseases, announced today that it won a $222,000 grant from the National Institute of Diabetes and Digestive and Kidney Diseases to develop a treatment of type 2 diabetes and obesity. The Small Business Innovative Research grant will allow researchers to develop inhibitors to fatty acid synthase, a component which plays a significant role in weight gain and insulin responsiveness in type 2 diabetes.

Education

OSV receives $260k

STURBRIDGE - Old Sturbridge Village is one of only five programs to receive a $260,000 grant from the National Endowment for the Humanities. OSV got the $260,000 grant for its proposal for "A New Vision of New England Farming and Rural Life," part of a special NEH program identifying and supporting significant events and themes in U.S. history.

The funding will allow the development over three years of new agricultural exhibits, including a transformation of OSV’s historical Pliny Freeman Farm, a media space for visitors to explore 19th-century farming and farm life, and an exhibit that compares and contrasts today’s food production, preparation, preservation and consumption processes. The project will begin in January and end in late 2009.

NECC receives $450k grant

SOUTHBORO - The New England Center for Children Inc. has received a $450,000 challenge grant from The Kresge Foundation that could be used to construct a new facility on campus. The center, a nonprofit school for children with autism, must raise $1,053,588 in private gifts by February 2008 in order to earn the $450,000 grant, according to the terms of the challenge. To date, private donors have pledged more than $4 million to the campaign, which was in December 2003 with a $5 million goal. The money will go to construct an on-campus 11,400 square-foot Therapeutic Aquatic Center.

Health care

Harvard Pilgrim separates from Harvard Vanguard Medical

WELLESLEY – The separation between Harvard Pilgrim Health Care and Harvard Vanguard Medical Associates, which takes effect Jan. 1, will require 15,000 seniors to decide between changing doctors or changing their insurance plan. The situation started last spring when Harvard Vanguard Medical Associates decided not to renew its contract with Harvard Pilgrim to provide care for seniors enrolled in Medicare Advantage health plans. Instead, Harvard Vanguard Medical Associates plans to treat seniors who are members of Tufts Health Plan’s Medicare Preferred plan. The Harvard Vanguard medical group was once exclusive to Harvard Pilgrim members, but the two organizations began to separate in 1997 and by 2004, they were operating independently.

National Dentex Corp. acquires Keller Group

WAYLAND – National Dentex Corp., an owner/operator of dental laboratories across North America, acquired Keller Group Inc., a private dental laboratory business with production sites in St. Louis and Lousiville, KY, as well as sales offices in Kansas City, MO and Indianapolis, IN. The transaction was completed on Oct. 5 in the form of a stock purchase agreement in which National Dentex Corp. purchased all outstanding shares of capital stock of Keller for a total of $19,125,000. There was also an additional deferred payment yet to be determined that will be payable in accordance with the terms of the agreement. In its most recent fiscal year, Keller recorded sales in excess of $17,000,000. National Dentex Corp. serves more than 24,000 dentists through 48 laboratories in 31 states and one Canadian province.

Finance

Venture capital firm invests in Lendia

MARLBORO - Mortgage services outsourcer Lendia, Inc. has received a significant minority investment from a 1848 Capital Partners, a private, Miami-based equity firm. Lendia anticipates using the funds to further its expansion strategy, and hire additional staff. The company’s current plans call for expanding its business by more than 100 percent before yearend, and boosting staff in the positions of processing, underwriting, closing and funding-related tasks. The equity firm has invested in a range of industries including restaurants, prepaid calling cards, themed attractions and other business services.

Hanover to drop Cape policies

WORCESTER - The Hanover Insurance Group will reduce its number of home owners’ policies on the Cape in the coming year, the Cape Cod Times reports. Hanover is scaling back its coastal coverage in response to projected hurricane losses and steadily increasing rates for reinsurance. The report says that Hanover will issue notices of the changes to its 2,000 current policyholders starting in November. Other insurers have dropped coverage in the region due to the higher risk presented by its location, while those still offering policies have increased their rates.

High tech

Grace-Hunt moves to Hudson

HUDSON – Grace-Hunt LLC, which installs and supports Microsoft Dynamics software, has relocated from Quincy to a 4,000-square-foot office at 1 Cabot Road in Hudson. Microsoft Dynamics, the Redmond, WA-based company’s new name for its former Microsoft Business Solutions unit, makes customer relationship, supply chain and financial management software. Grace-Hunt, which sells, installs and supports the software for corporate clients, doubled in size over the last year.

Mass. companies up for $338m in defense contracts

WORCESTER – Mass.-based companies could get $438 million in funding in the U.S. Senate’s Defense Appropriations bill for federal fiscal 2007. Recipients include: Worcester Polytechnic Institute for $1 million for a neuroprosthetics and bioMEMS development project; and $1 million for a center for untethered health care in the military; Advanced Microsensors in Shrewsbury for $1.35 million for a silicon-based micro fuel cell chip; American Superconductor in Westboro for $3 million for the HTS AC synchronous Navy propulsion motor; DRS Technologies in Fitchburg for $11 million for the permanent magnet motor system; Aspen Aerogels in Northboro for $1 million for high temperature aerogel materials for global strike vehicles; New England Manufacturing Extension Partnerships in Worcester for $1.95 million for New England Manufacturing Supply Chain Initiative and $340 million for the Joint Strike Fighter Alternative Engine for General Electric in Lynn.

iCortex closes $21 million round of funding

MAYNARD – SiCortex, a Maynard-based developer of Linux clusters, recently closed a $21 million round of funding, its second, for a total of $42 million. The second round was led by Chevron Technology Ventures through its venture capital arm, CTTV Investments LLC. All investors who participated in the first round of funding joined in the second, and included several venture capital firms: Polaris Venture Partners, Flagship Ventures, JK&B Capital, and Prism Venture Partners. SiCortex said that the funding will go towards expansion of sales and marketing efforts, and continued product development.

Identity Force to protect ID of veterans

FRAMINGHAM – Identity Force, a provider of identity theft software, has been contracted by the Office of the General Counsel for Veterans Affairs to provide identity theft protection services to over 5,700 citizens. Earlier this year, the Office suffered a security breach and released the personal data of over 26 million veterans when a laptop and external drive went missing. The contract is an opt-in program, providing services to members such as alerts to changes to credit reports, on-demand personal access to credit reports and scores, $20,000 identity theft insurance policy and other services. The financial value of the contract will be determined by how many participants enroll in the program.

Red Bend Software hits 45 million handsets in 3Q

FRAMINGHAM – Red Bend Software, provider of a market-leading firmware over-the-air (FOTA) client software for mobile phones, announced that its vCurrent (r) mobile software technology is embedded in 45 million handsets worldwide, up 62 percent from 2Q06’s 28 million. As of 3Q06, the brand’s reach extends to 91 countries on 41 handset models from five of the world’s 7 largest handset manufacturers. Two more manufacturers, including NEC, have signed license agreements to take effect within the next year, giving Red Bend access to 75 percent of the worldwide handset market. FOTA allows manufacturers and operators to update firmware and software components of handset phones already in use, delivering updates via wireless, in a process that takes five minutes. For Red Bend’s customers, the handset carriers, this represents a savings of $35 to $72 per unit, the company says.

Retail

Rochester Big & Tall expands to Natick

NATICK – Casual Male Retail Group Inc. will open a Rochester Big & Tall men’s clothing store in Natick at 1400 Worcester Street (Rte.9), the Canton-based company announced. The store is its second in the Boston market, with 25 stores throughout the US and London. Rochester targets high-end consumers of big & tall merchandise, featuring brands such as Polo Ralph Lauren and Burberry. The Natick location was targeted for its convienence, as well as Massachusetts in general for having the third highest personal income per capita in the nation. The firm now has 17 stores total in Massachusetts between its two brands, Casual Male XL and Rochester Big & Tall.

Some of the material in the News Briefs and Small Business sections was originally reported byBanker & Tradesman, The Boston Business Journal, The Boston Globe, Boston Herald, The Clinton Courier and Lancaster Times, The Griffin Report of Food Marketing, IndUS Business Journal, Mass High Tech, The MetroWest Daily News, New England Real Estate Journal, Sentinel & Enterprise, Southbridge Evening News, Telegram & Gazette, and/or Worcester Magazine. If you have a news tip, please call 508-755-8004 ext. 256, fax it to 508-755-4734, or e-mail it to coneill@wbjournal.com.