News Briefs

Development

Ayer, Harvard nix Devens spinoff

HARVARD and AYER - Voters in these two towns rejected a plan to spin off the former Fort Devens Army base into the state’s 352nd community. Voters in Shirley, the third town in Devens’ footprint, voted to accept the plan, which needed yes votes from all 3 communities to pass. Proponents had said creating a separate town would ease the housing crunch by allowing more development, while opponents said the disposition of the site would strain schools and public services. All 3 government-sanctioned agencies with a stake in Devens had sought approval to turn it into a town. The site is now an industrial and recreational center.

State, OSV formalize land deal

STURBRIDGE - The land-sale deal in which Old Sturbridge Village will sell 826 acres of conservaiton land has been formalized. The Division of Fisheries & Wildlife bought a conservation easement on the property for an undisclosed amount. The Department of Fish and Game purchased a conservation restriction on the 826-acre tract for $1.9 million in June, and the town purchased the fee interest in the property, subject to conservation restriction, for an additional $1.9 million.

Marlboro 2010 lands consultant

MARLBORO - Marlboro 2010 Inc. has retained Worcester-based BSC/Terrasphere to analyze the Maple Street-Route 85 Corridor from the Southboro town line to Granger Blvd. to help determine ways to enhance one of the city’s most visible entranceways. The non-profit Marlboro 2010 evolved from the Marlboro 2010 Initiative launched last February. Its first goal is to enhance the city’s role as an economic hub in the Northeast. It will also help prepare the city for a 350th anniversary celebration in 2010. The study information will help Marlboro 2010 and the city use the state’s District Improvement Financing as a funding mechanism for improvements made along the Route 85 corridor. Under DIF rules, the city could borrow money against future tax revenue to pay for public improvements.

Lancaster petitions could delay Wal-Mart

LANCASTER - The state Attorney General is expected to invalidate three separate citizen petitions being presented before Lancaster voters during a special town meeting opposing the building of a Wal-Mart. The AG contends the petitions’ distributors did not hold the required public hearings on the proposals. Two of the petitions, Articles 17 and 18, would delay construction of the Wal-Mart shopping center. The first called for amending town zoning bylaws to include a six-month moratorium on permitting for retail developments in excess of 100,000 square feet, while the second included a redefinition of shopping centers.

Biomedical

Genzyme acquires AnorMed

CAMBRIDGE – Genzyme Corp., which has operations in Framingham and Westboro, has agreed to buy Vancouver, Canada-based AnorMed Inc. for $580 million. Genzyme bid successfully against Cambridge-based Millennium Pharmaceuticals Inc. Fueling the acquisition is Mozibil, AnorMed’s late-stage clinical trial bone marrow transplant drug. Mozobil is designed to help cancer patients undergoing stem cell transplants generate healthy new cells and rebuild immunity. Genzyme hopes to commercialize Mozobil through its existing global transplant business. The drug is expected to reach the U.S. market in 2008 and is projected to reach global sales of $100 million to $200 million per year.

Boston Scientific nets dual CE approvals

NATICK – Boston Scientific Corp. has received CE Mark approval for its PROMUS Everolimus-Eluting Coronary stent system, complementing its already-approved TAXUS paclitaxel-eluting stent system, making the Natick-based firm the only company to receive discrete approval for two drug-eluting stent platforms in the CE region. The approval allows BSX to begin marketing the newest stent system in the 25 EU countries and support registrations in other regulated countries in Asia, Latin America and Eastern Europe. The firm expects to launch the PROMUS system in Europe in 2007.

Sepracor study: Patients improve with Lunesta

MARLBORO – Sepracor has released the results of a randomized, double-blind, placebo-controlled, two-week study of its Lunesta brand of eszopiclone for treating older insomnia patients. The results showed an improvement in patients’ sleep maintenance, sleep induction, and sleep duration. Patients administered the drug also reported reduced time to sleep onset, reduced wake time after sleep onset, increase sleep efficiency and increased total sleep time. The most commonly reported negative effects were pain, dry mouth, dizziness, somnolence, and unpleasant taste. The results were consistent with a previously published two week trial in SLEEP, a journal studying the administration of Lunesta to elderly patients.

Biovest nets acceptance for BiovaxID

WORCESTER – Biovest International Inc. has received notification from the Commission of the European Union that its BiovaxID therapy for Follicular Lymphoma has gained entry on the European Community’s Drug Register for Rare Diseases. Biovest, which specializes in the development of advanced immunotherapies for life-threatening cancers of the blood system, is seeking final approval to market BiovaxID in the EU. The latest designation offers benefits to BioVest in its development and marketing of the therapy in the EU, which names treatments to the Drug Register for Rare Diseases to target those disorders that affect fewer than 5 in 10,000 people. The designation will also allow Biovest to take advantage of direct assistance from the European Medicines Agency in preparing the final protocol for drug approval, among other benefits.

EXACT Sciences to cut staff

MARLBORO - Exact Sciences Corp. is cutting almost 50 percent of its work force. The job cuts will extend the company’s cash reserves into 4Q 2009. Exact Science, which develops colon cancer detection technology, awaits approval by the American Cancer Society and the Multi-Society Task Force on final recommendations related to revised colorectal cancer screening guidelines. Those rules will determine whether Medicare will pay for the tests for the elderly and disabled people. Exact will take a $700,000 charge in the fourth quarter with the layoff of 21 of its 44 employees, 60 percent of whom are in Marlboro. The restructuring will reduce salary and benefits by approximately $1.5 million in 2007 and $2.4 million annually thereafter. EXACT Sciences is also reviewing its facility needs, and announced it may note further restructuring charges related to potential facility consolidations.

Education

MWCC opens childhood

education center

GARDNER - Mount Wachusett Community College has unveiled its new $2.1 million childhood education center. The 52,000-square-foot childhood center serves as home to the Molly Bish Institute for Child Health and Safety and the Garrison Center for Early Childhood Education. The laboratory allows for Mount Wachusett students to observe preschoolers in classroom environments without having to go offsite. The preschool can hold 40 children, ages 2 to 5 and is run by Montachusett Opportunity Council Child Care & Head Start.

Nichols launches cultural program

DUDLEY - Nichols College launched a two-week study program, "Immigration, the Changing Face of America." The program, which ran until Oct. 25, celebrated ethnic diversity with music, dance, art and regional foods. The event included performances by an American Indian flutist, an African percussion group, Brazilian dancers and an Irish folk singer. Lunch featured selections from Asia, the Middle East, the Indian subcontinent, and western Europe. The program is expected to integrate and broaden immigration and cultural awareness among students. While the festivities offered the lighter side of the two-week program, coursework focused on investigating immigration issues from a variety of perspectives in more than 40 classes discussing topics ranging from ethnic issues on legal and illegal immigrants and border security to studies on Hispanic demographics.

Finance

Hanover reports additional Katrina losses

WORCESTER - The Hanover Insurance Group Inc. has raised its estimated losses from Hurricane Katrina by another $52 million due to increased business interruption loss claims and the reopening of previously-closed claims as more damage is discovered. Hanover is one of the top 10 insurers in Louisiana. Hanover will take a third-quarter earnings charge of $34 million, or 66 cents per share. The charge is not expected to have a significant impact on Hanover’s results because it represents less than 3 percent of the company’s $1.4 billion in statutory capital. Analysts had been expecting a third-quarter profit of approximately $1.01 per share. Also arising are disputes over whether damage has been caused by wind versus water, which is generally not covered by homeowner policies. As of August, insurers had paid more than $24 billion in Katrina claims, according to the Property Casualty Insurers Association of America.

Worcester gets an A rating

from Fitch

WORCESTER – The City of Worcester has received an ‘A’ rating from Fitch Ratings, a provider of credit opinions. The rating counts towards Worcester’s $47 million general obligation bonds, and the City’s $561 million outstanding long-term debt, with an overall outlook rating of stable.

The ‘A’ rating reflects Worcester’s historically consistent fiscal performance, prudent financial management and budgeting, strong tax base growth, and a stable employment base supplemented by higher education and health care institutions, Fitch reported. These strengths are balanced by Worcester’s above-average debt levels when pension bonds are included, as well as its below-average income levels, wealth, and employment. Fitch forecasts that despite Worcester’s stable fiscal performance, fiscal 2006 expected results will show a $7.2 million decline in total fund balance, a negative 43.6 percent change over fiscal 2005.

Lendia tapped for office support

MARLBORO – Lendia Inc. has been selected by Global Equity Lending to provide back-office support for its residential mortgage origination business. Lendia, which provides services for mortgage originators, will manage Suwanee, GA-based Global’s loan operation functions. Global Equity has doubled in size every year since its inception in 2003, and hopes to have one million recruits by the end of 2007 to be trained to originate loans. Global Equity also hopes the collaboration will bring about new opportunities in capital markets, and bring their origination volume to a higher percentage of closed loans.

High tech

EMC reports improved 3Q

but will cut jobs

HOPKINTON - EMC Corp. reported a 30 percent increase in 3Q profit growth excluding options expenses in the most recent quarter and a one-time tax benefit in 3Q05. EMC will also lay off 1,250 people, or 4 percent of the workforce, after two recent acquisitions, RSA Security and Network Intelligence, which added $37.8 million to Q3 revenues. Both 3Q revenues and system sales grew 19 percent over last year. After adjustments of $0.04 per share tax-related benefit and excluded $0.03 related to stock option expense, diluted earnings per share for Q3 were up 30 percent compared with 3Q05.

Converged Access partners with Freeway Communications

LITTLETON – Software firm Converged Access Inc. will partner with Los Angeles-based Freeway Communications LLC to better meet the increased needs of its customer base. Both firms specialize in the Voice Over Internet Protocol (VoIP) market. Terms of the agreeement call for Freeway to offer customers several Converged products, including the Centralized Policy Manager, a device that allows for centralized quality-of-service management. The partnership will allow the companies to help meet the demands for toll-quality service from VoIP services.

Centage expands operations locally

NATICK - Centage Corp. is centralizing its operations at 190 North Main St. in Natick to tap the region’s high-tech work force. The company has closed its Houston office and will be filling some new positions locally created by vacancies as none of the Houston employees will be relocated. Centage company, which employs 12 people in Natick, will now employ 16. Centage makes budgeting and forecasting software for small and medium-size businesses.

UpdateLogic makes deal

SOUTHBORO – UpdateLogic Inc. has contracted with a Cable Television Laboratories Inc., consortium of cable television companies, to send software updates for digital devices through their networks nationwide. The technology called UpdateTV, would allow digital TV manufacturers and makers of other digital devices to transmit software patches and upgrades for their products over a PBS cable signal versus sending fixes through the mail or repair technicians. UpdateLogic has tested the technology in four cities, including Boston, with a $4 million investment from Core Capital Partners. The company has also doubled its workforce to 12, and moved from three small offices in Hopkinton to larger space in Southboro. It expects to hire eight more people by the middle of next year.

Covergence provides security to VoIP provider

MAYNARD – Covergence, a Maynard-based developer of Voice Over Internet Protocol (VoIP) security software, will supply iTalk Broadband Corp. with its Eclipse security product, the first time residential subscribers of iTalk’s VoIP services have had fully-secured access. Covergence’s Eclipse Session Manager program allows for secure connections at the point in which a subscriber’s phone line connects with the broadband connection. By using the Convergence product, that connection can now be fully encrypted and validated to levels just as secure as traditional phone systems. The service also aims to cut down on other breaches, such as service theft or access to private consumer information.

TDC opens Silicon Valley facility

MARLBORO – Biomedical device maker TDC has opened a new facility in Sunnyvale, CA called TDC West.

The new location will offer the same services as the company’s Marlboro headquarters. TDC provides design, development and manufacturing services for disposable medical devices, from early stage concept design through the entire process to packaged, sterile devices.

Labor

NEMSA pickets AMR

NATICK – About 30 employees of American Medical Response picketed outside management offices demanding a halt to alleged efforts to weaken their new union. The demonstration in front of the national ambulance service company, which included off-duty employees, lasted 6 hours. The National Emergency Medical Services Association charges filed previously with the National Labor Relations Board allege that AMR is violating workers’ rights by denying union access to bulletin boards and failing to give due notice before making changes that affect working conditions, locations and employee schedules. In early October, NEMSA became the new union for AMR employees after 13 years with the International Association of EMTs and Paramedics. It represents 1,000 AMR employees in Maine, Massachusetts and New Hampshire and provides ambulance services in Framingham, Natick, Newton, Waltham, Wellesley and Waltham

Manufacturing

Evergreen Solar in $100m

agreement

MARLBORO – Evergreen Solar Inc. has entered an agreement with Mainstream Energy LLC, in which Evergreen will ship $100 million of photovoltaic modules to Mainstream over the course of a four-year contract. Evergreen, which manufactures solar power products using String Ribbon wafer technology, will provide Mainstream with the products. Mainstream will in turn provide to their systems integration and distribution subsidiaries, helping Evergreen to enter new markets. The Mainstream agreement is Evergreen Solar’s sixth major contract in 12 months, totaling more than $700 million over the next five years. The photovoltaic modules will be manufactured at Evergreen Solar’s facility in Marlboro and its EverQ factory in Germany.

Moldflow launches anti-piracy

program

FRAMINGHAM – Moldflow Corp. is targeting Eastern Europe for unauthorized users of its software through a time-limited offer to convert to legally-licensed products. The firm, a software developer for the plastics injection molding industry, wants to end the use of unlicensed and unauthorized Moldflow software in Eastern Europe. Through Dec. 31, companies using the illegal versions can obtain a legal license directly from Moldflow and avoid possible legal action. After January 1, Moldflow will work with legal authorities to take any required legal action against offenders.

Health care

Fallon Community Health Plan offers online claim services

WORCESTER – Fallon Community Health Plan Inc. has signed an agreement with Middletown, CT-based Post-N-Trac Corp., a firm providing web services for the healthcare industry. The new service will allow physicians’ offices, hospitals, labs and billing companies to submit their claims online. The service will also allow for immediate confirmation that the claim has been received, and is offered at no cost to providers in the FCHP network. The new system aims to improve efficiency of the claims process, and will allow users to track their claim results without an intermediary. Post-N-Trac also contains a Claim Management Center for receipt confirmation, acknowledgements, claims status and remittance notices.

Fallon Clinic adds Health New England

WORCESTER – Fallon Clinic Inc. has agreed to offer health care services to members of the Springfield-based HMO Health New England - a milestone that means the group now accepts members of every HMO in the Bay State. Health New England has more than 100,000 members and is the largest locally-based HMO in Western Mass. The HMO says the agreement with Fallon Clinic will help in an effort to expand into Central Mass. in response to the changing needs of its employer base. About 10 to 20 percent of its members are located in the Central Mass., where Fallon Clinic is the largest privately held doctors’ group.

Retail

Lumber Liquidators comes to Central Mass.

TOANO, VA – National hardwood flooring retailer Lumber Liquidators plans to open its first Central Massachusetts store next month at 835 Hartford Turnpike in Shrewsbury. The company recently secured a lease for 3,900-square-foot retail and distribution space, slated to be its 86th location. The space is in a new, 7,400-square foot building developed and owned by Wall Properties LLC of Shrewsbury. Lumber Liquidators currently operates three other Massachusetts stores, in Braintee, Boston, and Woburn. It’s the largest direct retailer specializing in hardwood flooring in the United States.

Dick’s Stores Portfolio sold

SPRINGFIELD – Berkshire Development has sold 10 retail properties that primarily house Dick’s Sporting Goods stores in the eastern half of the U.S. for approximately $63 million The sale includes the Millbury store. The buyer is New York-based NorthStar Realty Finance. The 10-property portfolio included stores located from Kansas to Maine, including Millbury; North Attleboro; Bloomingdale, IL; Concord, NH; Ft. Wayne, IN; Huntington, NY; Keene, NH; South Portland ME, and Wichita, KA. The portfolio included nine Dick’s Sporting Goods stores, and one PetSmart. All properties are brand new, fully leased, and located adjacent or in close proximity to super-regional retail locations.

Regional Tourism Council awarded millions in grants

BOSTON – The Department. of Business and Technology and Massachusetts Office of Travel and Tourism (MOTT) awarded $7,925,000 in funds to the Bay State’s 13 Regional Tourism Councils to advertise, promote, and generate tourism spending in Massachusetts. Tourism generates more than $808 million in state and local taxes, and nearly $1.25 billion in travel-related expenditures. Over 31 million visitors come to Massachusetts each year.

Utilities

NSTAR lands $8.23 million

contract

WESTBORO – NSTAR Electric Co. has received an $8.23 million contract from the Defense Energy Support Center (DESC) in Virginia for electrical upgrades at the U.S. Army Soldier Systems Center in Natick. The upgrades to the high voltage electrical distribution system at the Center will last for about a year. The current system is more than 50 years old and will be demolished, along with the aerial cable and wooden utility polls. NSTAR will own and operate the new electrical system upon completion of the project, and take over all upkeep requirements from the Army. NSTAR plans to install an underground, looped high voltage distribution system as well as new transformers to power more than two dozen laboratory, administration, and other buildings on the 78-acre site.

NORESCO wins $106-million

project

WESTBORO – NORESCO, which specializes in energy savings solutions, has secured a $106-million project to build a cogeneration power plant at a US Navy base in Japan. The project supports the Naval Facilities Engineering Command, Far East. It will be operational by the summer of 2008, and will provide 39 megawatts of new capacity, including 14.5 megawatts to support base activities and 24.5 megawatts of power capability will provide additional shore power for Navy ships in port. The new plant is also expected to provide steam generation capacity. The project will be funded by guaranteed cost savings over a 20-year term, and annual cost savings are expected to be in excess of $14 million.

Some of the material in the News Briefs and Small Business sections was originally reported by Banker & 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.