TRENTON (July 8, 2015) – The New Jersey Economic Development Authority (EDA) today continues its series highlighting how entrepreneurs and investors are helping to build New Jersey’s technology ecosystem.
 
With a career spanning more than 30 years, John Bailye, of Far Hills, has been involved with dozens of startup companies, venture funds and entrepreneurial endeavors. Of his notable accomplishments in New Jersey is Dendrite International.
 
Founded by Bailye in his home country of Australia in 1986, he relocated the company’s headquarters to New Jersey one year later with the goal of pioneering the development of software applications for pharmaceutical sales force management. Under his leadership, Dendrite grew from a two-person operation with $175,000 in annual sales to a global powerhouse, generating nearly $470 million in sales in 2006 and employing more than 3,000 in 26 countries; the company was ultimately sold in 2007 for nearly $800 million.
 
In 2010, Bailye took over as Chief Executive Officer of another New Jersey-based business, EKR Therapeutics. The specialty pharmaceutical company was struggling after a key patent loss. Bailye and his team helped to successfully turn the business around and sell the profitable enterprise in June 2012. 
 
Bailye has used his experience and success to strengthen New Jersey’s technology industry and help promote the next generation of pioneers. 
 
He is a founding member and former chairman of the New Jersey Technology Council (NJTC), and is currently part of the Edison Director Network, an initiative of growth equity firm Edison Partners, which seeks to bring C-level operational expertise to its portfolio companies in the form of board director, mentor or consultant.
 
“I love the engaged mentor role, where I am active in giving specific guidance regarding growth and other issues to the CEO, as well as a general strategic and operating mentor to the company,” Bailye explained. “I frequently focus young entrepreneurs to watch cost/revenue timing; and don’t plan only for the best outcomes. Along those same lines, understand that cash is king, so plan ahead. And remember, Rome was not built in a day, but it was built on a LOT of VERY LONG/HARD days.”
 
Bailye benefited from an Edison Partners investment while he was growing Dendrite, and later became an active investor himself. In addition to investing in NJTC’s Venture Fund, which was founded in 2001 and completed 33 portfolio investments during its active investment period, Bailye founded Woomera Partners last year to invest in and contribute knowledge to healthcare-focused technology and service businesses. To date, Woomera has invested in two New Jersey businesses – Systech International, a global leader in brand protection technologies located in Princeton, and Bergen Medical Products, Inc., a Cedar Knolls-based medical device manufacturer. The EDA is a limited partner in both Edison Partners and NJTC Venture Fund.

“As an executive, an investor and a mentor, John Bailye has consistently helped to grow New Jersey’s technology industry,” said EDA Chief Executive Officer Melissa Orsen. “New Jersey continues to benefit from his expertise and his commitment to nurturing the State’s future innovators.” 

@NJEDATech spoke with Bailye about his experience as an entrepreneur and investor in New Jersey:
 
You founded Dendrite in Australia, but moved to New Jersey one year later. What initially attracted you to the State?  What unique benefits does New Jersey offer to emerging companies?
We came to New Jersey because we served the pharmaceutical industry and New Jersey was largely their home. We used a computer language C++, very modern at the time, and New Jersey had a lot of technical skills centered on that “new” language. So while others were going to San Francisco, we chose New Jersey for its unique advantages.
 
We know that venture capital was an important part of Dendrite’s early growth and expansion. Does Dendrite’s success help to fuel your commitment as an Angel investor? What qualities do you look for in a company?
Absolutely!  We found capital through Edison and the venture community when VC’s were generally staffed with operating people, not investment or financial people. We wanted, and received, operational insight, the help to “see around corners” and to recognize the “Peter Principle” which plagues most growing companies, as well their investments. It was a valuable lesson. I try to deliver the same today in my angel and Woomera investments. 
 
When reviewing the angel opportunities, I always look first at whether the idea is big or clever enough to “move the needle.” Then the team – and in particular look at what motivates them, how big they dream and whether they take advice well. Do they want a big piece of a small cake or a large piece of a very BIG platter?
 
What recommendations do you have for other serial entrepreneurs thinking about giving back to the emerging entrepreneurs?  
These days, New Jersey has a real depth of serial entrepreneurs. Often, after several successful companies, the fire that drove the initial ventures for the entrepreneur, and the willingness to work 80 hours a week is not the current issue, but retirement is out of the question. So mentoring becomes attractive. 
 
The satisfaction of being regularly engaged (but not on a daily basis) in the entrepreneurial fire is like an injection of adrenaline. To know you are helping a new company reach its higher potential is a very, very worthwhile use of time and experience.
 
Remarkably, the knowledge serial entrepreneurs have acquired is much broader than the industry they are in. So they can help new entrepreneurs avoid traps and problems that are generic to most fast-growth companies with very ambitious leaders. 
 
How do you recommend that entrepreneurs find individuals like yourself who have built successful NJ businesses and are now willing to provide mentoring and support? 
Great question! We are not on every street corner!  Initially, ask yourself if you want the answer to a current problem or want a mentor to help you grow.  They are different things.  If the answer is really the latter, don’t expect the help to be free – are you ready to sign up? 
 
Write a half-page bio and a one page summary business plan. Then contact NJTC and join. Go to events and ask others – a good list will appear. 
 
For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

The New Jersey Economic Development Authority's next public Board Meeting will take place at 10:00 a.m. on Thursday, July 9, 2015 at 36 West State St., Trenton, NJ 08625. A copy of the proposed agenda can be found prior to the meeting at https://www.njeda.gov/eda_board_information/agenda. Following the Board Meeting, minutes and the full agenda will also be available at https://www.njeda.gov/eda_board_information/agenda.

TRENTON (July 1, 2015) – The New Jersey Economic Development Authority (EDA) today kicks off a series highlighting investors and entrepreneurs who are making a difference to New Jersey companies at all stages of growth. 
 
First up is Jeff Stonberg, who invested nearly $1 million in Edge Therapeutics through the State’s Angel Investor Tax Credit Program. Edge Therapeutics, based in Berkeley Heights, is a biotechnology company that discovers, develops and seeks to commercialize novel hospital-based therapies capable of transforming treatment paradigms in the management of acute, life-threatening conditions. The company believes EG-1962, its lead product candidate, if approved, can fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage, which is bleeding around the brain due to a ruptured brain aneurysm.
 
Administered by the EDA in consultation with the New Jersey Division of Taxation, the Angel Investor Tax Credit Program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. The program is available to all eligible taxpayers, including out-of-state investors such as Stonberg. As an out-of-state resident, Stonberg received a refund check from New Jersey for 10 percent of the money he invested in Edge Therapeutics. 
 
To date, more than 200 investments have been made through the Angel Investor Tax Credit Program, representing an infusion of nearly $75 million into New Jersey technology and biotechnology businesses. 

@NJEDATech spoke with Stonberg about his positive experience investing through the Angel Investor Tax Credit Program and how it benefitted Edge Therapeutics:
 
Why did you choose to invest in Edge Therapeutics through the program? 
The investment opportunity, as well as the availability of the program, was brought to me by Alex Forschner, Senior Managing Director of Merchant Capital at the Maxim Group, Inc. in New York. The company, Edge Therapeutics, Inc., had already done its part to process with the EDA.
 
How did Edge Therapeutics benefit from the investment made through the program? 
With the added financial leverage, I invested more in the company than I might have otherwise.  The additional amount exceeded the 10% that was returned to me through the program.
 
What did you most appreciate about the Angel Investor Tax Credit Program?
This kind of investing is very risky. The fact that another significant investor, in this case the State of New Jersey, had selected the company for its investment, was an additional, and meaningful, form of validation of the company, its management, and its potential to be successful. 
 
Editor’s Note: In addition to the Angel Investor Tax Credit Program, the EDA supported Edge through a variety of state resources including the Edison Innovation Fund, a suite of financing instruments designed to develop, sustain, and grow biotechnology and technology businesses in the Garden State.
 
What advice do you have for others who may be considering investing through the program?
The process is complex, but the Authority staff, in my case David Ackerman, is extremely helpful. Having been through it, I can see that the process is framed in a sensible way and that the patient population, the company, the State and investors will all benefit. It is an innovative and sustainable program as long as the EDA continues to underwrite companies such as Edge. 
 
The EDA recently launched a webinar via www.njeda.gov/AngelTaxCredit for people to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.  Inquires can be emailed to AngelTaxCredit@njeda.com, and an EDA Venture Officer will respond to the request in a timely fashion.
 
To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (June 25, 2015) – Continuing New Jersey’s long-standing tradition of being a leader in technology, companies in the Garden State are seen as innovators in addressing today’s health threats.  With the onset of new viruses, companies such as VaxInnate Corporation are racing to stay ahead by developing state-of-the-art vaccinations.
 
Cranbury-based VaxInnate focuses on preventing infectious diseases.  VaxInnate’s proprietary toll-like receptor technology genetically fuses vaccine antigens to the bacterial protein flagellin, creating a strong immune response.  VaxInnate is able to use a low-cost, highly scalable recombinant DNA technique that doesn’t rely on age-old egg-based manufacturing to produce vaccines.  The company is currently employing this technology in its mid-stage clinical programs for seasonal and pandemic influenza, and plans to leverage it as it advances earlier-stage candidates for dengue and other serious infectious diseases.
 
In 2011, VaxInnate was awarded a $118 million, five-year contract from the Biomedical Advanced Research and Development Authority to fund the development of the seasonal and pandemic flu vaccines.  The company has also benefitted from New Jersey’s Technology Business Tax Certificate Transfer (NOL) Program over the last six years. This has allowed the company to sell unused New Jersey net operating losses and research and development tax credits to unrelated profitable corporations to raise cash to finance their growth and operations. 
 
Administered by the New Jersey Economic Development Authority (EDA) and the New Jersey Department of Treasury's Division of Taxation, up to $60 million is made available through the NOL program annually to support qualified technology and life sciences companies.
 
Applications for funding through the State’s Fiscal Year 2016 allocation must be submitted by June 30.  Applications can be found at https://www.njeda.gov/nol. 
 
@NJEDATech asked VaxInnate President and Chief Executive Officer Wayne Pisano about the company’s experience in New Jersey and its plans for the future.   
 
Why did you choose to grow your company in New Jersey?
VaxInnate was founded in 2001 by Yale University professors, Ruslan Medzhitov and Richard Flavell, who are also Howard Hughes Medical Institute investigators and leaders in the field of innate immunity. In 2004, our leadership team decided to headquarter the company in New Jersey to gain access to the highly educated and experienced pool of talent in New Jersey. This resource has proven especially beneficial as we’ve grown to employ approximately 55 employees, most of whom have advance degrees in the sciences. 
 
In addition to talent, New Jersey’s chapter of the Biotechnology Industry Organization has been an incredible resource, providing valuable insights and networking opportunities. From a financial point of view, New Jersey offers convenient access to the New York financial community, as well as a variety of state programs, which provided valuable non-dilutive capital to VaxInnate. With these resources, VaxInnate was able to secure approximately 20,000 square feet of laboratory and office space, including molecular and cell biology labs, cell culture facilities, a protein pilot plant and analytical laboratory space. 
 
How did VaxInnate benefit from the NOL program?
VaxInnate has received approximately $8.5 million through the NOL Program. These funds have been used to hire highly educated and experienced scientists and employees, and to advance our research and development programs. Today we have two products in mid-stage clinical development – vaccines for seasonal and pandemic influenza – and several earlier stage candidates. From this strong financial foundation, we have also been able to dedicate resources to the pursuit of new indications to further strengthen our pipeline.
 
What makes VaxInnate’s technology different from other companies’ that develop vaccines?
We believe our proprietary recombinant vaccine production technology offers significant benefits over traditional manufacturing methods, including reliability, cost effectiveness and speed, which can be essential when reacting to unexpected influenza strain drifts, as we witnessed earlier in 2015.
 
What is your company’s biggest success to date?
From a technology perspective, the recombinant vaccine production method we have developed has proven extremely efficient and flexible. From a pipeline perspective, one may point to our seasonal influenza quadrivalent product, which is currently in Phase 2 and has demonstrated encouraging results to date. However, our biggest success in undoubtedly the dedicated team of scientists, executives and administrative personnel who have persevered, adapted and succeeded in an extremely competitive industry. Without this team, VaxInnate would not have developed and implemented the technology that is the foundation of our now growing pipeline.
 
What’s in store for VaxInnate?
VaxInnate recently announced the reprioritization of resources in research and clinical development to help advance the Company’s preclinical initiatives. This should allow the company to further build its pipeline outside of its lead influenza programs, to include vaccines against dengue and Clostridium difficile, as well as other infectious disease targets. Several years from now, we hope VaxInnate will have a much enhanced pipeline, and perhaps a larger team to support the new research and development efforts.

For more information about resources available to New Jersey’s life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.  
 

TRENTON (June 18, 2015) – Those interested in taking advantage of New Jersey’s Angel Investor Tax Credit Program can now access a webinar via www.njeda.gov/AngelTaxCredit to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.
 
Administered by the New Jersey Economic Development Authority in consultation with the New Jersey Division of Taxation, the program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. The program is available to all eligible taxpayers, including out of state investors.
 
To qualify, technology businesses must employ fewer than 225 employees, 75 percent of whom must work full-time in New Jersey. Businesses must also conduct at least one of the following activities in New Jersey: incur qualified research expenses; conduct pilot scale manufacturing; or commercialize an eligible technology.  Eligible technologies include: advanced computing, advanced materials, biotechnology, electronic devices, information technology, life sciences, medical devices, mobile communications, and renewable energy technology.
 
A maximum tax credit of $500,000 is allowed per each qualified investment, and the total program is subject to an annual cap of $25 million.
 
Applications must be submitted within one year of the date of investment. Completed applications, with all required documentation, must be submitted by November 15, 2015 in order to be considered for approval for a 2015 tax credit certificate. Any applications received after this date will be considered and reviewed for a potential tax credit certificate for 2016.
 
Since the EDA began accepting applications to the program in July 2013, more than 200 investments have been approved, representing the injection of nearly $75 million of capital into New Jersey technology and life sciences companies.
 
Any questions or inquires can be emailed to AngelTaxCredit@njeda.com.  An EDA Venture Officer will respond to the request in a timely fashion.
 
To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (June 18, 2015) – TAXIS Pharmaceuticals President and CEO Greg Mario joined with high-level representatives from three other EDA-supported companies at the BIO International Convention in Philadelphia on Tuesday to highlight programs and resources available to New Jersey’s biotechnology companies.  Convention attendees heard how the State supports technology businesses at all stages, helping them start, grow and thrive.
 
During the “Partnering with New Jersey” panel discussion, Mario, whose company seeks to discover and develop pharmaceuticals targeting multidrug-resistant (MDR) bacterial infections, spoke about his experience growing TAXIS Pharmaceuticals in New Jersey.  The company has spent the last five years as a tenant at the Commercialization Center for Innovative Technologies (CCIT), the New Jersey Economic Development Authority’s (EDA) life sciences incubator located in North Brunswick. 
 
Home to more than two-dozen life sciences startup companies, CCIT is located in New Jersey’s Route 1 research and development corridor between Rutgers and Princeton universities.  In addition to affordable lab and office space, CCIT offers a variety of business development resources including educational and support programs, mentoring and advice from high-level life sciences executives and access to purchasing discount programs.
 
Mario, who co-founded TAXIS in 2009, also discussed his experience tapping into New Jersey’s innovative ecosystem by spinning technology out of Rutgers University.  TAXIS entered into an exclusive licensing agreement with Rutgers and the former University of Medicine and Dentistry of New Jersey for worldwide rights to develop and commercialize a novel antimicrobial technology addressing MDR infections.  The technology was discovered at the universities by Mario’s co-founders, Professors Daniel S. Pilch, PhD and Edmond J. LaVoie, PhD. 
 
“The Office of Technology Commercialization (OTC) at Rutgers behaves like a true partner with its licensees. OTC's commitment to incubating technologies discovered by Rutgers faculty was critical to our success in building TAXIS,” Mario said during the panel discussion.
 
@NJEDATech spoke with Mario about his experience in New Jersey and its plans for the future.
 
Why did you choose to grow your company in New Jersey?
Growing our company in New Jersey enables us to connect with access to human capital, proximity to Rutgers, the TAXIS licensor and the favorable environment the State affords start-up life sciences companies.

Can you talk about your experience spinning your company out from Rutgers University and share some best practices for other companies considering spinning out from universities?
Early stage ventures, like TAXIS, require support and flexibility of many sponsors, and none are as important as the licensor. Business is an iterative process and cannot be definitively defined at inception.  Rutgers is a large, structured organization while the OTC is an innovative branch that very effectively facilitates and nurtures a productive relationship between our two very disparate organizations.
 
How has Taxis benefitted from locating its business at CCIT?
CCIT is an effective incubator of early stage life sciences ventures in providing access to business and technology resources that would otherwise be out of our reach.  
 
What is Taxis’ biggest success to date?
TAXIS is making progress towards our goal of providing life-saving anti-infective drugs to market.  To date our greatest success is manifested in our current lead oral antibiotic drug candidate, TXA709.  Within a year we should be moving this anti-MRSA agent into human clinical trials.
 

A meeting of the Fort Monmouth Economic Revitalization Authority (FMERA) Board has been scheduled for Wednesday, June 17, 2015 at 7:00 pm at the FMERA Office, 502 Brewer Avenue, Oceanport, NJ. Formal action may be taken at this meeting.

A copy of the proposed agenda can be found 48 hours prior to the meeting at the website of the Fort Monmouth Economic Revitalization Authority: www.fortmonmouthnj.com .
 

A meeting of the Capital City Redevelopment Corporation Board has been scheduled for Wednesday, June 17, 2015 at 10:00 a.m. at the in the EDA Boardroom, 36 West State Street, Trenton, NJ.

The agendas and the minutes for the CCRC Board meetings are accessible via: https://www.njeda.gov/ccrc .

Continuing its commitment to providing resources to emerging New Jersey’s life sciences companies, the New Jersey Economic Development Authority (EDA) has launched its inaugural group of Executives-in-Residence. 

These highly-qualified life sciences executives mentor and advise emerging technology companies at the Commercialization Center for Innovative Technologies (CCIT), the EDA’s life sciences incubator.  The Executive-in-Residence program was created in collaboration with BioNJ. 

Since starting as CCIT’s inaugural Executive-in-Residence – Valuation and Business Planning, Paul Jeffrey of Ortley Beach has used his talent and broad knowledge of pharmaceutical development and deal making to assist CCIT tenants in maximizing their value to potential partners.  Paul brings a deep understanding of the healthcare industry and more than 30 years of experience at such pharmaceutical giants as Pfizer and Merck to his position. Throughout his career, Paul has led development teams to bring multiple products to market, several of which achieved over $1 billion in total sales. 

During his 27 years at Pfizer, Paul held many roles, including product development, marketing and new business strategy.  In his last position there, he served as Vice President of Early Commercial Development for all prescription products in the Primary Care Business Unit.  He was the Global Marketing Lead for the cardiovascular and metabolic/diabetes products including Lipitor, Caduet and Eliquis.  Paul has led many cross-functional teams across diverse disease areas including infectious disease, HIV, oncology and neuroscience.  His specializations in these subjects have been especially advantageous to tenant companies Aucta Pharmaceuticals and QualComp Consulting Services.

Since leaving Pfizer, Paul has advised several biotechnology companies, including Excaliard and InStar in optimizing their commercialization plan and value to potential partners and investors. He is currently an advisor to Oligomerix, BusStim, and Quantex Labs.

Paul has a Bachelor of Science degree from Carnegie Mellon, a Master of Science degree in organic chemistry from the Massachusetts Institute of Technology, and an MBA from New York University. 

Why did you choose to apply to the Executive-in-Residence program?
I applied to the EIR program because after years of working at a large pharmaceutical company reviewing biotech companies that we might collaborate with or acquire, I realized that this experience would be very helpful in now helping biotechnology companies at CCIT understand how to make themselves more attractive to investors and big pharma.

What do you hope to get out of this Executive-in-Residence program?
By working with the companies at CCIT, I hope to build my experience of working with startup companies and understanding their needs. It will also increase my network among the large NJ biotech network.

What’s the best piece of advice you’ve heard over the years that you hope to impart on these emerging life sciences companies?
"You don't know what you don't know" so you must recognize and accept that and find someone to help you that does know. So often companies fail because they think they know what's needed to be successful, and they fail because they didn't see the pitfall that others would likely have seen ahead of time.

What is the next challenge you want to undertake in your career?
My biggest hope is that some biotechnology companies will recognize that given my vast pharmaceutical experience, I can offer them some very sound advice.  I want to apply my experience in those situations where my advisory services can make a real difference between success and failure for a fledgling company. My tenure at CCIT will hopefully aid in finding some of those companies where I can make a difference.

The EDA is currently accepting applications for its second Executive-in-Residence class.  Optimal for life sciences Executives currently in transition, benefits of the program include networking opportunities with tenants, BioNJ and the greater New Jersey life sciences community; office space at CCIT; the title of Executive-in-Residence; and exposure on EDA’s website.   To learn more about the program or to apply to be an Executive-in-Residence, visit https://www.njeda.gov/eir.

For more information about resources available to New Jersey’s life sciences companies, visit https://www.njeda.gov/ccit and follow @NJEDATech on Twitter and LinkedIn.