The EDA is accepting comments on proposed changes to its Economic Impact Model, approved by the Board of the EDA on December 13, 2016 and subject to the Governor’s 10-day veto period. 
 
The model was developed by JLL in 2012 to help measure the likely impact of a given development to the State.  The EDA utilizes the model to assess economic outputs, impacts, likely job creation and taxes to be generated for applications submitted under the Grow New Jersey (Grow NJ) and Economic Redevelopment and Growth (ERG) programs.  The EDA, in collaboration with JLL, has recommended revisions to the model in the following areas:
 

• Update the rate of inflation assumption
• Treatment of direct and indirect benefits beyond applicant commitment period
• Potential recoupment related to projects which do not comply with their agreed to extended commitment periods
• UEZ impact
• Renovation costs
• Implementation of NJ’s Gross Income Tax progressive scale rates
• New Jersey Earned Income Tax Credit
• Corporate Status/Corporation Business Tax Policy
• Updated Sales Tax rate

 
Click here to view the full Board memo, detailing the revisions listed above.
 
Click here to view the June 2012 overview of the NJEDA Economic Impact Model.
 
The revised model will become effective on February 16, 2017. All ERG and Grow applications received on or after this date will be reviewed utilizing the revised model. ERG and Grow applications currently in-house or received prior to February 16, 2017 will be reviewed utilizing the current model. Should any applications approved for an award prior to February 16, 2017 require a modification that results in a 25% or more change in the project, the project will be reevaluated using the net benefit model effective at the time of original approval; however, all modification requests approved after the June 13, 2017 EDA Board meeting will be reevaluated utilizing the revised model.
 
Comments must be received by 5:00 p.m. on Friday, January 6 and should be mailed to:
 
Maureen Hassett
Senior Vice President
NJEDA
P.O. Box 990
Trenton, NJ 08625-0990

The EDA is mourning the loss of our Chairman and friend.

Words cannot express the high regard and affection we felt for Al, and gratitude for his exemplary leadership. Over the course of his distinguished professional and public service career, we were fortunate that Al served as our Chairman twice; he was appointed by Governor James E. McGreevey in 2003, serving until 2006, and again by Governor Chris Christie in 2010.

During his tenure, he helped oversee and implement initiatives that have left an indelible mark in our cities and across the State. This includes the creation of the School Construction Corporation and the State Economic Recovery Board,  subsidiaries of  the EDA tasked with designing and constructing schools in the State’s Abbott school districts, and stimulating economic development in the City of Camden respectively; the creation of the Fort Monmouth Economic Revitalization Authority, which was established to guide the investment, growth and integration of Fort Monmouth; and administration of the State's incentive programs under both the New Jersey Economic Stimulus Act and the New Jersey Economic Opportunity Act.

With compassion and integrity, Al drove the EDA  to achieve the highest standards in our administration of economic development programs on behalf of New Jersey.   He will be sorely missed. Our thoughts and prayers are with his family during this difficult time.

Tabula Rasa's year of extraordinary growth was accentuated by the ribbon cutting at its newly-expanded headquarters in Moorestown. (Photo credit: Tabula Rasa)  

TRENTON (December 7, 2016) – Healthcare information technology company Tabula Rasa Healthcare, Inc. (TRHC) will enter 2017 buoyed by its many growth milestones in 2016. This year alone, the New Jersey Economic Development Authority (EDA)-supported company became a publicly traded entity, expanded into a larger location in Burlington County, and inked an agreement with a trade association serving hundreds of healthcare organizations.

TRHC, which formerly did business as CareKinesis, partners with healthcare organizations to provide and coordinate medication risk mitigation services for individuals with complex medication needs. The Burlington County-based company offers personalized medication risk mitigation services, unique robotic reminder packaging systems, and an online medication risk mitigation portal.

“Unintentional overdoses and misuse of prescription drugs result in more than 100,000 deaths annually, approximately 125,000 hospitalizations, and one million emergency room visits,” TRHC Chief Executive Officer (CEO) and Chairman Dr. Calvin Knowlton said. “Through our patient-centric, data-driven technology, we are striving to reduce adverse drug events, enhance compliance and quality of care, and mitigate patient risk.”

After experiencing an annual growth rate of over 80 percent since its launch in 2011, TRHC, which currently employs 250 people, filed for an initial public offering (IPO) earlier this year. The IPO, which closed in September, raised $52 million. The company plans to use the funds to pay down existing debt, acquire intellectual property, and expand its sales infrastructure.

Another example of TRHC’s success was the expansion of its headquarters this year into a 75,000-square-foot facility in Moorestown. The move, driven by the company’s rapid growth, was encouraged by the approval of Grow New Jersey (Grow NJ) tax credits. Grow NJ is the state’s primary program for job creation and retention.

The company received a $500,000 loan from the EDA in 2012 through the Edison Innovation VC Growth Fund to support working capital needs. Created to enhance support of early-stage businesses that have attracted funds through venture capital investors, the Fund helps companies directly finance uses such as hiring key staff, product marketing, and sales by providing up to $1 million in subordinated convertible debt financing.

“TRHC is a prime example of a New Jersey company that is leveraging State resources to accomplish its goals and positively impact the healthcare industry,” EDA CEO Melissa Orsen said. “It’s exciting to watch innovative companies like TRHC grow in New Jersey and  expand their presence in the marketplace.”

TRHC also entered into a three-year agreement this year with NJHA Healthcare Business Solutions Inc., a subsidiary of the New Jersey Hospital Association (NJHA), to offer TRHC’s proprietary Medication Risk Mitigation™ products and services to NJHA’s nearly 400 member healthcare organizations.

@NJEDATech asked Knowlton about his company’s experience in New Jersey and its plans for the future:

Your company has experienced significant growth in the past year. To what do you attribute these successes?
TRHC’s vision is to be "the vanguard in eliminating preventable adverse drug events.” Our mission is "improving lives through innovative medication risk mitigation technology”.

The mission of TRHC quickly becomes the passion of the individual. Our culture is one where we emphasize that behavior is what supports our values. Focusing upon altruism and caring for clients and team members, we value personal integrity, innovation, accountability, problem resolution, equality, service and product excellence, client and team collaboration, and fun!
 
From the very beginning of our company, we set out to be different. Different in how we treat our clients, different in how we work with each other, and different in the results we achieve. These differences are best captured now in the 32 “fundamentals” that are the foundation of our unique culture. We call it: The TRHC Way.
I have lived here my whole life and appreciate the EDA’s for supporting entrepreneurial endeavors.

What’s in store for TRHC in 2017?
We are continuing to expand our services for the frail elderly in the United State, including entering offering services to companies and organizations within the healthcare payor industry.

What advice do you have for entrepreneurs starting out in New Jersey?
Beyond the requisite passion and domain expertise entrepreneurs must embody, reach out to the EDA to understand the variety of funding support that is available to you.

To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visithttps://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.
 

The New Jersey Economic Development Authority's next public Board Meeting will be held on Tuesday, December 13, 2016 at 10 a.m. at the EDA offices at 36 West State Street, Trenton. A copy of the proposed agenda can be found prior to the meeting at www.njeda.gov/Board. Following the Board Meeting, minutes and the full agenda will also be available at www.njeda.gov/Board.

A meeting of the Capital City Redevelopment Corporation (CCRC) Board has been scheduled for Wednesday, December 7, 2016 at 10:00 am in the EDA Board Room, 36 West State Street, Trenton, NJ.

 

A copy of the proposed agenda can be found at http://web.njeda.com/ccrc/page.aspx?id=2461

 

From left: Vicky Gaddy, Michael Wiley and Jorge Ramirez each bring a unique perspective to their positions on the CCIT's Advisory Board.

TRENTON (December 1, 2016) – Adding to the esteemed list of industry leaders mentoring life sciences tenants at its Commercialization Center for Innovative Technologies (CCIT), the New Jersey Economic Development Authority (EDA) today announced the addition of three new members to the CCIT Advisory Board.

Strategically located at the 75-acre campus of the Technology Centre of New Jersey in the heart of the State’s research corridor between Rutgers and Princeton universities, CCIT offers both small and large labs, including the most wet labs of any incubator in New Jersey. Currently home to nearly two dozen life sciences companies, the incubator also provides tenant companies with educational programs and a host of supporting resources. These include helping to identify funding sources and providing access to small business development resources and networking opportunities, as well as an active Advisory Board that routinely interacts with tenants to provide guidance as they grow and thrive in New Jersey.

BioNJ’s Vicki Gaddy, Foundation Venture Capital Group’s Michael Wiley, and H.I.G. Capital BioHealth Partners’ Jorge Ramirez join 17 other members on the CCIT Advisory Board. The Board is comprised of professionals from the many types of organizations that are involved with growing companies, such as the ones housed at CCIT. Accountants, investors, lawyers, trade organizations, senior executives, educators, consultants, hospital administrators, and CCIT graduates all have seats on the Board. A complete list of advisory board members can be found here.

“Each of our CCIT Advisory Board members brings a unique perspective,” EDA Chief Executive Officer Melissa Orsen said. “Collectively, the Board offers a wide spectrum of expertise from which our tenant companies can draw when they need guidance growing their companies and commercializing their products here in New Jersey.”

Gaddy, of Long Branch, brings a heavy human-resources background to her position on the CCIT Advisory Board. As the vice president of BioNJ’s Talent Services for the past seven years, Gaddy has a pulse on New Jersey’s highly-talented workforce and connects emerging biotechnology companies with suitable potential employees. Throughout her career, Gaddy has served in a variety of human resources leadership roles for biotechnology companies.  

Foundation Venture Capital Group Vice President, Michael Wiley, of Hightstown, provides CCIT tenants with insight into what investors look for in early stage investment opportunities. Foundation Venture Capital Group, located in New Brunswick, routinely invests pre-seed funding in New Jersey early-stage life sciences companies, including a $500,000 investment earlier this year in CCIT tenant Visikol, Inc. Wiley worked for the EDA for six years, during which time he focused on various business development initiatives and financing innovative companies across healthcare, high-tech and clean tech business start-ups.

Ramirez, of Mountain Lakes, is a Vice President at H.I.G. BioHealth Partners, the life sciences investment affiliate of H.I.G. Capital, where he focuses on development stage and growth investments in the healthcare sector. Prior to joining H.I.G. BioHealth Partners, he was with ProQuest Investments, a Princeton-based healthcare-focused private equity firm. Ramirez has been an observer or board member of numerous life sciences companies, including Nutrinia, which recently opened an office in Morris County, and Eagle Pharmaceuticals, located in Bergen County. With a background in both investing and management, Ramirez is available to help CCIT tenants develop fundraising and clinical development strategies as well as answers entrepreneurs’ questions about running businesses.

@NJEDATech asked the new members about the CCIT Advisory Board and their vision for its future:

Why did you decide to join the CCIT Advisory Board?
Gaddy: It’s an honor for me to serve as the BioNJ representative to support the work of such a highly successful incubator in New Jersey and provide whatever insight may be beneficial to the evolving companies there. I grew up in a household where my father built and owned his own highly successful businesses, so I was exposed to, and bitten by, the entrepreneur bug very early in life. Additionally, through my work overseeing the various talent services we provide at BioNJ, I have had the benefit of interacting with the leadership and companies at CCIT as we helped to build supportive programs there, linking industry expertise with the emerging businesses.

Wiley: CCIT has provided such great support to life science companies, entrepreneurs, and the broader ecosystem for so many years in New Jersey. I appreciate and value having CCIT as a resource in the state and so when I was asked to join the advisory board, it was an easy decision to say “yes” to lending assistance to CCIT and its tenant companies.

Ramirez:  CCIT has become a model incubator for life sciences and technology companies.  From my perspective, CCIT’s approach is unique:  the entire organization is committed to helping and encouraging entrepreneurs to create sustainable businesses.  The Center offers relevant programing for companies at different stages of development and is proactive about partnering with other industry organizations from the region.  My goal is to contribute meaningfully to CCIT’s mission of supporting the life sciences ecosystem in New Jersey.   

Where do you see CCIT five years from now?
Gaddy: CCIT has a history of launching companies to success in our region, and I would love to see it continue on this path and leverage that good work by enabling even greater visibility for New Jersey as a key region for innovative and successful new businesses. 
 
Wiley: I see CCIT continuing to support leading life science companies in the region. With this in mind, I hope to see CCIT building upon its success by further developing its value-added programming, integrating learnings and mentorship from successful CCIT graduates and entrepreneurs in New Jersey, and continuing to make a positive impact within New Jersey’s life sciences ecosystem.
 
Ramirez: Over the next five years, I hope to see growth in the number of life sciences companies based in and around CCIT. There is a powerful network effect when companies and entrepreneurs are co-located and I expect CCIT to be in the middle of it all.
 

  

Yusheng Xiong (left) and Christopher Newton turn to CCIT's amenities and resources in quest to grow their drug-discovery companies. 

North Brunswick (November 22, 2016) – Citing a wide array of resources and networking opportunities available to tenants at the New Jersey Economic Development Authority’s (EDA) Commercialization Center for Innovative Technologies (CCIT), entrepreneurs with ties to the Garden State’s technology community this month signed leases for lab space at the State’s leading life sciences incubator.

These early-stage drug discovery companies, Quixgen and API Pharma Tech, join nearly two dozen other life sciences businesses that currently call CCIT home.

“CCIT has welcomed over 40 emerging life sciences companies since 2010,” EDA Chief Executive Officer Melissa Orsen said. “CCIT provides the tools, support and connections that growing companies need to thrive in the Garden State, and we are pleased to welcome Quixgen and API Pharma Tech.”

Strategically located in the heart of the State’s research corridor between Rutgers and Princeton universities, CCIT offers the most wet labs of any incubator in New Jersey. The incubator includes both small and large labs, as well as offices. CCIT also offers discounted first-year rent for university spinouts. Additionally, CCIT provides tenant companies with educational programs and a host of supporting resources, including help to identify funding sources and providing access to small business development resources, networking opportunities and administrative support.

Quixgen founders Yusheng Xiong and Hong-Ping Guan spent over two decades at New Jersey-based pharmaceutical giant Merck before launching their company. They leased an 800-square-foot lab at CCIT, where Quixgen will focus on finding a niche in the drug discovery/infectious diseases market. When

@NJEDATech spoke with Xiong about his arrival at CCIT, he spoke highly about the infrastructure of the lab and was already impressed with the atmosphere of the tenants and the opportunities he will have to engage with founders of other tenant companies.

Christopher Newton, founder of API Pharma Tech, moved to New Jersey from India in 2003 and became a partner and the chief scientific operator at Navinta LLC, a pharmaceutical company based in Ewing. In 2011, Newton founded Dr Newtons Pharma Solutions, an independent pharmaceutical consulting company based in Plainsboro, before establishing API Pharma Tech earlier this year. API Pharma Tech is a research-based pharmaceutical company that aims to help clients reduce research and development costs and deliver medicine to treat unmet needs. The company will develop and deliver products that are expected to meet the needs of people suffering from iron-dependent Anemia, chronic kidney disease, Wilson’s disease, cystine urea kidney stones, and rheumatoid arthritis. Newton noted that his company, which will be leasing 800 square feet of lab space, will focus on generic as well new drugs in the coming years, and plans to invest and expand operations into pharmaceutical manufacturing.

@NJEDATech spoke with Xiong and Newton about their plans to grow their companies in New Jersey:

Why did you choose to grow your company in New Jersey?
Xiong: Having spent over 20 years in New Jersey’s pharmaceutical industry, we knew about the State’s legacy of large pharma, and its many highly-qualified individuals. Establishing ourselves here in New Jersey allows us to draw from that talent pool and at the same time, lets us collaborate with the many small pharmaceutical companies located here.  

Newton: API Pharma Tech will be developing products at CCIT, having them manufactured at a contract manufacturing organization CMO site, and marketing the products in association with bigger known companies most of them having their offices in New Jersey. Having my lab in New Jersey makes my job easier to connect with CMOs and marketing companies. Also, having my lab in New Jersey, especially a centralized location like North Brunswick, will make it easier for me to connect with CMOs and marketing companies.

I’ve been looking for some time for a laboratory to experiment and transform my ideas to make niche products. In addition to the fact that CCIT is close to my home, the amenities it offers, combined with the professional staff and educational programs, will help my team and me as we continue to build out our product.

What CCIT resources do you plan to use as you expand your company?
Xiong: In our short time here, Hong-Ping and I have already been impressed with the assistance provided by the CCIT staff. Since we are scientist, not businessmen, by trade, we need business development expertise. Headed by Lenzie Harcum, the CCIT staff has continuously worked with us in a variety of ways, including connecting us with a chief financial officer.  

Newton: While I have not yet used any state resources yet, other than moving into CCIT, I am exploring resources that help startup research labs with tax credits, as well as ways to participate in State sponsored development projects.

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.
 

Serial Entrepreneur John Michel launched CircleBlack in January 2014 to help financial advisors better connect clients with their investments. 

TRENTON (November 15, 2016) – With an extensive background in finance, including a dozen years as a senior executive at Merrill Lynch and three years as the president of Bloomberg Personal Wealth, serial entrepreneur John Michel launched Jersey City-based CircleBlack in January 2014 to help financial advisors better connect clients with their investments.

CircleBlack’s cloud-based platform provides advisors and investors with a clear investment portfolio snapshot – in real time. The technology helps financial advisors provide their clients with modern, mobile technology including a highly-rated mobile app, while providing advisors with an integrated platform that seamlessly aggregates data and moves it between the advisors’ other technology applications and gives them total visibility into the investments they are managing. For investors, CircleBlack’s technology delivers up-to-date information on all of an investor’s financial relationships, including investment performance, potential pitfalls, and progress toward goals. It also sends proactive, portfolio-specific alerts and content straight to their mobile devices when their investments are impacted, giving them the knowledge needed to take action.

“Our mission is to bring innovative next generation wealth services to key industry players and investors with the goal of solving today’s trust gap and helping  busy online consumers better manage their wealth, and life,” said Michel, who is the Chief Executive Officer of CircleBlack. “The support we’ve received from the State has not only helped us grow, but has enabled us to enhance our platform, thereby helping more advisors and investors.”

Michel noted that CircleBlack, which also has an office in Princeton, received more than $3 million in investments that qualified for the State’s Angel Investor Tax Credit Program. Administered by the New Jersey Economic Development Authority (EDA) 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. Any investor wishing to apply for the Angel Investor Tax Credit Program must submit a completed application, with all required documentation, by 11:59 p.m. tonight, November 15, 2016, to be considered for approval of a 2016 tax credit certificate.

CircleBlack was also one of several New Jersey emerging companies to participate in the State’s Technology Business Tax Certificate Transfer (NOL) Program for the first time in 2016. Administered by the EDA and the New Jersey Division of Taxation, the competitive NOL Program enables eligible technology and biotechnology companies to sell New Jersey tax losses and/or research and development tax credits to raise non-dilutive cash to finance their growth and operations. Since the program’s inception in 1999, more than 500 unique businesses have been approved for awards totaling over $905 million.

In October 2015, CircleBlack was one of more than two-dozen companies to attend New Jersey Founders & Funders. Hosted by the EDA, the semi-annual event connects entrepreneurs with potential investors in 10-minute, one-on-one “speed-dating” sessions to discuss strategy and potential funding opportunities.

“We encourage New Jersey entrepreneurs like John Michel to continue taking advantage of the variety of financial and networking programs that we offer,” EDA Chief Executive Officer Melissa Orsen said.

@NJEDATech asked Michel about his company’s experience in New Jersey and its plans for the future:

Why did you choose to grow your company here in New Jersey?
The team was all from the New York area and felt proximity to the greater New York technology community made New Jersey an excellent choice. The State’s Angel Investor Tax Credit Program was also a consideration in the decision-making process.

Was the Angel Investor Tax Credit Program beneficial in attracting investors to CircleBlack?
Yes! CircleBlack has received numerous investments from investors who were able to benefit from the New Jersey Angel Investor Tax Credit Program. Investors definitely took the program into account when evaluating the potential return on their investment.

What is your company’s biggest success to date?
Our biggest success to date has been the great acceptance of our product. We’ve seen a continuing stream of new contracts being signed since going commercial in January of this year.

What’s on the horizon for CircleBlack? 
In the months and years ahead, CircleBlack looks forward to continuing to grow here in New Jersey, to building up our platform, and to bringing our product to even more people.