newsobserver.com blogs -- business

Pennsylvania academic to discuss public health consequences of fracking

johnmurawski — Tue, 22 May 2012 14:57:25 -0400

A public health expert from Pennsylvania will make a presentation in Chapel Hill tomorrow about his research and findings on the public health consequences of fracking for natural gas.

Trevor Penning, who studies how certain kinds of hydrocarbons cause cancer in humans, will speak at 1:30 p.m. Wednesday in the Rosenau Auditorium. Penning is the director of the Center of Excellence in Environmental Toxicology at the University of Pennsylvania.

The presentation is free to the public and sponsored by UNC-Chapel Hill's Center for Environmental Health and Susceptibility.

Penning recently made a presentation on the same topic at Harvard School of Public Health in Boston. He condludes that despite years of complaints, reported illnesses and other anecdotal information, there is a lack of research on the of the consequences of fracking on public health.

Penning's presentation is an overview of the potential health hazards that are suspected but not proven. That includes a focus on heavy industrial activity, which generates diesel fumes, ground-level ozone and other emissions that can exacerbate asthma and other conditions.

Carey named to Blue Cross board

davidranii — Tue, 22 May 2012 14:03:34 -0400

Dr. Lisa Carey, the medical director of UNC-Chapel Hill's Breast Center and associate director of the UNC Lineberger Comprehensive Cancer Center, has been named to the board of trustees of Blue Cross and Blue Shield of North Carolina.

"Lisa's years of experience in clinical research and deep knowledge of the health care industry make her an excellent addition," CEO Brad Wilson said in a statement. Blue Cross is the state's largest health insurer.

Carey has written about racial disparities in breast cancer and has led multiple clinical trials. She also serves on the National Cancer Institute's Breast Cancer Steering Committee.

Cree CFO resigns

dbracken — Tue, 22 May 2012 09:47:01 -0400

The chief financial officer of Durham LED lighting company Cree has resigned.

John Kurtzweil's resignation took effect Monday, the company said in an announcement.

Kurtzweil, who plans to continue as a Cree employee until June 15 to assist with the transition, is leaving to take the same job with Extreme Networks. California-based Extreme provides Ethernet switches for computer and mobile networks and generated $189.3 million in sales for the first nine months of its current fiscal year, making it significantly smaller than Cree.

"The decision to leave Cree was a very difficult one for me as the past six years have been personally rewarding," Kurtzweil said in a statement. "At this point in my career, however, I decided to move to Extreme Networks, a smaller firm where I can have a more hands-on role in growing the business."

Analyst Daniel Amir of Lazard Capital Markets wrote in a research note that he views the resignation as "slightly negative given that Kurtzweil was respected on the Street. The departure seems to show that Cree does not have a clear succession plan."

Amir also noted that the company reiterated its earlier earnings forecast for the quarter that ends in June, "showing confidence going into the end of the quarter."

Cree has named Mike McDevitt interim CFO and has hired Russell Reynolds Associates, an executive search consultant, to help find a replacement for Kurtzweil. McDevitt joined Cree in 2002 as corporate controller and served as interim CFO in 2006 during an earlier transition.

Cree shares were trading at $27.25, down $1.84, early this afternoon. Its shares have risen 24 percent this year.

Martin Marietta's appeal set for May 31

dbracken — Mon, 21 May 2012 13:39:40 -0400

Martin Marietta Materials appeal of a recent Delaware court ruling will be heard May 31, the day before Vulcan Materials holds its annual shareholders' meeting.

Reuters reported Friday that the hearing for the appeal has been delayed from May 25 to May 31.

Raleigh-based Martin Marietta had planned to nominate four independent directors to Vulcan's board at the June 1 shareholders' meeting. But a Delaware judge recently ruled that Martin Marietta violated a 2010 confidentiality agreement with Vulcan in making its hostile takeover bid in December.

The judge in the case denied Martin Marietta’s request for a stay pending a ruling the appeal, which forced Martin Marietta to move ahead with terminating the company's exchange offer to merge with Vulcan.

If Martin Marietta loses its appeal, it will be prevented from pursuing any activities related to the merger for four months.

Last week, Martin Marietta's stock dropped 8 percent in a single day after hedge-fund manager David Einhorn said at a New York conference that the company had problems and that its price to earnings ratio is higher than most other companies that rely heavily on government spending.

Einhorn is known for publicly criticizing stocks that he has shorted – meaning he has bet that the stock will fall.

Martin Marietta issued a statement saying that, unlike other targets of short-sellers, it remains financially strong.

Vulcan's stock also dropped 8 percent after Einhorn's comments.

As of Monday afternoon, Vulcan and Martin Marietta shares were flat in trading since the sell off.

Company behind bogus charity candy sales banned from NC

marycornatzer — Mon, 21 May 2012 13:15:34 -0400

A company accused of unfair and deceptive trade practices by the state's Attorney General will have to pay the state $5,000 and can no longer conduct its business in the state.

The Beacon Project, Creative Marketing Solutions, Universal Placement Services, and Marilyn Broerman of Charlotte sold plastic countertop candy dispensers and coached people on starting their own candy vending business.

Some consumers paid as much as $50,000 to start such businesses, tempted by the promise of "$3,000 a week cash forever." The companies also told the vendors to say the money collected would be used to help find missing children, according to the AG's office. Instead, candy sales profits went to the individual vendors.

N.C. Attorney General Roy Cooper originally filed suit against the defendants in February, 2011. On Monday, under a consent judgment signed by Superior Court Judge Robert H. Hobgood, the companies, Broerman, and their employees are permanently banned from offering business opportunities, soliciting charitable donations, and engaging in unfair business practices in North Carolina.

BioDelivery Sciences receives $2.5 million milestone payment

dbracken — Mon, 21 May 2012 09:32:37 -0400

BioDelivery Sciences International announced Monday that it had received a $2.5 million payment for its oral pain patch.

The payment was from Meda AB, the company's Swedish partner in developing and commercializing Breakyl, which is marketed in the U.S. as Onsolis.

The payment was for the drug achieving registration and pricing approval in its first European Union country. BioDelivery Sciences is set to receive a final milestone payment of $2.5 million at the time of commercial launch, which is expected to occur later this year.

Sales of BioDelivery's Onsolis oral pain patch for cancer patients, which was approved by federal regulators in 2009, have been underwhelming to date in the U.S.

But the company anticipates that new regulations recently adopted for narcotic painkillers will level the playing field.

Cary retirement community SearStone finds buyer for construction bonds

dbracken — Fri, 18 May 2012 16:00:52 -0400

SearStone, a proposed retirement community in Cary, announced Friday that it has signed an agreement to sell $117.5 million in bonds to finance the construction of the 169-unit project.

The bond purchase agreement is with Herbert J. Sims & Co. SearStone expects to close on the sale after the state Department of Insurance issues the development a preliminary certificate.

SearStone is a continuing-care retirement community, or CCRC. Such communities offer a range of medical services that let residents stay in one place as their needs change.

The state regulates CCRCs to ensure that residents receive proper care and that the projects are financially sound. The department will issue its preliminary certificate after reviewing the project’s financial statements.

SearStone received approval from Wake County officials last year to issue the bonds through the Public Finance Authority, a group that partners with private borrowers and local governments.

The bonds will cover the cost of the project's first phase of construction.

SearStone said Friday that more than 138 of its units under contract. The community will be operated by a nonprofit, Samaritan Housing Foundation, which will be responsible for setting the monthly fees for the community.

The project is being built on 24 acres at High House Road and Davis Drive.

Bioptigen device wins FDA approval

davidranii — Thu, 17 May 2012 15:50:43 -0400

Medical device maker Bioptigen said Thursday that it has received Food and Drug Administration approval to sell its hand-held ophthalmic imaging device.

CEO Eric Buckland said that the company's Envisu device is the first hand-hand scanner that provides real-time, 3-D images of the cornea, retina and other parts of the eye -- enabling ophthalmologists to diagnose eye diseases.

Buckland said that the 20-employee company anticipates hiring five workers this year in the wake of the FDA approval.

The device will be especially useful for children, since the typical tabletop ophthalmic scanner requires patients to place their eye against the device and remain motionless. It can also be used with anesthetized patients and patients with conditions that make it difficult for them to hold their heads motionless.

Bioptigen, which is based in Research Triangle Park, already sells a tabletop ophthalmic imaging device. The Envisu device previously was approved by regulators in Europe, Canada and Australia.

Bioptigen, which is privately held, was incorporated in 2004 and doesn't release revenue numbers.

California business pays $120,000 in settlement

davidranii — Thu, 17 May 2012 14:14:33 -0400

State officials said Thursday that a California company that sent out misleading letters is returning checks it received from 700 North Carolina businesses and has agreed to stop doing business in the state.

Corporate Services also will pay $30,000 to the state under the settlement, in addition to the approximately $90,000 in checks that it is returning to businesses.

"The bottom line is that we are not going to allow anyone to send out advertising that tries to pass itself off as an official government correspondence when it is not," Secretary of State Elaine Marshall said in a statement.

Marshall and Attorney General Roy Cooper announced the settlement with Corporate Services and its owner, Selwyn J. Monarch.

In 2009 Corporate Services was sued by the state after sending out mailings that appeared to be from a state agency. The letters misled business into thinking that they hadn't complied with state laws on filing corporate minutes and directed them to pay $125.

Corporate Services subsequently agreed to pay $25,000 to the state under a settlement that also barred it from sending misleading mailings.

In the spring of 2011, however, Corporate Services sent out another mailing that the state alleged violated the settlement agreement. Corporate Services, which claimed the second round of mailings was sent out by mistake, has agreed to return about $90,000 in checks to businesses that responded to the mailing and has agreed to stop doing business in North Carolina, according to the state agencies.

As NC approves Apples's giant solar farm, iPad maker says it will double the size

johnmurawski — Thu, 17 May 2012 13:31:53 -0400

State regulators today approved this state's largest solar farm as iPhone maker Apple said it would double the size of the project.

The N.C. Utilities Commission gave the go-ahead for the Cupertino, Calif.-based technology company to start generating operating the 20-megawatt solar farm at its huge data complex in Maiden. The center supports the company’s iCloud online data storage system and its SIRI voice-recognition software.

Apple said today it would expand the project by adding 20 more megawatts on 100 acres on the site in Catawba County for a total of 40 megawatts. The state's biggest solar farms to date have maxed out at 5 megawatts.

Apple's solar modules will maximize solar energy by aligning with the sun's rays throughout the day. The array will track the sun as it moves across the sky by rotating on a north-south axis.

The solar project will be built in phases and is expected to start generating power in October and completed by December.

Apple is also planning a 4.8-megawatt fuel cell facility, the nation's largest, at the site. That request is still pending with the Utilities Commission.

Report analyzes state's unemployment debt

davidranii — Thu, 17 May 2012 13:20:00 -0400

Issuing bonds to pay off the debt the state owes the federal government -- money borrowed to pay unemployment benefits -- would be a short-term solution to a long-term problem, according to a new study commissioned by the N.C. Department of Commerce.

Although issuing bonds would erase the state's debt to the federal government -- currently $2.4 billion and still growing -- the state would have to start borrowing anew in 2013 because it isn't collecting enough in taxes from employers to cover the benefits owed to jobless workers, the report states.

The report outlines a wide array of other measures that the state could take to tackle the unemployment benefits situation, including raising the taxes paid by employers and reducing the benefits received by unemployed workers, instead of or in addition to a bond issue. And it serves up "bundles of changes" that combine different approaches and different levels of increases and/or reductions.

The General Assembly is being pressed to craft a solution to the problem.

This week the powerful N.C. Chamber of Commerce came out in favor of a dual approach that includes a bond issue and reining in future unemployment benefits. Raising taxes on employers isn't part of the Chamber's package.

Although a bond issue wouldn't erase the state's debt entirely, paying off the federal government would eliminate extra federal unemployment taxes that the state's employers must pay as long as the state owes money to the feds. A bond issue also would entail lower interest payments.

However, the state Treasurer's office has cautioned that the state can't afford such a bond issue without endangering its credit rating.

Advocacy groups are opposed to cutting unemployment benefits, arguing that the mess the state is in was triggered by cuts in unemployment taxes that benefitted employers while doing nothing for the jobless.

The Commerce Department report supports that analysis of the problem's root cause.

"During the 1990s, North Carolina undertook a series of tax reductions and holidays, and the level of the (state's unemployment insurance) trust fund began to decline," it states. The report, which cost $84,435, was conducted by the W.E. Upjohn Insitute for Employment Research and the Center for Employment Security Education and Research.

The report states that under a "do-nothing" scenario, the state wouldn't pay off its debt until 2017.

It's "Pitch Day" for accelerator grads

davidranii — Thu, 17 May 2012 10:15:44 -0400

Think of it as final exams and graduation day rolled into one for the first crop of companies to complete the business accelration program at Triangle StartUp Factory.

The six companies in Triangle StartUp's inaugural 12-week class each will deliver 8-minute presentations to prospective investors and interested bystanders on Thursday, June 7, which has been dubbed "Pitch Day."

More than 300 attendees are expected for the free event, which also will include a panel session on investing, according to Chris Heivly, founder of Triangle Startup.

Earlier this year, Triangle StartUp raised $5.5 million in funding. It invests $50,000 into startups accepted into its program in exchange for a 7.5 percent ownership stake. After completing the program, the startup also will receive a loan convertible to equity ranging from $20,000 to $150,000.

You can register for Pitch Day here.

Foundation hires Clemson official

davidranii — Wed, 16 May 2012 16:58:25 -0400

Mason Ailstock has been named vice president of business development at the Research Triangle Foundation.

Ailstock joins the nonprofit organization that runs the Research Triangle Park from Clemson University, where he was economic development director of the Advanced Materials Research Park, a 256-acre university project. Ailstock also was global partner manager for Clemson's International Center for Automotive Research.

At the foundation, Ailstock will be in charge of business development, marketing, real estate and partnerships.

"I have known him for nearly eight years and feel confident in the leadership he can bring to this new responsibility," Bob Geolas, president and CEO of the foundation, said in a statement.

Geolas, who joined RTF in November, previously was executive director of Clemson's automotive research center. Prior to that he held the top spot at N.C. State University's Centennial Campus.

A native of Annapolis, Md., Ailstock has a master's degree ln city and regional planning from Clemson.

Hedge fund manager's comments send Martin Marietta's stock down 8 percent

dbracken — Wed, 16 May 2012 16:56:20 -0400

Martin Marietta Materials stock fell 8 percent on Wednesday after a well-known hedge-fund manager said at a New York conference that the Raleigh company had problems.

“Recent earnings benefited from one-time fiscal stimulus that is about to wind down,” said David Einhorn, co-founder of Greenlight Capital, according to Bloomberg News.

The stock’s sudden drop triggered a circuit breaker that halted trading of the company’s shares.

Einhorn, who was in negotiations last year to buy a share of the New York Mets, is known for his activist nature and for publicly criticizing stocks that he has shorted – meaning he has bet that the stock will fall. A year ago he called for Microsoft’s board to replace CEO Steve Ballmer.

Martin Marietta issued a statement Wednesday saying its recent financial performance made it different from other companies targeted by short sellers.
“Unlike companies often targeted by shorts, Martin Marietta has come through a challenging period for the industry by carefully managing capital and making disciplined operational decisions,” the statement said.

“We are profitable and have a solid balance sheet, which will allow us to capitalize on positive industry trends and positions us well for the future.”

Martin Marietta produces rock, gravel and other materials used to build roads, subdivisions and commercial buildings. Federal stimulus spending has boosted the company's bottom line in recent years, and its future performance will depend on how much money the government allocates for projects such as roads.

Einhorn said Martin Marietta’s price to earnings ratio is higher than most other companies that rely heavily on government spending, Bloomberg reported.
Einhorn’s comments also sent Vulcan Materials stock sliding 8 percent on Wednesday.

Martin Marietta made a hostile bid to acquire Vulcan in December. But a Delaware judge recently ruled that in making the bid Martin Marietta violated a 2010 confidentiality agreement between the companies.

Martin Marietta has said it will appeal the ruling, but the judge denied the company’s request for a stay pending a ruling the appeal. That forced Martin Marietta to move ahead with terminating the company's exchange offer to merge with Vulcan.

Novella Clinical leases 77,239-square-foot buidling in Perimeter Park

dbracken — Tue, 15 May 2012 12:47:46 -0400

Contract research organization Novella Clinical, which has grown its Triangle workforce from 75 to 250 employees over the past seven years, is moving to larger offices.

The company has leased a 77,239-square-foot Duke Realty building at 1700 Perimeter Park in Morrisville. Novella has until now occupied 56,665 square feet in two buildings in the nearby Imperial Center in Durham.

The 1700 Perimeter Park building was previously occupied by Salix Pharmaceuticals, which relocated last fall to North Raleigh.

Novella employs 800 worldwide. The company has added 35 employees in the Triangle so far this year, and CEO Richard Staub said in a statement that the company expects to continue to add employees based on current sales projections.

The Triangle has become the epicenter of the CRO industry, which helps pharmaceutical and biotechnology companies test experimental drugs.

Other CROs with a presence here include industry leader Quintiles, INC Research, PRA International and Wilmington-based PPD.

Privately-held Novella Clinical was founded in 1998. The company specializes in oncology and medical device testing for small and mid-size bio-pharmaceutical clients.

Workshop to feature industry experts in electric cars, compressed natural gas

johnmurawski — Tue, 15 May 2012 12:13:08 -0400

Wilson Community College is hosting an Advanced Transportation Workshop that will feature industry experts in such specialties as electric vehicles, battery technology and compressed natural gas.

The day-long event is designed to familiarize shop foremen and technicians, as well engineers and technical instructors, with the latest advances in hybrid battery maintenance and testing, natural gas conversions, and diesel emissions systems.

The June 14 workshop costs $30 to attend, including lunch, and is limited to 100 attendees. It's sponsored by the Triangle Clean Cities Coalition and the community college's Department of Advanced Transportation Technologies.

Details will be posted http://www.wilsoncc.edu/.

For more information, contact Margie Norfleet at 252-246-1210 or mnorfleet@wilsoncc.edu.

IT hiring dips in state

davidranii — Tue, 15 May 2012 11:10:46 -0400

The market for information technology jobs in North Carolina dipped in April after two months of solid gains.

The number of IT job openings posted by employers statewide totaled 5,510 in April, down from 5,670 in March, according to data released Tuesday by the N.C. Technology Association. Still, the number of openings was 19 percent higher than a year ago.

"Given the current outlook, the need for IT professionals may further soften as we approach the summer," the NCTA report stated. The report is prepared for NCTA by SkillPROOF, which focuses on job market data and research.

IT jobs nationally rose 1.5 percent in April.

Martin Marietta to terminate exhange offer

dbracken — Tue, 15 May 2012 10:39:14 -0400

Martin Marietta Materials announced late Monday that it is terminating the company's exchange offer to merge with rival Vulcan Materials in accordance with the ruling by the Delaware Court of Chancery.

The action was expected after the judge, Leo Strine Jr., ruled on May 4 that Martin Marietta violated a 2010 confidentiality agreement with Vulcan.

Martin Marietta is appealling the ruling, however. A decision on the appeal is likely to come before Vulcan's June 1 annual shareholders' meeting.

Raleigh-based Martin Marietta had planned to nominate four directors to Vulcan's board.

Furiex acquires worldwide rights to premature ejaculation drug

dbracken — Tue, 15 May 2012 09:29:10 -0400

Furiex Pharmaceuticals announced Monday that it has reached an agreement to acquire the worldwide rights to Priligy, a drug that is currently marketed for treatment of premature ejaculation in 43 countries.

The Morrisville company also simultaneously announced it has agreed to license the rights to Priligy in Europe, most of Asia, Africa, Latin America and the Middle East to the Menarini Group. Furiex will retail full development and commercialization rights in the U.S., Japan and Canada.

Furiex is acquiring the worldwide rights from Alza Corp. and Janssen Pharmaceutica, N.V. Under the deal, Janssen will continue to manufacture the drug for a period after the signing of the agreement.

Furiex is obligated to pay $15 million to Alza over the transition period, and possibly as much as $5 million more in clinical study costs and other expenses. The transition period is expected to be between 9 and 12 months.

Under the terms of Furiex's deal with Menarini, Furiex will be eligible to receive $15 million in up front payments and up to $19 million to fund ongoing clinical costs, up to $20 million in regulatory and launch-based milestones, and up to $40 million in sales-based milestones, plus royalties on product sales.

Priligy is marketed in 15 counties in Europe, Asia and Latin America. Both deals are expected to close in the third quarter.

Furiex reported earlier this month a loss of $9.8 million, or 98 cents per share, compared with $14.4 million, or $1.45 per share, in the first quarter of 2011.

Furiex stock was hammered late last month after the diabetes medication alogliptin that it is developing with partner Takeda Pharmaceutical failed to win U.S. regulatory approval.

Furiex was spun out of Wilmington-based pharmaceutical services company PPD in June 2010 when PPD shareholders received one share of Furiex common stock for every dozen shares of PPD they held.

Before the spinoff, PPD transferred $100 million in cash to Furiex.

Cornerstone acquires specilty pharma company for $150 million

dbracken — Tue, 15 May 2012 08:42:14 -0400

Cornerstone Therapeutics, a Cary drug marketer, announced late Monday that it has acquired speciality pharmaceutical company EKR Therapeutics for $150 million.

Privately-held EKR, which makes products for providing acute-care in hospitals, had revenue of $58 million last year. Most of that revenue was generated from CARDENE IV, EKR's treatment for hypertension.

Cornerstone is paying $125 million in cash and $25 million in milestone payments over the next three years to acquire EKR.

Cornerstone recently completed its shift from selling drugs to doctors to focusing on the more profitable niche hospital market. In March, the company divested itself of two antibiotics, Factive and Spectracef, that were sold to doctors' offices.

In a statement, Cornerstone CEO Craig Collard said the EKR acquisition is a major step forward in its strategy of targeting the hospital market.

“We plan to pursue additional hospital product licensing opportunities and company acquisitions that complement our enhanced hospital presence," he said. "We believe this strategy will position Cornerstone for growth and bring the Company to the next level of value creation.”

Cornerstone reported Tuesday morning that its net revenues declined 26 percent in the first quarter.

The company had net revenue of $22.2 million, compared to $30 million in the first quarter of 2011.

Net loss for the quarter was $1.8 million, or 7 cents per diluted share, compared to net income of $1.7 million, or 7 cents per share the comapny reported a year ago. Cornerstone had $74.2 million in cash as of the end of March.

The company has two products in the market, including its top seller Curosurf, which treats respiratory distress in infants. Sales of those products increased 35 percent in the quarter compared to the same period in 2011, the company reported Tuesday.