The state of New Jersey is attempting to build on its life sciences and high-tech clusters through various incentive programs.

The New Jersey Economic Development Authority (EDA) awarded more than $230 million in financing assistance, business and tax incentives, venture funding, and real estate investments to technology and life sciences companies in 2005, and programs such as Business Retention and Relocation Assistance from the New Jersey Commerce, Economic Growth & Tourism Commission have helped pave the way for early-stage and established companies.

The EDA approved Business Employment Incentive Program grants worth more than $100 million for 18 technology, life sciences, communications and pharmaceutical companies in 2005, and another $60 million was made available to 270 companies through the Technology Business Tax Certificate Transfer Program, which enables eligible businesses to sell tax losses or research and development credits to raise cash to finance their growth and operations.

Earlier this year, Novo Nordisk opened Novo Nordisk Research US in New Brunswick, the first haemostasis research facility in the United States dedicated to life-threatening bleeding. Researchers at the facility will investigate new therapies to prevent or stop critical bleeding, including exploration of treatments for intracerebral hemorrhage, trauma, stroke and other bleeding disorders.

Scientists at the facility will collaborate with academic institutions and industries in the region to further advance medical innovation.

“There are a number of research organizations in the United States that are recognized for their excellence,” said Mads Krogsgaard Thomsen, chief science officer for Novo Nordisk. “They are an important reason for choosing to expand our presence here.”

The facility, which represents a major expansion of Novo Nordisk’s research in the area of haemostasis, is part of an ongoing internationalization of the company’s research and development operation, Thomsen said.

The 30,000 square foot facility houses 21 full-time researchers, a staff size Novo Nordisk intends to double by the end of the year.

The company received a $3.3 million business incentive grant. The facility is located in the Greater New Brunswick Innovation Zone.

New Jersey has created three Innovation Zones where academic and research institutions can work with companies to develop and market new products or services while enjoying certain financial incentives and other benefits. Aside from New Brunswick, there are zones in Newark and Camden.

New Initiative Invests

in technical companies

Urovalve Inc., an early-stage medical device manufacturer located in Newark’s Innovation Zone, received a $100,000 Techniuum grant from the EDA to continue its research and product development.

Urovalve has developed and patented a technology that controls the flow of urine through the male urethra using a magnetically controlled valve.

Techniuum is an EDA initiative with the aim of attracting, locating and growing technology companies and jobs in New Jersey. A benefit of the Techniuum initiative is continuous progressive support — once a company is in the Techniuum system, it stays there. The program began last year.

Urovalve will use its Techniuum investment to finance manufacturing costs of design improvements. The investment was made for five years at an interest rate of 8 percent, with a moratorium on principal and interest for the first year and interest-only payments in the second year.

Other companies that have been awarded Techniuum investments are Archive Systems Inc. of Fairfield and Cerionx Inc. of Pennsauken.

A $1 million Techniuum investment will enable Archive Systems, a 15-year-old document storage service company, to purchase equipment to expand and create fully redundant operating and image storage systems. The loan was made for four years at an interest rate of 4 percent, with interest-only payments due for the first six months.

Cerionx is a technology company that was spun out of the Rutgers Camden incubator in 2000 to develop state-of-the-art products for laboratory research applications in pharmaceutical, biotech, genomic and other life sciences companies.

It received approval to borrow $750,000 to help market its plasma cleaning technology. The loan was made at an interest rate of 6 percent, with no payments due for the first six months, followed by interest-only payments for the next 18 months.

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