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Novo Opts to Grow in the Garden State
In March, health care company Novo Nordisk announced plans to expand its U.S. headquarters in Princeton, NJ to accommodate future growth. In the past five years, the company has experienced a 150% increase in workers at its headquarters, where around 700 people are employed. The new building will have the capacity for more than 400 employees and feature an in-house training facility capable of training 100 employees simultaneously. Novo had been considering sites in Pennsylvania, California, and Massachusetts for the project.
Novo Nordisk was offered a Business Retention and Relocation Assistance Act Grant of $420,000 and an estimated sales tax exemption of $1.39 million to assist with its expansion. The company is also eligible for $5.4 million in Business Employment Incentive Program assistance.
“We consider the state of New Jersey and our local community key contributors to our vision, as they have been exemplary partners and have supported and encouraged Novo Nordisk’s growth in the area,” says Jerzy Gruhn, president of Novo Nordisk, Inc.
Novo Nordisk’s new facility is the first of five five-story buildings to be completed at the Princeton Corporate Campus, an 800,000-square-foot master-planned office development located in Plainsboro, NJ.
Tax-Exempt Bonds Yield New Jobs at Tris Pharma
Tris Pharma, Inc. revealed its plans late last year to ramp up its pharmaceutical manufacturing capacity with the help of $4.9 million in tax-exempt bonds issued under the state’s Edison Innovation Fund. The company anticipates that the resulting manufacturing expansion will result in more than 50 new jobs at the site.
The New Jersey Economic Development Authority (EDA) has supported the growth and development of Tris Pharma, Inc. since March 2002, and has helped the company grow from a staff of eight to more than 70 over the past five years.
“The availability of low-cost capital in the form of tax-exempt bonds is a great opportunity for companies like us and helps add manufacturing capacity right here at home in New Jersey,” says Ketan Mehta, CEO of Tris Pharma, Inc. “This is the second time we have been a beneficiary of EDA’s bond program. Our continued investment in first-rate technology infrastructure is greatly facilitated by this bond-financing. The bonds, directly purchased by The Provident Bank, were issued for 10 years with a fixed, low-interest rate and interest-only payments due for the first three months. The EDA also provided a $1 million guarantee.”
Innovation Fund to Aid Tech Company Expansion
In April, the New Jersey EDA closed a $1 million Edison Innovation Fund investment to assist New Providence, NJ-based Elanti Systems, Inc., which offers management solutions to service providers. The financing from the EDA will enable Elanti to create 38 new jobs in New Jersey over the next two years.
“New Jersey EDA’s commitment to innovative technology and Elanti Systems enables us to continue to grow and meet the needs of service providers around the world. Elanti’s growth will ensure new jobs for New Jersey,” says Elanti Systems, Inc. CEO Michael Jaschke.
The Edison Innovation Fund, a key element of Governor Jon S. Corzine’s Economic Growth Strategy, was created to support technology and life sciences companies throughout their discovery, development, and commercialization stages. The fund will use $350 million in private capital for emerging companies, as well as existing mid- and large-sized technology and life science businesses.
Funding Allows DMD to Bring New Technologies to Market
In January, Franklin Township, NJ-based Dynamic Mobile Data Systems, Inc. (DMD), a technology company that develops mobile resource management solutions for mid-size to large enterprises, was approved for a $750,000 Edison Innovation Fund investment to help with its expansion project. The $750,000 will be used to supplement financing for development and marketing of a new enterprise software product suite that will permit users to customize wireless data communications to their individual needs. As a result of the Edison Innovation Fund investment, DMD estimates that 15 new jobs will be created during the next two years in the state.
“We were delighted to work with the [New Jersey Economic Development Authority] to assist with our funding needs,” says Kim Mills, president and CEO of DMD.
DMD is located within the Greater New Brunswick, NJ area’s Edison Innovation Zone, one of three “technology neighborhoods” in the state. In these zones, academic and research institutions can work with companies to develop and market new products or services while enjoying certain financial incentives and other benefits. The zones were created in 2004 within the cities of Camden and Newark as well as the greater New Brunswick area.
Edison Innovation Zones are a joint effort between several state agencies, including the New Jersey Economic Development Authority and the New Jersey Commission on Science and Technology.