PR Newswire | December 22, 1999
TRENTON, N.J. - The first transaction associated with the new Technology Tax Benefit Transfer Program is scheduled to take place on December 22, 1999, when PSE&G will purchase the approved tax benefits of 10 New Jersey-based biotechnology companies. These funds are a direct cash infusion to NOL sellers Anthra Pharmaceuticals; Alteon, Inc.; Celgene Corporation; CYTOGEN Corporation; Medarex, Inc.; Life Medical Sciences; The Liposome Company; NuCycle (formerly known as Phytotech); Small Molecule Therapeutics; and Interferon Sciences.
The Tax Benefit Transfer Program legislation was first introduced by Senator Robert Singer (R-30) in 1997 and became law when Governor Whitman signed the final version in June 1999. The program was designed to aid early-stage biotech companies who often spend years generating net operating losses before becoming profitable and as an incentive for biotechnology companies to relocate or to remain in New Jersey. A groundbreaking program, it is the only one of its kind across the country.
Assisting the New Jersey Economic Development Authority (NJEDA) with the development of the program and drafting of the legislation, was the Biotechnology Council of New Jersey (BCNJ), especially BCNJ Immediate Past Chair Donald Drakeman, Ph.D., president and CEO of Medarex, Inc. Lisa Drakeman, Ph.D., senior vice president of Medarex, also testified on behalf of the legislation in the New Jersey State Legislature. Another major contributor to the program was attorney David Shipley of the law firm Dechert Price & Rhoads. All three were honored at BCNJ's Sixth Annual Meeting recently along with Caren Franzini, Gina Galli, and Beth Sztuk of the NJEDA for their contributions to the program.
BCNJ Chair John Jackson, chairman and CEO of Celgene Corporation, characterized the collaboration of the State of New Jersey and industry as, "Truly a partnership - an example of industry and government working together, the state's willingness to hear the concerns of the biotechnology industry and recognize the potential benefits of such a partnership, are noteworthy."
The Biotechnology Council of New Jersey promotes the development of the state's rapidly expanding biotechnology industry. Through the promotional efforts and outreach assistance of BCNJ, its member companies and the state of New Jersey have received national recognition for creating a favorable environment for the industry's growth.
SOURCE: Biotechnology Council of New Jersey, Inc.
CONTACT: Debbie Hart, Executive Director of the Biotechnology Council of New Jersey, 609-890-3185
Copyright 1999 PR Newswire. All rights reserved.
