Over 40 Emerging Companies Approved to Share Funding Available through New Jersey’s Technology Business Tax Certificate Transfer (NOL) Program

Furthering the Christie Administration’s commitment to cultivating the growth of emerging tech and biotech businesses in the Garden State, the New Jersey Economic Development Authority (EDA) today announced that 44  companies have been approved to share a total of $54 million available through the State’s Technology Business Tax Certificate Transfer (NOL) Program in Fiscal Year 2015. 

Administered by the EDA and the New Jersey Department of Treasury’s Division of Taxation, this competitive program enables tech and biotech companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations. 

 “The NOL program is a key example of the State’s continued investment in New Jersey’s technology ecosystem,” EDA Chief Executive Officer Michele Brown said. “This innovative program has provided hundreds of New Jersey tech and biotech companies with access to capital that is vital to their continued growth in the State.”

Since the program was established in 1999, more than 500 different businesses have been approved for awards totaling $820 million. The average benefit amount for companies approved this year totals $1.2 million.

This year’s NOL award recipients include numerous biotech companies that are seeking to find cures for such debilitating diseases as cancer and glaucoma, as well as genetic diseases and immune disorders.  The approved tech companies include medical device manufacturers, software developers, and those in the renewable and clean energy space.
The following companies are among the 44 businesses sharing this year’s NOL funding:

Cornerstone Pharmaceuticals, Inc., a biotech company located in Cranbury, discovers and develops innovative cancer therapies.  The company’s lead drug CPI-613 is currently in clinical trials and was named in November by Informa and Kantar Health as “one of the 2014 Top 10 Most Interesting Oncology Projects to Watch.”

When asked what the NOL program means for Cornerstone, CEO Steve Carchedi said, “As a development stage company and a leader in the growing field of cancer-metabolism based therapeutics, Cornerstone’s primary objective is to develop highly selective and effective agents with minimal toxic effects on normal cells and tissues. Our unique approach to targeting cancer metabolism has led to two independent technology platforms which we look forward to continuing to develop. While we are primarily funded by smaller investors who have a passion to find a novel therapy to treat and eradicate cancer, the sale of these credits through the Technology Business Tax Certificate Transfer (NOL) Program will enable us to further our research efforts within the state to develop and potentially commercialize novel therapies as promising new drugs. The NOL Program is an incentive-based state system that assists companies like Cornerstone to realize the potential of our R&D efforts and we appreciate the support from the state of New Jersey.”

Myos Corporation, a biotech company located in Cedar Knolls, focuses on the discovery, development and commercialization of products that improve muscle health and reduce frailty.  Over the summer, Myos Corporation announced that “the Company has entered into a three-year Master Service Agreement (“MSA”) with Rutgers, The State University of New Jersey, to engage Rutgers researchers in a program which will expand the MYOS’ basic science platform for further development of [Myos Corporation’s lead product] Fortetropin™, the first clinically proven natural myostatin inhibitor, and other proprietary MYOS product formulations.”
  
Joseph DosSantos, Chief Financial Officer of MYOS, commented, “This is the first year that MYOS has participated in the State of New Jersey’s Technology Business Tax Certificate Transfer Program, which is a state initiative designed to spur innovation and job creation by assisting promising early-stage technology and biotech businesses.  MYOS will use the funds to continue discovery, development and commercialization of products that improve muscle health and function essential to the management of sarcopenia, cachexia and degenerative muscle diseases.”    Mr. DosSantos continued, “MYOS is pleased to participate in this program and extremely grateful to the New Jersey Economic Development Authority for its consideration.  Programs similar to this one make it possible for emerging biotherapeutic companies like MYOS to thrive in New Jersey.”

Agilence, Inc., a tech company in Mount Laurel, creates software that specializes in retail loss prevention.  The company notes that “Agilence’s patented video synchronization technology marries every detail of the point-of-sale to the video in real-time enabling loss prevention analysts to reduce shrink caused by: systemic issues, associate fraud, operator error, and poor promotion execution.”

CEO Russ Hawkins noted, “We have found New Jersey to be highly supportive of technology start-ups.  The New Jersey Economic Development Authority has proven to be a strategic partner in our efforts to build a highly competitive and profitable company.  The NOL program enables us to convert our losses into an asset that enables us to continue to execute on our strategic objectives.”

A complete list of NOL award recipients can be found following this article and at https://www.njeda.gov/features. For additional information about the NOL program, visit https://www.njeda.gov.  To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at http://www.NewJerseyBusiness.gov.