Hartford Business Journal

6 Hartford Business Journal • May 11, 2015 www.HartfordBusiness.com TOP STORIES Alexion to pay $8.4B for Mass. drug maker Cheshire's Alexion Pharmaceuticals last week made a massive bet on a fellow rare-disease medicine maker preparing for the global launch of two products this year. Alexion announced that it signed a definitive agreement to acquire Syna- geva BioPharma Corp. of Lexington, Mass., for approximately $8.4 billion in cash and stock. The $230-per-share price is well above Synageva's share price of $95.87. Bank of America Merrill Lynch and J.P. Morgan have pledged $3.5 billion in financing for the deal. Alexion, which sold $2.23 billion worth of its blockbuster blood-disease drug Soliris last year, said the addition of Synageva would expand its manu- facturing capabilities and allow it to boast "the most robust rare disease pipeline in biotech." Synageva expects to launch its two drugs, Kanuma and Strensiq, by year's end. Kanuma treats LAL deficiency, which results in a buildup of fat in organs. Strensiq treats hypophosphatasia, which affects bones. The company's clinical pipeline also includes a drug for mucopolysac- charidosis and 12 pre-clinical drug platforms. Alexion said the deal — expected to close this summer — would create cost synergies this year, which would grow to $150 million or more in 2017. Waterbury Hospital to be acquired After its deal to be acquired by Tenet Healthcare fell through late last year, Waterbury Hospital said last week that it found a new for-profit partner. Under the terms of a letter of intent, Waterbury would sell its assets to Los Angeles-based Prospect Medical Holdings — a for-profit healthcare com- pany that owns 13 hospitals in three states, including two in Providence, R.I. Prospect also has 40 clinics and outpatient centers. Financial terms were not disclosed. But Waterbury Hospital said if the deal goes through, it would mean upgrades to its main campus and an ex- pansion of outpatient services, as well as stronger physician recruiting. Waterbury Hospital and Prospect must now work toward creating a de- finitive agreement and prepare for the state's regulatory approval process. ENERGY & UTILITIES CT developers pitch world's largest fuel cell park Danbury manufacturer FuelCell Energy and developers CT Energy & Technol- ogy have proposed building the world's largest fuel cell park on a former salt mine in Beacon Falls. The proposed 63.3-megawatt park on a 24-acre gravel pit in southern Con- necticut would best a 59-megawatt fuel cell system in South Korea as the world's largest and a 15-megawatt system in Bridgeport as America's largest. The fuel cells in all three of those systems were manufactured by FuelCell Energy. CT Energy & Technology still needs to find a company to buy the power — util- ity companies like Eversource Energy or United Illuminating are likely targets — and is studying with ISO New England how the fuel cell park will attach to the grid. The proposed site is owned by Torrington construction firm O&G Industries, which would retain ownership while CT Energy & Technology would own the fuel cell system. In addition to manufacturing the system, FuelCell Energy would perform maintenance under a long-term service agreement. Financial terms of the deal were not disclosed. CT Energy & Technology es- timates the system will generate $90 million in property and sales tax revenue for the town and the state. The fuel cell system would generate enough electricity to power 60,000 homes. NONPROFITS Zaleski to run Riverfront Recapture Hartford downtown business advocate Michael Zaleski has been tapped to succeed retiring CEO Joe Marfuggi at Riverfront Recapture. Zaleski, who is executive director of the Hartford Business Improvement District (HBID), begins his assignment with Marfuggi's retirement June 15. The Riverfront Recapture board approved Zaleski's hiring. Marfuggi is credited as the visionary behind Riverfront Recapture, a Hartford nonprofit that promotes cultural and social events along both sides of the Con- necticut River. HBID, too, is a nonprofit that promotes positive interaction between down- town's businesses, institutions, office and commercial occupants, their employ- ees and residential tenants. Marfuggi joined Riverfront Recapture in 1987 and has served as president and CEO since 1999. Newman-Scott named to state culture job Hartford's marketing, events and cultural affairs director is moving on up. The Department of Economic and Community Development has named Kristina Newman-Scott to the newly created position, head of culture, which the agency said is meant to foster a closer relationship between the state and its artists. Her new job, which begins May 15, follows former DECD Deputy Commis- sioner Kip Bergstrom's jump to the Office of Policy Management. Bergstrom was appointed executive director of the Commission on Culture and Tourism in 2011, but that entity was merged into DECD, where his title changed. In an email to area arts organizations, DECD Commissioner Catherine Smith said Newman-Scott has "an enormous wealth of energy, a passion for art and culture, and the experience I believe will help focus our work on the things that matter most to you and to the future of the state." Newman-Scott, who has held her current position for three years, previ- ously worked for Boston Center for the Arts and Hartford arts organization Real Art Ways. BANKING & FINANCE Simsbury's Landmark Partners raises $1.6B Realty investor Landmark Partners, with a Simsbury office, says its newest investment fund surpassed its $1 billion fund-raising goal and that the fund is now closed. Landmark Real Estate Fund VII closed April 28, with $1.6 billion in commit- ments from institutional and other investors worldwide, Chairman/Managing Partner Francisco L. Borges said. Mostly global public pensions, corporate pensions, insurance companies, as- set managers and foundations are among its investors, said Borges, who is a former state treasurer. Landmark also has offices in Boston, New York and London. REAL ESTATE CT's 1Q house, condo sales rise Connecticut home sales closed the first quarter strong with a second straight month of gains in March, hitting a monthly sales mark unseen in five years, Boston publisher The Warren Group said last week. Statewide, 1,768 single-family homes sold in March, up 11 percent from the 1,594 sold in March 2014, Warren said. It was highest March sales tally since 2010, when 2,310 homes sold. First-quarter sales totaled 4,510 transactions vs. 4,230 a year ago, a 6 per- cent climb. The median price of a single-family home also gained, rising 3 percent in March to $232,000 vs. $225,000 a year ago. The first quarter of the year saw prices drop slightly to $229,700 compared with $230,000 during the same time a year ago. It was the first gain in prices in more than a year. Condominium sales statewide gained 14.7 percent in March, climbing to 508 condos sold up from 443 the same time a year ago. Condo sales were up 9.7 percent in the first three months, to 1,300 units. Median condo prices in March fell 3.2 percent to $150,000 from $154,900 a year ago. First-quarter condo prices also fell 1.3 percent to $155,000 from $157,000. Windsor Marketing breaks ground on expansion Windsor Marketing Group said it has broken ground on an expansion at its Suffield headquarters that is aided by $1.5 million state loan. The loan from the Department of Economic and Community Development, approved in March by the Bond Commission, will help the shopper-marketing company retain 138 jobs and create 27 more. WMG is adding nearly 88,000 square feet to its 107,000-square-foot build- ing, Chief Marketing Officer Philip West said. The expansion and investment in new equipment and technology will cost a total of $6.9 million, according to West, who said WMG has already added 12 jobs and hopes to add 15 more by fall. BY THE NUMBERS 1,429 The number of additional health insurance enrollees who signed up through Access Health CT during a special open enrollment period in April meant for those who didn't realize they would face tax penalties for being uninsured. 119 The number of solar installations in West Hartford — the third-most of any community in the state. $48.5M The amount paid by the Phoenix Cos. to settle two class action lawsuits filed by insurance trusts who alleged the company had mispriced insurance products. $33.4M The total grants from the Citizens Election Fund to 287 state political candidates in 2014, which is a record high, according to Hearst Connecticut Media. TOP 5 MOST READ on HartfordBusiness.com ■ Waterbury Hospital to be acquired ■ CT developers pitch world's largest fuel cell park ■ Newman-Scott named to state culture job ■ Windsor Marketing breaks ground on expansion ■ CT sued over tri-state renewable plan STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW An Alexion scientist works at the company's Cheshire headquarters. The drug maker is getting ready to move to New Haven later this year. P H O T O | H B J F I L E

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