Mainebiz

V O L . X X I N O. X I V 42 FA C T BO O K / D O I N G B U S I N E S S I N M A I N E I N N OVAT I O N / R & D M aine's 3,500-mile coastline, rugged mountains and abun- dance of trees make it a natural vacation spot, but the state also wants to be known for its innovative companies in areas like cleantech, biotech, veterinary medicine, composite materials and other advanced technologies. Many companies already are making a name for themselves on the interna- tional stage. Take WEX Inc. of South Portland, one of the dozen publicly traded Maine-based companies that has been on a substantial growth trajec- tory of 10% to 15% annually since going public in 2005.With $818.6 million in revenue in 2014 and 2,000 employees worldwide — 700 of them in Maine — the company off ers fl eet card, travel, corporate and health payment services. Earlier this year, company President and CEO Melissa Smith said WEX plans to further globalize its business and invest strategically in areas that have the potential to drive even higher growth going forward. She pointed to the company's pilot project called Mobile Payment Gateway Enabler, which received an innovation award from InformationWeek for being a "best new technology product." e technology works with smartphones and electronic wallet technology to improve security for fl eet managers and fuel card purchases. " e work we're doing on the inno- vation front is being recognized," Smith said. "We feel pretty good about that." IDEXX Laboratories Inc. of Westbrook, also publicly traded, is part of a trio of animal health companies in the Portland area. In its fi rst quarter ended April 28, the company's revenue bumped up 6% to $382 million over the prior year's quarter. Revenue was $1.49 billion in 2014 and operating profi t was $260.3 million. e company has more than 6,000 employees worldwide, about 2,100 of those in Maine, and op- erates in more than 175 countries. More than 80% of its revenue comes from its Small Animal Health division, which provides diagnostic products and services to veterinary practices. e com- pany also makes products for water safety. Also publicly traded, but with only about 35 employees, Portland-based ImmuCell Corp. develops, manufactures and sells products for animals in the dairy and beef industries. Its 2014 rev- enue was close to $8 million, and gross profi t was $4.4 million. Total sales got a hefty 49% boost to $3.1 million in this year's fi rst quarter ended March 31 compared to the fi rst quarter of 2014, which the company attributed to large demand for its First Defense calf diarrhea preventa- tive, whose sales rose 68% to $2.98 million over the same period last year. at marked 11 straight quarters of positive sales growth. In its fi rst quarter report, the company said it is working to complete the two remaining technical sections required for approval of its New Animal Drug Application for Mast Out, a treatment for mastitis in lactating dairy cows, by the U.S. Food and Drug Administration. e company says it believes it may be able to get FDA approval of Mast Out in 2017. When the fi nancial report was released, President and CEO Michael Brigham said, "Our goal is to revolution- ize the way mastitis is treated by making earlier treatment of subclinical infections economically feasible by not requiring a milk discard or meat withhold during, or for a period of time after, treatment. No other product presently on the market can off er this value proposition." e third animal product company in the cluster is Putney Inc., a privately held company that makes less costly ge- neric medicines for companion animals. Started in 2006 and based in Portland, Putney pulled in the largest venture capital deal in Maine in 2014, topping $16 million. Its total outside investment to date is $57 million, Putney CEO Jean Hoff man told FierceAnimalHealth. Annual revenue is around $30 mil- lion. In January, the company received its fi fth FDA Center for Veterinary Medicine drug approval in a fi ve-month span for an injectable antibacterial. Under the radar In addition to these more well-known companies, Maine has drawn experi- enced entrepreneurs from both in-state and out-of-state, many of whom were formerly with larger companies, but who have decided to make a fresh start in the state. Many come for the life- style, and recruit other talent into the state for the same reason. Maine has a lot of hidden assets for starting businesses, Richard Hale, president and CEO of Wentworth Technology Inc., a Saco-based maker of an improved noise-canceling head- set system for drive-through restau- rants, told Mainebiz in a story on innovation last June. "Mainers are very independent people, they're very proud people and they're practical. ese are all wonderful attributes for innovators," said Hale, who twice has come out of retirement to head companies and who has worked at startup and established companies in California's Silicon Valley and the Route 128 corridor in Massachusetts before settling in Maine. As of last year, his four-year-old company, with revenue of $1.2 million and 20 employees, was moving ahead. Hale said he has put a substantial piece of money into the company, and he's had investments from angels, in- stitutional funding, the Maine Venture Fund, CDI, the Maine Technology Institute and Spinnaker Trust. But what helped him attract other investors was the Maine Seed Capital Tax Credit Program, under which the Finance Authority of Maine may authorize state income tax credits to investors for up to 50% of the cash equity they provide to eligible Maine businesses. Other incentives are in play at TechPlace, the new startup incubator at Brunswick Landing being developed by the Midcoast Regional Redevelopment Authority. e location carries with it Bootstrapping, true to roots Maine strives to build an innovation economy B y L o r i V a l i g r a P H O T O / T I M G R E E N WAY P H O T O / T I M G R E E N WAY Richard Hale, president and CEO of Wentworth Technology, which created headset communications systems used at drive-through restaurants. Melissa Smith, president and CEO of WEX Inc., which offers mobile payment products.

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