Hartford Business Journal

6 Hartford Business Journal • November 14, 2016 www.HartfordBusiness.com TOP STORY Wyman's role in state Senate amplified as tie-breaker vote Lt. Gov. Nancy Wyman stands to directly influence legislative matters, now that the Democrat will be the likely tie-breaker vote in the state Senate. With Republicans picking up three seats in the state Senate on Election Day, the chamber will now be made up of 18 Democrats and 18 Republicans. As the presiding officer of the Senate, Wyman has the authority to break ties, giving the remaining Democratic senators the edge. Democratic Gov. Dannel P. Malloy called for unity in a post-election statement last week, saying he will invite legislative leaders from both parties to start infor- mal discussions about how to "move forward together" and "make progress." The GOP picked up three seats last week — the winners included Heath- er Somers of Groton, Len Suzio of Meriden, and George Logan of Hamden — formerly held by Democrats, erasing Democrats' slight Senate majority. In the House, Democrats are expecting to retain a slim 79-72 majority. GOVERNMENT, POLITICS & LAW Majority of CBIA financially-backed candidates win The Connecticut Business & Industry Association last week officially con- gratulated newly elected leaders and vowed to work closely with them to "make a great state even better." Eleven of the 14 candidates the business group supported through indepen- dent campaign contributions — totaling around $400,000 — were elected. Overall, the CBIA endorsed 102 legislative candidates, mostly Republicans. "Now that the voters have spoken, it is vitally important that policymak- ers work in a truly bipartisan manner to address voters' top concerns — the economy, job creation and the affordability of our state," said CBIA President and CEO Joe Brennan. INSURANCE Wade to make call on HealthyCT's future A Connecticut judge has approved the next step in health insurer HealthyCT's uncertain future. The Wallingford-based company is now under an order of rehabilitation, signed Nov. 1 by Hartford Superior Court Judge Antonio Robaina. The Connecticut Insurance Department (CID) placed HealthyCT under admin- istrative supervision on July 1, after it learned the insurer would be required to pay $13.4 million to an Obamacare risk-adjustment program, putting the insurer in "hazardous financial condition." The order last week puts CID Commissioner Katharine Wade in the position of rehabilitator, meaning she has the power to "reform, revitalize, rehabilitate or run-off HealthyCT." However, if Wade determines that rehabilitation efforts would "substantially in- crease the risk of loss to creditors, policyholders or the public, or would be futile," she may ask the court to approve a liquidation order, according to court documents. HealthyCT's financial picture provides some indication that Wade may opt for the latter. The order notes that HealthyCT's assets and reserves are projected to be inadequate to cover its contractual obligations. The nonprofit insurer booked a net loss of $19.3 million between Jan. 1 and Aug. 31. Wyman encourages consumers to rely on state healthcare exchange As questions from consumers emerge about President-elect Donald Trump's plans to eviscerate Obamacare, Lt. Gov. Nancy Wyman says she wants to reas- sure consumers who get or want to get health insurance through Access Health CT (AHCT) that it is available. Wyman chairs the board of directors for the state's health exchange. Trump has vowed to "repeal and replace" the Affordable Care Act, but the steps he and Congress might take are unclear. "I want to reassure Connecticut consumers that Access Health CT will con- tinue to be a vital link, connecting them to high-quality, affordable health insur- ance," she said in a statement. Wyman's spokesperson, Juliet Manalan, said "many" inquiries from the pub- lic prompted the lieutenant governor to issue the statement about the stability of the programming. In Connecticut, more than 800,000 residents use the state healthcare exchange to find coverage, Wyman added. ACCOUNTING Accounting firm returns to Hartford area with acquisition UHY Advisors and UHY LLP (UHY) will acquire the professional services firm Pratesi, Salemi & Company LLC and its affiliated valuation firm Brentmore Valu- ation Advisors, located in West Hartford, the company announced last week. The firms, which shared some common ownership, are now operating under the UHY banner. The acquisitions mark a return to the Hartford area for accounting firms UHY Advisors and UHY LLP, which last maintained a practice in Hartford in 2010, which it sold to Marcum LLP. UHY said the new practice will enhance and complement its current service offerings of tax planning, consulting services and business valuation. All 10 associates of Pratesi, Salemi & Company and Brentmore Valuation Advisors are expected to continue in their roles, UHY said. The firm's office will remain at 18 North Main St., West Hartford. BIOSCIENCE Rest of Hartford's Genomas sold for $1.75M The Florida health-software maker that last July acquired a stake in Hartford biomedical-testing provider Genomas says it has purchased the remainder of Genomas' equity for an additional $1.75 million, plus assumption of debt. Rennova Health, based in West Palm Beach, said last week that it acquired the remaining approximately 85 percent of Genomas in exchange for newly created convertible preference shares, plus taking on Genomas' $800,000 of existing debt. In July, the pair announced that Rennova had paid $250,000 cash for Hartford Hospital's approximately 15 percent stake in Genomas. The deal included as- sumption of Genoma's intellectual property. Farmington startup, UConn, Yale scientists collaborate on Zika vaccine Farmington-based CaroGen Corp., an emerging immunotherapy company, has formed a consortium with the University of Connecticut and Yale University School of Medicine scientists to speed up development of a Zika vaccine. Zika is spread mostly by the bite of an infected Aedes mosquito, and children with devastating birth defects have been born to women in Brazil who were infected with Zika during their pregnancies. The consortium is comprised of key experts, including Yale Professor John Rose, a world renowned virologist and chairman and scientific advisor of CaroGen; Dr. Paulo Verardi, associate professor of pathology at UConn and an opinion leader in vaccine research; and a team of vaccine development experts at CaroGen. Cromwell biotech firm to support Groton science incubator Cromwell-based Biological Industries USA, the North American division of Biological Industries, is sponsoring CURE Innovation Commons, a new science and technology incubator in Groton. The sponsorship includes training, substantial product discounts and stem cell research grants for residents of The Commons throughout 2017. The com- pany declined to disclose the dollar value of the sponsorship. Biological Industries USA is a developer and manufacturer of cell culture media. CURE Innovation Commons includes 22,000 square feet of commercial-grade laboratory, office and coworking spaces as well as meeting and event facilities. RETAIL Saks OFF 5TH opening in West Hartford next fall Saks Fifth Avenue OFF 5TH is coming to Corbin's Corner, a first for Greater Hartford. The retailer is opening a new store in the West Hartford retail district in the fall of 2017, its third store in Connecticut, the company said. The other two are in Clinton and Stamford. The approximately 27,000-square-foot store will offer luxury designer fashion, ac- cessories and footwear from more than 800 brands for adults and children. BY THE NUMBERS 41.6% The percentage of Connecticut voters who cast their ballot for Donald Trump, who won the U.S. presidency. 53.9% The percentage of Connecticut voters who cast their ballot for Hillary Clinton, who lost her race to become the first woman president in the United States. 18 The number of Republicans who will now occupy the state Senate after last week's elections, giving the GOP an equal number of Senate seats as the Democrats. 0 The number of U.S. Congressional seats Connecticut Republicans will continue to hold, after Democrats won re-election bids for all five U.S. House seats and one U.S. Senate seat. TOP 5 MOST READ on HartfordBusiness.com ■ Report: Suspect mineral contributes to crumbling foundations ■ Wade to make call on HealthyCT's future ■ Bloomfield's Ace Hardware closing ■ CT voter turnout high ■ Accounting firm returns to Hartford area with acquisition STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. 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