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FAST LANE - September
2005
Xanodyne Pharmaceuticals, Inc., a Florence pharmaceutical company that specializes in products in the therapeutic areas of women’s health and pain management, has announced plans to acquire the pharmaceutical assets of aaiPharma for $209.25 million. The combined business will have pro-forma 2005 revenues of approximately $100 million. “We have believed for some time that the two businesses fit very well together,” said William Nuerge, chief executive officer of Xanodyne. “Xanodyne brings a pipeline of women’s health care products and a strong commercial capability and infrastructure for both women’s health care and pain management products, while aaiPharma has a broad range of currently marketed and pipeline pain products. With this acquisition, Xanodyne has a comprehensive portfolio of pain management and women’s health products, including six key development compounds – three in each of its main therapeutic areas of focus – as well as the ability to develop and commercialize its assets. I am not aware of any evolving specialty pharmaceutical company with the combination of people, products, performance, pipeline and potential that we now have at Xanodyne.” Ludo Reynders, Ph.D., chief executive officer of aaiPharma Inc., noted, “By letting Xanodyne focus on their commercial expertise, aaiPharma is freed to focus on its strengths in product development. The relationship is very symbiotic by design.” SOMERSET
UGN, Inc. is a recognized leader for acoustic, interior trim and thermal management products serving the automotive industry. Established as a joint venture in 1986 between Nihon Tokushu Tokyo Co., Ltd. and Rieter Automotive Systems, UGN, Inc. is headquartered in Chicago, Ill. and has three manufacturing plants, one research and development facility, and more than 1,200 employees. The 314,000-sq.-ft. Somerset plant will produce the company’s first acoustical carpet system for 2007 production-year vehicles. The plant is expected to be operational by early next year. The company anticipates beginning operations with a staff of 150 and expects to increase that number to 300 within three years. UGN has been granted approval through the Kentucky Economic Development Finance Authority for tax benefits of up to $5.6 million under the Kentucky Rural Development Act, an incentive program that is designed to help locate or expand manufacturing operations in counties that have high rates of unemployment. LEBANON Joy Mining Machinery, a company that specializes in the development, manufacture, distribution and service of underground mining equipment, has announced plans to locate a new manufacturing and service operation in Lebanon, where it has purchased a 90,000-sq.-ft. building on 13 acres. The Kentucky Economic Development Finance Authority has approved Joy Mining Machinery for tax benefits up to $4.6 million under the Kentucky Rural Economic Development Act, an incentive program designed to increase manufacturing employment in the commonwealth. The Pennsylvania-based company is investing $7.1 million in the new operation, which is expected to be operational by the fall of 2005, bringing more than 200 new jobs to the Marion County area. Joy Mining Machinery products are distributed and supported by the company’s 46 facilities located in eight countries. The company currently has warehouses in Henderson and Lovely, Ky. SOUTH CENTRAL REGION Eight counties in south-central Kentucky are hoping to see a boost in their economic development efforts as a result of a new branding campaign designed to highlight the region’s assets. The new brand – “South Central Kentucky: Central for business. Southern for living.” – was created by The Liberty Group with the idea of emphasizing the region’s optimal location and quality of life. “In looking at what makes South Central Kentucky unique for business, we realized the region’s name pretty much sums it up,” explained Tim Earnhart, president and CEO of The Liberty Group. “The region is located in the middle of the U.S. industrial market and at the heart of its population with a tremendous network of interstates and parkways. And finally, the Southern-style living and Southern hospitality you’ll find in the region is both practiced and genuine by all who call South Central Kentucky home.” The counties of Allen, Barren, Butler, Edmonson, Logan, Metcalfe, Monroe, and Warren will all have the option to utilize the brand and logo to benefit their respective economic development efforts. “The establishment of this brand fortifies the relationship that we all share as individual counties,” Edmonson County Judge Executive N.E. Reed said. “It is now the responsibility of each county to embrace ownership of the brand. The more often we use it, the stronger it will become.” OLDHAM COUNTY In an effort to draw more companies to the area and improve the business/residential ratio, the Oldham County Economic Development Authority has purchased 979 acres in La Grange for approximately $10 million with plans to develop a mixed-used office and retail park. The county’s existing tax base is approximately 92 percent residential and eight percent business, a ratio that puts a strain on the county’s services, say community leaders. Officials with the authority note that the property’s proximity to I-71 is one of its major selling points, offering easy access to both Louisville International Airport and the Cincinnati/Northern Kentucky International Airport. The authority already has a contract with The Rawlings Group, a health insurance claims-recovery firm that plans to build its headquarters facility on a 100-acre tract in the development. Rawlings currently has its offices in downtown Louisville. The new three-story, 150,000-sq.-ft. building in Oldham County will accommodate some 750 employees when it opens in the third quarter of 2007. BOWLING GREEN
Of the 3,000-plus member counties throughout the United States, Warren County was the only one to receive the award, in recognition of its regional economic initiative and innovative practices for the Kentucky Transpark. The transpark is a planned 1,200-acre high-tech, environmentally friendly business and commerce park in Warren County that will accommodate heavy and light industrial manufacturing operations. It also offers planned unit development sites for commercial and retail establishments. “County Judge Buchanon saw the need for a regional cooperative effort to boost economic development in South Central Kentucky, and the Kentucky Transpark in Warren County will be the genesis of that vision,” said NACo President and Lake County, Illinois Board Member Angelo D. Kyle. CORBIN Corbin has received $12 million in coal severance funds that will be used to develop the Southeast Regional Agricultural and Exposition Center. The center will be part of an existing complex that houses the Corbin Technology Center. The center is envisioned for use by Bell, Jackson, Laurel, Whitley, Knox, Harlan, Rockcastle, Pulaski, Clay, Leslie and McCreary counties as a tool for economic development and tourism. It is designed to be a multi-purpose center to be used for workforce development, concerts, agriculture show and other activities. Gov. Ernie Fletcher, in presenting the funding, noted that the new facility will “allow opportunities for the area to attract big events and spur economic development with restaurants, hotels and other family-oriented activities.” The center will also give farmers a place to showcase their products. A feasibility study is currently underway to see how many seats the center will hold as well as its total expected economic impact. The center is expected to seat between 5,000 to 8,000 people. The project is slated to begin by next summer and will take approximately 18 months to complete. STATE
The challenge is based on the premise that the settlement violates the Compact Clause of the Constitution, which states: “No State shall, without the Consent of Congress….enter into any Agreement or Compact with another State.” (Article 1, Section 10). CEI maintains that the Compact Clause was meant to prevent states form collectively encroaching on federal power or ganging up on other states. According to CEI, however, the tobacco settlement set up a “national government/tobacco cartel that harmed consumers and small businesses by increasing cigarette prices and restricting competition.” According to the terms of the settlement, major tobacco companies would make annual payments to the states in perpetuity, with an estimated cost of $206 billion over 25 years. Small tobacco companies that were never part of the settlement are nonetheless required to make separate payments to the states. “The tobacco settlement was a major government power grab at the expense of taxpayers and the rule of law,” said CEI President Fred L. Smith, Jr. NEWPORT
SOMERSET The Federal Emergency Management Agency (FEMA) has awarded $7.4 million to support the creation of a National Incident Management System (NIMS) Regional Center to be established in Somerset. The regional center will facilitate the creation of 25 new-knowledge employees, who will work to improve the ability of first responders to communicate seamlessly across jurisdictional lines during an emergency. More jobs are expected near the end of 2005, officials said. “After the attacks of September 11th, we realized that America’s first responders were not properly equipped to communicate at the scene of an emergency,” U.S. Representative Hal Rogers said. “The NIMS Regional Center will work to test and evaluate interoperability technologies with the goal of ensuring that all first responders are able to seamlessly exchange information during an incident, whether it is a terrorist attack, natural disaster, or technological accident.” The U.S. Department of Homeland Security has signed a cooperative agreement with EKU to establish the NIMS Regional Center in Somerset. SAIC will serve as the principal support contractor for EKU and will operate the NIMS Regional Center from its Technology Solutions Center in Valley Oak Technology Complex. EDMONSON COUNTY
LOUISVILLE
Plans for the property call for the creation of “an open, casually elegant space” for its Louisville associates, including a large gathering and food-service area, office space and meeting space. The total investment for the project, which is slated to begin this fall, is expected to be approximately $12 million. “As Humana begins this project, we are committed not only to creating exciting new space for our associates downtown, but also to preserving the integrity of the architecture and history of the block,” said Mike McCallister, Humana’s president and chief executive officer. “We believe that when this project is completed, the block will maintain its historic feel, while simultaneously projecting a more aesthetically pleasing appearance.” The company is working with preservation experts to ensure that the historic integrity of the block is maintained. Humana ranks as one of the nation’s largest publicly traded health benefits companies, with approximately seven million medical members. The company expects to employ some 6,900 associates in Louisville by mid-2006. LOUISVILLE OvernightPrints.com, a company that specializes in business cards and postcards, is moving its operations from California to Louisville, where it will employ some 200 workers. The company is investing approximately $11.5 million for the purchase, renovation and equipping of a 100,000-sq.-ft. warehouse facility in the city’s West End that has been vacant for nearly five years. Brett Heap, president and CEO of OvernightPrints, said proximity to UPS’ Louisville hub was the driving force in the company’s decision to locate in Louisville rather than Tennessee. By being located in Louisville, OvernightPrints will be able to more easily service its East Coast customers, and will also be able reduce its shipping costs. According to UPS, some 80 companies have moved into the Louisville area because of UPS’ Worldport hub, resulting in nearly 7,000 new jobs, $136 million in payroll and another $300 million in additional economic impact. LOUISVILLE U.S. Wireless Online has announced plans to acquire IPOutlet, an Ohio business solutions company. The purchase represents Louisville-based U.S. Wireless’ seventh acquisition of the year. IPOulet’s Columbus data center encompasses 26,000 square feet and is equipped with state-of-the-art environmental and power resources. The facility serves as a primary location, disaster recovery site and secondary location for its corporate customers. With its recent acquisitions, U.S. Wireless Online has emerged as one of the nation’s largest wireless Internet broadband networks, with a coverage area of approximately 3,000 square miles in an 11-state area. LOUISVILLE The Louisville Metro Council has approved a smoking ban in Louisville that is slated to take effect November 15. The vote was 21-5 in an overwhelming show of support for the ban. The ordinance excludes bars as well as restaurants where alcohol accounts for more than 25 percent of sales, private clubs and rental halls, race tracks, retail tobacco stores and tobacco warehouses, enclosed rooms that have completely separate ventilation systems, individual hotel rooms, and indoor smoking rooms of government buildings (which is required by state law). The ordinance gives the city’s Metro Health Department the responsibility for enforcing the new ban. Businesses that violate the ordinance will face first-time penalties of $50 to $100. A maximum fine of $500 will be assessed for third and subsequent offenses. Smokers who refuse to stop can be asked to leave the premises and charged with criminal trespass if they refuse. LOUISVILLE Louisville-based ResCare has become one of the founding members of a new index known as the NASDAQ Health Care IndexSM. (Symbol: IXHC). ResCare is one of the nation’s leading providers of services to people with disabilities and special needs. The NASDAQ Health Care Index is a market-value weighted index that contains NASDAQ-listed companies classified as health, pharmaceutical or biotechnology. They include health maintenance organizations, hospital management and long-term care, medical equipment and supplies, other health care, biotechnology, and pharmaceutical companies. The new index provides market participants with new opportunities to own shares in industry-leading companies and equips them with additional investment options. NASDAQ is the largest U.S. electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. “We are honored to be included as a founding member of this new NASDAQ Health Care Index,” said Ronald G. Geary, ResCare chairman, president and chief executive officer. “In addition to being a unique form of recognition for our company, it gives investors additional opportunities to invest in our stock. We view our inclusion as further confirmation of the growth of our company and the success of our business strategy.” Part of that strategy has included expanding the company’s boundaries. The company recently acquired the operations and certain assets of Home Care Living and TLC In-Home Care, which has operations in Dallas, Phoenix, Salt Lake City and Yakima, Wash. The acquisition includes a total of four operations with expected combined revenues of $2.25 annually. LEXINGTON A California-based company that develops, manufactures and markets advanced ceramic products for defense, automotive and commercial applications has opened a new plant in Lexington. Joe Moskowitz, chairman of the board and chief executive officer for Ceradyne, noted that the plant “encompasses cutting-edge advanced technical ceramic technology in two of our core competencies – hot pressing lightweight, extremely hard boron carbide ceramic needed to meet recent increased military requirements for body armor, and Ceradyne’s silicon nitride ceramics for use as components in diesel engines and other industrial and energy-related applications where erosion and corrosion resistance are required.” Moskowitz added that Kentucky’s competitive energy rates were a factor in the company’s selection of a Kentucky site, noting that the savings will enable the company to meet growth projections. And, he noted, the increase in manufacturing capacity will allow for enhanced productivity objectives. Commerce Lexington President and CEO Bob Quick pointed out that Semicon Associates, a Ceradyne company that produces components used in the communications, space, medical research, and defense industries, has been part of the Lexington business community for decades. Now, Quick added, the company’s parent corporation will continue to contribute significantly “through its capital and human investments to further grow our economy and tax base.” Ceradyne was recently listed third in Fortune’s annual ranking of the 100 fastest-growing companies in the U.S. The rankings were based on revenue and profit growth and total return from stock price appreciation during the three-year period from 2002 to 2005. LEXINGTON University of Kentucky President Lee T. Todd Jr. recently announced that UK faculty and researchers brought in a record $274 million in grants and contracts during fiscal year 2005, a 15 percent increase over last year’s $238 million. Todd noted that the increase “clearly demonstrates UK’s momentum in reaching national prominence as a research institution” and is indicative of the success the university is having as a “catalyst for positive change” in Kentucky.
“The numbers – $274 million – speak to the increasing success our researchers are having in competing on the national level. These awards are extremely competitive and are coveted by the top institutions in America,” Todd said. “More importantly, though, the type of research we’re doing – from education to cutting-edge developments in health care and homeland security – is creating a foundation to help transform the state we serve.” Federal awards totaled $152.2 million, a six percent increase over the previous year’s total of $143.8 million. Federal awards come from agencies such as the National Institutes of Health, National Science Foundation and departments of Defense, Education and Agriculture, among others. LEXINGTON
The city has authorized SkyTel, a division of MCI, to handle the service, which has come to be known as “Wi-Fi.” Lexington is one of several U.S. cities selected for the pilot program by SkyTel, which will lease space on traffic signal poles to provide the service. Construction and installation of the Wi-Fi transmitters is expected to begin this month. City officials anticipate seeing the service boost the community’s economic development efforts. “Very few cutting-edge companies would consider locating somewhere where there wasn’t Wi-Fi,” noted Lexington Mary Teresa Isaac. “Our economic development director, Julian Beard, recently received an inquiry from a developer regarding a project in Lexington. The first words out of the developer’s mouth were, ‘Do you have Wi-Fi?’” LEXINGTON
The four facilities provide 684 additional beds and are all configured in suite-style formats, with each floor offering a full kitchen, laundry facility and study areas. Each hall also contains a fully wired classroom that can seat up to 30 students; wireless data connections in all common areas; a faculty office; large lounge areas; 50-inch Plasma televisions with DVD players and Surround Sound systems; and security cameras and door access controls. The residence halls are the first to be built on the university campus since 1979. Three of the four new dorms feature “Living/Learning Centers,” which integrate living accommodations with learning. For instance, Ingels Hall is home to the New Economy Incubator community, which will explore how ideas come to the marketplace with UK faculty and regional leaders. New North houses a Fine Arts Center featuring six, sound-proof music rooms and a large multi-purpose room. Smith Hall will contain the Global Village community designed to build cross-cultural friendships and understanding. LEXINGTON Two new development projects have been proposed for downtown Lexington that are expected to inject new life into an area now filled with vacant warehouses and aging homes. Plans to build a $70 million retail and residential development on the site of the now-vacant Shelbourne Tobacco Warehouse were announced last month by the Bloomington Group LLC, a Bloomington, Indiana development firm that is working in partnership with Polaris Real Estate Equities of Highland Heights, Ohio. The plan, which has not yet been approved by the city, outlines a mixed-use project that includes 80,000 square feet of retail space and some 220 apartments. Shelbourne Plaza’s retail space would be anchored by a supermarket, long an item at the top of the wish list of downtown workers and residents. The developers are currently in talks with a number of potential tenants for that position. On another front, plans are under way for the renovation of the Kimball House Hotel, a group of five Victorian houses near the UK campus that date back to the 1880s. Now, Kingland Cooper Commercial Real Estate plans to invest $12.5 million to create Kimball House Square, a complex that will include 36 condominiums and a 15,500-sq.-ft. day spa. The condominiums will range from 600 to 1,500 square feet in size and will be priced between $150,000 and $300,000 each. Cincinnati-based La Bella Salon, Spa & Self Image Centre plans to open at Kimball House Square this time next year with some 50 employees. TENNESSEE International Paper has announced its decision to relocate its global headquarters to Memphis, Tenn., from Stamford, Conn. The company expects the move to be complete by Aug. 1, 2006. Chairman and Chief Executive Officer John Faraci said the move is aimed at improving “efficiencies that will result from having all of the company’s leadership in one place.” International Paper relocated its operational headquarters from New York City to Memphis in 1987. The company currently employs about 3,000 people there. The relocation will result in around 90 new jobs in Memphis with a median wage of approximately $128,000. International Paper has been headquartered in Stamford since 2001, when it moved into the offices formerly occupied by Champion International, which was purchased by IP in 2000. The global headquarters employs about 150 people. International Paper is the world’s largest paper and forest products company, with businesses that include paper, packaging, and forest products. INDIANA
Harrah’s owns or manages more than 40 casinos, primarily under the Harrah’s, Caesars and Horseshoe brands. Harrah’s acquired the Caesar’s Indiana property as part of its merger with Caesars Entertainment this past June. As part of the changeover, which is anticipated to take approximately a year, Harrah’s will remodel the property and add new dining and entertainment options. Horseshoe patrons will be members of Total Rewards, a casino loyalty program. As part of the program, they will have the ability to earn and redeem their comps and other benefits locally at the Horseshoe, or at any Harrah’s Entertainment-operated casino worldwide. Caesars Indiana initially opened in 1998, and has 120 table games including the largest poker room in the area, 2,300 slots, 503 luxurious rooms and suites, and various dining, shopping, and recreational options, including an elaborate pool, full 18-hole golf course, and woodland fitness trail. The resort, which is open 24 hours a day year-round, employs 2,115 people and contributes $100 million in taxes to local and state jurisdictions as well as $15 million to the local community and Caesars Foundation.
Business Briefs DANVILLE
FLORENCE
FRANKLIN
HARRODSBURG
HEBRON
HOPKINSVILLE
JESSAMINE COUNTY
LONDON
PHILPOT
RADCLIFF
WINCHESTER
STATE
LOUISVILLE
LEXINGTON
INDIANA
OHIO
TENNESSEE
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Copyright 1996-2005, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2005, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
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The acquisition will bring Darvon and Darvocet, two currently marketed pain management agents, into the Xanodyne portfolio, as well as three pain products that are presently in clinical development and one other early-stage development product. 
Automotive component manufacturer UGN, Inc. has announced plans to locate a new facility in Pulaski County.
Jim Hizer, Bowling Green Area Chamber of Commerce president and CEO, said he saw the need for such an endeavor soon after his arrival in Bowling Green last year. “As I began to look beyond Bowling Green and Warren County, I saw excellent neighboring towns and communities full of potential,” Hizer said. “It seemed like a natural solution for us to work together as a region. When any one of us experiences economic development success, the entire region is strengthened.” 
Judge Michael Buchanon of Warren County is the recent recipient of the 2005 County Courthouse Award, an award presented each year by the National Association of Counties and Siemens to three elected officials who have improved the lives of citizens through outstanding governance and strong leadership.
The Competitive Enterprise Institute (CEI), a national non-profit public policy group, has filed a constitutional challenge to the 1998 tobacco settlement, alleging that the agreement between 46 states and major tobacco companies is unconstitutional.
Humana Inc. has purchased, or entered into agreements to purchase, all but two of the buildings in the 500 block of West Main Street in Louisville, where the company is headquartered. 
IPOutlet provides co-location services, high-capacity broadband connectivity, IP traffic engineering, security services, infrastructure management services, Web hosting, disaster recovery services, Virtual Private Networking (VPN) and other customized business solutions. 
The ordinance will restrict smoking in more than 20,000 Louisville businesses, including more than 2,500 restaurants. However, of those 2,500 restaurants, nearly half – 1,200 – are already smoke-free. 
Ceradyne, Inc.’s new 115,000-sq.-ft. facility manufactures lightweight ceramic body armor systems for U.S. military forces and silicon nitride technical ceramic components for diesel engines. 
The Lexington-Fayette Urban County Government has launched a year-long pilot program that will offer wireless Internet services throughout downtown Lexington. The service will enable laptop and handheld computer users to access the Internet without being tied into wired Internet connection.
The University of Kentucky has opened four new residence halls in an effort to meet the demand for on-campus housing resulting from the university’s rapid growth. 
The decision to relocate came after a 30-day evaluation announced in July as part of IP’s transformation plan.
Harrah’s Entertainment has announced that its Caesars Indiana property will be rebranded to become a Horseshoe casino by early 2007. 
Pomeroy IT Solutions, Inc. has received a seven-year contract to perform an estimated $20 million of help desk and related IT support services. Pomeroy will provide help desk and distributed computing support to a market-leading manufacturer of electrical distribution and industrial control products, systems and servers. Under the contract, Pomeroy will provide helpdesk and deskside support to approximately 8,000 workers across 24 sites throughout the U.S. and Canada. 
In response to requests from Central Kentucky businesses and education committees, Sullivan University will offer a culinary arts program at its Lexington campus, beginning this month. The initial programs offered will be a professional cook diploma and an associate degree in culinary arts. Sullivan’s culinary arts school in Louisville, which is part of the school’s well-known National Center for Hospitality Studies, has been awarded over 300 national and international awards. The university projects its fall enrollment in the Lexington program to exceed 70 students.
Delta Air Lines has informed Blue Grass Airport that it plans to discontinue non-stop flights between Lexington and three cities in Florida due to lack of passengers. The Atlanta-based airline, which has been struggling financially, will eliminate non-stop flights between Blue Grass Airport and Fort Lauderdale and Tampa effective October 1, only several months after beginning service. At that time, the airline will also cut one of its non-stop flights to Orlando. 
Great World Resorts, Inc. and Paramount King’s Island have begun construction on a $100 million resort that will be situated on 39 acres just north of the Ohio amusement park. The all-suite hotel will feature a 75,000-square-foot year-round indoor water park, a spa, themed restaurants, an arcade, fitness center, outdoor recreation area and conference facility. The facility is slated to open in late 2006.