Top R&D Budgets Held by IAMC Member Companies

If you are into financial trivia, here's one for you: the pharmaceutical company Pfizer's 2006 investment budget of $8.34 billion is roughly equal to Afghanistan's 2006 gross domestic product. According to the European Commission's annual scoreboard of corporate investment, Pfizer has the world's largest corporate R&D budget. Scan the figure below and notice that pharmaceutical companies dominate the list, constituting 15 (30 percent) of the top 50 companies. Ten of the 15 listed pharmaceutical companies have IAMC Active members, which are shown below next to their company affiliations.

Pfizer - Sean Nugent and Mark Eichkorn
Johnson & Johnson - Mert Livingstone
GlaxoSmithKline - Jack Smith
Novartis - Ron Grossmann
Merck - Joe Milano
AstraZeneca - Debra Haufler
Amgen - Dan Madrigal
Wyeth - Chuck Manula
Bristol-Myers Squibb - Jim Harbaugh
Abbott - Marilyn kasko

Bristol-Myers Squibb's New York headquarters

Source: AmericanCompanies.com

Bristol Myers Squibb Announces Productivity Plan

Bristol-Myers Squibb has announced plans for a major restructuring of its organization and operations. A company press release says, "Bristol-Myers Squibb Company (NYSE: BMY) will conduct a comprehensive review of its business and research and development operations, and outline its strategy to improve shareholder value, increase profitability and improve top line growth. The overview will provide investors with insight into how the company intends to implement its strategy and transform the company through its productivity initiative into a next-generation BioPharma company that pairs the scale and resources of a mid-sized pharmaceutical company with the entrepreneurial spirit and innovative focus of a biotech startup." An article in The Times of New Jersey, where the company employs thousands, describes the restructuring as part of a pharmaceutical industry-wide process in which "...the industry as a whole undergoes massive change while trying to shift from chemical-based research to biologically based medicines...."

Jim Harbaugh is the IAMC Active member with Bristol-Myers Squibb.

Mert Livingstone

Green Power: ALZA Fields Giant Photovoltaic Array

In an environment in which companies try to leapfrog one another in all areas of "green business," such as construction, HVAC, landscaping, etc., ALZA Corp. has taken a definitive lead by installing the largest photoelectric array in California. ALZA is a Johnson & Johnson company. A press release on the project reports, "[the array] will enable the manufacturing plant to produce one-third of the power the plant requires on a high-power-demand summer day. This system is built by SPG Solar Inc., of San Rafael, Calif., and generates the equivalent amount of energy to power 250 homes, as well as offset nearly 1.4 million pounds of greenhouse gas emissions annually." The project is big and according to the company "covers approximately 6.5 acres adjacent to the ALZA Vacaville facility. All of the energy generated by SPF-1000 will be used by the Vacaville plant, which operates 24 hours per day."

Mert Livingstone is IAMC's Active member with Johnson & Johnson.

Dylan Taylor

Source: www.grubb-ellis.com

Grubb & Ellis Merges, Moves Headquarters, Hires New President

The real estate company Grubb & Ellis has moved its headquarters from Chicago to Santa Ana, Calif. The move is part of a series of events associated with Grubb & Ellis' recently completed merger with NNN Realty Advisors. On this, a corporate press release says, "Grubb & Ellis Company (NYSE: GBE) today announced that it has completed its merger with NNN Realty Advisors, Inc., creating a real estate services and investment management firm that will be better positioned to more effectively compete in an increasingly global commercial real estate industry. The company retains the Grubb & Ellis name and continues to be listed on the New York Stock Exchange under the ticker symbol 'GBE.'" New leadership is apparently part of the deal. The company recently announced that "Dylan Taylor, the company's current president, Corporate Services Group, has been named acting president of Global Client Services and Grubb & Ellis Management Services, Inc."

Michael J. Finley is Grubb & Ellis' representative to IAMC.

John Ficker

Source: Chicago Real Estate Daily

IAMC Associate Member REIT Announces Promotions

First industrial Realty Trust has announced the promotions of Peter Schultz and John Ficker. A First Industrial press release says, "Peter O. Schultz, Jr., has been promoted to managing director — East Region from vice president, leasing — East Region. Mr. Schultz will lead First Industrial's new-business development in the region by providing customized supply chain solutions to customers. He will report to Robert G. Cutlip, First Industrial's executive vice president — North America." A second press release says, "John B. Ficker has been named vice president, supply chain solutions. Mr. Ficker is responsible for strategic planning and implementation of long-term logistic solutions for customers related to the company's land investments. In particular, Mr. Ficker will focus on developing best-in-class, vertically-integrated supply chains for customers involving all major transportation modes: ocean carriers, commercial air, rail lines, and trucking. He will report directly to Gerald A. Pientka, executive vice president of development."

Garry Weiss is the First Industrial Realty Trust representative to IAMC

Paul Waters

Source: www.cbre.com

CalSTRS and First Industrial Team Up

The California State Teachers' Retirement System (CalSTRS) and IAMC member First Industrial Realty Trust have expanded an existing joint venture called Strategic Land and Development. A press release on the project says, "The venture invests in strategically located land parcels and vertical development in markets that are projected to benefit most from supply chain reconfiguration, international trade, demographic trends and economic expansion. The venture may make investments throughout North America and the initial term of venture runs to 2016." Further, it explains, "Effective immediately, the capital capacity has been increased to $1.6 billion, up from the original $950 million capacity established in July 2006. Since the joint venture recycles capital back into the venture as properties are sold, the $1.6 billion investment capacity is a "point-in-time" limit and total investments can exceed $1.6 billion over the life of the venture. CB Richard Ellis Investors [also an IAMC member] is the advisor to CalSTRS on the venture."

Garry Weiss is the First Industrial Realty Trust representative to IAMC. Bleecker Totten and Paul Waters represent CB Richard Ellis to IAMC.

Making carrageenan from seaweed

Source: City of Zamboanga

PepsiCo Opening Plant
to Process Seaweed for Food Additive

Beverage giant PepsiCo plans to construct a facility in Tamil Nadu, India, to manufacture the food additive carrageenan from locally grown seaweed. An article in India Interacts () says, "Extracted from red seaweed, carrageenan is a biopolymer used as a gelling/thickening agent in food processing and pharmaceutical industries. It is also used in beer as a clarifier, in toothpaste as a stabilizer and in shampoo as a thickener." Further, the article notes, "...the plant capacity and the outlay are yet to be fixed as they are dependent on the volume of seaweed available and the level of the plant's sophistication."

Russell Burton and Kyle Ballard are IAMC's Active members from PepsiCo.

Coors and Miller products shown together

Source: Bloomberg

Big U.S. Brewing Companies to Merge

Two of the Unites States' largest brewers, Molson Coors and Miller, plan to merge. Molson Coors is an IAMC member. "Leo Kiely, chief executive of Molson Coors, said, `This combination of our two highly complementary U.S. businesses creates a stronger brewer and allows us to better compete. We look forward to closing the deal in mid-2008 and are cooperating fully with the regulatory clearance process,'" says an article in Biztimes. Molson Coors' Web site describes the transaction this way: "SABMiller plc (SAB.L) and Molson Coors Brewing Company (NYSE: TAP; TSX) today [Dec. 21, 2007] announced that they have signed the definitive transaction agreement for the combination of the US and Puerto Rico operations of their respective subsidiaries, Miller and Coors, into MillerCoors LLC, the joint venture that they announced on 9 October 2007. Molson Coors explains that "The closing of the transaction is subject to obtaining clearance from US competition authorities, certain other regulatory clearances and any required third-party consents. The Miller business and the Coors business will continue to be conducted separately and in the ordinary course until completion of the transaction."

Neil Jaquet is the IAMC Active member with Molson Coors.

New York State discounted the cost of hydroelectric power it will sell to Alcoa

Source: www.bpa.gov

Alcoa to Expand Upstate New York Operations, Add Jobs

Upstate New York economic developers and state authorities have put together a deal with Alcoa to expand the company's Massena, NY, operations in return for a long-term electric power contract at favorable rates from New York Power Authority (NYPA). A Fox Business report says, "Alcoa operates two smelters in Massena with a combined output of 255,000 metric tons per year (mtpy). Alcoa's Massena Operations have a rich and long history and have been operating as a part of the North Country since 1902. Modernization is key to the long-term viability of operations there given the nature of its technology. "Under terms of the agreement, NYPA will provide power to the operations in Massena for a term of 30 years following the expiration of Alcoa's current power contract in 2013. The agreement has an option to extend an additional 10 years contingent on aluminum prices and power availability." The quid pro quo to Alcoa is this: "...following completion of feasibility and engineering studies to finalize exact costs, Alcoa would invest approximately $600 million to modernize its operations and secure a minimum of approximately 900 jobs over the next 30 to 40 years, and dramatically more during the early years of the agreement." NYPA's Web site carries an extensive description of the deal.

Jim Winter is IAMC's Active member with Alcoa.

Honda's Civic is one of its best selling models in the U.S.

Source: www.netcarshow.com

Honda's Canadian Plants Set Sales and Production Records.

Auto company executives sometimes complain that the world produces too many cars. Even so, Honda Motor Company's Canadian operations are producing at capacity and experiencing record sales. A Newswire press release says, "Honda Canada Inc. reported combined record December sales of 17,817 units by its Honda and Acura divisions, a 12 percent year over year increase. The Honda Automobile Division reported record December sales of 15,542 units, up 10 percent, and Acura Division reported record December sales of 2,275 units, up 27 percent over last year."

Barry McClelland is the IAMC Active member with Honda of America.