If Texas Instruments Lehigh Valley's technology were adopted in computer systems worldwide, the reduction of power use would equal the output of more than 12 coal-fired power plants annually.

Texas Instruments Lehigh Valley’s technology dramatically increases efficiency in power systems, delivering new levels of systems compactness, cost and performance. Its highly efficient power chip reduces the heat given off by power supplies and redirects that energy to the device being energized, making it 20% more efficient. If this technology were adopted in computer systems worldwide, the reduction of power use would equal the output of more than 12 coal-fired power plants annually.

Starting Life in the Incubator

Mark Granahan launched the company at the Ben Franklin Business Incubator at Lehigh University. Investments by Ben Franklin Technology Partners of Northeastern PA (BFTP/NEP) enabled CICLON to conduct thermal, electrical, material, and mechanical analyses of its new, low-cost, high-performance power semiconductor package. Ben Franklin also linked the company with vital equipment at Lehigh University.

“Ben Franklin was instrumental in starting our business,” said Mark Granahan, now General Manager of Texas Instruments Lehigh Valley. “In addition to providing funding, an outstanding facility with office space and lab space, and links to specialized equipment, they gave us support for our financial systems and human resources. Their assistance allowed us to focus on what was important to our early-stage company: technology development.”

CICLON began with just three employees—the founders—in 2005. At the end of 2010, it had grown to a staff of 60, with plans to end 2011 with an additional 15 to 20 employees. The company has already hired five people this quarter, and continues to seek new talent for the organization. In 2007, CICLON graduated from the original incubator space and became the anchor tenant in the new post-incubator space at Ben Franklin TechVentures. In February 2009, when CICLON was acquired by Texas Instruments, all local jobs were retained.

Rapid Growth to World-Leader Status

Like any organization, BFTP is only as good as the people involved with it—and these are some remarkable individuals.
—Mark Granahan, Founder and General Manager, Texas Instruments Lehigh Valley (formerly CICLON)

CICLON’s technology has been designed into products offered by world leaders in electronics. The company has enjoyed design wins with major electronics corporations, a strong and expanding patent portfolio, and growing sales.

In addition to crucial infrastructure support, BFTP/NEP has provided $150,000 in financial assistance to the company. And the relationship continues: Texas Instruments Lehigh Valley will be moving into the brand new 47,000 sq. ft. Ben Franklin TechVentures² facility once it is completed by the end of 2011.

TechVentures² is expected to create as many as 200 new high-paying, sustainable technology jobs and retain 100 more jobs at startup companies in its first three years. It will also provide job and internship opportunities for up to 20 university students each year.

“Like any organization, BFTP is only as good as the people involved with it—and these are some remarkable individuals,” said Granahan. “They helped us fulfill our vision. The more businesses they can touch, the more success we will see in northeastern Pennsylvania.”

Although it boasts the world’s most efficient power switch, the company is dedicated to maintaining its competitive edge. The technology is expanding worldwide and the company is set on a goal of growing to a billion dollars in revenue.

“We are proud to offer something that the world not only needs, but demands: a higher-efficiency power device,” said Granahan.

Diversified began as a records storage company in 1982, and the company has flourished in the industry by continually realigning operations to match the needs of clients and the marketplace. This focus led the company to work with Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP NEP) and Wilkes University to re-engineer its service offerings.

For example, Diversified developed a communication center for electronic vaulting, a technologically sophisticated application that utilizes satellite transfer communications and Internet capabilities to create operational redundancy. This service ensures clients’ business processes are uninterrupted in unexpected circumstances.

In addition, the company worked with BFTP NEP to augment and improve its strategic business plan, which substantially transformed the business. The company’s annual revenue increased 49 percent in 2010. Diversified now employs 379 Pennsylvanians, and credits those jobs to its work with BFTP NEP.

CF patients have a defective gene that causes the body to produce an abnormally thick, sticky mucus that clogs the lungs and leads to life-threatening lung infections. These thick secretions also obstruct the pancreas, preventing digestive enzymes from reaching the intestines to help break down and absorb food.

Dr. Tibor Sipos knows that his medicine, geared toward helping those with cystic fibrosis, is making a difference for the 30,000 Americans living with CF. His Bethlehem-based company, Digestive Care, makes PANCRECARB®, an enzyme supplement for the treatment of exocrine pancreatic insufficiency associated with cystic fibrosis. Simply put, PANCRECARB helps CF patients digest fats more efficiently.

“I know how difficult life is for these patients. I knew one who died at 9 years of age,” says Sipos. “It left me with a strong feeling to continue to make better products for them. And when you talk with the parents of the kids, and you see how much you helped them, it gets to you. It touches you very deeply.”

A Long and Productive Relationship

Sipos founded Digestive Care in 1990 when he took early retirement from Johnson & Johnson to start his own business. He received investments from Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP/NEP) after he learned about BFTP’s programs through Dr. Ned Heindel, H.S. Bunn Chair Professor of Chemistry at Lehigh University and a longtime friend and colleague.

Seeing the potential in his technology, BFTP/NEP provided funding and space in its nationally recognized business incubator, where he could benefit from low overhead, business support and direct access to Lehigh University’s talented researchers.

“Technology companies need huge amounts of capital to grow, particularly in the pharmaceutical arena,” says Sipos. “That’s why financial support by BFTP is so critical.”

“BFTP played a significant role in the beginning of our development,” says Sipos. “They provided much-needed seed funds and incubator space for the preparation and manufacturing of drug supplies for clinical studies.” Sipos credits the constant attention, valuable business advice and financial support provided by BFTP as a major factor in Digestive Care’s early success.

Getting Through the Approval Process

Sipos’s dedication to those with cystic fibrosis has helped the company grow from an initial research-based organization to a fully integrated pharmaceutical company. Through a series of BFTP/NEP investments from 1990 to 1998, Digestive Care developed its flagship product, PANCRECARB, which is almost through the Food and Drug Administration’s (FDA) New Drug approval process.

The cost of research and development to secure FDA approval for a new drug is substantial–measured in years and millions of dollars. Compared with deep-pocketed multinational pharmaceutical companies, Digestive Care had limited funds to invest in research and development.

“Technology companies need huge amounts of capital to grow, particularly in the pharmaceutical arena,” says Sipos. “That’s why financial support by BFTP is so critical.”

OraSure's products have a variety of diagnostic capabilities, ranging from HIV to other infectious diseases and drug and alcohol abuse.

The global AIDS epidemic is raging on, and OraSure’s testing technology has monumental implications for millions of people worldwide. The ease of use and speed of OraSure’s HIV test will help curb the spread of AIDS, a remarkable achievement for this former Ben Franklin Technology Partners company based in Bethlehem.

OraSure’s products have a variety of diagnostic capabilities, ranging from HIV to other infectious diseases and drug and alcohol abuse. As a leader in oral fluid testing, OraSure now supplies a variety of diagnostic tests and medical devices to public and private sector clients, life insurance companies, clinical laboratories, physicians’ offices and for workplace testing.

OraSure was founded in 1987 by Bill Hinchey, a marketing and sales executive, Mike Gausling, a corporate finance specialist, and Sam Niedbala, a research scientist. Originally called SolarCare Inc., OraSure began in the Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP/NEP) Business Incubator. The incubator has since relocated and expanded to Ben Franklin TechVentures on Lehigh University’s campus and is currently home to 24 startup companies. It has graduated 44 successful companies since 1983.

A Long-Time Partner with BFTP

OraSure received business operations assistance, strategic planning, advice and technical assistance at the BFTP incubator, allowing the business to take off. OraSure has received a total of $235,000 in investments from BFTP, starting with an initial $95,000 investment. OraSure went public in 2000 and is now traded on NASDAQ (OSUR).

With assistance from BFTP/NEP, OraSure attracted $9.1 million in outside investments including from PA Early Stage Partners. OraSure then moved into a facility located on reclaimed Bethlehem Steel brownfield sites. The industrial center was initially conceived and developed by BFTP/NEP in cooperation with the Bethlehem Economic Development Corporation, Lehigh Valley Industrial Park, Inc., Northampton County Industrial Development Corporation and Northampton County New Jobs Corporation.

OraSure shows how BFTP can leverage community and university partnerships, funding, and a network of experts and business contacts. —Bob Thomson, Lehigh Valley Regional Manager for BFTP/NEP

A Legacy of Success

OraSure’s rapid growth is credited to its high level of research, innovation, the vision of the founders and the dedicated work of team members. OraSure currently has 285 employees spread over three locations.

“OraSure’s success, starting with its involvement with Ben Franklin Technology Partners more than 20 years ago, is inspiring,” says Bob Thomson, Lehigh Valley Regional Manager for BFTP/NEP. “OraSure shows how BFTP can leverage community and university partnerships, funding and a network of experts and business contacts. This is something we are proud to continue doing for startup businesses in Pennsylvania.”

In addition to HIV testing, OraSure manufactures and sells several leading cryosurgical products. This includes Histofreezer, a product for the cryosurgical removal of benign skin lesions, sold to the professional or physician office market in the United States and many foreign countries. OraSure also manufactures and sells an over-the-counter product for the cryosurgical removal of warts, available all over the world.

Looking ahead, OraSure is seeking regulatory approval to sell its OraQuick HIV test over the counter. The device is currently approved for use by clinics and hospitals. The company expects the annual U.S. market for an over-the-counter HIV test kit could exceed $500 million. OraSure is also awaiting FDA approval on the OraQuick rapid Hepatitis C test, which uses a variation of its technology to test for hepatitis. OraSure’s sales have remained strong, even in this tough economy, and the company has reported growth in 2009, which it hopes to continue into 2010.

MegaPhase’s cables are used in tens of thousands of these systems in vehicles in the U.S. Army. MegaPhase’s systems nullify enemies’ detonation devices that blow up roadside IEDs. Two-thirds of all deaths in the battles in the Middle East are a result of roadside bombs, making MegaPhase’s product an integral part of American defense. MegaPhase, based in Stroudsburg, also received the 2005 Product Innovation Award from BFTP/NEP.

“We’re saving lives every day,” says Bill Pote, MegaPhase president and CEO. “We’re doing what we can to keep soldiers safe.”

Tray-Pak received the 2007 Manufacturing Achievement Innovation Award from BFTP/NEP. TPC Partners will work closely with Tray-Pak in Reading to position the company for continued growth in the rapidly changing thermoforming market.

“Tray-Pak is a respected member of the Greater Reading business community and a first-class innovator in the plastic packaging sector,” says John McGlinn, a partner of TPC Partners.

Scranton-based Diversified Information Technologies is a leading provider of document and information lifecycle solutions and serves the Fortune 1,000 in a variety of industries.

“Through this strategic acquisition, Diversified is expanding its footprint in the health care industry, its market presence in the Southeast and is introducing new and expanded services,” says Diversified’s president and CEO Scott Byers.

Diversified Information Technologies received the 2009 Innovative Application of Technology Award from BFTP/NEP.

IQE is the largest independent epiwafer producer in the world.

Today, the multinational company provides one-stop outsourced production of high-quality wafers to some of the biggest names in the electronics industry. But the recent surge in market interest—and government money—for clean and alternative energy advances has given IQE an entry into the bright future of solar technology.

“Solar is our next big push,” confirms Steve Gergar, IQE’s vice president and general manager. Gergar says the company has taken full advantage of the new funds made available by the U.S. Stimulus Program for Alternative Energies. “Thanks to all this interest, there’s a very high growth market today both inside and outside of the U.S. For several years, we’ve been expanding into this new field by supplying compound semiconductor wafers to the solar cell market. It’s a very exciting time.”

A Long History of Partnership

Today, IQE is the largest independent epiwafer producer in the world, with 2008 sales of about $100 million and offices globally—but 20 years ago, it was just another high-tech hopeful in need of guidance and capital. The company has been involved with the Ben Franklin Technology Partners of Northeastern PA (BFTP/NEP) ever since Tom Hierl founded QED, the startup that would merge into IQE in 1989. At the time, QED was trying to build a business by creating molecular beam epitaxy wafers—epiwafers—a process that demands advanced production methods, expensive state-of-the-art equipment, extremely pure material sources and a high vacuum environment.

BFTP/NEP invested $231,000 in the start-up and provided the company with a pivotal introduction to First National Bank, opening the door to additional funding. BFTP/NEP also provided business assistance as well as office and lab space in the nationally recognized Ben Franklin Business Incubator.

“IQE was able to capitalize on the opportunities that BFTP and the Mid-Atlantic Venture Funds gave them in the beginning,” says Bob Thomson, BFTP/NEP regional manager. “They were savvy, and they thrived in the business incubator. IQE was profitable in less than six months.” With assistance from a partnership of economic developers, including BFTP/NEP, the Lehigh Valley Industrial Park, the City of Bethlehem and the Lehigh Valley Economic Development Corporation, the company relocated to the John M. Cook Technology Center in Bethlehem in 1993.

“We have received so much valuable assistance from Ben Franklin Technology Partners,” says Gergar. “In the eight years I’ve been here, BFTP/NEP has helped us with grants and community awareness of all sorts, whether it’s getting us positive media coverage or helping us reach out to a bank.”

Shining a Light on the Solar Market

Today, as the company expands into the clean and alternative energy arena, Gergar credits BFTP/NEP with helping identify sources of funding and potential customers for solar power technology. “Really, they’ve always been there for us, and their support has been invaluable,” says Gergar.

“It’s very difficult to build a successful company and even more difficult to make smart decisions for expanding into new markets,” says Thomson. “We’re proud of IQE’s accomplishments and honored to have been part of its growth.”

David Bestwick, Chairman, Tray-Pak Corporation

Under the leadership of Bestwick and his team, Tray-Pak has grown from 36 employees in 1975 to more than 250 dedicated employees today.

Tray-Pak manufactures custom thermoformed packaging, and has clients in the medical device, confectionary, and fast food industries, among others. Operating forty-four thermoforming machines in nearly 200,000 square feet of space, Tray-Pak offers custom design, in-house tooling and engineering, and automation expertise.

With an investment from Ben Franklin and support from Lehigh University’s Enterprise Systems Center, Tray-Pak implemented an Enterprise Resource Planning system that addressed manufacturing operations on an enterprise-wide level, including production forecasting, scheduling, and material planning.

Four years ago, the company expanded to a new facility with increased capacity to respond to a sustained annual growth rate of eight to ten percent. The company has also been an avid supporter of the Medical Devices Consortium, led by Ben Franklin staff, that encourages and supports the expansion of the medical device industry in Berks and surrounding counties.

On this and many other occasions, Tray-Pak has exhibited a tremendous commitment to the region’s economic prosperity, and to creating local jobs. Tray-Pak has created 45 new jobs and retained another 252 with Ben Franklin assistance.

Read Bestwick’s bio here.

Bethlehem-based Pennsylvania Sustainable Technologies (PST), with the support of a $50,000 investment from Ben Franklin Technology Partners, is developing a new integrated fuel synthesis process for the production of a new type of biofuel. Supporters of biofuels claim that a more viable solution is needed to increase political and industrial support for second-generation biofuel implementation from non-food crops, including waste biomass.

PST’s patent-pending fuel synthesis process uses inedible biomass and other waste materials to produce an advanced biofuel that addresses the challenges to increased biofuel adoption in the U.S.

PST’s fuel has higher energy density than ethanol, can be blended in greater percentages with gasoline and is compatible with existing internal combustion engines and fuel distribution infrastructure. Further, it fulfills U.S. regulatory requirements calling for 21 billion gallons of advanced and cellulosic biofuels by 2022. PST has been working with Lehigh University to demonstrate and improve its process and is now beginning to partner with commercial biofuel producers to develop a pilot facility.