In early February 2005, three new Jersey companies joined a long list of firms making the Garden State their choice for consolidation of operations — whether by dint of organic growth or merger and acquisition activity.

Novartis is one of several pharmaceutical companies continuing to expand their presence in New Jersey. The renovation of the company's East Hanover campus was helped along by a new business retention program designed by the state.

      Novartis Pharmaceuticals Corp., Celgene and Cadbury Adams USA LLC, received approval from the New Jersey Commerce Commission Board for grants under the newly established Business Retention and Relocation Assistance Grant (BRRAG) Program.
      "Our BRRAG Program has been in effect for only one month, but it is already paying big dividends in the form of private investment and job retention," said Acting Governor Richard Codey. "In December, Pfizer announced a $500-million investment in Morris Plains and Parsippany induced by BRRAG, and today Novartis and Celgene have stepped forward with new investment plans for their New Jersey home operations. Together, these companies are making $560 million in new investments in the state of New Jersey right now."
      Under BRRAG, New Jersey companies are eligible to receive a state sales tax exemption on the purchase of equipment and other expenses associated with a move that results in the consolidation/relocation of at least 500 jobs in a smart growth region of New Jersey.
      In addition to the sales tax waiver, BRRAG extends relocation tax credits of up to $1,500 per employee to existing firms moving personnel around the state.
      Novartis' $50-million investment is being helped along not only by BRRAG, but by New Jersey Economic Development Authority approval in May 2004 for a Business Employment Incentive Program (BEIP) Grant in connection with the same project. The BEIP program was enacted in 2003.
      Novartis plans to renovate over 300,000 sq. ft. (27,870 sq. m.) of office space at its East Hanover campus, enabling the company to provide additional space for many operations that were previously located off-site throughout New Jersey.
      Through the end of 2005, the consolidation will bring approximately 725 professional positions to East Hanover. Novartis currently employs approximately 4,000 people at its East Hanover campus.
      "We had a choice as to where we locate our key operations and we chose New Jersey," said Novartis CFO Gary Rosenthal. "The support from Acting Governor Codey's office and State Treasurer John McCormac was tremendous and played a vital role in our decision to consolidate our operations here in New Jersey."