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KLMNO WASHINGTON BUSINESS Spanish bank plans first U.S. office in D.C.
New company, formed by merger, donates to social groups
by Sonja Ryst A newly formed Spanish bank
that partners with charities and donates a portion of its profits to social causes plans to open its first U.S. office in downtown Washington early next year. Grupo Banca Civica has filed an application with the Federal Reserve to operate a commercial bank in the United States and has rented a location at Pennsyl- vania Avenue and 17th Street NW. The company — formed by the
merger last month of the Spanish regional banks Caja Navarra, Ca- ja Canarias and Caja Burgos — is the fruit of a wave of consolida- tion in Spain’s troubled banking sector. Many “cajas,” regional Spanish banks that resemble U.S. savings and loans, are reeling under the weight of soured real estate loans made during the housing bubble. The Bank of Spain, which had to take over firms such as the Caja Castilla La Mancha, is encourag- ing the cajas to consolidate and get shareholders. Banca Civica never had to ask Spain for rescue money, said Iñ- igo Jodra, who manages the firm’s U.S. operations. “In absolute terms, we are al- ready a solvent group,” he said. Enrique Goñi, chief executive of Grupo Banca Civica and for- mer head of Caja Navarra, said he has long wanted to expand
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Apple set to open Georgetown store
GRUPO BANCA CIVICA Banca Civica has offices at 17th Street and Pennsylvania Avenue NW. It plans to begin operations early next year, pending U.S. approval.
overseas. He said Washington made sense as a starting point because, compared with other U.S. cities, the capital region has a strong economy, a well-to-do population, a relatively easy commute to Spain and a large international population. “In Washington, D.C., the
[non-governmental organiza- tions] have their headquarters,” Goñi said. “For us, this is the most relevant city.” Banca Civica says it plans to distribute profits to investors and social groups, a model previ- ously used by Caja Navarra. Last year, Navarra allocated $62.2million to social causes, or roughly 30 percent of its profits, Banca Civica said. Jodra said that giving away a
portion of the bank’s profit doesn’t necessarily hurt share- holders. If the bank’s business
model can draw additional cus- tomers, then its investors ben- efit, too, he said. “It’s a win-win,” Jodra said. His
firm is still deciding how much profit from U.S. operations would go where, he said. On Friday, Banca Civica held an inaugural celebration at its downtown office. It expects to begin operations there in early 2011, pending approval from U.S. regulators. The bank’s team has turned to
key figures in the Washington area’s nonprofit scene for sup- port, including Maria Gomez, founder of Mary’s Center for Ma- ternal Health in Adams Morgan. Gomez said she was ap- proached by one of the bank’s representatives, Pablo Gato, a former Telemundo journalist and longtime acquaintance, and invited to partner with the bank
as one of its target charities. Un- der the arrangement, she has ac- cess to office space and has agreed to introduce Banca Civica to her friends, clients and other charities, she said. The Banca Civica Web site is under development. But a tool on Caja Navarra’s Web site points to a description of Mary’s Center, which serves immigrant women, and asks customers to donate bank profits there. Other causes listed in Navarra’s database in- clude groups that aid orphans in Tanzania to a water polo club in Leioa, Spain. The firm asks customers in an annual survey to rate various as- pects of its service from one to 10, and if the average answer amounts to less than 7.2, the managers lose 30 percent of their bonuses. Goñi suffered the penalty last year as head of Na-
varra. As the cajas consolidate, inter-
national business will help re- duce their exposure to trouble at home. “I’m sure that this will be a strategy many cajas will follow,” said Santiago Carbo-Valverde, a professor of economics at the Universidad de Granada. Rodolfo G. Campos, an econo-
mist at IESE Business School in Madrid, said Banca Civica has about $73 billion in assets; that’s not quite a third the size of Caja Madrid, which unlike most other cajas has a branch in Miami that it uses as a hub for business in Latin America.
Campos said Banca Civica’s move to Washington differenti- ates it from other cajas. “Most of them aren’t international,” Cam- pos said. “Most of them didn’t even get out of their own state.”
rysts@washpost.com
Rockville-based HGS expects FDA to reject hepatitis C drug
by Steven Overly Capital Business Staff Writer
Rockville-based Human Ge- nome Sciences said Monday that it doubts that federal regulators will approve its treatment for chronic hepatitis C after the drug received an unfavorable prelimi- nary review from the Food and Drug Administration. The announcement marks a
four-day stretch of mixed news for the company, which at the
end of last week filed an FDA ap- plication for a drug designed to treat systemic lupus. The hepatitis treatment, called Zalbin, is one of three HGS drugs in late-stage development. The company has submitted biologic license agreements, or BLAs, to the FDA for all three products, although none has been ap- proved. “The FDA has expressed con- cerns regarding the risk benefit assessment of Zalbin dosed at 900-mcg every two weeks,” HGS
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said in a statement. “Although the BLA review is ongoing, HGS has concluded that licensure of this dosing regimen is unlikely.” A spokesman for the company did not return calls. A spokes- woman with the FDA said that the agency cannot comment on pending applications. HGS has been developing Zal- bin with Switzerland-based No- vartis since 2006, although in Europe the treatment is known as Joulferon. Novartis withdrew its application for the drug from
the European Medicines Agency in April.
According to its statement, HGS has been testing Zalbin on a four-week dosage regimen and will consider developing it at that interval. On Thursday, HGS announced it had officially submitted its ap- plication to the FDA for Benlysta, which if approved will be the first drug designed to treat sys- temic lupus in more than 50 years. The news caused the com- pany’s shares to jump more than
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8 percent Friday. Wall Street analysts and Wash-
ington area biotech experts have predicted that the treatment could fill an unmet medical need for as many as 1million people and generate billions of dollars in revenue for HGS and Glaxo- SmithKline, its London-based partner on the product.
Shares of HGS fell 30 cents, or
1.1 percent, to close Monday at $26.21.
overlys@washpost.com
Apple plans to welcome cus- tomers into its first retail store in the District on Friday evening, formally opening its Georgetown location after years of wrangling over the storefront design. The launch comes about three years after Apple bought the property at 1229 Wisconsin Ave. NW. The Old Georgetown Board approved the plans in March af- ter addressing concerns that the store’s design would not mesh with the area’s historic image. An Apple spokeswoman said the company plans to hand out T- shirts to the first 1,000 customers to visit the store. The location will be the company’s 290th store, in- cluding five in Maryland and Northern Virginia.
— Steven Overly Capital Business
HEALTH CARE
Chindex to start new Chinese venture Chindex International, a Beth-
esda firm that sells medical prod- ucts and services in China, said Monday it will form a joint ven- ture to produce medical devices in that country alongside Shang- hai Fosun Pharmaceutical. The deal includes a plan for
Chindex to sell up to $30 million in stock to Fosun, which would then hold a 25 percent ownership stake in Chindex. Proceeds from the stock sale will be used to con- tinue expanding Chindex’s Unit- ed Family Healthcare network. Separately, Chindex said its
fourth-quarter net income fell on lower product revenue. In the three months ended March 31, profit fell to $515,000 from $3.4 million a year earlier. Revenue fell 31 percent, to $41.3 million. — Associated Press
TUESDAY, JUNE 15, 2010
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