Friday, June 1, 2012

Reuters: Regulatory News: UPDATE 1-International Paper to sell three mills for $470 mln

Reuters: Regulatory News
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UPDATE 1-International Paper to sell three mills for $470 mln
Jun 1st 2012, 12:08

June 1 | Fri Jun 1, 2012 8:08am EDT

June 1 (Reuters) - International Paper Co will sell three U.S. corrugated packaging mills for $470 million as part of an antitrust agreement related to the acquisition of rival Temple-Inland Inc.

The company won U.S. antitrust approval to buy Temple-Inland for $3.7 billion in February on the condition it divests three corrugated packaging mills.

International Paper has agreed to sell its Ontario and Hueneme mills in California to a joint venture formed by The Kraft Group LLC and Schwarz Partners LP, and its New Johnsonville mill in Tennessee to Hood Companies Inc.

Under the antitrust agreement, International Paper had four months, with an option of two 30-day extensions, to close the sale of the mills.

International Paper shares, which have fallen about 20 percent since March, closed at $29.20 on Thursday on the New York Stock Exchange.

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Reuters: Regulatory News: Nomura removes institutional sales head amid insider probe

Reuters: Regulatory News
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Nomura removes institutional sales head amid insider probe
Jun 1st 2012, 10:24

TOKYO, June 1 | Fri Jun 1, 2012 6:24am EDT

TOKYO, June 1 (Reuters) - Nomura Holdings said it has removed the head of institutional sales at its core securities unit amid an escalating probe into the Japanese broker's role in providing inside information to its clients.

Kenichi Ishitomi, the current head of institutional sales, is being removed so he can focus on the investigation being carried out by the Securities and Exchange Surveillance Commission, a source with knowledge of the matter said.

Nomura said Naoki Matsuba, senior managing director of equity, would double as head of the institutional sales division.

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Reuters: Regulatory News: FEATURE-US hospitals fight drug scarcity, fear patients harmed

Reuters: Regulatory News
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FEATURE-US hospitals fight drug scarcity, fear patients harmed
Jun 1st 2012, 11:00

Fri Jun 1, 2012 7:00am EDT

* Scarcity affects anesthesia services, cancer patients

* Hospitals make daily, careful pill counts

* A few hundred drugs in short supply

* But FDA says number of new shortages slowing

By Anna Yukhananov

WASHINGTON, June 1 (Reuters) - At the Henry Ford Hospital in Detroit, pharmacists are using old-fashioned paper spreadsheets to track their stock of drugs in short supply - a task that takes several hours each day.

Most of the hospital's medicines - an estimated $100-million supply a year - are tracked by automated systems that allow for quick reorders when the supply runs low. But these automated systems, designed to help the hospital avoid purchases and storage costs of unused pills and vials, do not work if it is uncertain when the next batch of drugs will come in.

A few hundred medicines make the list of drugs in short supply: anesthetics, drugs for nausea and nutrition, infection treatments and diarrhea pills. A separate list has scarce cancer drugs for leukemia or breast cancer.

"Now we have to go through the pharmacy and count those drugs on a daily basis ... to make sure we don't run out," said Ed Szandzik, director of pharmacy services at the hospital for over a decade.

The growing scarcity of sterile, injectable drugs is one of the biggest issues confronting hospitals across the country, and will be a key issue at the annual American Society of Clinical Oncology meeting in Chicago this weekend.

Health officials blame the shortages on industry consolidation that has left only a handful of generic manufacturers of these drugs, even as the number of drugs going off-patent is growing. Some drugmakers have been plagued by manufacturing problems that have shut down multiple plants or production lines, while others have stopped producing a treatment when profit margins erode too far.

Some medicines have been periodically short in the past, doctors and pharmacists say, but the number of drug shortages has escalated in recent years, jumping from 56 in 2006 to 250 last year, according to U.S. Food and Drug Administration figures.

Generic drugmakers like U.S.-based Hospira Inc and Israeli Teva Pharmaceutical Industries say they are building new facilities to prevent future shortages.

But in the meantime, pharmacies around the country are counting pills, begging neighboring hospitals for extra supplies and scouring the Internet for news of additional supply disruptions.

When rumors surface of an impending shortage, some pharmacies rush to buy up more than they need, likely leading to bigger shortages, analysts and other pharmacists said.

All of this requires regular attention from hospitals to manage the crisis. At Children's National Medical Center in Washington, D.C., pharmacists and administrators meet weekly to discuss just how dire the situation is for different medicines.

"Every Wednesday before we have that (meeting), I have a bit of anxiety," said Ursula Tachie-Menson, acting chief of the hospital's pharmacy division. She spends about 30 percent of her time each week addressing shortage-related problems.

"Out of all the (21) years I have been practicing, these drug shortages have been one of the biggest challenges," she said.

EARLY WARNING SYSTEM

The FDA has been acting under an October executive order from President Barack Obama to fill in the gaps. It has had success getting an early warning from drug companies when they foresee a new shortage, allowing the agency to persuade other manufacturers to increase their production or look overseas to guarantee supply.

"I can tell you that there's not a single company I'm aware of out there that isn't talking to the FDA," said David Gaugh, head of regulatory sciences at the Generic Pharmaceutical Association, referring to the trade group's members.

The FDA said early notification has helped prevent 128 shortages in six months. It also estimates the rate of new shortages is slowing, with half the number of new scarce drugs this year compared to last.

But surveys and anecdotes continue to pile up, showing doctors' efforts to find scarce drugs have not gotten easier. This month, a website for U.S. oncologists, MDLinx, surveyed 200 doctors and found more than 90 percent of them have experienced shortages of key cancer drugs.

CANCER, ANESTHESIA, NUTRITION

A clinical nutrition group, the American Society for Parenteral and Enteral Nutrition, found that 70 percent of the 800-member nurses, doctors, and pharmacists who responded to an online survey said they had seen shortages of adult injectable multi-vitamins, used for basic nutrition for patients with intestinal issues.

More than a quarter were not giving their patients multi-vitamins because of the shortages, placing them at risk of severe vitamin deficiencies that can lead to issues like anemia, due to a lack of folate, or scurvy, which happens when people do not get vitamin C.

In extreme cases, a deficiency of a type of B vitamin called thiamine can lead to cardiac arrest or death.

"This is an act of daily living for people now," said Jay Mirtallo, president of the group. "How that can be acceptable, I don't understand."

When a drug is not available, doctors have to seek alternatives, which may not work as well or cost more money. Others have to ration limited supplies of a life-saving treatment to only those who need it most.

Dr. Steven Allen, a specialist in blood cancers at North Shore University Hospital in New York, recently treated a young woman who had suffered several relapses of a life-threatening cancer known as acute lymphoblastic leukemia.

Allen found a combination that involved thiotepa, an older drug his patient had not tried and could tolerate.

"When I ordered it, I was informed that there was none available, and it couldn't be obtained," said Allen, also chair of the committee on practice at the American Society of Hematology. He substituted a similar drug, but one that the woman had already taken. "We tried to make up a dose that was equivalent to thiotepa and hoped for the best. ... But I think it may have compromised her care."

On May 14, the FDA announced it would allow temporary imports of thiotepa made by Italian company Adienne Pharma & Biotech, to relieve manufacturing delays at Bedford, Ohio-based Bedford Laboratories, a unit of the German company Fresenius Kabi that is the only approved manufacturer for the United States. Bedford said in April it does not know when further shipments would be available once its supplies run out.

Imports have not helped anesthesiologists like Jason Soch, who hears about a new shortage nearly every week during his rotations at several surgical centers in Philadelphia. These are often "workhorse" drugs such as fentanyl, midazolam and propofol, used every day during surgery.

"It seems like as soon as one drug is no longer in shortage, we get an email from the hospital pharmacist that they're on their last box of another," he said. Every disruption forces doctors to change dosing, or give new drug combinations they may not be as familiar with.

"I didn't envision this when I went to anesthesia," Soch said. "I'd figured we'd have whatever we needed."

SCRAMBLING FOR A FIX

The problem has inspired some creative solutions, like a drug shortages mobile application called RxShortages that allows medical and pharmacy staff to track new drug shortages posted on websites, including the FDA's. Mick Schroeder, a pharmacy resident who created the app, said it has been downloaded about 25,000 times.

Brooke Bernhardt, an oncology pharmacist at Texas Children's Hospital, said she checks RxShortages at least once a day.

"Unfortunately, at any point we expect a drug to go on back order," she said.

Ed Szandzik, the pharmacy director at Henry Ford Hospital in Detroit, admits he would buy a larger quantity of drugs than usual if it became available.

"If I have to get one or two months' supply, I'll buy it, because our patients need it," he said. "Hoarding is in the eye of the beholder."

Some distributors and manufacturers prevent hoarding by allocating drugs based on historical demand. Other pharmacists say it is natural to want to buy more to ensure supply.

"Why did it ever have to get to this point in the first place?" said Szandzik. "It takes a lot of hours, a lot of labor, a lot of luck to make sure our patients are safe. ... And I don't see it getting better for a while."

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Reuters: Regulatory News: UPDATE 2-Positive test boosts Sanofi MS drug hopes

Reuters: Regulatory News
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UPDATE 2-Positive test boosts Sanofi MS drug hopes
Jun 1st 2012, 09:52

Fri Jun 1, 2012 5:52am EDT

* Daily dose of Aubagio reduces rate of relapse

* Sanofi seeks to catch up with rival Novartis

* Shares down 1.2 pct in line with CAC 40

By Christian Plumb and Elena Berton

PARIS, June 1 (Reuters) - Sanofi reported positive results from a late-stage trial of its Aubagio multiple sclerosis drug, bolstering its chances of approval by regulators as it seeks to catch up with a fast-selling oral treatment from rival Novartis.

Sanofi said it found that a daily dose of the treatment, one of two multiple sclerosis drugs it has in late-stage development, reduced the rate of relapse by 36 percent compared with a placebo.

The study assessed the efficiency and safety of Aubagio in 1,169 patients with relapsing forms of multiple sclerosis.

The full data from the study will be presented at an upcoming scientific meeting, Sanofi said.

Cheuvreux analyst Marcel Brand, who has an "outperform" recommendation on Sanofi stock, said the results were positive and consistent with earlier data, "which is reassuring".

Brand expects Aubagio to generate peak sales of $1.8 billion in 2018, taking around 11 percent of volume market share.

The U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) are both reviewing marketing applications for Aubagio as a treatment for relapsing forms of MS.

The FDA's response is due by July 2012, while EMA is expected to give its feedback in the first quarter of 2013.

Compared with older therapies, Aubagio has the advantage of being an oral drug.

But it has produced less impressive results in clinical tests than other oral MS treatments and has failed to show it was better than a commonly used injectable drug for MS, although it did have milder side effects.

Analysts expect the drug could find a niche among newly diagnosed patients, since around 35 to 40 percent of MS patients prefer to take no medication rather than face unwanted side effects.

MS pills Gilenya by Novartis and Biogen Idec Inc's BG-12 are seen dominating a market that JPMorgan analysts predict growing to $14 billion in 2015 from $9.6 billion last year.

MS, which has no cure, affects 2.5 million people worldwide. It is a chronic, often disabling disease that attacks the central nervous system and can lead to numbness, paralysis and loss of vision.

Sanofi shares, which have declined around 3.5 percent since the start of the year, were trading 1.2 percent lower at 54.34 euros at 0935 GMT, matching a fall in the CAC 40 index.

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Reuters: Regulatory News: PRESS DIGEST-New York Times business news - June 1

Reuters: Regulatory News
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PRESS DIGEST-New York Times business news - June 1
Jun 1st 2012, 07:22

June 1 | Fri Jun 1, 2012 3:22am EDT

June 1 (Reuters) - The following were the top stories on the New York Times business pages on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

* Many companies pay Facebook to generate ads when users click to "like" their brands or reference them in some other way.

* Even after the Stuxnet computer worm became public, President Obama accelerated cyber attacks against Iran that had begun in the Bush administration, temporarily disabling 1,000 centrifuges.

* A cheaper renminbi makes Chinese exports more competitive in overseas markets, but it could worsen trade friction with Europe and particularly the United States.

* Wal-Mart Stores Inc holds its annual meeting Friday, celebrating 50 years in business but also having to deal with shareholder opposition to board members and some corporate policies.

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Reuters: Regulatory News: PRESS DIGEST - Wall Street Journal - June 1

Reuters: Regulatory News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
PRESS DIGEST - Wall Street Journal - June 1
Jun 1st 2012, 07:08

June 1 | Fri Jun 1, 2012 3:08am EDT

June 1 (Reuters) - The following were the top stories in The Wall Street Journal on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

* Up to $100 billion is tied up in aging, largely dormant buyout funds that continue charging management fees even as hopes of profiting from their remaining assets have faded.

* The nascent market in Hong Kong for yuan denominated bonds, known as "dim sum" bonds, has hit the brakes in recent months: Trading volumes have fallen as investors fret over European turmoil, and new issues of the securities have slowed.

* The economies of Asia, both the emerging markets and the more developed countries, are being hit by a double whammy of slowing domestic growth and the impact of the European debt crisis on Asian exports and finance.

* Manufacturing activity in China and across a wide swath of Asia slowed in May, heightening fears that the turmoil in Western economies is dragging down one of the few remaining engines of global growth.

* After denial, anger, bargaining and depression, investors seem ready to enter the final stage of grief over low yields: acceptance.

* The U.S. grew slower during the first quarter than previously thought and continued weakness in the job market and elsewhere suggests the economy is struggling to gain traction.

* Federal regulators delayed new rules to establish standards for the mortgage-lending industry, a move that could further hold back the thin market in mortgage-backed securities not supported by the federal government.

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Thursday, May 31, 2012

Reuters: Regulatory News: UPDATE 1-CFTC subpoenas JPMorgan over trading loss - WSJ

Reuters: Regulatory News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
UPDATE 1-CFTC subpoenas JPMorgan over trading loss - WSJ
Jun 1st 2012, 03:30

Thu May 31, 2012 11:30pm EDT

May 31 (Reuters) - The enforcement division of the Commodity Futures Trading Commission (CFTC) is issuing subpoenas requesting emails and other internal JPMorgan documents in connection with the bank's multi-billion dollar trading loss, the Wall Street Journal said, citing people close to the investigation.

The probe centers around what JPMorgan traders had told their supervisors and internal risk management staff as their wrong-way bets started to sour, the people told the Journal.

JPMorgan spokesman Joseph Evangelisti declined to comment to Reuters on the Journal report.

The CFTC inquiry is at a relatively early stage and is not confined to what the traders said, the WSJ reported.

It would not necessarily lead to any civil enforcement action against the bank or individuals.

Gary Gensler, the head of CFTC, confirmed last week that the regulator is investigating JP Morgan's recent losses that may exceed $2 billion on trades tied to credit derivatives.

The CFTC's probe will supplement investigations by the FBI and the Securities and Exchange Commission (SEC) into the losses at the largest U.S. bank.

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