Disney Co. said Wednesday it has nominated Sheryl Sandberg, chief operating officer for the popular social networking site Facebook, to serve on its board of directors.
Sandberg, 40, has served as Facebook's COO since March 2008.
Before that, she was a vice president at Google Inc., where she managed global advertising sales. Sandberg is also a former chief of staff for the U.S. Treasury Department, and has been a management consultant with McKinsey & Co. and a World Bank economist. She serves as a director for Starbucks Corp.
Sandberg "brings great expertise in the online world, considerable international experience and a deep understanding of consumer behavior," said John E. Pepper Jr., Disney's chairman, in a statement.
Shares of Disney added 12 cents to $32.43 in afternoon trading.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
miércoles, 23 de diciembre de 2009
Ford expects Volvo deal with Geely in Q1
Motor Co. said it is moving closer to selling its Swedish Volvo brand, even though the U.S. automaker is in far better financial shape than it was when it put the brand up for sale last year.
The Dearborn, Mich., automaker said Wednesday that it expects to finalize the sale of Volvo to China's Geely Group early next year if financing and government approvals fall into place.
Ford did not reveal the amount of Geely's offer. Auto analyst Matts Carlson estimated the price tag for Volvo at between $2 billion and $2.3 billion.
Ford officially put Volvo on the market in December 2008, at the close of a year in which Ford was in desperate need of cash. Last year, the company lost $14.6 billion, the worst performance in its 106-year history. At the time, Ford had mortgaged its factories to borrow $23.5 billion, and CEO Alan Mulally joined his counterparts from Chrysler and General Motors in requesting U.S. government aid.
It turned out the company, unlike GM and Chrysler, didn't need the government aid, and it has managed to repay $10 billion in debt, reducing its total to $27 billion. Ford posted a $1 billion third-quarter profit, it stopped spending more cash than it took in, and it predicted a return to sustained profits in 2011. Ford's U.S. sales through November are down 19 percent from the same period last year, but that's a smaller drop than the overall market's 24 percent decline.
Ford decided to sell Volvo in order to focus its management resources on the Ford, Lincoln and Mercury brands, and that continues to be its mission, company spokesman Mark Truby said Wednesday. Ford acquired Volvo in 1999 for $6.45 billion.
"This was never really about Volvo — which we recognize is a very strong brand — but more about the direction we've decided to take with Ford," Truby said.
If the sale goes through it would be another step in the U.S. auto industry's sell-off of acquisitions made when it was flush with cash from truck and sport utility vehicle sales in the 1980s and 90s.
Ford sold its Jaguar and Land Rover brands to India's Tata Motors Ltd. in June 2008 for $1.7 billion, a third of what it paid for them. General Motors Co. is selling its rugged Hummer brand to construction machinery maker Sichuan Tengzhong Heavy Industrial Machinery Corp., and China's Beijing Automotive Industry Holdings has agreed to buy some powertrain technology from GM's Swedish Saab unit, which is being closed down unless a buyer is found by year end.
Work remains on financing and government approvals for the Volvo deal, Ford said in a statement, adding it expects to sign the pact in the first quarter of 2010 and close it in the second quarter.
Ford's Truby said the company has worked out details for sharing technology, engineering and parts with Geely, but Ford will not keep a stake in Volvo. For 10 years Ford and Volvo have shared safety and other technology. For instance, Ford's Taurus sedan is based on Volvo underpinnings.
Ford also is "comfortable" with provisions that stop Ford from having to compete with its own technology, especially in China, which has become the world's largest auto market.
"We're comfortable that we've spent enough time on those issues to ensure that they work for both sides," he said.
Ford said in a statement that the deal ensures Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise.
In a separate statement, Geely said its negotiations with Ford had deepened since October and that it had also held "constructive" talks with Volvo's management and Swedish union and government officials.
"If a final purchase agreement is signed, as a world famous Swedish car brand, Volvo will continue to lead the trend of world auto technology in safety and environmental protection, and will quickly increase its unique competitive status in the Chinese market," Geely said.
Auto analyst Carlson, of the Goteborg Management Institute, said a Geely takeover would be good for Volvo.
"Volvo gets a new owner with a lot of money and which I expect will mostly leave it alone because it knows more about vehicle development, vehicle sales and vehicle distribution," said Carlson.
The Dearborn, Mich., automaker said Wednesday that it expects to finalize the sale of Volvo to China's Geely Group early next year if financing and government approvals fall into place.
Ford did not reveal the amount of Geely's offer. Auto analyst Matts Carlson estimated the price tag for Volvo at between $2 billion and $2.3 billion.
Ford officially put Volvo on the market in December 2008, at the close of a year in which Ford was in desperate need of cash. Last year, the company lost $14.6 billion, the worst performance in its 106-year history. At the time, Ford had mortgaged its factories to borrow $23.5 billion, and CEO Alan Mulally joined his counterparts from Chrysler and General Motors in requesting U.S. government aid.
It turned out the company, unlike GM and Chrysler, didn't need the government aid, and it has managed to repay $10 billion in debt, reducing its total to $27 billion. Ford posted a $1 billion third-quarter profit, it stopped spending more cash than it took in, and it predicted a return to sustained profits in 2011. Ford's U.S. sales through November are down 19 percent from the same period last year, but that's a smaller drop than the overall market's 24 percent decline.
Ford decided to sell Volvo in order to focus its management resources on the Ford, Lincoln and Mercury brands, and that continues to be its mission, company spokesman Mark Truby said Wednesday. Ford acquired Volvo in 1999 for $6.45 billion.
"This was never really about Volvo — which we recognize is a very strong brand — but more about the direction we've decided to take with Ford," Truby said.
If the sale goes through it would be another step in the U.S. auto industry's sell-off of acquisitions made when it was flush with cash from truck and sport utility vehicle sales in the 1980s and 90s.
Ford sold its Jaguar and Land Rover brands to India's Tata Motors Ltd. in June 2008 for $1.7 billion, a third of what it paid for them. General Motors Co. is selling its rugged Hummer brand to construction machinery maker Sichuan Tengzhong Heavy Industrial Machinery Corp., and China's Beijing Automotive Industry Holdings has agreed to buy some powertrain technology from GM's Swedish Saab unit, which is being closed down unless a buyer is found by year end.
Work remains on financing and government approvals for the Volvo deal, Ford said in a statement, adding it expects to sign the pact in the first quarter of 2010 and close it in the second quarter.
Ford's Truby said the company has worked out details for sharing technology, engineering and parts with Geely, but Ford will not keep a stake in Volvo. For 10 years Ford and Volvo have shared safety and other technology. For instance, Ford's Taurus sedan is based on Volvo underpinnings.
Ford also is "comfortable" with provisions that stop Ford from having to compete with its own technology, especially in China, which has become the world's largest auto market.
"We're comfortable that we've spent enough time on those issues to ensure that they work for both sides," he said.
Ford said in a statement that the deal ensures Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise.
In a separate statement, Geely said its negotiations with Ford had deepened since October and that it had also held "constructive" talks with Volvo's management and Swedish union and government officials.
"If a final purchase agreement is signed, as a world famous Swedish car brand, Volvo will continue to lead the trend of world auto technology in safety and environmental protection, and will quickly increase its unique competitive status in the Chinese market," Geely said.
Auto analyst Carlson, of the Goteborg Management Institute, said a Geely takeover would be good for Volvo.
"Volvo gets a new owner with a lot of money and which I expect will mostly leave it alone because it knows more about vehicle development, vehicle sales and vehicle distribution," said Carlson.
Synta Pharma starts midstage study of cancer drug
Synta Pharmaceuticals Corp. on Wednesday said it started a mid-stage trial of a cancer drug candidate as a treatment for cancers of the digestive tract.
Synta will study the drug, called STA-9090, in patients who have not responded to treatment with two other cancer drugs, Novartis AG's Gleevec and Pfizer Inc.'s Sutent.
It is testing the drug as a treatment for a rare type of cancer called gastrointestinal stromal tumors, which usually occur in the stomach or small intestine but can also be found in the liver, colon, esophagus or rectum.
The company said 4,500 to 6,000 people are diagnosed with the cancers in the U.S. each year.
About 55 subjects with metastatic or inoperable tumors will be enrolled in the trial. The participants will receive one dose of STA-9090 per week, and those who tolerate the drug will be treated until their cancer begins to progress.
Synta said STA-9090 blocks a protein that activates other proteins that cancer cells need to grow. When the protein is blocked, other proteins degrade and the cancer cells die. Synta said the protein, called Hsp90, also aids the growth of proteins that make some tumors resistant to drugs like Gleevec and Sutent.
STA-9090 is also being studied as a treatment for non-small cell lung cancer, solid tumors and blood cancers. Synta said it plans to start other studies in early 2010.
Gleevec also is approved as a treatment for a type of leukemia, while Sutent is also used against advanced kidney cancer.
In afternoon trading, Synta shares rose 26 cents, or 4.7 percent, to $5.75.
Synta will study the drug, called STA-9090, in patients who have not responded to treatment with two other cancer drugs, Novartis AG's Gleevec and Pfizer Inc.'s Sutent.
It is testing the drug as a treatment for a rare type of cancer called gastrointestinal stromal tumors, which usually occur in the stomach or small intestine but can also be found in the liver, colon, esophagus or rectum.
The company said 4,500 to 6,000 people are diagnosed with the cancers in the U.S. each year.
About 55 subjects with metastatic or inoperable tumors will be enrolled in the trial. The participants will receive one dose of STA-9090 per week, and those who tolerate the drug will be treated until their cancer begins to progress.
Synta said STA-9090 blocks a protein that activates other proteins that cancer cells need to grow. When the protein is blocked, other proteins degrade and the cancer cells die. Synta said the protein, called Hsp90, also aids the growth of proteins that make some tumors resistant to drugs like Gleevec and Sutent.
STA-9090 is also being studied as a treatment for non-small cell lung cancer, solid tumors and blood cancers. Synta said it plans to start other studies in early 2010.
Gleevec also is approved as a treatment for a type of leukemia, while Sutent is also used against advanced kidney cancer.
In afternoon trading, Synta shares rose 26 cents, or 4.7 percent, to $5.75.
CVS will sell swine flu shots at more pharmacies
CVS Caremark Corp. said Wednesday it will start making swine flu shots available at pharmacies around the country starting as early as this week.
The shots cost $15 each. The company said it will offer the shots at more locations as public health authorities distribute more supplies of the vaccine.
CVS currently sells the shots at some retail pharmacies in nine states and Washington, D.C., and at walk-in MinuteClinics in 20 states.
The retail pharmacies are in Arizona, Florida, Georgia, Illinois, Maryland, Missouri, North Carolina, Rhode Island, and Texas. The clinics are in Arizona, California, Florida, Georgia, Illinois, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Texas.
CVS runs more than 7,000 drugstores around the U.S. About 500 stores have MinuteClinics. In afternoon trading, its shares slipped 21 cents to $32.10.
The shots cost $15 each. The company said it will offer the shots at more locations as public health authorities distribute more supplies of the vaccine.
CVS currently sells the shots at some retail pharmacies in nine states and Washington, D.C., and at walk-in MinuteClinics in 20 states.
The retail pharmacies are in Arizona, Florida, Georgia, Illinois, Maryland, Missouri, North Carolina, Rhode Island, and Texas. The clinics are in Arizona, California, Florida, Georgia, Illinois, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Texas.
CVS runs more than 7,000 drugstores around the U.S. About 500 stores have MinuteClinics. In afternoon trading, its shares slipped 21 cents to $32.10.
Sharp drop in dollar lifts commodities
A sharp drop in the dollar pushed prices for gold, oil and other commodities higher Wednesday.
A new report showing a sharp falloff in new home sales last month sapped investors' optimism about the economy, driving the dollar lower after four days of gains.
The Commerce Department says sales of new homes plunged 11.3 percent in November to their lowest level since March, a reminder that the recovery will be slow. That means that interest rates will likely remain low for some time, which will keep the dollar in check.
The ICE Futures U.S. dollar index, which measures the dollar against other currencies, tumbled 0.5 percent following the report. As the dollar retreated, gold gained $7.30 to $1,094 an ounce on the New York Mercantile Exchange.
Commodities have traded inversely with the dollar for much of this year, and the trend was firmly in place on Wednesday. Commodities become cheaper for foreign buyers when the dollar falls. Gold also benefits as a hedge against a weak greenback.
Record-low interest rates have sent the dollar falling since March. But in recent weeks investors have been buying dollars on the belief that the Federal Reserve might be forced to raise interest rates sooner than expected as the economy improves. That has put pressure on commodities prices.
The housing report was a reminder that the economic recovery will like be slow, keeping short-term interest rates about where they are now, near zero.
Other metals followed gold higher Wednesday. March silver jumped 16 cents to $17.19 an ounce, while March copper futures added 6.55 cents to $3.2035 a pound.
January platinum rallied $29.90 to $1,426.80 an ounce. Palladium also rose.
Oil prices soared more than 3 percent, boosted by the weaker dollar and a government report showing a drop in last week's crude supplies.
The government said crude in storage fell by 5 million barrels, more than twice what was expected. At the same time, the amount of crude being imported into the U.S. is down 17 percent from year-ago levels.
Light, sweet crude for February delivery jumped $2.27 to $76.67 a barrel.
Elsewhere on the Nymex, gasoline futures rose 7.78 cents to $1.9666 a gallon, while heating oil futures rose 6.32 cents to $2.0118 a gallon.
On the Chicago Board of Trade, March wheat futures rose 6 cents to $5.29 a bushel. March corn also rose 6 cents to $4.0475 a bushel.
March soybeans gained 10.5 cents to $10.09 a bushel.
Among other soft commodities, March cocoa futures fell $14 to $3,251 a ton, while coffee for March delivery added 0.2 cent to $1.4265 a pound.
A new report showing a sharp falloff in new home sales last month sapped investors' optimism about the economy, driving the dollar lower after four days of gains.
The Commerce Department says sales of new homes plunged 11.3 percent in November to their lowest level since March, a reminder that the recovery will be slow. That means that interest rates will likely remain low for some time, which will keep the dollar in check.
The ICE Futures U.S. dollar index, which measures the dollar against other currencies, tumbled 0.5 percent following the report. As the dollar retreated, gold gained $7.30 to $1,094 an ounce on the New York Mercantile Exchange.
Commodities have traded inversely with the dollar for much of this year, and the trend was firmly in place on Wednesday. Commodities become cheaper for foreign buyers when the dollar falls. Gold also benefits as a hedge against a weak greenback.
Record-low interest rates have sent the dollar falling since March. But in recent weeks investors have been buying dollars on the belief that the Federal Reserve might be forced to raise interest rates sooner than expected as the economy improves. That has put pressure on commodities prices.
The housing report was a reminder that the economic recovery will like be slow, keeping short-term interest rates about where they are now, near zero.
Other metals followed gold higher Wednesday. March silver jumped 16 cents to $17.19 an ounce, while March copper futures added 6.55 cents to $3.2035 a pound.
January platinum rallied $29.90 to $1,426.80 an ounce. Palladium also rose.
Oil prices soared more than 3 percent, boosted by the weaker dollar and a government report showing a drop in last week's crude supplies.
The government said crude in storage fell by 5 million barrels, more than twice what was expected. At the same time, the amount of crude being imported into the U.S. is down 17 percent from year-ago levels.
Light, sweet crude for February delivery jumped $2.27 to $76.67 a barrel.
Elsewhere on the Nymex, gasoline futures rose 7.78 cents to $1.9666 a gallon, while heating oil futures rose 6.32 cents to $2.0118 a gallon.
On the Chicago Board of Trade, March wheat futures rose 6 cents to $5.29 a bushel. March corn also rose 6 cents to $4.0475 a bushel.
March soybeans gained 10.5 cents to $10.09 a bushel.
Among other soft commodities, March cocoa futures fell $14 to $3,251 a ton, while coffee for March delivery added 0.2 cent to $1.4265 a pound.
viernes, 2 de octubre de 2009
Allergan suing FDA over off-label policy
Allergan Inc., the maker of the Botox wrinkle treatment, challenged the government's ban on off-label drug marketing to doctors, saying it violates the company's right to freedom of speech.
The company contends in a lawsuit filed Thursday that it should be able to educate doctors about the risks and benefits of using treatments for unapproved uses.
Botox is approved for several uses by the Food and Drug Administration. In addition to its use as a wrinkle treatment, it is approved for eye muscle disorders and excessive underarm sweating. But physicians often use it for unapproved, or off-label, indications including muscle-spasm conditions.
While physicians can legally prescribe a drug for unapproved uses, companies are forbidden from marketing the product, especially to physicians, for any use not sanctioned by the FDA.
A call to the FDA for comment on Friday was not immediately returned. The lawsuit was filed in U.S. District Court for the District of Columbia against the U.S. government and the FDA.
The catalyst for the lawsuit is a requirement that the company provide new risk information education to physicians on Botox as a therapeutic treatment.
"Our reason for seeking action now relates to the fact that we have recently been required by FDA to initiate a REMS (Risk and Mitigation) program for Botox to ensure that physicians are equipped to evaluate the risks and benefits of treatment," Allergan spokeswoman Caroline Van Hove said in a statement.
Drug developers often walk a tight line with off-label drug practices and getting caught on the wrong side can be expensive. New York-based Pfizer Inc. paid a $2.3 billion settlement last month over allegations it marketed drugs for off-label use.
Part of the logic behind the FDA rule is this: the agency has reviewed detailed clinical trial data, spanning years, before approving a drug's use for a specific purpose. That same level of scientific, controlled review has not gone into unapproved uses.
In a statement Thursday, Allergan said some of Botox's off-label uses are medically accepted and commonly prescribed.
"Once a drug is approved, physicians may exercise their informed medical judgment to prescribe the drug for any use, including off-label uses," the company said, estimating that about 20 percent of Botox use is off-label.
The ban on off-label marketing to doctors is particularly difficult for Allergan, the company said, since the FDA has required safety updates to Botox's label.
In April, health officials warned doctors and patients about potentially deadly risks of using Botox and similar drugs for unapproved uses to treat certain types of muscle spasms. The drugs carried risks of rare botulism symptoms, particularly when given to children to help relax uncontrollable muscle movements.
In general, the new labeling urges physicians to tell patients about the risks of botulin-based drugs and to seek medical care if they develop any symptoms.
"To ensure that physicians are equipped to treat patients as safely and successfully as possible, Allergan believes it is important to proactively provide comprehensive information to physicians about these off-label uses, such as dosing guidelines, patient selection criteria and proper injection technique," the company said. "Without judicial relief, Allergan is unable to engage in a truthful and relevant information exchange with the medical community for fear of prosecution."
The Irvine, Calif., company stressed that the lawsuit doesn't challenge the government's ability to prohibit pharmaceutical companies from lying or distributing misleading information. Rather, the company said, it seeks to permit Allergan to proactively provide the medical community with truthful, important information about common off-label uses of Botox.
Allergan is represented in its lawsuit by Paul D. Clement, a partner at King & Spalding LLP in Washington, D.C., and formerly the Solicitor General of the United States.
Allergan shares fell $1.58, or 2.8 percent, to $54.37 in morning trading Friday.
Stocks dip as September jobs report disappoints
U.S. stocks fell Friday after the government reported that more jobs were lost in September than had been expected.
Major indexes were off their lows by midmorning as investors looked for bargains after four straight days of losses.
The day's news continued a drumbeat of bad indicators for the economy, especially the still-struggling job market. The Labor Department reported that employers cut 263,000 jobs last month, up from 201,000 in August and worse than the 180,000 losses economists were expecting. The unemployment rate rose to 9.8 percent, in line with forecasts.
Unemployment has been one of the market's biggest concerns throughout the recession because lost jobs mean trouble for nearly every part of the economy, from consumers defaulting on loans, cutting back their spending and getting forced into foreclosure on their homes. Most economists expect the rate to surpass 10 percent by early next year.
A surprise decline in factory orders Friday was also troubling investors. The Commerce Department said factory orders fell 0.8 percent in August following a 1.4 percent gain in July. Analysts had been expecting a 0.7 percent increase.
The decline in stocks was more moderate than the previous day's big drop, when the Dow tumbled more than 200 points after a disappointing report on manufacturing activity dealt another blow to optimism that had been emerging about a recovery in the industrial sector.
A spate of bad economic news this week has led to even more doubts that the 50 percent surge in stocks over the past six months can be sustained. After coming within 82 points of the 10,000 level last week, the Dow has pulled back about 4.5 percent.
"Pullbacks are going to constantly be used as opportunities to get into the market," said Hank Smith, chief investment officer of equity at Haverford Investments in Radnor, Pa.
In late morning trading, the Dow fell 29.55, or 0.3 percent, to 9,479.73, after earlier falling as much as 79 points. The Standard & Poor's 500 index fell 3.43, or 0.3 percent, to 1,026.42, and the Nasdaq composite index fell 2.85, or 0.1 percent, to 2,054.63.
About 3 stocks fell for every one that rose on the New York Stock Exchange, where volume came to 456.3 million shares, compared with 358 million at the same time on Thursday.
In other trading, the Russell 2000 index of smaller companies lost 3.66, or 0.6 percent, to 580.09.
Government bonds reversed early gains and moved lower. The yield on the benchmark 10-year Treasury note rose to 3.20 percent from a five-month low of 3.18 percent late Thursday. Yields on bonds move opposite to their prices.
The dollar was mixed against other currencies. Gold prices rose.
In corporate news, struggling small business lender CIT Group Inc. said late Thursday it launched a debt restructuring program it hopes will trim at least $5.7 billion from its balance sheet. CIT is asking bondholders to approve a prepackaged reorganization plan in case it is forced to file for bankruptcy protection.
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