Italy PM Monti resigns, elections likely in February






ROME (Reuters) – Italian Prime Minister Mario Monti tendered his resignation to the president on Friday after 13 months in office, opening the way to a highly uncertain national election in February.


The former European commissioner, appointed to lead an unelected government to save Italy from financial crisis a year ago, has kept his own political plans a closely guarded secret but he has faced growing pressure to seek a second term.






President Giorgio Napolitano is expected to dissolve parliament in the next few days and has already indicated that the most likely date for the election is February 24.


In an unexpected move, Napolitano said he would hold consultations with political leaders from all the main parties on Saturday to discuss the next steps. In the meantime Monti will continue in a caretaker capacity.


European leaders including German Chancellor Angela Merkel and European Commission President Jose Manuel Barroso have called for Monti’s economic reform agenda to continue but Italy’s two main parties have said he should stay out of the race.


Monti, who handed in his resignation during a brief meeting at the presidential palace shortly after parliament approved his government’s 2013 budget, will hold a news conference on Sunday at which he is expected clarify his intentions.


Ordinary Italians are weary of repeated tax hikes and spending cuts and opinion polls offer little evidence that they are ready to give Monti a second term. A survey this week showed 61 percent saying he should not stand.


Whether he runs or not, his legacy will loom over an election which will be fought out over the painful measures he has introduced to try to rein in Italy’s huge public debt and revive its stagnant economy.


His resignation came a couple of months before the end of his term, after his technocrat government lost the support of Silvio Berlusconi‘s centre-right People of Freedom (PDL) party in parliament earlier this month.


Speculation is swirling over Monti’s next moves. These could include outlining policy recommendations, endorsing a centrist alliance committed to his reform agenda or even standing as a candidate in the election himself.


The centre-left Democratic Party (PD) has held a strong lead in the polls for months but a centrist alliance led by Monti could gain enough support in the Senate to force the PD to seek a coalition deal which could help shape the economic agenda.


BERLUSCONI IN WINGS


Senior figures from the alliance, including both the UDC party, which is close to the Roman Catholic Church, and a new group founded by Ferrari sports car chairman Luca di Montezemolo, have been hoping to gain Monti’s backing.


He has not said clearly whether he intends to run, but he has dropped heavy hints he will continue to push a reform agenda that has the backing of both Italy’s business community and its European partners.


The PD has promised to stick to the deficit reduction targets Monti has agreed with the European Union and says it will maintain the broad course he has set while putting more emphasis on reviving growth.


Berlusconi’s return to the political arena has added to the already considerable uncertainty about the centre-right’s intentions and increased the likelihood of a messy and potentially bitter election campaign.


The billionaire media tycoon has fluctuated between attacking the government’s “Germano-centric” austerity policies and promising to stand aside if Monti agrees to lead the centre right, but now appears to have settled on an anti-Monti line.


He has pledged to cut taxes and scrap a hated housing tax which Monti imposed. He has also sounded a stridently anti-German line which has at times echoed the tone of the populist 5-Star Movement headed by maverick comic Beppe Grillo.


The PD and the PDL, both of which supported Monti’s technocrat government in parliament, have made it clear they would not be happy if he ran against them and there have been foretastes of the kind of attacks he can expect.


Former centre-left prime minister Massimo D’Alema said in an interview last week that it would be “morally questionable” for Monti to run against the PD, which backed all of his reforms and which has pledged to maintain his pledges to European partners.


Berlusconi who has mounted an intensive media campaign in the past few days, echoed that criticism this week, saying Monti risked losing the credibility he has won over the past year and becoming a “little political figure”.


(Additional reporting by Gavin Jones, Massimiliano Di Giorgio and Paolo Biondi; Writing by Gavin Jones and James Mackenzie; Editing by Michael Roddy)


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Huge Savings With MyBatua Season’s Sale






The online Islamic clothing store MyBatua.com brings more reasons to smile. The Store announces huge discounts and assured gifts on every purchase of women Abayas, kurtis and Jibabs.


(PRWEB) December 21, 2012






MyBatua.com has extended its seasonal sale on Islamic clothing range for a fortnight to appreciate the huge response of buyers. Being one of the most renowned stores for a vibrant range of Islamic clothing range, MyBatua has announced discounts up to 60% on modern, contemporary, fashionable and exclusive Islamic apparel for men and women.


The online store offers a huge collection of Jibabs, kurtis, abayas and Hijabs for customers, with the choice of customization. All the clothing items displayed at the sale are designed to reflect exclusive style statements of customers. Islamic outfits at MyBatua are available with contemporary and very stylish looks. Jilbabs and Abaya at the store are also made from natural fabric and with contemporary texture.


At http://www.mybatua.com visitors may choose from an extensive range of hijabs available in different styles, plain solid colors, fantastic design and attractive ones for joyful events. Like their name they are very simple to put on without any wrapp or Hijab pin. The store is well-known for its best quality beautiful hijabs and Abayas with an inexpensive price tag.


The best part of the season sale at the store is the availability of the finest range of ethnic clothing for a diverse array of women buyers who never compromise on quality and style. The store features a diverse variety of modest Women’s clothing items that range from conventional Abayas to custom Hijabs designed with finest craftsmanship.


Apart from a pretty good collection of regular and Plus sizes of Jibabs, Abayas and Hijab, customers also get an option to customize clothes without any additional cost. With every purchase at http://www.mybatua.com seasonal sale, customers find huge cash discounts and assured gifts to turn their shopping spree rewarding and a never before experience. MyBatua range comes with free shipping and hassle free delivery to the customers worldwide.    


MyBatua a leading online store for clothing and accessories has now become a one stop shopping place for Islamic fashion clothing. It is catering to all needs of online shoppers for Abayas, Jilbabs, Hijabs, Sherwanis and variety of accessories including brooches and unique handbags suitable for all occasions and weddings.


Amrish Goel
Mybatua.com
+918826009522
Email Information


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Putin offers French tax row actor Depardieu a Russian passport






MOSCOW (Reuters) – President Vladimir Putin offered French actor Gerard Depardieu a Russian passport on Thursday, saying he would welcome the 63-year-old celebrity who is embroiled in a bitter tax row with France‘s socialist government.


Weighing into a dispute over a hike in taxes, Putin heaped praise on Depardieu, making the offer of citizenship in response to a question during his annual televised press conference.






“If Gerard really wants to have either a residency permit in Russia or a Russian passport, we will assume that this matter is settled and settled positively,” Putin said.


French daily Le Monde reported on Tuesday that Depardieu had told his close friends he was considering three options to escape France’s new tax regime: moving to Belgium, where he owns a home, relocating to Montenegro, where he has a business, or fleeing to Russia.


“Putin has already sent me a passport,” Le Monde quoted the actor as jokingly saying.


Depardieu is well-known in Russia where he has appeared in many advertising campaigns, and in 2012 he was one of several Western celebrities invited to celebrate the birthday of Ramzan Kadyrov, Chechnya’s Kremlin-backed leader.


He also worked in Russia last year on a film about the life and times of the eccentric Russian monk Grigory Rasputin.


He has already inquired about how to obtain Belgian residency rights and said he plans to hand in his French passport and social security card.


In what has become an ugly public dispute, France’s Prime Minister Jean-Marc Ayrault criticized Depardieu’s announcement as “pathetic” and unpatriotic. The actor hit back, accusing France of punishing success and talent.


But Putin said he thought the feud was the result of a “misunderstanding”.


The 60-year-old former KGB spy said he was very friendly with Depardieu, saying he thought the actor considered himself a Frenchman who loved the culture and history of his homeland.


Belgian residents do not pay a wealth tax, which in France is now levied on those with assets over 1.3 million euros ($ 1.7 million). Nor do they pay capital gains tax on share sales.


Hollande is also pressing ahead with plans to impose a 75-percent super tax on income over 1 million euros.


Russia has a flat income tax rate of 13 percent.


(Reporting by Alexei Anishchuk; Additional reporting by John Irish in Paris; Writing by Gabriela Baczynska; Editing by Alissa de Carbonnel and Andrew Osborn)


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Spartan Bioscience Announces 6,000-Patient Study of Personalized Medicine for Cardiac Stents






Landmark clinical trial begins for rapid DNA testing and personalized anti-blood clotting drugs.


Ottawa, Ontario (PRWEB) December 20, 2012






Spartan Bioscience today announced the start of a 5,945-patient study of personalized medicine for cardiac stent patients. The study is sponsored by the Center for Individualized Medicine at Mayo Clinic and is entitled “Tailored Antiplatelet Initiation to Lessen Outcomes due to Clopidogrel Resistance after Percutaneous Coronary Intervention (TAILOR-PCI).”


This clinical trial will evaluate whether genotyping of cardiac stent patients at the time of angioplasty can help improve patient outcomes by informing providers about drug selection of either Brilinta® (ticagrelor) or Plavix® (clopidogrel). These antiplatelet drugs are prescribed after surgery to reduce clotting complications, such as heart attacks, strokes, and cardiovascular deaths. The drugs are thought to work differently in patients with specific variations in the CYP2C19 gene, and the Spartan RX CYP2C19 rapid DNA testing system will be used to identify these variations in some patients of the TAILOR-PCI study. The study will enroll patients over a 22-month period at 9 hospitals in Canada and the United States.


The principal investigator of the TAILOR-PCI study is Naveen Pereira, M.D., a Mayo Clinic cardiologist. Chiranjit Rihal, M.D., chairman of the Division of Cardiovascular Diseases at Mayo Clinic in Rochester, Minnesota, serves as chairman of the TAILOR-PCI steering committee. The Mayo Clinic sites are Rochester; Jacksonville, Florida; Phoenix, Arizona; and the Mayo Clinic Health Systems in La Crosse, Wisconsin; and Mankato, Minnesota. Canadian sites participating in this study are St. Michael’s Hospital, Toronto General Hospital, Sunnybrook Hospital, and the University of Ottawa Heart Institute.


“We are excited to work with Mayo Clinic on this landmark clinical trial,” said Paul Lem, M.D., CEO of Spartan Bioscience. “Rapid DNA testing means doctors and patients do not have to wait days or weeks for results from a central lab.”


About the Spartan RX CYP2C19



The Spartan RX CYP2C19 is the first point-of-care DNA test in medicine.(1) It identifies carriers of certain CYP2C19 genetic mutations in 1 hour. These mutations are carried by approximately 30 percent of the world’s population.(2) Genetic carriers who receive Plavix® following a cardiac stent insertion to open clogged arteries have a 42 percent higher risk of death, stroke, or heart attack in the first year compared to non-carriers.(3) Currently, genetic testing is performed in central labs and it takes up to seven days to get a test result back. A rapid test is needed because most of the complications for CYP2C19 carriers occur in the first 24 to 48 hours.(3,4) In March 2010, the FDA issued a warning for Plavix regarding CYP2C19 poor metabolizers. The Spartan RX CYP2C19 has CE IVD Mark regulatory approval for Europe and other countries recognizing the CE IVD Mark. Spartan Bioscience is working towards FDA 510(k) clearance in the United States. For more information, please visit our website at: http://www.spartanbio.com/products/spartan-rx


About Spartan Bioscience



Spartan Bioscience is the leader in point-of-care DNA testing. The Spartan RX is the first complete sample-to-result, point-of-care DNA testing system in medicine. It is a fully integrated DNA collection, extraction and analysis platform, with an intuitive interface that is easy to operate—no laboratory training required. For the first time, healthcare providers and their patients can get DNA results on demand. For more information, please visit our website at: http://www.spartanbio.com.


The Spartan logo is a registered trademark of Spartan Bioscience Inc.



Brilinta is a registered trademark of AstraZeneca.



Plavix is a registered trademark of Bristol-Myers Squibb/Sanofi Pharmaceuticals.


1. Roberts JD et al. (2012). Lancet. 379: 1705–1711.



2. Damani SB, Topol EJ. (2010). J Am Coll Cardiol. 56:109–111.



3. Mega JL et al. (2009). N Engl J Med. 360:354–362.



4. Wiviott SD et al. (2007). N Engl J Med. 357:2001–2015.


Paul Lem, M.D.
Spartan Bioscience Inc.
+1 (613) 228-7756 735
Email Information


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U.S. state, local spending expands for first time in 3 years






WASHINGTON (Reuters) – State and local government spending grew at a 0.3 percent annual rate in the third quarter, after 11 straight quarters of contraction, the U.S. Commerce Department said on Thursday.


The last time state and local spending expanded was in the third quarter of 2009, at a much more robust rate of 2.2 percent. Then, for nearly three years, spending contracted sharply, with the biggest drop in the first quarter of 2010 at 5.5 percent.






States are pinching pennies, keeping spending growth slow as the economy recovers from the 2007-09 recession and the federal government sends them fewer funds.


“The recent improvement in the national economy has not translated to strong growth in total state expenditures,” said the National Association of State Budget Officers (NASBO) in a report also released on Thursday.


Total state spending likely grew only 0.1 percent in fiscal 2012, the lowest level since the group began tracking state spending in 1987, NASBO said. Most states’ fiscal years end in June, which means that many have already started fiscal 2013.


The 2007-09 recession caused states’ revenues to plunge and, because all states except Vermont must end their fiscal years with balanced budgets, many slashed spending, calling special legislative sessions to make emergency mid-year cuts.


The federal government stepped in to help with the 2009 economic stimulus plan known as the American Recovery and Reinvestment Act (ARRA), which included the largest transfer of federal funds to states in U.S. history.


NASBO said state expenditures grew 3.8 percent in fiscal 2010 and 2.8 percent in fiscal 2011, mostly due to the assistance. By fiscal 2010 federal money made up nearly 35 percent of state spending, compared with 26.3 percent in fiscal 2008.


Now that the burst of stimulus money is over, states must once again shoulder the costs of public programs, even though their revenues are only beginning to return to pre-recession levels. Federal funds likely only represented 31.2 percent of state spending in fiscal 2012 and will continue to shrink, NASBO said.


State revenues have not increased as fast as ARRA funds have declined, leading to a unique situation in which total state expenditure growth has slowed during the same time that the national economy has been improving,” it reported.


Meanwhile, spending demands continue to grow, particularly for the Medicaid healthcare program for the poor that states operate with partial reimbursement from the federal government.


Over the last three years, the portion of state spending going to Medicaid has risen to 23.9 percent from 22.2 percent. Many states worry that Medicaid will eat up their budgets, and leave fewer dollars for other areas.


Spending on education dipped to 19.8 percent in fiscal 2012, the first time on record that the portion has been less than 20 percent, NASBO said.


(Reporting by Lisa Lambert; Editing by Nick Zieminski)


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Wounded presage health crisis for postwar Syria






ATMEH, Syria (AP) — A baby boy joined the ranks of Syria’s tens of thousands of war wounded when a missile fired by Bashar Assad‘s air force slammed into his family home and shrapnel pierced his skull.


Four-month-old Fahed Darwish suffered brain damage and, like thousands of others seriously hurt in the civil war, he will likely need care well after the fighting is over. That’s something doctors say a post-conflict Syria won’t be able to provide.






Making things worse, there has been a sharp spike in serious injuries since the summer, when the regime began bombing rebel-held areas from the air, and doctors say a majority of the wounded they now treat are civilians.


This week, Fahed was recovering from brain surgery in an intensive care unit, his head bandaged and his body under a heavy blanket, watched over by Mariam, his distraught 22-year-old mother.


She said that after her first-born is discharged from the hospital in Atmeh, a village in an area of relative safety near the Turkish border, they will have to return to their village in a war zone in central Syria.


“We have nowhere else to go,” she said.


Even for those who have escaped direct injury, the civil war is posing a mounting health threat. Half the country’s 88 public hospitals and nearly 200 clinics have been damaged or destroyed, the World Health Organization says, leaving many without access to health care. Diabetics can’t find insulin, kidney patients can’t reach dialysis centers. Towns are running out of water-purifying materials. Many of the hundreds of thousands displaced by the fighting are exposed to the cold in tents or unheated public buildings.


“You are talking about a public health crisis on a grand scale,” said Dr. Abdalmajid Katranji, a hand and wrist surgeon from Lansing, Michigan, who regularly volunteers in Syria.


No one knows just how many people have been injured since the uprising against Assad erupted in March 2011, starting out with peaceful protests that turned into an armed insurgency in response to a violent government crackdown.


More than 43,000 have been killed in the past 21 months, said Rami Abdul-Rahman, head of the Britain-based Syrian Observatory for Human Rights, basing his count on names and details provided by activists in Syria. He said the number of wounded is so large he can only give a rough estimate, of more than 150,000.


Casualties began to rise dramatically at the start of the summer. At the time, the regime, its ground troops stretched thin, began bombing from the air to prevent opposition fighters from gaining more territory.


Seemingly random bombings have razed entire villages and neighborhoods, driving terrified civilians from their homes, with an estimated 3 million Syrians out of the country’s population of 23 million now displaced.


About 10 percent of the wounded suffer serious injuries and many of those will need long-term care and rehabilitation, said Dr. Omar Aswad of the Union of Syrian Medical Relief Organizations, an umbrella for 14 aid groups.


This includes artificial limbs and follow-up surgery. “This is of course not available and will be one of the major (health) problems in the months right after the war,” said Mago Tarzian, emergency director for the Paris-based Doctors Without Borders.


For now, aid groups are struggling to provide even emergency treatment in under-equipped clinics.


The two dozen small hospitals and field clinics in rebel-run areas of Idlib province in the north only have a few Intensive Care Unit beds between them, said Aswad. None has a CT scanner, an important diagnostic tool.


“We need generators, we need medical supplies and the most pressing is medicine,” he said.


The challenge has been compounded by new types of injuries.


The regime has begun dropping incendiary bombs that can cause severe burns, according to the New York-based Human Rights Watch, citing amateur video and witness accounts.


Ole Solvang, a researcher for the group, said he saw remnants of such a bomb on a recent Syria trip. Aswad said doctors in Idlib and nearby Aleppo province reported seeing patients with burns from such weapons.


Doctors and hospitals have also been targeted. Aswad, who fled the city of Idlib in March after regime forces entered it, said five friends in a secret association of anti-regime physicians have been arrested. Hospitals, ambulances and doctors have been attacked, Solvang said, calling it “a worrying trend that makes the medical situation even worse.”


One of the bright spots is a 50-bed emergency care clinic set up six weeks ago in a former elementary school in Atmeh.


Largely funded by a wealthy Syrian expatriate, the Orient clinic, with five ICU beds, handles some of the most serious cases in a radius of some 150 kilometers (90 miles), said its director, orthopedic surgeon Abdel Hamid Dabbak.


In the past, seriously wounded patients had to go to Turkey, risking dangerous delays at the border, he said. Now, once patients are stabilized in Atmeh, they are sent to a sister clinic across the border for follow-up care.


In Orient’s ICU, a 24-year-old rebel fighter was breathing oxygen through a mask. He had been brought in a day earlier, bleeding heavily from stomach wounds and close to death, said Dr. Maen Martini, a volunteer physician from Joliet, Illinois. After surgery, he stabilized and was taken off a respirator. A delayed crossing into Turkey would have killed him, Martini said.


The fighter’s neighbor was little Fahed, whose house had been struck by a missile on Saturday in the village of Kafr Zeita in Hama province. “The roof collapsed on us,” his mother said of the attack. “We ran out … I saw him bleeding from his head, but it was just a small cut.”


The local clinic said the injury was more serious than it seemed and the family rushed to Atmeh, more than 100 kilometers (60 miles) to the north.


Since surgery, Fahed has been nursing and has moved his arms and legs, and the doctor is hoping for a near-complete recovery.


“Clinically, he has improved dramatically,” he said.


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Google launches ‘scan and match’ music service






LOS ANGELES (AP) — Google is turning on a “scan and match” service for Google Music users to store copies of their songs online, offering for free what Apple charges $ 25 a year for.


The service, which launched Tuesday, cuts uploading time for those who want to save their music libraries online. It scans a user’s computer and gives them online access to the songs it finds, as long as they match the songs on its servers. Otherwise, it will upload songs to a user’s online locker.






The service is similar to Apple Inc.‘s iTunes Match, which includes online storage for 25,000 songs. Google Inc. allows storage for 20,000 songs and allows users to re-download the songs only at the same quality as they were at previously. Apple upgrades songs to iTunes quality.


Amazon runs a similar matching and uploading service called Cloud Player. It costs $ 25 a year for 250,000 songs. A free version is limited to 250 songs.


Google is still a fledgling entrant into music sales since debuting its store in November 2011, though it expects to benefit from the hundreds of millions of devices that use its Android operating system on mobile devices.


According to the NPD Group, Apple accounted for 64 percent of U.S. music sales online, followed by Amazon at 16 percent. Google has no more than 5 percent, according to NPD. Other services make up the rest.


Google had sold songs at a discount at the start, but that is less so the case now. For example, it was selling the top-ranked Bruno Mars song “Locked Out of Heaven” for $ 1.29 on Wednesday, the same as iTunes, and above the 99 cents on Amazon. But its album price was lower at $ 10.49 versus $ 10.99 at both iTunes and Amazon.


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“Ai Weiwei: Never Sorry,” “Bully” first theatrical releases to win duPont awards






LOS ANGELES (TheWrap.com) – Two documentary films were among the 14 winners of the 2013 Alfred I. duPont-Columbia University Award, making them the first theatrical releases to be honored with the prize. USA Today also won its first duPont award.


“Ai Weiwei: Never Sorry,” Alison Klayman‘s profile of the Chinese artist-activist, and Emmy-winning filmmaker Lee Hirsch‘s tale of schoolyard torment, “Bully,” won alongside reporting from Current TV, CBS News, NPR, PBS’s “Frontline” and USA Today.






USA Today was honored for multimedia reporting on abandoned lead factories, and NPR’s “StoryCorps” will win its first silver baton.


Five awards will go to local television and radio stations: KCET in Southern California, KLAS-TV in Las Vegas, WVUE-TV in New Orleans, Detroit’s WXYZ-TV and partnerships with WHYY and NPR.


“This exceptional group of journalists represents the best of broadcast, documentary and digital news reporting today,” Bill Wheatley, the outgoing duPont Jury chair and the former executive vice president of NBC News, said in a statement. “These groundbreaking stories set the standard for excellent reporting; journalists gained access and insight into critical issues in the public interest, and they are telling these important stories in new ways.”


Christiane Amanpour, CNN’s chief international correspondent and a global affairs anchor for ABC News will present the awards with CBS News’s Byron Pitts on Tuesday, January 22, 2013 at Columbia’s Low Memorial Library.


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Court approves Amgen’s $762 million payment in drug case






NEW YORK (Reuters) – A federal judge on Wednesday approved a $ 762 million payment from Amgen Inc, the final step to resolve nearly a dozen criminal and civil cases stemming from the sale of its once-blockbuster anemia drug Aranesp and several others.


Prosecutors previously said in Brooklyn federal court on Tuesday the company had agreed to pay $ 612 million in a civil settlement, a $ 14 million criminal forfeiture payment, and a $ 136 million criminal fine. It is the single largest criminal and civil fraud settlement involving a biotechnology company in U.S. history, according to the U.S. attorney’s office in Brooklyn.






Amgen pleaded guilty on Tuesday to one misdemeanor criminal count that it promoted Aranesp for higher, less frequent doses than approved in the drug’s label by federal regulators. The company was also accused of marketing the drug to treat anemia caused by cancer, for which it was not approved, rather than to combat anemia as a side effect of chemotherapy treatments.


Amgen recorded a $ 780 million charge in the third quarter of 2011 to resolve civil and criminal litigation. In a recent regulatory filing with the U.S. Securities and Exchange Commission, Amgen said it had set aside $ 806 million related to the proposed settlement of charges arising out of the federal civil and criminal investigations.


U.S. District Judge Sterling Johnson accepted the company’s plea on Wednesday and approved its plea agreement with the government. The agreement includes a call for Amgen to abide by a five-year corporate integrity agreement, which imposes new compliance, transparency and accountability measures on the company’s top executives and directors.


The agreement resolves a more than five-year investigation by the U.S. attorney’s office in Brooklyn, as well as a related investigation by federal prosecutors in Washington state, according to court papers.


“Instead of working to extend and enhance human lives, Amgen illegally pursued corporate profits while jeopardizing the safety of vulnerable consumers suffering from disease,” acting U.S. attorney Marshall Miller of the Eastern District of New York said in a statement.


Details of the $ 612 million civil portion of the settlement were also unsealed Wednesday, encompassing a wider scope of allegations than the criminal case. The civil settlement resolves 10 whistleblower lawsuits from Brooklyn, Massachusetts and Washington federal courts, prosecutors said.


The civil settlement covers allegations that Amgen market Aranesp and two other drugs, Enbrel and Neulasta, for uses and doses that had not been approved. The company was also accused of offering illegal kickbacks to try to persuade health-care providers to prescribe their drugs, and engaged in false price reporting practices, federal prosecutors said.


Other Amgen drugs named in the civil suits include Epogen, Neupogen and Sensipar, according to court papers.


“The government raised important concerns in the criminal prosecution,” Amgen chief compliance officer Cynthia Patton said in a statement. “Amgen acknowledges that mistakes were made, and we did not live up to our standards.”


Amgen shares were down 53 cents to $ 88.76 in midafternoon trading.


(Reporting by Jessica Dye; Editing by Neil Stempleman)


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GM to buy stake from Treasury; government may lose billions






(Reuters) – The U.S. Treasury plans to sell its stake in General Motors Co over the coming year, all but assuring a multibillion-dollar loss in a move that will end the automaker’s “Government Motors” era.


Treasury’s plan – a two-step process that includes a $ 5.5 billion stock sale to GM – is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program. TARP was created by former president George W. Bush to prevent the collapse of the U.S. banking industry during the 2007-2009 financial crisis.






The planned GM sale will raise the proceeds that Treasury has recovered to $ 28.6 billion of the $ 50 billion bailout GM received. With $ 20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of $ 69.72 to break even.


GM shares were up 7.1 percent at $ 27.31 on Wednesday afternoon on the New York Stock Exchange.


If Treasury, which will reduce its stake to about 19 percent when the buyback closes this month from about 26 percent at present, sold its remaining stock at the price GM is paying now, it would come up short by more than $ 12 billion.


“GM wins,” Jefferies analyst Peter Nesvold said, pointing to the elimination of the government stake that has been acting as a drag on the stock price and to eventual higher earnings per share. “From a government standpoint, it’s a mixed bag, but they went into it to save jobs, not as an investment.” He said the buyback was lower than the $ 30 a share he had expected at the very least and was occurring earlier than anticipated.


GM’s planned buyback of 200 million shares will give it more freedom from government oversight and likely result in a sales boost as some consumers unhappy over the U.S. taxpayer-funded bailout give the automaker a second look, GM Chief Financial Officer Dan Ammann said.


“This is very attractive to the company, to our shareholders,” he told reporters at GM’s Detroit headquarters. “It obviously brings some clarity and certainty around the U.S. Treasury exit.


“It’s obviously good for the business in terms of continuing to remove the perception of government involvement in the company, which is going to be good for sales,” he said, also noting that the reduced share count would boost earnings.


GM approached Treasury officials after the U.S. presidential election in November, but was rebuffed when it offered only to pay market value for the government’s stock, according to a senior Treasury official. Treasury rejected a second offer of a small premium before the sides finalized the deal on Tuesday afternoon, said the Treasury official, who asked not to be identified discussing the negotiations.


“We’ve always looked at this as balancing speed of exit with maximizing return, and GM basically made us what we felt was a very attractive offer,” the Treasury official said.


TARP TRIP NEARS END


TARP was approved by Congress as a $ 700 billion program, though Treasury eventually disbursed $ 418 billion. On Wednesday it said it had recovered $ 381 billion to date, or about 90 percent.


“TARP was always meant to be a temporary, emergency program. The government should not be in the business of owning stakes in private companies for an indefinite period of time,” Treasury Assistant Secretary Timothy Massad said in a statement.


“Moving to exit our investment in GM within the next 12 to 15 months is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests.”


Under the deal, GM will pay $ 27.50 a share for the Treasury-held shares, representing a 7.9 percent premium on Tuesday’s closing price.


Treasury said it will then sell its remaining stake of about 300.1 million shares “through various means in an orderly fashion,” and could begin the process, including sales on the open market, as soon as January.


The auto giant was dubbed “Government Motors” by many critics after it received its bailout package as part of the bankruptcy restructuring in 2009 under TARP.


Treasury’s plans echo other recent moves. On Tuesday, Treasury said it would largely sell its remaining shares in bailed-out banks over the coming 12 to 15 months. Last week it sold the last of its common stock in American International Group Inc at a profit.


This also would close Treasury’s involvement with the U.S. auto sector. In June 2011, the agency sold its remaining 6 percent stake in Chrysler to Italy’s Fiat SpA , which controls the U.S. automaker.


U.S. President Barack Obama heavily promoted his decision to use public funds to rescue the auto industry and save jobs as he campaigned for re-election in swing states like Michigan and Ohio. Voters in both states backed him again in the November 6 election, providing critical support in his victory.


Treasury officials reiterated on Wednesday that the auto bailout saved more than 1 million U.S. jobs and was not meant to turn a profit.


With Treasury’s planned exit from GM, auto lender Ally Financial Inc will be the last major TARP recipient that has not yet paid back the government. Of the $ 17 billion it owes, Ally has paid back $ 5.8 billion.


SHOWING CONFIDENCE


Separately on Wednesday, Canada Finance Minister Jim Flaherty said his country had no immediate plans to sell its stake in GM. Canada and the province of Ontario have a combined 9 percent stake.


Ammann said the move and resulting Treasury plans will remove a “significant overhang” on the stock that has hurt sales and bring an “element of closure” to the bailout. Company research suggests eliminating the Treasury stake would benefit sales, he said.


Ammann said the deal was good for shareholders, when asked whether GM might be sued for paying Treasury a higher price than where the stock was trading at the time of the announcement.


However, one large shareholder loved the deal, as a spokesman for hedge fund manager David Einhorn said: “We applaud GM management for unlocking shareholder value by releasing excess capital and beginning a resolution of the government stake overhang.”


Barclays analyst Brian Johnson said that once the government reduces its stake, GM likely will be eligible for inclusion in the Standard & Poor’s 500 index <.spx>, which could serve as a catalyst to drive up the company’s stock price.</.spx>


GM will end the year with estimated liquidity of about $ 38 billion, even after the deal, Ammann said. That will add to earnings per share by reducing the number of outstanding shares by about 11 percent.


Ammann said the deal will be funded through cash and not tap in to the $ 11 billion credit line GM secured last month.


Citi analyst Itay Michaeli said the deal showed GM’s confidence in its ability to generate cash despite worries about the U.S. economy and the recession in Europe. “The ability to spend this amount of money on a share buyback shows they are putting their money where their mouth is,” he said.


The deal also made a winner of Ammann, considered one of a handful of GM executives who could succeed Chief Executive Dan Akerson. Ammann, along with Akerson and GM general counsel Michael Millikin, negotiated the deal with Massad, Treasury Secretary Timothy Geithner, chief investment officer Matt Pendo and government attorneys over several weeks, according to the senior Treasury official and another person familiar with the talks who asked not to be identified.


Ammann did not provide details of the talks with Treasury, when asked whether negotiations picked up following the presidential election. Analysts said Treasury likely did not want this deal to be turned into a political issue.


Treasury also may have wanted to wait for the unveiling of the critical full-size pickup trucks that will go on sale next year, analysts said. GM showed the new Chevrolet Silverado and GMC Sierra on December 13.


GM will take a charge of about $ 400 million in the fourth quarter tied to the buyback.


In addition, Treasury relinquished certain governance rights, including required levels of U.S. manufacturing and barring the purchase of corporate jets, Ammann said. Senior executive payment caps under TARP remain in place.


“For GM management, it was very important to get out from under the ‘Government Motors’ moniker,” Morgan Stanley analyst Adam Jonas said.


(Additional reporting by Alister Bull in Washington, Jennifer Ablan in New York, Paul Lienert in Detroit and Rick Rothacker in Charlotte, North Carolina; Editing by Gerald E. McCormick, Jeffrey Benkoe, Tim Ahmann, Matthew Lewis and Jan Paschal)


Business News Headlines – Yahoo! News





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