1. UPDATE 1-PR firm Next Fifteen’s profit rises on digital strength


    * Raises total dividend 11 pct to 2.05pOct 18 (Reuters) - Next Fifteen Communications Group is upbeat about its prospects after reporting a 42 percent rise in pretax profit for 2011, underpinned by an early transition to digital services in its PR businesses.The public relations firm comprising brands such as Text 100, Bite and The OutCast Agency also declared a final dividend of 1.535 pence, raising the total dividend by 11 percent to 2.05 pence per share.”Digital is giving the group access to new revenue streams and helping to deliver strong growth in North America and Asia,” Chairman Richard Eyre said in a statement on Tuesday.August-July pretax profit rose to 7.5 million pounds ($11.8 million) from 5.3 million pounds last year. Revenue grew 19 percent to 86 million pounds.Technology PR, which represents 69 percent of group sales, grew 9 percent following a strong performance from Outcast and Text 100 in North America and Bite in Asia Pacific.Next Fifteen shares closed at 76 pence on Monday on the London Stock Exchange, valuing the firm at about 43 million pounds.

     
  2. Some ‘Occupy DC’ protestors not happy with Obama either


    By Lily Kuo Protestors in the Washington arm of the “Occupy Wall Street” movement have another message for the 1 percent: Listen up, President Obama. Several Republican presidential candidates have criticized the movement as anti-American, divisive, and “in search of scapegoats.” But many members of what has become known as Occupy DC are not warming up to the Democratic president either, a fact that could frustrate what analysts say are Obama’s hopes to co-opt a burgeoning movement representing average Americans. “[Obama and Biden] may be making a bet that this thing will get real traction among the middle class and young people, who have largely checked out of politics,” said Paul Light, a political science professor at New York University. Many protestors in Washington, who said they voted for Obama in 2008, see the current administration as part of the problem. “We elected Obama, we had a Democratic Congress and it did not work. This isn’t about any candidate. It’s about how things are being run,” said Thom Reges, 26, sitting next to a bench stocked with donated food and coffee in McPherson Square, a park in downtown Washington and meeting point for Occupy DC. Some supporters of the Occupy movement in DC said they were disenchanted with the president for bending to corporate interests and forgetting his base. They said their votes in 2012 were not assured. “He took his Latino and black constituents for granted,” said Theron Cook, 51, who runs a management consulting business in Washington. “If he continues like this … No, I won’t vote for him again.” “We’re frustrated with Obama because we think he’s not putting up enough of a fight,” said Julie Levine, 52, a professor at the University of Southern California. Levine and Cook spoke to Reuters outside the White House on Friday where they had hoped to attend a demonstration. “Just as the Tea Party did, we need to pressure him from the other end,” Levine said. The Occupy Wall Street movement began last month in New York and has spread across the country to other cities, including Los Angeles, Boston, Las Vegas, Philadelphia and Washington, where over 100 people were camping out a few blocks from the White House. Photo Credits: (A demonstrator at the Federal Reserve Bank in San Francisco), (Demonstrators waves signs at passing cars in Seattle), (In Washington a demonstrator appeals to morning commuters).

     
  3. UPDATE 1-Bank of Ireland divests 5 bln euros of loans


    Bank of Ireland, the only domestic lender to avoid falling into state control, said it had raised 4.54 billion euros from the sale of the loan books, a higher price than expected, meaning there was no impact on its core tier one ratio.Bank of Ireland had a pro forma core tier one ratio, a key measure of financial strength, of 15.4 percent at the end of June.Ireland’s banks need to shrink their loan books to reduce their dependence on emergency funding from the European Central Bank and the Irish central bank, which at the end of September stood at 153.6 billion euros.Bank of Ireland needs to dispose of another 5 billion euros worth of loans by the end of 2013, and it said it was making good progress.It said it was in advanced talks with potential purchasers of project finance loans.The loans already sold include a U.S. commercial real estate portfolio valued at $1.13 billion, some 1.33 billion pounds of UK commercial property loans sold to Kennedy Wilson and institutional partners for 1.07 billion pounds, and 1.23 billion pounds of British residential mortgages sold to a unit of Britain’s Nationwide Building Society for 1.13 billion pounds.Bank of Ireland also sold a portfolio of project finance loans with total commitments of 670 million euros to GE Energy Financial Services . The loans relate to a portfolio of energy assets across North America, the UK, continental Europe and the Middle East.The group also accepted repayment of some 700 million euros of loans at or close to par in its UK corporate banking division.

     
  4. UPDATE 1-Bank of Ireland divests 5 bln euros of loans


    Bank of Ireland, the only domestic lender to avoid falling into state control, said it had raised 4.54 billion euros from the sale of the loan books, a higher price than expected, meaning there was no impact on its core tier one ratio.Bank of Ireland had a pro forma core tier one ratio, a key measure of financial strength, of 15.4 percent at the end of June.Ireland’s banks need to shrink their loan books to reduce their dependence on emergency funding from the European Central Bank and the Irish central bank, which at the end of September stood at 153.6 billion euros.Bank of Ireland needs to dispose of another 5 billion euros worth of loans by the end of 2013, and it said it was making good progress.It said it was in advanced talks with potential purchasers of project finance loans.The loans already sold include a U.S. commercial real estate portfolio valued at $1.13 billion, some 1.33 billion pounds of UK commercial property loans sold to Kennedy Wilson and institutional partners for 1.07 billion pounds, and 1.23 billion pounds of British residential mortgages sold to a unit of Britain’s Nationwide Building Society for 1.13 billion pounds.Bank of Ireland also sold a portfolio of project finance loans with total commitments of 670 million euros to GE Energy Financial Services . The loans relate to a portfolio of energy assets across North America, the UK, continental Europe and the Middle East.The group also accepted repayment of some 700 million euros of loans at or close to par in its UK corporate banking division.

     
  5. Analysis: Authorities perplexed by drug shortage spike


    Hospitals and doctors across the country are postponing care or using second-best or more costly alternatives. The shortages have also forced delays in clinical trials for cancer, which use these drugs as a baseline to test the effectiveness of novel therapies.While work-arounds can help for a while, what is perhaps most worrying is that the officials in charge of addressing the problem are no closer to identifying the underlying causes.In the balance are hundreds of thousands of patients, and potentially millions, who may not get the full care they need.”Anybody who is sure they know the answer to this question is probably kidding themselves,” said Peter Lurie, a senior adviser in the Food and Drug Administration (FDA) Office of the Commissioner, who works on public health issues, including drug shortages.”There appear to be multiple factors that are playing in it and it’s very difficult to identify which one is most important,” Lurie told Reuters.Drug shortages have been around for years in the United States, but they were previously intermittent and largely temporary, pharmacists and doctors say. They have shot up in a very short time, with a record of over 200 scarce medicines this year alone, up from 56 in 2006, according to FDA data.Health providers say the companies who make these drugs, long sold in generic form, have a diminishing interest in ensuring a strong supply. After a wave of consolidation, only five to seven companies produce 80 percent of these medicines, and stricter reimbursement policies have cut into the profits.But a group representing companies such as Watson Pharmaceuticals Inc and Sandoz, a division of Novartis AG, blames the FDA for introducing unnecessarily strict inspections and shutting down manufacturing facilities for minor issues.The finger pointing and lack of answers is leaving health providers and patients exasperated.”Something has to be done soon in order to try to alleviate this problem,” said Dr. Michael Link, the current president of the American Society of Clinical Oncology (ASCO), a non-profit group of cancer doctors and other providers.. “Right now we’re already seeing patient care suffering… I think you’re seeing a groundswell of concern.”In the meantime, distributors in the so-called “gray market” are exploiting the situation to peddle the drugs at hundred-fold mark-ups, according to lawmakers investigating the situation.Senator Chuck Schumer, a Democrat from New York, has called for an investigation by the Federal Trade Commission. And last week, Representative Elijah Cummings, the top Democrat in the House Committee on Oversight and Government Reform, asked five companies in the gray market to provide information on their sales and how they obtain the drugs.PATIENTS IN THE BALANCEIn a July survey of 820 hospitals by the American Hospital Association, more than four-fifths of hospitals said they had to delay treatment and more than half could not provide patients with the recommended drug for their disease. Sixty-nine percent of patients had to settle for a less effective drug.The non-profit Institute for Safe Medication Practices (ISMP) has reports of at least 15 patients dying from drug shortages since last September. In the most high-profile case, nine patients died from contaminated IV fluid in Alabama this past March, when the typical supply was unavailable.Of the 140,000 patients diagnosed with colorectal cancer each year, about 80,000 are expected to rely on typical treatments such as fluorouracil or leucovorin, both currently in short supply, said Nancy Roach, a board member at the patient group Fight Colorectal Cancer.The government is trying to create a better notification system for shortages, which could address some of the most immediate issues for patients.Senator Amy Klobuchar, a Democrat from Minnesota, along with Robert Casey, a Democrat from Pennsylvania, introduced a bill in February that would force drug companies to inform the FDA about looming shortages. The FDA said early notification helped it prevent 99 shortages so far this year.But the bill does little to prevent shortages in the long-term. “People aren’t in agreement on how to solve it in the long term, and not a lot of bills are going through Congress,” Klobuchar told Reuters.MARKET PERFECT STORMThe FDA began tracking drug shortages closely in 1999. Over a decade later, they have only gotten worse. Sterile injectables such as the cancer drugs, make up the lion’s share and accounted for 132 out of 178 shortages in 2010.Most are generic and have been around for years, meaning profit margins are lower.The FDA can explain the immediate causes of the shortages — in 2010, over half of them came from product quality and “significant” manufacturing problems such as metal shavings found in vials or fungal contamination, said Sandra Kweder, deputy director of the FDA’s Office of New Drugs.But these reasons fail to address why these problems have gotten so much worse, officials and industry analysts said.Industry consolidation and lower inventory levels could exacerbate the problem, leaving less slack in the system to deal with shortages when they arise, the FDA said.The agency has also blamed an increasing number of production issues on older facilities that need to be renovated as manufacturers in the low-margin generic market avoid investments in maintenance. Makers of sterile injectables Teva, Hospira and Bedford Laboratories, part of privately-held Boehringer Ingelheim, have all had manufacturing issues in the past few years, shuttering production on multiple drug lines.The FDA also acknowledges some manufacturers may have less financial incentive to make older, cheaper generic drugs. In 2010, 11 percent of shortages were due to companies that stopped making a certain drug, usually for business reasons.Manufacturers are loathe to make a connection between the financial incentives and producing older medicines. Several, including Teva Pharmaceuticals and Hospira, say they are building new facilities as a back-up for future shortages.The industry lays part of the blame with the FDA. The Generic Pharmaceutical Association (GPhA) said the agency has become more focused on enforcement in the past three years, shutting down factories for smaller problems that would have been dealt with less drastically in the past.STALLED PROPOSALSVarious proposals to address the long-term problem have stalled, not least because of the disagreement over the cause.They include creating a national stockpile for emergency injectables — just like for vaccines — or offering tax incentives for manufacturers of low-cost but life-saving products. But those are unlikely to gain favor as the U.S. government is scrambling to cut costs and reduce the national debt, lawmakers and industry players said.The International Monetary Fund and the U.S. Department of Health and Human Services are both investigating the issue, and a Government Accountability Office report is due to come out in November, according to a congressional staffer.In the meantime, doctors like Steven Abrams, at Texas Children’s Hospital in Houston, work to make sure newborn infants with intestinal damage have enough calcium and phosphates.These essential minerals - manufactured by APP Pharmaceuticals, a company in the Fresenius Kabi Group, and Hospira - have been in short supply since April, Dr. Abrams said, forcing him to ration treatment to those most in need.”Our task is to continue to advocate for long-term solutions,” he said. “And the second is to manage this problem day to day. That’s just what we have to do, … to make sure the babies get the medicine they need.”

     
  6. UPDATE 1-CNPC, Shell refinery JV in deal with local govt


    * Shell likely to lead in the Shell-Qatar side* Imported condensate eyed as feedstock for petchemBEIJING, Oct 13 (Reuters) - A proposed refinery, a petrochemical joint venture between China’s CNPC, Royal Dutch Shell Plc and Qatar, this week signed a framework deal with local authorities in eastern China’s Zhejiang province where the mega project will be built.The project, to include a 400,000-barrel-per-day oil refining and 1.2 million tonnes-per-year ethylene plant, won initial approval from the National Development and Reform Commission, the country’s macro planner, in June, industry officials have said.Pending final government approval, which also includes an environmental clearance, the greenfield refinery would give Shell and Qatar their first solid foothold in the world’s No.2 oil consumer, which is embarking on a refinery building boom.The Taizhou venture, in coastal Zhejiang province, will use imported condensate and other raw materials to produce ethylene and other petrochemicals, CNPC said in a company newspaper.”The agreement further clarifies work scope and targets for each side, reflecting sincere intentions to cooperate,” it said.In January, Qatar Oil Minister Abdullah al-Attiyah and Wang Yong, head of the state-owned Assets Supervision and Administration Commission (SASAC), which is both a regulator and shareholder in most of China’s big state-owned companies, pledged to strengthen cooperation in the oil and gas sector and discussed the Taizhou project.Industry experts told Reuters that the project, likely to cost close to $10 billion, would be led by Shell on the foreign partners’ side. Such an alliance follows a giant supply agreement between Qatar and China.”The project looks promising to win Chinese government’s final blessing, as China may see Qatar quite a stabilising factor among the Middle East resource nations,” said an industry veteran.CNPC is parent of PetroChina , Asia’s top oil and gas firm.In May 2010, CNPC and Qatar Petroleum signed a 30-year deal for gas exploration and production in Qatar, holder of the world’s third-largest gas reserves. Shell, as operator, will hold a 75 percent equity stake, with CNPC holding the remainder.