Showing posts with label Company News. Show all posts
Showing posts with label Company News. Show all posts

Saturday, June 15, 2019

NATO faces big bill if it does not pick AWACS successor soon: officials

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PARIS (Reuters) - NATO faces significant costs if it does not act soon to choose a successor for its ageing fleet of 14 Boeing E-3A Airborne Warning & Control System (AWACS) surveillance aircraft, often called the alliance’s “eyes in the sky”, senior officials said.

FILE PHOTO: A NATO AWACS (Airborne Warning and Control Systems) aircraft approaches the Air Base number 5 during the Real Thaw 2018 exercise in Monte Real, Portugal February 6, 2018. REUTERS/Rafael Marchante/File Photo

Michael Gschossmann, general manager of the North Atlantic Treaty Organization agency that manages the AWACS fleet, said he expected to finalize by December a $750 million contract with U.S. arms maker Boeing Co to extend the life of the aircraft through 2035, with $250 million more earmarked for design, spare parts and testing.

But he said it was critical to decide quickly how to replace the 1979/1980-era airplanes, with their distinctive radar domes on the fuselage, or NATO would need to take costly steps to keep them flying even longer.

“We have to get moving on this. We have to ensure that the studies move along quickly. We need a reality check,” he said.

The AWACS planes are among the few military assets owned and operated by NATO, rather than individual states. They are used to conduct missions such as air policing, support for counter-terrorism operations, evacuations, and crisis response.

Gschossmann told Reuters NATO could follow the lead of member states Britain and Turkey in purchasing the E-7, a newer radar plane also built by Boeing. Those aircraft, he said, were large enough to add potential new capabilities, such as operating drones for expanded surveillance, in coming years.

“We have to ensure that we acquire a system that has growth potential, but that also – for financial and time reasons – is based on existing capabilities,” he said.

NATO is considering the AWACS replacement issue as part of a broader study of surveillance, but the process has dragged out given rapidly changing threats and newly emerging capabilities.

France and the United States also operate E-3A aircraft and could potentially buy E-7 planes in coming years, which could lower costs by generating larger order quantities.

“Why don’t we bet on the proven technology that we already have in the E-7 and provide NATO with a certain number of those aircraft? That would give us a basic capability that could be expanded in the future,” he said.

George Riebling, deputy general manager of the agency and a former senior U.S. official, said NATO was running out of time.

“If you don’t have an idea of what you’re going to do to replace NATO AWACS, then the ‘F’ in Final Lifetime Extension Programme (FLEP) can’t stand for final,” he said.

“There will be things we need to do to the NATO E-3A fleet to keep it flying past 2040.”

The FLEP program will update the aircraft’s mission system, as well as the processors for its electronic support measures (ESM) antenna. But it does not cover the radar itself, which would have doubled the cost.

Reporting by Andrea Shalal; Editing by Andrew Cawthorne

Our Standards:The Thomson Reuters Trust Principles.


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Friday, June 14, 2019

Roche's combo lymphoma treatment wins U.S. FDA approval

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FILE PHOTO: The logo of Swiss drugmaker Roche is seen at its headquarters in Basel, Switzerland February 1, 2018. REUTERS/Arnd Wiegmann

(This June 10 story deletes paragraph 9 to clarify that retreatment with Polivy has not been studied.)

(Reuters) - The U.S. Food and Drug Administration on Monday granted earlier-than-expected approval to Roche Holding AG’s antibody- Polivy for treatment of patients with advanced lymphoma.

Polivy was approved in combination with Roche’s older drug Rituxan and a chemotherapy agent for adult patients with advanced diffuse large B-cell lymphoma (DLBCL) whose cancer has worsened despite at least two previous lines of therapy.

Antibody-drug conjugates are designed to deliver a toxic chemotherapy directly to tumors. Roche said the average U.S. list price for a four-month course of Polivy would be $90,000. Rituxan is priced at $39,500 for four months.

Wall Street analysts estimate Polivy sales at nearly $1 billion by 2024, according to IBES data from Refinitiv.

Side effects seen in studies of Polivy included low blood cell counts, nerve damage, fatigue and pneumonia, the FDA said in a statement.

Cell therapies Yescarta, from Gilead Sciences Inc and Kymriah, sold by Novartis AG, are also approved for patients with advanced DLBCL.

Dr. Matthew Matasar, a hematologist at New York’s Memorial Sloan Kettering Cancer Center who was involved in the development of Polivy, said the drug could be an option for some patients to try before determining whether they need to move on to CAR-T treatments.

Roche estimates that nearly 25,000 new cases of DLBCL, a type of non-Hodgkin’s lymphoma (NHL), will be diagnosed in the United States this year. NHL, which is one of the most common cancers, accounts for about 4% of all types of cancers in the United States, according to the American Cancer Society. Continued approval for the treatment may depend on data from a confirmatory trial, Roche said. The FDA’s accelerated approval program allows conditional approval of a medicine that fills an unmet medical need for a serious condition.

Reporting by Aakash Jagadeesh Babu in Bengaluru and Deena Beasley in Los Angeles; Editing by James Emmanuel and Lisa Shumaker

Our Standards:The Thomson Reuters Trust Principles.


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Health Canada to allow some edible cannabis products starting mid-December

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FILE PHOTO: Cannabis plants fill a room in an aquaponics grow operation by licensed marijuana producer Green Relief in Flamborough, Ontario, Canada January 25, 2019. Picture taken January 25, 2019. REUTERS/Carlos Osorio

(Reuters) - Health Canada said on Friday that some edible cannabis products, extracts and topicals would be sold in physical or online stores from mid-December.

The amended cannabis regulations will come into force on Oct. 17, the health regulator said, adding that cannabis producers with federal license will need to provide a 60-day notice of their intent to sell new products, as they are currently required to do.

“We think these new product forms are going to accelerate the shift away from black market into the legal market,” said Martin Landry, chief of corporate development & strategy at Neptune Wellness Solutions Inc. The Canadian firm specializes in the extraction, purification and formulation of cannabis products.

“They are critical for the legal market to capture a bigger part of the consumer spending,” Landry said.

The amendments will also limit the amount of tetrahydrocannabinol (THC), the substance in cannabis that makes people high, to 10 milligrams per serving in cannabis edibles and extracts. For cannabis topicals, the limit will be 1 gram of THC per package.

The Ontario Chamber of Commerce said even though the new proposed regulations will allow for the development of a range of products to meet consumer demand, the industry body was disappointed to see that multi-packs for edibles cannot exceed 10 mg of THC per package.

The OCC in a recent report had said it supports a THC limit of 10-mg per discrete unit of edibles, as well as the sale of multi-packs or multiple products up to a maximum of 100-mg of THC per package.

Ontario is home to more than half the licensed producers of recreational cannabis in Canada and a majority of employment.

Last year, Canada became one of the first major economies to legalize recreational marijuana, a move that has led to the creation of a multi-billion dollar industry.

Reporting by Shradha Singh in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel

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U.S. drugmakers file lawsuit against requiring drug prices in TV ads

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FILE PHOTO: Used blister packets that contained medicines, tablets and pills are seen, in this picture illustration taken June 30, 2018. REUTERS/Russell Boyce/Illustration

(Reuters) - U.S. drugmakers filed a lawsuit on Friday challenging a new government regulation that would require them to disclose the list price of prescription drugs in direct-to-consumer television advertisements.

The lawsuit was jointly filed by Amgen Inc, Merck & Co, Eli Lilly and Co and the Association Of National Advertisers in the U.S. district court for the district of Columbia.

The new regulation, which was finalized on May 8 by the U.S. Department of Health and Human Services (HHS) and set to take effect in July, is part of the government’s efforts to bring down the cost of prescription medicines for U.S. consumers.

Drugmakers have argued against the regulation, saying list prices do not reflect the final price paid by patients as it excludes rebates and discounts drugmakers may offer, as well as patient assistance programs to make drugs more affordable for some.

“Not only does the rule raise serious freedom of speech concerns, it mandates an approach that fails to account for differences among insurance, treatments and patients themselves, by requiring disclosure of list price,” Amgen said in a statement.

“Most importantly, it does not answer the fundamental question patients are asking: ‘What will I have to pay for my medicine?’” Amgen said.

It remains to be seen whether the advertising regulation would have any actual impact on lowering costs if the requirement goes into effect.

“If the drug companies are embarrassed by their prices or afraid that the prices will scare patients away, they should lower them,” HHS spokeswoman Caitlin Oakley said in an emailed statement.

“President Trump and Secretary Azar are committed to providing patients the information they need to make their own informed healthcare decisions.”

Reporting by Ankit Ajmera in Bengaluru; Editing by James Emmanuel and Bill Berkrot

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U.S. drugmakers file lawsuit against rule requiring drug prices in TV ads

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FILE PHOTO: Used blister packets that contained medicines, tablets and pills are seen, in this picture illustration taken June 30, 2018. REUTERS/Russell Boyce/Illustration

(Reuters) - U.S. drugmakers on Friday filed a lawsuit to prevent the companies from disclosing the list price of prescription drugs in direct-to-consumer television advertisements as per a newly proposed government regulation.

The lawsuit was jointly filed by Amgen Inc, Merck & Co Inc, Eli Lilly and Co and the Association Of National Advertisers in the U.S. district court in Columbia.

The new regulation on advertisement, which was finalized on May 8 by the U.S. Department of Health and Human Services (HHS) and takes effect in July, is part of the government’s efforts to bring down costs for U.S. consumers.

However, drug companies have argued against the proposed rule, saying list prices do not reflect the final price paid by patients as it excludes rebates and discounts drugmakers may offer.

“Not only does the rule raise serious freedom of speech concerns, it mandates an approach that fails to account for differences among insurance, treatments and patients themselves, by requiring disclosure of list price,” Amgen said in a statement.

“Most importantly, it does not answer the fundamental question patients are asking: ‘What will I have to pay for my medicine?’”

HHS did not immediately respond to a request for comment.

Reporting by Ankit Ajmera in Bengaluru; Editing by James Emmanuel

Our Standards:The Thomson Reuters Trust Principles.


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French, Italian shipbuilders forge naval alliance

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PARIS (Reuters) - France and Italy forged a military shipbuilding alliance on Friday, as state-controlled Naval Group and Fincantieri signed off on a 50-50 joint venture that will bid for Franco-Italian warship projects and sell to the world market.

FILE PHOTO: A sub-scale sized model of a Corvette by Fincantieri is displayed at Euronaval, the world naval defence exhibition in Le Bourget near Paris, France, October 23, 2018. REUTERS/Benoit Tessier/File Photo

The alliance reflects the two countries’ desire to fend off competition in naval shipbuilding from the likes of China, the United States and Russia.

It is targeting orders worth up to 5 billion euros ($5.63 billion) over the next decade. Naval Group said the joint venture aims to build 10-15 warships in that period, with synergies estimated at 10-15%.

“It is the product of a shared industrial ambition,” Herve Guillou, chief executive of Naval Group told reporters on a call.

“We are by far the two biggest naval shipbuilders in Europe, but we cannot remain competitive and maximize our resources if we rely only on our domestic markets.”

The joint venture does not entail a share swap between the two groups.

France and Italy first outlined plans to deepen naval shipbuilding cooperation in September 2017.

However, political and business relations between the two euro zone powerhouses have become increasingly fraught since then and uncertainty hangs over other deals.

Earlier this month, Fiat Chrysler withdrew its proposal for a 35 billion euro merger with Renault, with both the Italian-American carmaker and Rome blaming French government interference for the deal’s collapse.

Meanwhile, at France’s request, the European Union’s antitrust chief is examining Fincantieri’s purchase of a 50% stake in French shipbuilder Chantiers de l’Atlantique, formerly STX, a move which irritated Fincantieri and Rome.

Fincantieri top executives recently said they were confident of winning approval from Brussels, but that it could take some months.

The joint venture between Fincantieri and Naval Group, in which French defense company Thales has a 35% stake, seeks to balance power within the alliance.

That has been a stumbling block for other Franco-Italian mergers such as the troubled Essilor-Luxottica tie-up.

The new enterprise will be headquartered in Genoa, with its engineering center based in France’s southern Var region.

Its chief executive Claude Centofanti is a Frenchman and its chairman, Giuseppe Bono, an Italian who is also CEO of Fincantieri.

The two companies have said they will look for efficiencies by taking advantage of their bigger scale, jointly conducting some research and sharing test facilities.

Guillou said the market for mid-size to large frigates was growing 5-7% a year. “It’s also where the emerging competition is attacking us the hardest,” he added.

He said there was potential for Naval Group and the new JV to derive synergies too from the Fincantieri-Chantiers de l’Atlantique tie-up, but a go-ahead from Brussels would be needed before they can be more deeply explored.

But he added that the setting up of the venture and the merger between Fincantieri and Chantier were separate issues, downplaying analysts’ hopes the JV could make it easier to win the go-ahead for Fincantieri-Chantier.

Naval Group holds a minority stake in Chantiers de l’Atlantique.

“We could imagine buying steel benefitting from scale of volume,” Guillou said. “When you think about what vessels of the future might look like, and cleaner energies, it’s not something that will only interest military shipbuilders.”

Writing by Richard Lough; Editing by Jan Harvey

Our Standards:The Thomson Reuters Trust Principles.


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Enanta's lung infection therapy succeeds in mid-stage trial

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(Reuters) - Enanta Pharmaceuticals Inc said on Friday its treatment for a highly contagious respiratory infection met the main goal of reducing virus levels in the body and improving symptoms in patients in a mid-stage study.

The therapy, EDP-938, developed for treating respiratory syncytial virus (RSV) infection which currently has no available treatment, was compared with placebo, the company said.

RSV could lead to serious lung infections and even death in babies and the elderly who have a weaker immune system.

An average of 57,527 children younger than 5 years and 177,000 adults older than 65 years are hospitalized due to RSV infections every year, according to the Centers for Disease Control and Prevention.

Enanta said study results showed its therapy was generally safe and well tolerated and no drug discontinuations were observed.

Drugmakers Regeneron Pharmaceuticals Inc and Johnson & Johnson have abandoned their programs to find a treatment for the condition, and an experimental vaccine developed by Novavax Inc had failed a late-stage trial, earlier this year.

Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Shinjini Ganguli

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Founder of K-pop label YG resigns amid drugs and sex scandals

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SEOUL (Reuters) - Yang Hyun-suk, founder of South Korea’s YG Entertainment which manages top K-pop performers, stepped down on Friday from his duties as chief producer, in the aftermath of drug and sex scandals involving his artists.

In March, a member of YG’s boyband Big Bang quit showbiz over sex bribery accusations, prompting police investigations and the resignation of four K-pop stars including him.

Allegations subsequently surfaced of a network of pop stars, businessmen and cops having colluded and enabled tax evasion, bribery and prostitution, exposing the dark side of the glitzy industry.

“I have waited out in patience this situation in which shameless and humiliating words are being thoughtlessly spread as if it is the truth,” Yang, a former legendary K-pop star, said in a statement.

“But I don’t think I can hold it in any longer.”

Yang said he was stepping down to avoid further damage to the firm’s artists over the accusations. These involved prostitution mediation, tax evasion and cover-up of a drug scandal, all of which he has denied.

YG’s top shareholder, Yang, founded the K-pop management firm in 1996. His brother Yang Min-suk, the agency’s chief executive, also stepped down, according to a regulatory filing.

On Wednesday, the leader of another one of YG’s boy bands, iKON, also exited show business over media reports that he was attempting to buy illegal drugs. He publicly apologized for his act and quit the band.

YG Entertainment is one of the top K-Pop record labels behind groups BlackPink and Big Bang, but its shares have slumped for months, hit by the scandals.

Shares of YG Entertainment closed down 5.6% on Friday, falling for a third consecutive session, while its affiliate, YG Plus, lost nearly 6%.

Reporting by Sangmi Cha; Editing by Ju-min Park and Clarence Fernandez



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Thursday, June 13, 2019

Brazil's Minerva suspends furlough at beef plant as China ban ends

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SAO PAULO (Reuters) - Brazilian meat processor Minerva SA said on Thursday it has suspended a furlough announced last week for its Barretos beef processing facility, following news that a ban to exports to China has ended.

Brazil’s government said on Thursday it has lifted a suspension of beef exports to China after dealing with an atypical case of mad cow disease.

Reporting by Gabriela Mello and Marcelo Teixeira; Editing by Phil Berlowitz

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Brazil lifts suspension of beef exports to China

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SAO PAULO (Reuters) - Brazil’s government said on Thursday it has lifted a suspension of beef exports to China after dealing with an atypical case of mad cow disease, sending shares of Marfrig Global Foods, Minerva SA and other Brazilian meatpackers soaring.

The suspension had been in effect since June 3 after a case was reported in a 17-year-old cow in the state of Mato Grosso. Cases can arise spontaneously in cattle herds, usually in animals 8 years old or older.

Tereza Cristina Dias, the agriculture minister, said on her Twitter account that Brazil would resume issuance of international health certificates to allow for beef exports to China.

Marfrig, whose shares jumped 5% after the announcement of the end of the suspension, said in a securities filing that the government’s issuance of these certificates had been normalized on Thursday.

Shares of rival Minerva also rose 3% in São Paulo.

China is the only country among Brazilian importers that enforces a health protocol requiring suspension of beef imports when an atypical case of mad cow disease is reported, Brazil’s agriculture ministry said in a statement.

The ministry reiterated the Brazilian government’s intention to negotiate a new health protocol with Chinese authorities to address the issue.

Reporting by Ana Mano; Editing by Dan Grebler and Paul Simao

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IBM, Walmart, Merck in blockchain collaboration with FDA

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FILE PHOTO: The Walmart logo in New York, U.S., May 1, 2018. REUTERS/Brendan McDermid/File Photo

(Reuters) - IBM, Merck and Walmart have been chosen for a U.S. Food and Drug Administration pilot program that will explore using blockchain technology to improve the security of prescription drug supply and distribution.

The companies said they would work with consultancy KPMG to create a shared blockchain network that will allow real-time monitoring of products in the pharmaceutical supply chain.

The project has been authorized under the U.S. Drug Supply Chain Security Act (DSCSA) that was set up to increase regulatory oversight of counterfeit, stolen, contaminated or otherwise harmful drugs.

The FDA has previously used the DSCSA to issue a warning letter to drug distributor McKesson Corp for violations involving opioid medications.

Opioids have been tied to thousands of overdose deaths and state and local governments across the United States have filed lawsuits seeking to hold pharmaceutical companies responsible for the epidemic of abuse.

The new project is aimed at reducing the time needed to track and trace prescription drugs, improving access to reliable distribution information and ensuring products are handled appropriately and stored at the right temperature while being distributed, the companies said in a statement.

Blockchain technology, originally conceived a decade ago as the basis for the cryptocurrency bitcoin, will help stakeholders establish a permanent record and can be integrated with existing systems used to trace products while they are distributed.

The project is scheduled to be completed in the fourth quarter of 2019 and results will be published in a report, the companies said.

Reporting by Tamara Mathias in Bengaluru; Editing by Shinjini Ganguli

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China agriculture ministry says no proof natural compound prevents swine fever

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BEIJING (Reuters) - China’s ministry of agriculture said on Thursday a company which claimed a natural compound was effective in preventing African swine fever did not have government approval to research the virus and its assertions were not scientifically sound.

Shopping mall operator Guangdong Highsun Group Co was questioned by the Shenzhen Stock Exchange earlier on Thursday after this week announcing it was backing development of an African swine fever vaccine.

Beijing strictly regulates research on, and handling of, the virus.

Highsun said on Tuesday it would spend 900 million yuan ($130.09 million), or 26% of its 2018 net assets, on supporting research into a natural compound it said had been shown to prevent the disease which is deadly to pigs and ravaging herds across Asia.

But the ministry said it had not received a research application and without experimental data, the claim that a polysaccharide injection is effective in preventing the virus lacked scientific proof.

Researchers around the world have been trying for years to develop a vaccine against African swine fever without success.

Highsun said that preliminary research had found the polysaccharide to be 92% effective in preventing the disease in clinical trials - an announcement which triggered a 10% surge in its shares on Wednesday, leading to a trading suspension.

The Shenzhen exchange said it was seeking clarity on several issues, including additional data regarding the vaccine’s effectiveness and whether the researchers had government approval to conduct research on the virus.

An official from Highsun, who asked not to be identified, said the company was preparing a response to the exchange’s questions and declined to comment further.

African swine fever kills almost all the pigs it infects. The breeding herd in China, the world’s top pork producer, has declined by a record 24% owing to the disease, the agriculture ministry said on Thursday.

The Bureau of Agriculture and Rural Affairs for Hainan province said on its website on Thursday that it had supported a research team that had isolated a polysaccharide compound from tropical plants which had shown a “certain preventive effect” against African swine fever.

However, it said more research was needed in areas including the possible impact of virus mutation and the safety, stability and feasibility of industrial production of the compound.

It is not clear if the bureau was referring to the same team backed by Highsun and it did not answer calls for a comment on the statement.

Highsun’s shares rose 7.3% to 3.38 yuan ($0.49) a share after resuming trading on Thursday.

Reporting by Dominique Patton and Beijing Newsroom; Meg Shen in Hong Kong; editing by Christian Schmollinger and Kirsten Donovan

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Philips upbeat on digital care as patients warm to data sharing

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AMSTERDAM (Reuters) - Dutch health technology company Philips expects sales at its digital care business to grow this year as patients see the benefits of sharing more medical data with doctors, Chief Executive Frans van Houten told Reuters.

FILE PHOTO: CEO Frans van Houten from the Dutch health technology company Philips presents the company's financial results for the fourth quarter and full year 2018, in Amsterdam, Netherlands, January 29, 2019. REUTERS/Eva Plevier

Philips’ connected care division offers platforms to remotely monitor patients and for doctors to share patient data.

“We expect to see a positive trend in connected care this year, with sales growth picking up,” Van Houten said in an interview.

Its sales have lagged those of the company’s bigger divisions, which sell large medical equipment and personal care devices, stagnating in 2018 and falling 1% in the first quarter of 2019.

But Philips, which has spun off its lighting and consumer electronics divisions and now focuses purely on healthcare, expects rising life expectancy and associated chronic diseases to lead to growing demand for devices that allow patients to stay at home, while being monitored.

That view was supported by an international study, published this week, which showed patients with access to their digital health records are more satisfied with the care they receive and are very willing to share that data with doctors.

The study, which involved 15,000 patients and 3,100 doctors across 15 countries and was commissioned by Philips, also showed that two thirds of people who don’t have access to their own records want doctors and other health professionals to have access to their data.

Some 70% of the doctors interviewed with access to digital records said it improved their work.

“Data is the new gold”, Van Houten said. “We are absolutely convinced that sharing more data leads to better diagnosis, better treatment and better outcomes, improving the productivity of doctors.”

Increasing use of digital records could help Philips, as it sells software tools for doctors to gather data from records and devices that allow patients to collect health data, such as blood pressure and cholesterol levels, at home and immediately share them with doctors.

“People want their data to be used”, Van Houten said. “Although the general perception seems to be of an aversion towards data sharing, we actually see the opposite when it comes to health care.”

Reporting by Bart Meijer. Editing by Jane Merriman and Mark Potter

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GSK signs up gene-editing pioneers in drug discovery alliance

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(Reuters) - British drugmaker GSK said it has struck a research deal with the early pioneers of a prominent gene-editing technology at the University of California, in a boost to its prospects for developing new drugs.

GlaxoSmithKline, Britain’s largest drugmaker, will pay up to $67 million over a five-year period for the new Laboratory for Genomics Research, which will be jointly run with the University of California and led by researchers such as Jennifer Doudna, a co-inventor of the CRISPR gene-editing technology.

New gene editing tools - with CRISPR/Cas9 as the most prominent example - have thrown the door wide open for rearranging the genetic code much more precisely and at lower costs than previously possible.

The technology made headlines last year when a Chinese scientist caused outrage with a claim to have “gene-edited” babies, but CRISPR/Cas9 can also be used in medical and agricultural research without interfering with the human germline.

CRISPR works as a molecular scissors that can trim away unwanted pieces of genetic material and replace them with new ones. Easier to use than older techniques, it has quickly become a preferred method of gene editing in research labs.

The new GSK lab will run tests on various irregularities in the human genome and track the malfunctions they trigger in cells, hoping to gain a clearer understanding of the causes of cancer as well as neurological and immunological diseases.

“Once we understand how that changes its function, we can think about how to mitigate that functional impairment and normalize the cell, and normalize, hopefully, the patient by just developing a drug that could prevent them from developing the disease,” said GSK’s Chief Scientific Officer Hal Barron.

GSK, which had hired Barron from Alphabet-backed biotech firm Calico in 2017, will become more dependent on its drug development fortunes as it prepares to fold its consumer health business into a joint venture with Pfizer that will be separately listed.

Automation and heavy-duty computing will allow researchers to analyze hundreds of millions of genetic combinations per experiment at the new lab, Barron added.

The University of California in February scored a victory in a drawn-out legal battle with the Cambridge, Massachusetts-based Broad Institute over the CRISPR patent application that Doudna filed together with Emmanuelle Charpentier of the University of Vienna in 2012.

The new lab in San Francisco will include facilities for 24 full-time university employees funded by GSK plus up to 14 full-time GSK staff.

Other pharma companies are investing in the new method. Bayer and Vertex Pharmaceuticals have independently established collaborations with CRISPR Therapeutics, a biotech firm working on gene therapies.

For GSK, the California lab project ties in with existing data-driven alliances in genetic research with Alphabet-funded gene testing company 23andMe, or with the UK Biobank, a genetic database project.

Additional reporting by Michael Erman in New York, editing by Deepa Babington

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Wednesday, June 12, 2019

Aston Martin built for James Bond heading to auction

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LOS ANGELES (Reuters) - A 1965 Aston Martin DB5 outfitted with special gadgets for James Bond, such as tire slashers, machine guns and a bulletproof shield, will go up for auction in August, the auction house announced on Wednesday.

The vehicle painted gray is expected to fetch between $4 million and $6 million, according to a statement from RM Sotheby’s.

The car was never seen in Bond films, but matches the one that “007” - the code number by which Bond was often known - drove in the movies “Goldfinger,” and “Thunderball.”

The vehicle was commissioned by filmmaker Eon Productions and used at promotional events for “Thunderball” in the United States, the auction house said.

It includes 13 modifications created for Bond, including a Browning .30 caliber machine gun in each fender, tire slashers mounted on its wheel hubs and a bulletproof rear screen that can be raised and lowered.

RM Sotheby’s said the Bond modifications had been “properly refurbished to function as originally built,” and has had three private owners over 50 years.

The auction will take place on Aug. 15 in Monterey, California.

Reporting by Lisa Richwine, editing by G Crosse



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U.S. pet doctors steel themselves for online pharmacy challenge

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(Reuters) - A David and Goliath battle is brewing in the business of selling prescription medicines for pets, pitching veterinarians against online giants moving into this lucrative corner of the growing market for animal supplies.

Destiny Brown, Dr. Katie Buss, and Kingsley family pose with puppies at the Kings Veterinary Hospital in Loveland, Ohio, U.S., on April 26, 2019. Picture taken on April 26, 2019. Courtesy Jennifer Blodgett/Kings Veterinary Hospital/Handout via REUTERS

Americans spent $72.56 billion last year on their pets, according to American Pet Products Association. Prescription drugs were expected to account for over $10 billion, according to an estimate here from the Federal Trade Commission, and overall pet product sales are expected to keep growing by 4% a year. (Graphic:tmsnrt.rs/2KfxTvy)

With deep discounts and online convenience, Walmart Inc, soon-to-be listed Chewy.com and Amazon.com Inc’s Wag brand have effectively conquered the market for pet food, care products and other supplies, but until now veterinary practices, which both prescribe and sell drugs, have been a major source of prescription medication.

While Amazon so far has shown no interest in that market, Chewy’s and Walmart’s forays into the online pet pharmacy business threaten to change that, prompting veterinary clinics to seek help in defending their turf. Enter Covetrus Inc, Vet Source, which partners with Patterson Companies Inc, and others that offer tools to help vets manage their practices and give customers the convenience they have come to expect from online shopping.

“We started to realize this is what our clients want,” said Stephanie Foster, practice manager at Kings Veterinary Hospital in Loveland, Ohio. “They want to be able to order things at 11 o’ clock at night. They’re used to the Amazon mentality.”

Foster says she began using Covetrus to order drugs and supplies for the practice after it began losing sales of pet food and other products to online retailers. Now, her hospital has a website run by Covetrus under the practice’s name that effectively acts as its online pharmacy.

With that comes software that helps the clinic manage its inventory and track prescriptions, so Foster knows when clients need a refill and for those Covetrus collects a service fee that is a percentage of sales.

Foster said partnering with Covetrus has helped boost overall sales by half over the past three years because it gives clients online convenience, timely reminders and, despite the fees, competitive prices.

“Covetrus now has more leverage with the manufacturers than I will ever have as a small business,” she said. “They’re able to get the manufacturers to agree to instant rebates and they can do flash sales on products and things that we just can’t compete with.” 

The company, formed by the combination of medical supply firm Henry Schein’s animal health unit and Vet’s First Choice and listed in February, represents some 100,000 veterinary practices globally. In the United States, 27,000 use some form of its services with over 8,000 - about a quarter of the market - signed up for prescription management, Covetrus says.

HOME TURF ADVANTAGE

PetSmart Inc-backed Chewy.com, whose sales soared from $26 million to $3.5 billion between 2012 and 2018, said in a filing ahead of its New York Stock Exchange debut this month it planned to expand its online pharmacy business launched last year.

The company has yet to update on the pharmacy’s performance and it would not comment for this article, citing the silent period ahead of its stock exchange debut.

Walmart joined the fray last month when it launched its online pet pharmacy WalmartPetRx.com and said it aimed to operate 100 in-store animal clinics by the end of the year.

Analysts say, however, the prescription pet medicine business could prove more challenging than other pet products.

Those who want to buy medication online still need a prescription from a vet and must either email or upload a copy or have the online retailer contact the practice first.

That, analysts say, offers the practices a chance to sell the first batch on site and then direct customers to their own online service.

Kristen Cook, a practice manager at the Belton Veterinary Clinic in Belton, Texas, says their doctors have no obligation to write a prescription for those shopping elsewhere and the clinic’s policy is to handle prescriptions internally.

“It’s not something like I am handing them a piece of paper to take it wherever they want to take it,” Cook said.

The stakes are high.

Cook said that at least half of the clinic’s revenue comes from prescription drug sales.

Nationally, pharmacy sales on average make up about a third of a practice’s revenue, according to Gary Glassman, partner at accounting and financial services firm Burzenski & Company, which serves veterinary practices across the country.

The American Veterinary Medical Association (AVMA) says, however, that 40 states have already adopted laws, regulations or guidelines that specifically or implicitly require veterinarians to provide a written prescription upon request in some circumstances.

To see the summary report from AVMA, please click here here

This means pet owners could fill those prescriptions with Chewy or other online providers, and the market is just too attractive to e-commerce players for the vets and their partners to get complacent, analysts say.

According to a 2018 TD Ameritrade online survey of U.S. millennial pet owners, they were willing to spend up to $2,000 on average if their pet got sick, with dog owners prepared to spend more on their pets than what they expected to spend on their own healthcare.

“People are treating their pets more like people,” William Blair analyst John Kreger said. “Historically ... you’d frankly euthanize the pet when they started to have some of these chronic conditions. That’s just not happening now.”

Reporting by Tamara Mathias and Manas Mishra in Bengaluru, Writing by Patrick Graham; Editing by Tomasz Janowski

Our Standards:The Thomson Reuters Trust Principles.


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Musicians lament reported loss of recordings in decade-old Universal fire

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LOS ANGELES (Reuters) - Several big-name musicians voiced dismay on Wednesday that some of their recordings may have been among thousands of original masters that The New York Times Magazine reported were lost in the Universal Studios Hollywood backlot fire of 2008.

FILE PHOTO: A fire truck and firefighters are seen at Gate 2 of Universal Studios as smoke rises (background) from a fire that rages out of control at the backlot filled with movie sets in Universal City, California June 1, 2008. REUTERS/Fred Prouser/File Photo

The blaze, which gutted a popular “King Kong” attraction and a swath of the studio’s fabled outdoor lot, also destroyed nearly all the master recordings stored there in a Universal Music Group archive, a loss that has long gone undisclosed, the magazine reported on Tuesday.

Universal Music estimated in a confidential 2009 report that the loss encompassed about 500,000 song titles, the article said.

In a statement on Wednesday, the company called the incident “deeply unfortunate,” but said the Times story contained “numerous inaccuracies, misleading statements, contradictions and fundamental misunderstandings of the scope of the incident.”

The extent of the loss, documented in litigation and company records the article cited, was largely kept from the public eye through a concerted effort on the part of the music label, the magazine said.

Many of the artists whose own material was reported to have been destroyed expressed shock.

“Oh my Lord ... this makes me sick to my stomach,” singer-songwriter Sheryl Crow wrote on Twitter, posted with a link to the article. “And shame on those involved in the coverup.”

The rock band R.E.M said in a Twitter statement that concerned fans were making inquiries. “We are trying to get good information to find out what happened, and the effect on the band’s music, if any,” the group tweeted.

Original sound recordings of many of the greatest names in popular music since the 1940s - from Louis Armstrong and Judy Garland to Tom Petty and 50 Cent - are believed to have gone up in smoke in what the article described as “the biggest disaster in the history of the music business.”

Master recordings are typically owned and controlled by the music labels for the artists in their catalog. But they are seen as vital to musicians’ legacy as they are original, one-of-a-kind recordings considered the truest representation of sounds captured in the studio.

Masters are the source material for all reproductions, including re-releases and remixes, made for distribution, whether on digital medium or vinyl.

Universal Music Group, now owned by French media conglomerate Vivendi, said the fire “never affected the availability of the commercially released music nor impacted artists’ compensation.”

The New York Times article “ignores the tens of thousands of back catalog recordings that we have already issued in recent years, including master-quality, high-resolution, audiophile versions of many records that the story claims were ‘destroyed,’” Universal Music said.

Irving Azoff, manager for the group Steely Dan, said in a statement that the musicians had “been aware of ‘missing’ original Steely Dan tapes for a long time now.”

“We’ve never been given a plausible explanation,” Azoff said. “Maybe they burned up in the big fire. In any case, it’s certainly a lost treasure.”

Krist Novoselic, a founding member of the 1990s grunge band Nirvana, responded to a fan on Twitter asking whether the Times article meant that the masters for the group’s landmark “Nevermind” album were gone. He wrote: “I think they are gone forever.”

Reporting by Lisa Richwine and Steve Gorman in Los Angeles; Editing by Leslie Adler



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Canadian panel calls for universal public drug coverage

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OTTAWA/TORONTO (Reuters) - A Canadian advisory council studying prescription drug coverage said on Wednesday the federal government should create a C$15.3 billion ($11.5 billion) universal, single-payer public pharmacare system, and warned that the current system requires a major overhaul.

A pharmacist counts prescription drugs at the at the CentreTown Pharmacy in Ottawa, Ontario, Canada, June 12, 2019. REUTERS/Chris Wattie

The council said the plan should be implemented no later than Jan. 1, 2027, with coverage for essential medicines in place by Jan. 1, 2022.

Canada is the only country with a universal health care system that does not include universal coverage for prescription drugs. Most prescriptions are paid for through employer-funded drug plans, while some are covered by government programs for the elderly, or people with low incomes or very high costs.

“We can’t tinker with what exists. We have to transform it,” council chair Eric Hoskins, a former Ontario health minister, said at a news conference.

The report said public and private drug providers had told the council the system is “near the breaking point.”

Canadian Prime Minister Justin Trudeau’s Liberal government has promised some kind of national pharmacare program, and its approach may be a key issue in the country’s October election.

Minister of Health Ginette Petitpas Taylor said in a statement that the government would “carefully study” the recommendations “over the coming months.”

The council estimated the national pharmacare would cost the federal government an additional C$3.5 billion at its launch in 2022, and C$15.3 billion in 2027.

If implemented in full, the plan would likely cut into profits of insurers and drugmakers in Canada, while saving employers and patients money.

Shares of three major insurers listed in Canada, Manulife Financial Corp, Sun Life Financial Inc and Great-West Lifeco Inc, all dropped.

‘SPACE’ FOR THE PRIVATE SECTOR

Canada’s drug insurance system is a patchwork of more than 1,000 public and 100,000 private plans, which can make it difficult for smaller payers to negotiate discounts with pharmaceutical companies.

The Canadian Life and Health Insurance Association (CLHIA)urged the government to work with private plans to negotiate lower drug prices. CLHIA president Stephen Frank said in a statement that all Canadians can have access to the medications they need “without putting at risk what’s working today.”

Hoskins said costs associated with the proposed program are already being paid by Canadians. By 2027, total prescription drug spending would be about 10% lower with the proposed changes, Hoskins said. Canadians spent C$34 billion ($25.6 billion) on prescription medicines in 2018.

Hoskins said he envisions “space” for the private drug insurance sector after a universal public program is rolled out.

“The profit that insurance companies generate through drug insurance plans is modest, I would describe it, compared to other aspects of benefits provided,” he said.

Pamela Fralick, president of pharmaceutical industry group Innovative Medicines Canada, said whatever path the government chooses, “no Canadian should be worse off than they are right now.”

NEW DRUG PRICE RULES IN THE WORKS

Speaking after the report’s release, Petitpas Taylor said work on the Canadian government’s proposal to reduce patented drug prices is still underway, and “movement” would come in the very near future.

New regulations, set to go into effect in January 2019, were delayed amid heavy lobbying from drugmakers.

Slideshow (3 Images)

Patented drug prices in Canada are among the highest in the world. Government surveys show some 20% of Canadians are uninsured or under-insured.

In its most recent budget the Trudeau government promised modest changes, including new funds for expensive drugs that treat rare diseases.

Reporting by Kelsey Johnson in Ottawa and Allison Martell in Toronto; Editing by Bill Berkrot

Our Standards:The Thomson Reuters Trust Principles.


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Britain's BBC gets green light to enhance iPlayer

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LONDON (Reuters) - Britain’s media regulator has given the BBC provisional permission to change its popular iPlayer on-demand platform from a 30-day catch-up service to one where programs are available for 12 months or longer.

Ofcom said the changes would help the BBC stay relevant in the face of changing viewing habits and deliver value to the public, which funds the broadcaster by paying an annual license fee of 154.50 pounds ($196) per household.

It said the changes would pose challenges for other public service broadcasters’ video-on-demand services, and would therefore need to be subject to conditions to mitigate against risks to fair competition.

The BBC launched iPlayer in 2007, offering programs for seven days after broadcast. The viewing window was extended to 30 days in 2014.

Ofcom said it was inviting other views before publishing a final decision by August.

Reporting by Paul Sandle; editing by Stephen Addison



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Monday, June 10, 2019

More U.S. millennials subscribe to video games than traditional pay TV: survey

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NEW YORK (Reuters) - More American millennials now subscribe to a video game service than to a traditional paid television service, according to a survey on Monday, as consumers favor new forms of entertainment that are shifting the broader media landscape.

FILE PHOTO: A woman plays a game on her cell phone while lying on the grass in Madrid, Spain, July 4, 2017. REUTERS/Juan Medina

About 53% of people born between 1983 and 1996 now pay for gaming services, versus 51% who pay for television, according to a survey from the accounting and professional services firm Deloitte.

That is compared with Deloitte’s survey last year, in which paid subscriptions among millennials were 44% for video games and 52% for television.

Paid television through cable, satellite or fiber - for instance Comcast Corp’s Xfinity, Dish Network Corp or AT&T Inc’s U-verse TV - has been challenged by changing viewer habits, particularly the rise of direct-to-consumer streaming services.

At the same time, video games and e-sports have soared in popularity, giving rise to an industry of competitive professional and amateur games watched in person and online by fans, alongside more casual gaming on mobile phones.

Players can subscribe to games like World of Warcraft from Activision Blizzard Inc. Riot Games Inc, a unit of Tencent Holdings Ltd , is working on a streaming mobile version of its hit League of Legends desktop game.

Electronic Arts Inc offers subscriptions to its games - which include FIFA 18, Madden NFL 19, The Sims 4, Star Wars Battlefront II and more - for Microsoft Corp’s Xbox and Sony Corp’s PlayStation.

In March, Alphabet Inc’s Google unveiled Stadia, its new browser-based video game streaming service to launch this year through its cloud technology.

The same month, Apple Inc also introduced a new digital video game subscription service called Apple Arcade.

Kevin Westcott, who leads Deloitte’s U.S. telecom, media and entertainment practice, said increased game consumption comes as more people fill their spare time playing on mobile devices instead of reading and other activities.

Gaming can provide social ties and communities of fans and players.

“Gaming companies have also been developing more compelling content and interaction with their consumers,” Westcott said in an email.

Deloitte’s 13th annual digital media trends survey was fielded by an independent research firm from December 2018 to February 2019 online among 2,003 U.S. consumers.

(The story removes typographical error in paragraph 3.)

Reporting by Hilary Russ; Additional reporting by Helen Coster; Editing by Lisa Shumaker



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