Business News in Brief
Business news from around the region and elsewhere.
IN THE REGION
Patent extension of Seroquel denied
AstraZeneca PLC said Monday a U.S. court had dismissed its bid to extend the patent on Seroquel, its blockbuster drug for treating bipolar disorder. AstraZeneca, which has facilities in the Wilmington area, said the suit against the U.S. Food and Drug Administration had been dismissed on Friday in Washington. The pharmaceutical company was seeking to extend its patents on quetiapine, the active ingredient in the medication, and on the formula for Seroquel XR, the extended-release version. Astra Zeneca was seeking to protect its patents from generic competitors in the United States until December. The company says it is evaluating its legal options.
- Bloomberg News
Eusa Pharma agrees to settle claims
Eusa Pharma (USA) Inc. of Langhorne agreed to pay $180,000 to the Justice Department to settle claims raised by a former employee involving what the federal government said were inflated claims for Medicare reimbursement. In a statement, the Justice Department said Eusa Pharma advised doctors and hospitals to submit multiple claims for certain imaging scans that were performed after the use of ProstaScint, a radiopharmaceutical imaging agent made by the company. The settlement resolves a False Claims Act lawsuit that had been filed by former Eusa Pharma employee Ann-Marie Williams. As a corporate whistleblower, she will receive $30,600 from the amount federal authorities recovered. Founded in 2006, Eusa Pharma is a venture-backed specialty pharmaceutical company with corporate headquarters in Oxford, Great Britain, and its U.S. operations in Bucks County.
- Mike Armstrong
Revel Casino gets its license
The New Jersey Casino Control Commission granted a casino license to Revel Entertainment Group L.L.C., the developer behind the $2.4 billion Revel Casino, on Monday by a 3-0 vote. The megacasino, modeled after the Borgata, is set to open on the northern end of the Boardwalk on April 2, the start of an eight-week preview. More than five years in the making, Revel is the first fully smoke-free, nonunion gambling palace in Atlantic City since the state legalized gambling in 1976. It is also the first Atlantic City casino to impose so-called employee term limits, in which workers will be required to reapply for their jobs every four to six years.
- Suzette Parmley
ELSEWHERE
Senate bill would benefit businesses
Senate Democrats presented a $26 billion temporary tax cut for businesses on Monday to boost payrolls and encourage investment in new equipment. The legislation would award businesses a tax credit of 10 percent on the salaries of new hires and raises for current workers. Businesses that make major new capital investments in new equipment and machinery would be able to write off those investments immediately rather than over several years. The idea is to boost hiring and investment as the fragile economic recovery continues to take hold. The tax cuts would be temporary and would apply to 2012 wages and investments. - AP
Feds investigate bus company
Federal safety regulators are investigating buses made during the last 20 years by Motor Coach Industries Inc. because the driveshafts could fall out, causing a loss of control for the bus drivers. The National Highway Traffic Safety Administration said Monday two people had been killed and 50 injured in two crashes linked to the problem. The investigation covers an estimated 4,000 MCI D-Series buses with steerable rear axles. They were made from 1992 into this year. An investigation could lead to a recall. - Bloomberg News
Beef company suspends operations
The company that makes "pink slime" suspended operations Monday at three of four plants where the beef ingredient is made, saying officials would work to address recent public concern about the product. Beef Products Inc. will suspend operations at plants in Texas, Kansas, and Iowa, according to Craig Letch, the company's director of food safety. Federal regulators say the ammonia-treated filler, known in the industry as "lean, finely textured beef," meets food-safety standards. But critics say the product could be unsafe. The low-cost ingredient is made from fatty bits of meat left over from other cuts. . - Bloomberg News
BMW recalls 1.3 million vehicles
BMW, the world's largest maker of luxury vehicles, is recalling about 1.3 million vehicles because of a faulty battery cable cover that could result in an electrical system malfunction. All models of the previous generation 5 Series and 6 Series built from 2003 to 2010 still on the market are being recalled for repairs at authorized dealerships, the Munich company said Monday. BMW, Bayerische Motoren Werke AG, is trying to retain its perch as the top-selling luxury automobile in the United States against competition from Daimler AG's Mercedes-Benz and Toyota Co.'s Lexus. - Bloomberg News
AT&T to sell Nokia smartphone
AT&T Inc. plans to start selling a Nokia Oyj smartphone with Microsoft Corp. software for half of what it charges for the iPhone as the device's makers seek to break Apple Inc. and Google Inc.'s dominance of the U.S. market. The Lumia 900, which runs on AT&T's network using faster, so-called long-term-evolution technology, will start selling for $99.99 in April, the second-largest U.S. wireless carrier said. The latest iPhone and newest handsets running Google's Android software typically start at $199.
- Bloomberg News