MIKE ARMSTRONG:   Coming up, an unexpected management change at Rohm and Haas. We’ll tell you who’s in. Is anybody on the way out? Discovery Laboratories of Warrington responds to negative news about its drug, Surfaxin. We’ll tell you why there may be good news for the company and for its investors.  Philadelphia Business Today starts now.

OPENING TITLE

MIKE ARMSTRONG:   No new testing. Discovery Laboratory says it will not have to do more clinical testing on its drug to treat Respiratory Distress Syndrome. Last week, the company said the FDA issued an “approvable letter” for its drug called Surfaxin. It’s shares fell 50% on Friday. An approvable letter means a company needs to meet certain conditions before a drug can be sold. Discovery has been trying to win the FDA’s OK for the drug for the last four years. And this is the third approvable letter its received. The small drug company in Warrington says it will respond to the FDA’s concerns in six to eight weeks. Discovery hopes that the FDA can then complete its review in 60 days, but the agency could take six months.

Rohm & Haas has promoted Pierre Brondeau to President and Chief Operating Officer. Raj Gupta remains Chairman and CEO, a position he has held since 1999. But Rohm & Haas says it has formed a Chairman’s Committee to oversee the direction of the company. Three people sit on that committee: Gupta, Brondeau, and the company’s chief financial officer. Could this be the beginning of finding a successor to Gupta? Brondeau has been in charge of Rohm & Haas’s electronics materials division, which has been growing faster than its better knows acrylic paint business.

Never heard of K-Tron International? Don’t worry. It will never be seen as a hot company like a Starbuck’s or an Apple. Unless you look at its stock price. Over the last year, shares of K-Tron have risen 61%. What does it make? Material handling equipment. For its first quarter, the Pitman, New Jersey company reported that net income rose 16%. Sales were up 22%. Generally the company benefits during times of economic expansion, as companies boost their capital spending. And we may have a weak economy, but 36% of K-Tron’s sales come from overseas.

That’s it for today. At the Inquirer, I’m Mike Armstrong for Philadelphia Business Today.

CLOSING TITLE