Pharma: Pfizer delays price rises after Trump tweet
Pfizer postponed several drug-price hikes this week, following a grilling from President Trump on Twitter, said Giles Snyder in NPR.org. Trump pressured the company “in a scathing tweet,” saying Pfizer “should be ashamed for raising drug prices for no reason”; he also had an “extensive” phone conversation with CEO Ian Reed. Pfizer had hiked prices on dozens of drugs on July 1, but this week announced it would return prices to previous levels “as soon as technically possible.” The company says the decision “is aimed at giving the president the opportunity to work on his proposals to lower prices” on prescription drugs.
Retail: Barnes & Noble axes CEO
Barnes & Noble Booksellers has fired its CEO “for unspecified violations of company policy,” said Chris Isidore in CNN.com. Demos Parneros exited the company immediately following his termination last week. The company declined to provide any reason for the abrupt departure, but said Parneros did not leave because of any disagreement relating to “financial reporting, policies or practices, or any potential fraud relating thereto.” The 56-year-old joined the retailer late in 2016 and was named CEO in 2017. He will not be paid any severance.
Fast food: States target noncompete agreements
“Attorneys general in 10 states and the District of Columbia are launching an investigation of contracts at fast-food chains that prevent their workers from switching franchises,” said Jeff Stein in The Washington Post. The states are “targeting a practice some economists say drags down wages for millions of Americans.” The group plans to contact eight fast-food companies, including Burger King, Dunkin’ Donuts, Panera Bread, and Wendy’s, asking for an elaboration on their “no poaching” agreements barring or limiting managers “from hiring workers at another store in the same chain.”
Aviation: Boeing and Embraer sign joint venture
“Boeing and Embraer are joining forces,” said Benjamin Zhang in BusinessInsider.com. The American aviation giant last week agreed to a joint venture with the Brazilian plane manufacturer. The $3.8 billion deal will see Boeing claim an 80 percent stake in Embraer’s commercial jetliner business. Embraer will hold on to the remaining 20 percent, which it can force Boeing to buy out within the next decade. The deal’s announcement has sparked a political backlash in Brazil, where Embraer began as a state company in 1969 and despite a 1994 privatization is still considered a national asset.