AstraZeneca: Cholesterol drug gets a boost
Cholesterol-reducing statins, already among the best-selling drugs in the world, just got a significant new boost, said Catherine Arnst in BusinessWeek. In a study sponsored by drugmaker AstraZeneca, researchers monitored almost 18,000 people in 26 countries, all of whom had low levels of LDL cholesterol—so-called bad cholesterol—and no history of heart disease. Researchers found that AstraZeneca’s Crestor can measurably cut the risk of heart attack, stroke, and cardiovascular disease—even in people with healthful levels of cholesterol. The results, published this week and embraced by independent medical experts, could mean that millions more people will be put on a daily statin regimen.
The study will no doubt increase sales of Crestor, said Matthew Herper in Forbes.com. Still, don’t expect anything dramatic or quick. What’s the problem? “In a word, cost.” The absolute benefit for individual patients in the study was small, and Crestor costs $1,400 a year at a 20-milligram dose. “Bullish estimates have Crestor sales doubling over the next five years.” If this new study can increase the number of people taking cholesterol drugs (20 million Americans already do) and increase AstraZeneca’s market share, “that sounds about right.”
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Retailing: Circuit City files for bankruptcy
Electronics retailer Circuit City filed for bankruptcy this week, “but plans to stay open for business as the busy holiday season approaches,” said Vinnee Tong and Michael Felberbaum in the Associated Press. The company said it was forced to seek court protection because “it was facing pressure from vendors who threatened to withhold products during the holiday shopping period.” Those vendors, led by Hewlett-Packard, Samsung, and Sony, are Circuit City’s biggest creditors. The company has lined up $1.1 billion in new credit, which should ease vendor concerns that they’ll be paid.
Mortgages: Fannie Mae, the biggest loser
Fannie Mae this week released its first earnings report since its federal takeover, and it was “gruesome,” said Dawn Kopecki in Bloomberg.com. The mortgage giant’s third-quarter loss was
$29 billion, “the largest for any U.S. company this year.” Steep declines in the value of Fannie Mae’s mortgage portfolio and an increase in reserves to cover future losses contributed to the red ink. Fannie Mae shares, which traded near $50 a year ago, sank to 75 cents on the news.
Shipping: DHL delivers big job cuts
International package-delivery company DHL said this week it would lay off 9,500 U.S. employees, “as it discontinues air and ground operations within the United States,” said Aaron Smith in CNNmoney.com. Although the company is dropping its “domestic-only” service, it will continue to deliver packages between the U.S. and other countries. “DHL’s pullback should help competitors FedEx Corp. and UPS Inc.,” which will likely scramble for DHL’s 4 percent share of the U.S. package-delivery market.
Entertainment: MGM teams with YouTube
YouTube this week enlisted help in its battle against Hulu, with film studio MGM announcing that it would post some of its TV shows and movies to the popular video website, said Brad Stone and Brooks Barnes in The New York Times. Hulu, a video website owned by NBC and Fox, posts only professionally generated content, shunning the “user-created videos of pet pratfalls and oddball stunts” that make advertisers wary of YouTube. The MGM deal is YouTube’s most visible breakthrough in its campaign to win over TV and film studios.
