InClone's Chief Executive Resigns
ImClone Systems, maker of the Erbitux cancer drug, said its chief executive, Daniel S. Lynch, resigned after almost 22 months. Chief Scientific Officer Philip Frost was named interim chief executive.
Lynch also resigned from ImClone's board of directors. The company did not say why he quit but said it was by mutual agreement with the board.
The company was shaken in 2001 by insider trading charges that ensnared Martha Stewart and ImClone founder Samuel D. Waksal, who resigned as chief executive in 2002. Wasal was sentenced to seven years in prison and fined $3 million after pleading guilty to charges of insider trading. Stewart served a five-month prison sentence for lying to prosecutors.
Ortho McNeil Patch Warning
The makers of the popular birth-control patch Ortho Evra warned last night that it exposes users to significantly higher doses of hormones and may put women at greater risk for blood clots and other serious side effects.
The warning from Johnson & Johnson subsidiary Ortho McNeil Pharmaceuticals says women using the patch will be exposed to about 60 percent more estrogen than those using typical birth-control pills.
More than 4 million women have used the patch since it went on sale in 2002. Several lawsuits have been filed by families of women who died or suffered blood clots while using the patch, and lawyers said more are planned.
An Ortho McNeil spokeswoman said that the warning speaks for itself and that the company has been cooperating with the Food and Drug Administration, which distributed the new warning to health care providers.
Scrushy Says Judge Has a Conflict
HealthSouth founder Richard M. Scrushy, who was acquitted in June of federal charges in connection with a $2.7 billion accounting fraud at the rehabilitation chain, said the judge in a separate bribery case against him has a conflict of interest and should be removed.
Scrushy, left, pleaded not guilty to charges that he bribed former Alabama governor Don Siegelman, said U.S. Magistrate Judge Charles S. Coody's son-in-law is a HealthSouth executive. Prosecutors opposed the motion, and Coody declined to recuse himself from the case.
Honda Recalls '06 Civics
Honda recalled about 25,000 Civics because accelerator pedals were improperly installed on some 2006 models. The pedals could come loose, causing throttles to stick. Honda said there have been no crashes or injuries linked to the issue in Civics. Most of the 25,298 vehicles under recall in the United States have not yet been sold, a Honda spokesman said.
NYSE Seeks Ties With NASD
The New York Stock Exchange, looking to find ways to alleviate overlap in the regulation of securities firms, has started to explore a joint venture with NASD, NYSE Chief Executive John Thain said at the Securities Industry Association's annual meeting
Thain said "there's lots of ways" in which NASD, a big Wall Street regulator, and the NYSE, which has its own regulation apparatus, can work together to reduce duplication in examining brokerage firms' procedures. Asked later about the joint-venture option, Thain said the NYSE was at "the beginning stages" of looking at it. A spokesman for NASD couldn't be reached for comment.
Target, the nation's No. 2 discount chain, reported an 18 percent drop in third-quarter profit, to $435 million from $531 million in the comparable period last year. Revenue rose 12 percent, to $12.21 billion, driven by a 5.9 percent gain in sales at stores open at least one year, along with contributions from new stores and the company's credit card business. The company also announced a $2 billion increase in stock buyback plan.
News Corp. reported a $633 million loss in its fiscal first quarter, down from a $625 million profit a year earlier, as it took charges totaling $1.01 billion from an accounting change. Revenue rose 10.4 percent to $5.68 billion for the New York-based parent of Fox Broadcasting and the 20th Century Fox movie studio.
Compiled from staff and news service reports.