Interview: Barr Pharmaceuticals
>> we had news after the close of regular trading from barr pharmaceuticals. peter cook is standing by with more on that. peter?
>> thank you very much. the food and drug administration announcing late this afternoon that it is delay ago decision on barr pharmaceuticals’ application to sell the plan b contraception over the counter. they want more public comment he on issues related to the possibility of approving a drug for over the counter use for women 17 and over and require ago prescription for those under 17. we he have barr pharmaceuticals’ chief executive bruce downing joining us for reaction to this news. thank you for joining us.
>> you’re welcome.
>> you filed this application in 2003. your reaction to this statement from the f.d.a.?
>> my reaction is disappointment. i thought we made a very strong case for the product, one that would be otc for older women and remain rx for 15 and younger. the f.d.a. determined in its letter to us that evidence supported the status for women 17 and older. we wish they had gone ahead and approved it for that age group. i think it would be a great thing for barr and for women that need the product.
>> the f.d.a. commissioner at the news conference suggested this is a unique case and imposes issues that the agency has not yet confronted before, perhaps with other drugs. do you disagree with that?
>> i really do. it’s similar to the nicotine gum and other smoking cessation products that are available with an age limit. the only nuance is to preserve access to women 16 and under that needed the product. it would be available to them rx only. there is clear precedent that our judgment supported an approval of the dual label. we’ll make the argument in the proceedings that the f.d.a. is now initiating.
>> now what is your understanding of this public comment period? what is it the f.d.a. is asking for in the public comment period?
>> well, i think―i didn’t hear the commissioner’s press conference at aufplt the only information i have is in the letter that we received about their decision. so i really don’t note details. but it’s sort of an understanding that they’ll publish a request for comments in the federal register which is a journal where they give notice to people about government action an then invite the public to comment on the specific questions which they’ll outline in the notice. and we’ll respond to that and again press our arguments for approval of the product.
>> as you know there have been groups on both sides of the abortion debate interested in this decision, waiting for this decision. more than 17,000 comments filed by june at the f.d.a. on this decision. do you think politics played a role in this?
>> let me just say anyone that opposes abortion―almost all americans do―would be squarely behyped this product. it provides the opportunity to reduce the number of abortions by eliminating the number of unwanted pregnancies. i want to make that perfectly clear up front. whether politics played a role or not, i’d leave that to others to decide. all i can say is i thought we made our scientific case. the f.d.a. seems to agree we made our scientific case. and we have yet to get approval.
>> all right. mr. downing, we have to leave it there. thank you for your time. chief executive of barr farm constitute cals. back to you in new york.
>> thank you very much. well, the u.s. open starts monday. a preview from the c.e.o. of the women’s tennis association who joins me next for this week’s edition of “money & sports.”
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Listen Market briefing --- Lori (slow)
Specifics of the trading day --- Suzanne (slow)
Week ahead --- Brett (slow)
recapping the day on wall street stocks fell after the university of michigan’s consumer confidence declined more than expected. even though oil prices fell, the stock market failed to advance. let’s check your closing numbers. dow jones industrial average down 53 points to 2,397. s&p 500 down seven points. that’s over .5% loss. nasdaq composite also closing lower for the friday afternoon session, down 13 points. a warning from federal reserve chairman alan greenspan contributed to a losing day and losing week for the major u.s. market averages. our suzanne has more on the specifics of the trading day.
>> thank you very much. stocks finished the day and week lower. the s&p 500 has declined nearly 3% from the four-year high reached on august 2. as for today’s decline, several factors at work. among them, that warning from federal reserve chairman alan greenspan about the rising price of assets including stocks. investors also dealt with a weaker than expected report on consumer confidence from the university of michigan. as you mentioned, that index showed its first drop since may and largest decline since february of 2004. although oil retreated to the $66 level, one investor is concerned that higher energy prices have already begun to curb consumer spending.
>> up over 50% in the last 12 months. on a per barrel basis, gasoline is approaching $3. it’s been a slow, steady climb. we think consumers at least looking backwards have adjusted to the slow rise in oil. there will be plenty of time where it will have a huge impact and will weigh heavy on discretionary spending. we think we’re reaching that point.
>> greenspan’s comments hurt homebuilding stocks as well. the s&p index which measures the group sells more than 1% bringing a slide in august to 14%. toll brothers, d.r.horton and m/i homes were the decliners. higher interest rates could crimp demand for mortgages and loans. fund phurg greg church says the weakness in bank stocks today should be used as a buying opportunity.
>> it’s up over 50% in the last 12 months. gasoline is approaching $3. but it’s been a slow, steady climb. we think consumers at least looking backwards have adjusted to the slow rise in oil. there will be a point in time where it will have a huge impact and will weigh heavy on discretionary spending. we think we’re reaching that point.
>> we apologize. that was not greg church. even with today’s declines there were some bright spots, particularly in technology. the dow jones industrial average hewlett-packard finished the session higher. h.p. announced thursday they’ll buy back an additional $4 billion in stock. novell was the best performer in the s&p. symantec the third best performer. that’s a recap of today’s trading activity. back to you.
>> thank you. a report out this friday is expected to show the u.s. economy shows steady job growth in august. bloomberg’s brett gering has a look at week ahead.
>> u.s. employers expected to haved a an additional 190,000 jobs to their payrolls. that’s in line with the average monthly increase for 2005. the unemployment rate is expected to have held steady at 5%. but the nation’s factories probably saw no new jobsed aed to their payrolls. according to the bloomberg survey of economists. speaking of factories, orders at the nation’s manufacturing facilities declined 2.2% in july according to economist forecasts. that report out on tuesday. also on tuesday, general motors holds its mid-year meeting for analysts and investors. the world’s largest automaker is trying to rebuild u.s. inventories of some cars and trucks after employee pricing offers helped clear dealer lots in june and july. all automakers release august sales figures on thursday. that same day the federal reserve releases minutes from its august 9 meeting when it raised the benchmark interest rate to 3.5%. on wednesday revised data for growth in the second quarter is released that. expected to show the u.s. economy grew 3.4%, unchanged from the first estimate. investors also get a look at a measure of manufacturing activity in the chicago area during the months of august. that report followed by the national index on thursday. the international council of shopping centers releases its monthly report on sales at retail chains. august data includes back to school shopping activity but rising energy prices may have made shoppers less inclined to spend. thursday also brings figures showing income and spending growth among u.s. households in july. the personal consumption expenditure index a favored measure of inflation among federal reserve officials is also released. that’s your look at week ahead, lori. back to you.
>> a busy week indeed. thank you very much. the united auto workers still conducting its financial review of general motors. that is the word from u.a.w. president. they’re trying to determine if g.m. needs concession to reduce health care expenses. last month the union hired bankers including lazard to study the automaker’s finances. he is unconvinced they’re in serious enough financial trouble to justify union cuts. the two sides need to renegotiate a contract that expires in 2007. a footnote here. the union may be waiting to see if rising sales boost profit and retkaougs the need for concessions. rio digital music players will stop being made because of competition from the ipod. rios were the first on the market when released in 1998. d & m will focus on high end theater and professional products. since the rio was tkraosd, the market for digital music has ballooned to a $7 billion business. apple ipod has grabbed 75% of the u.s. market share. stocks fell again today. the dow fell for a fourth week in five. looks like the bears are alive and well. how are short sellers playing the market ? we ask david tice of prudent bear fund which stocks he sees as vulnerable and what opportunities they present. that’s next.
