Insulin maker cuts off supply to Greece
BAGSVAERD, Denmark, May 29 (UPI) -- Danish drug maker Novo Nordisk says it has cut off the supply of insulin to Greece over a government order that all medicine prices be slashed 25 percent.
Novo Nordisk, the world's leading supplier of the diabetes drug insulin, is pulling the drug from the Greek market because the mandated price cut would force the company's Greek division to operate at a loss, a spokesman for the company told the BBC. The company said it also worried other countries could look to Greece's example when setting drug prices.
More than 50,000 Greek diabetics rely on Novo Nordisk's insulin, which is injected with a device that resembles a pen.
Novo Nordisk's move drew condemnation in Greece, the where the Greek Diabetes Association called it brutal blackmail" and "a violation of corporate social responsibility."
Greece said it imposed the price cut as part of an effort to cut medical costs as the country struggles to reduce its debt.
Pavlos Panayotacos, whose 10-year-old daughter, Nephele, has diabetes, criticized Novo Nordisk in a letter to its chairman.
"As an economist I realize the importance of making a profit, but healthcare is more than just the bottom line," he wrote.
"As you well may know, Greece is presently in dire economic and social straits, and you could not have acted in a more insensitive manner at a more inopportune time."
Five banks closed in three states
WASHINGTON, May 29 (UPI) -- Five banks in three states were shut down by federal and state regulators Friday, bringing the number of U.S. bank failures to 78 this year.
Regulators closed banks in Florida, California and Nevada, The Wall Street Journal reported. Those states have had a concentration of troubled institutions, with 13 of the closures so far this year in Florida, six in California and two in Nevada.
The Federal Deposit Insurance Corp. Friday said the Florida Office of Financial Regulation closed three units of Bank of Florida Corp., with the Federal Deposit Insurance Corp. named as receiver. The bank, which posted a loss of $108.7 million last year, said on May 18 that its first-quarter earnings were adjusted to include a widened loss to common shareholders of $48.2 million. The bank had failed to raise $71.8 million in a common stock offering.
Under an arrangement by the FDIC that's expected to cost the insurance fund some $203 million, EverBank of Jacksonville, Fla., will acquire Bank of Florida's $1.32 billion in deposits and take over its three banks in Fort Lauderdale, Naples and Tampa. Thirteen branches will reopen Tuesday as EverBank branches, the Wall Street Journal said.
In California, the Office of the Controller of the Currency shut down Granite Community Bank N.A. Tri Counties Bank in Chico, Calif., will acquire the bank's $94.2 million in deposits, a $17.3 million expense for the FDIC.
In Las Vegas, Sun West Bank was closed by the Nevada Financial Institutions Division. That bank's $353.9 million in deposits taken over by City National Bank in Los Angeles, at a $96.7 million cost for the FDIC.
Motorola smartphones get big boost
SCHAUMBURG, Ill., May 29 (UPI) -- Motorola Inc. says its coming smartphones will be heavily promoted by Verizon Wireless under a deal with the largest U.S. cellular carrier.
That's seen as a major boost for Motorola, which has struggled to stage a rebound in its handset business, The Wall Street Journal reported.
Motorola co-Chief Executive Sanjay Jha is looking to phones powered by Google Inc.'s Android software and sold by Verizon, including the Motorola Droid.
Verizon Wireless, which plans to add two Motorola smartphones in July, had spent $100 million marketing the original Droid, helping boost Motorola's first-quarter sales.
But Motorola's cellphone division is still losing an average of $22 on each phone shipped, the Journal said.
Jha predicted the division would reach its goal of becoming profitable by the end of the year.
He said Motorola would introduce new Droid products but would not elaborate.
Motorola, based in Schaumburg, Ill., has been hurt by inconsistency in sales, with popular models doing well but others bombing with the public.
Bankruptcy judge gives Tribune more time
WILMINGTON, Del., May 29 (UPI) -- A U.S. bankruptcy judge has given Tribune Co. more time to put together key pieces of its Chapter 11 restructuring plan.
Judge Kevin J. Carey Friday granted Tribune additional time after the media giant said it had resolved most issues but needed to deal with objections from Wells Fargo, the agent for holders of a $1.6 billion unsecured bridge loan, the Chicago Tribune reported.
Carey said documents would be due after Memorial Day and he would try to approve them later in the week.
Under federal bankruptcy law, the Tribune's reorganization plan must include a disclosure statement that describes the plan, its rationale and any opposition before creditors vote on it.
Wells Fargo, which opposes the plan, argued it's too vague and inconsistent in describing how bridge loan holders would be treated if they oppose the plan.
Carey agreed the language was confusing and ordered the Tribune to propose an alternative by Tuesday, after which Wells Fargo will get a day to respond.
If approval comes next week, Tribune, which owns the Los Angeles Times, the Chicago Tribune and other major media outlets, can send creditors vote solicitation packages ahead of a confirmation hearing scheduled for August.
The company would have to overcome opposition from creditors to emerge from bankruptcy by fall.
