Reductions in research can haunt Pfizer, head of the ex - R & D, says that

By Lewis Krauskopf

NEW YORK | Tue, July 5, 2011 2 pm EDT

NEW YORK (Reuters) - Pfizer Inc. (PFE).(N) may have won over the shareholders with the recent decision of barrier back research and development spending, but could be forced to them in the long term, according to his research former Chief.

Pfizer, the world largest drugmaker, said in February that it would cut its research provided by as much as one-quarter of spending in 2012. The drugmaker is layoff more than 2,000 researchers and closure of a site in Sandwich, England, where he created the erectile dysfunction drug Viagra.

John LaMattina, who led Pfizer from 2004 to 2007 research organization, said in an interview with Reuters, that he was surprised by the planned cuts of Pfizer.

Trimmed to $ 7 billion to $ 6.5 billion, Pfizer research budget represents approximately 10 to 11 per cent of the estimated revenue of the company in 2012.

"This is a very low percentage for the largest pharmaceutical company in the world," said LaMattina, now senior partner of PureTech Ventures health venture capital firm.

"This industry historically spent anywhere from 15 to 20% of the sales of high-end R & d," said LaMattina. "It is their lifeblood." If you do not have new products you do business more. »

The LaMattina comments add fuel to a debate on the research of industry spending.

Many investors want firms pharmaceutical to be more effective with their research funds and ensure more return on their investments, after companies have struggled to develop new drugs. But some officials say such a posture risk sacrificing discoveries and the industry of the future.

Shares of Pfizer rose when he announced reductions in the research, which helped support its benefit of 2012, forecast, with a $ 5 billion Stock Buyback. LaMattina noted that shortly after Merck (MRK.)(N) actions fall when its CEO, said that the company would refuse to take an axe to its research budget.

"In the short term, I guess it's OK in terms of delivery for shareholders," LaMattina said. "But, four, five, ten years, I don't know who is going to be very good position to be in."

LaMattina contrast Pfizer with Eli Lilly (LLY).(N) and its CEO John Lechleiter, who promised last week continued to research and questioning of the cuts expenses by his rivals.

"It was nice to see John Lechleiter come out and say what that at least I and others have to be thinking," said LaMattina, who, as the head of Lilly, is a chemist in training. "And that is: what is happening here?". "R & D is our engine and we have to essentially better support we can."

GOOD MONEY AFTER BAD?

Despite of research budgets hefty, as Pfizer and Lilly have struggled to develop new products fairly successful that their best-selling products lose patent protection, some companies to cut spending.

The global pharmaceutical industry cut research spending for the first time in 2010, after decades of incessant increase, according to Thomson Reuters data released last week.

In an interview with Reuters in March, current leader of the search for Pfizer, Mikael Dolsten, said that the drugmaker is still maintained a "big R & D budget … and which will enable us to foster innovation in a number of areas."

"I am not convinced that more is necessarily better," Dolsten said. "If you take all the perspective of science, business and finance, where you want to provide a good return on investment to shareholders and future investors and important products to patients, and we have really tried to have a comprehensive approach."

LaMattina worked for Pfizer for 30 years, starting as a chemist in the laboratory. He retired in 2007, shortly after previous CEO of Pfizer, Jeffrey Kindler, took charge. Kindler resigned suddenly in December and was replaced by veteran Ian Read company, which has announced that research reduced in February.

In recent years, said LaMattina, development costs have increased due to the requirements for the studies of two regulatory agencies who want more data on the effectiveness and the safety and health payers seeking evidence that they must pay for these new products.

When he was at Pfizer, only approximately 15 per cent of the budget research went to the work of preclinical to discover new drugs.

"Much of the increase in R & D budgets in the past decade have made more development and issues discovered, not necessarily" said LaMattina.

The wave of mergers in the last decade has also disrupted the efforts of pharmaceutical research, said LaMattina. Even in mergers where cost reduction is not a determining factor, he says, offers may be problematic entities combined to determine which scientists will work on the research of various projects.

"I do not think people have recognized the impact that has on R & d and the productivity of R & D organizations", he said. "When you have almost all enterprises in the industry, doing so, that really shakes the situation a little."

(Statement by Lewis Krauskopf, mounting by Matthew Lewis)

Toyota announces safety in Mich research centre. (AP)

ANN ARBOR, Michigan - Toyota Motor Corp. announced it launches a security research center in Michigan will focus on finding ways to reduce distraction.

In a Sunday press release, Toyota said the Centre will be based in Ann Arbor, Michigan and collaborate with universities, hospitals, Federal agencies and others to reduce traffic fatalities and injuries. An initial are of interest will be distracted.

Builder No. 1 World recalled more than 11 million vehicles worldwide since the fall of 2009 as he scrambled to protect its reputation for security and reliability.

In December, Toyota has agreed to pay fines $ 32.4 million to settle the inquiry on the treatment of two withdrawals. The last colony was at the top of 16.4 million fine Toyota paid sooner.

Conference on climate change research on energy for poor nations (voice of America)

Greg Flakus | Cancun, the 10 December 2010 Mexico talks about Brian Dames, Chief Executive of the South Africa public ESKOM, of a forum on sustainable development.

As the United Nations Conference of climate change in Cancun, the Mexico wraps until his last day, discussions continue on crucial issues such as the need to reduce gas emissions greenhouse simultaneously and to provide the world with more energy.  While nobody expects to significant progress towards a global treaty binding, Mexican officials say they see the progress made in certain areas and that the Conference provides an opportunity to many Governments and agencies to share ideas and forge agreements that are unique.

While delegates from more than 190 countries meet under Security tight in a nearby hotel, representatives of nongovernmental organizations, universities, regional groups and other entities are together in a General to proceed with the Conference Room their own programs.  A focal point discussed here in the past two weeks includes how industrialized countries can help developing countries not only to adapt to climate change, but it access to more energy to grow their economies.

Scientists rich nations say an increase in gas emissions greenhouse from the combustion of fossil fuels like coal and petroleum products were originally the Earth warm.  But how can the poor nations reduce emissions when the only way out of poverty is to increase the consumption of energy?

Speaking at a forum on sustainable development, Brian Dames, Chief Executive of South African public ESKOM, pointed out that his continent remains far behind in access to electricity.

"If you look at the continent during the night of a satellite is really the black continent and is the challenge that we have," said ladies.

Ladies note that access to energy in sub-Saharan Africa is approximately 25% compared to 90 per cent in East Asia yet African pay close to double the price of energy. He and other development experts say electric energy is essential in the fight against poverty in poor countries.

Organization of the United Nations has addressed this need by its global campaign for the universal energy access focuses on the use of clean energy. Already available technologies can help poor regions exploit local electrical grids and to use waste products in their neighbourhood for fuel.

Helge Marie Norheim, a vice President of Statoil Norway State oil company, says that his company works on projects in Africa to use biofuels to energy from other sources.

"Statoil energy companies are technology, competence and financial capacity to continue to provide for energy security, so that, at the same time meet the twin challenges of climate change," said Norheim.

Kandeh Yumkella, Director-General of a citizen of Sierra Leone, and United Nations Industrial Development Organization said power expansion in Africa resources add minimum amounts of gas emissions greenhouse in the atmosphere. But, he added, his favours organization using clean energy.

"Knowledge for solar, wind, hydro, biofuels mass - they are known."  If we can even use renewable technologies that are existing today and their contributions to emission will be negligible, Yumkella said.

A large part of the presentation of this Conference was on the transfer of wealth from the richest to the poorest to assist in the reduce emissions and adapt to changes that global warming will produce. For better energy systems, Yumkella said developing nations need the money, but technical assistance.

"There is much need for assistance from the United States, Europe and other support," added Yumkella.  "Also, there are many opportunities for South-South cooperation." China and the India, they developed indigenous techniques to use biomass using animal waste to be able to provide energy basis for the poor. »

The climate conference is winding, but many projects discussed here are only for starters. Participants in many forums that have taken place here say committed themselves to do their part to save the planet and their own community, regardless of what is or is not on a larger scale.

Money in motion
New: Professor Philip Alexiou with pizza President Director General Patrick Doyle the Domino maintenance

Due to the explosion that killed two brothers (Star Tribune) West Virginia chemicals plant research investigators

NEW CUMBERLAND, W.Va. -researchers to find the answers to which resulted in an explosion at a chemical factory that killed two brothers in the third fatal explosion on the website in 15 years Friday West Virginia.

The explosion happened around from 1.30 p.m. at the plant of AL Solutions Inc. of Cumberland, a small town in Northern Peninsula approximately 33 miles West Virginia West of Pittsburgh. Two other persons were injured.

The first officer on the scene, lieutenant Jeremy Krzys, said that he had been sitting at a traffic light when he heard the explosion and immediately rushed to the factory.

"I just heard a loud bang and suddenly, you have seen black smoke pouring", said Krzys.

Krzys saw two wounded men perform the building when he arrived. He said a man has been severely compromised, while the other was still on fire. His colleagues used blankets to extinguish the man who was on fire.

Chief of police Lester Skinner said he grew with the brothers who were killed and never had the plant: Jeffrey Scott Fish, James e. Fish, 38 and 39. They lived in separate houses approximately 200 yards apart from each other and about five blocks from the plant.

Family and friends have been gathering at home, young fish a few hours after the explosion. A woman outside the House comment has decreased for the family.

Rebecca, a nearby bar lounge Pat Jones said he knew the elder brother.

"Scott was a boy very, very generous," he said. "It what it is would be for anyone, including giving you the shirt on his own back."

A third employee, aged 27, Steven Swain, has been severely compromised and was flown by helicopter to get surgery and other treatments to UPMC Mercy in Pittsburgh hospital. His condition was not released immediately.

The second injured victim was Dave Williams, an entrepreneur who was at the plant of the explosion happened outside. He was treated for burns to her hands and face. Investigators have said that they did not know Williams' age, what kind of work that he or his employer name.

The company reported earlier Thursday night that three workers were killed, based on information obtained emergency response. Chief Financial Officer Ken Kline corrected information about two hours later, saying: company reported wrongly badly burned employee died on the way to the hospital in Pittsburgh.

"Our immediate concern is for our employees and their families", the company said in a release. "We are more differing comment until emergency responders and investigators to do their work, and we have more information than the investigation."

Officials with the federal Occupational Safety and Health Administration arrived on the scene, Thursday evening, at the time it was safe to enter the building.

Todd Murray Hancock County Sheriff's Deputy Chief said there would be a joint investigation by the Federal Agency, government representatives and application of the Act.

The plant is a large, complex corrugated cardboard, metal construction and a smaller building stucco-and-slag-block based on the parking lot, i.e. where worked victims. Skinner said that they worked with titanium powder is used as an additive alloy in aluminum.

The powder is packed brick like hockey pucks said Skinner. It is highly flammable and burns much warmer than wood or other fuels, this is why firefighters had complete extinction of hot spots before investigators could make men dead inside.

"You can still feel heat now building on and off the walls", Murray said approximately seven hours after the explosion.

Assistant State Fire Brad Hartley said there was a fire and explosion, but "know us which came first."

AL solutions was formerly called Jamegy Inc. In August 1995, a worker was killed and another injured when an explosion and fire was blown on the West Virginia plant when it is operated by Jamegy. In 2006, another worker died due to an explosion and fire in a production building it.

Coffee Mid-Ridge, which is located along the main road which leads to the city and overlooks the plant waitress Sandy Lemasters stated that she did not hear an explosion that was just a thousand more later. But it didn't take long for people to start arriving in talking about what is reached.

"They came in and said there are two deaths", she said. "It's a shame." The third time, he arrived there. »

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Online:

AL Solutions Inc.: http://www.alsolutionsinc.com/content/corporate.asp

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Associated Press writer Vicki Smith contributed to this report from Morgantown, W.Va.