Business Briefs

Published: August 28, 2008

WASHINGTON — What does a company do when there's anecdotal evidence that two of its drugs are equally effective in treating a leading cause of blindness in the elderly, one costing patients $60 per treatment and the other $2,000?

In the case of Genentech Inc., nothing.

The company declined to seek federal approval for the cheaper drug, Avastin, to treat the wet form of age-related macular degeneration. Nor would it help finance — or cooperate with — a National Eye Institute study comparing the effectiveness and safety of Avastin, a cancer drug, and the more expensive eye drug, Lucentis.

The financial stakes stemming from the study are huge. Medicare officials estimate there could be 50,000 or more additional cases of macular degeneration a year. Treating just one year's worth of new patients with Lucentis would cost $1.2 billion a year, compared with $60 million if they're treated with Avastin, Medicare officials said.

Genentech is making no promises that it will act upon the trial's final results, which are expected in two to three years.

ATLANTA — The FAA said that most flights around the country were back to normal Wednesday, after a software malfunction delayed hundreds of flights on Tuesday.

The flight delays drew new criticism for the Federal Aviation Administration, which has been scrutinized over air traffic controller staffing levels and inspection standards for its ground-based equipment.

The Northeast was hardest hit by the delays prompted by a glitch at a Hampton, Ga., facility that processes flight plans for the eastern half of the U.S.

The FAA said the source of the computer software malfunction was a "packet switch” that "failed due to a database mismatch.”

NEW YORK — Target Corp. has agreed to pay $6 million in damages to plaintiffs in California unable to use its online site as part of a class action settlement with the National Federation of the Blind, a leading advocacy group for blind people.

As part of the settlement, announced Wednesday, Target will place $6 million in an interest-bearing account from which members of the California settlement class can make claims. Furthermore, the settlement requires Target to implement internal guidelines to make its site more accessible to the blind by Feb. 28, 2009, with assistance from the NFB.

NEW YORK — Chrysler LLC is weighing strategic options for its Dodge Viper business, which could include a sale of the brand.

The automaker says it has been approached by third parties who have shown interest in the sports car line. Chrysler says it will focus on strengthening its core Dodge portfolio, and is rolling out four new Dodge offerings in 2009 — the Journey, Challenger, Durango Hybrid and Ram.

The announcement comes as Chrysler struggles with declining sales brought on by a weak economy and lower demand for its trucks and sport utility vehicles. The Auburn Hills-based automaker's sales have fallen 23 percent through July this year.

NEW YORK — ConocoPhillips is selling the remainder of its gas stations in the United States, though Conoco, Phillips 66, and 76 will continue to operate under those familiar signs.

The 600 or so stations are being sold to a subsidiary of PetroSun Fuel.

Financial terms were not disclosed.

Houston-based ConocoPhillips began several years ago to spin off its retail stores, focusing more on exploration and refining.

The newly formed company, Pacific Convenience & Fuel, LLC, said it is pushing into urban areas along the West Coast.

The Associated Press

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