Business News in Brief

By: Associated Press | Wednesday, March 1, 2006 7:36 PM PST ∞

Airlines fail to reach new contract terms


Two of the nation's largest airlines, Delta and Northwest, failed to reach new contract terms with their pilots Wednesday after marathon negotiations.

Without a deal, Northwest's pilots waited for a judge to rule on whether that carrier could throw out their union contract and impose its own terms. In Delta's case, arbitrators will decide that issue after a hearing set to begin March 13.

Northwest Airlines Corp. did reach a tentative agreement with flight attendants Wednesday, the day a New York bankruptcy court had set as a deadline.

The same judge, Allan Gropper, could rule at any time on Northwest's request to reject its pilot contract.

Studies: Tysabri effective, relatively safe


NEW YORK ---- A promising multiple sclerosis drug that was suspended from the market because three people developed a rare brain disease now appears relatively safe and quite effective, three studies found.

The research in today's New England Journal of Medicine comes days before government hearings on whether to allow sales of the drug, Tysabri, to resume.

Tysabri (pronounced ty-SAH-bree) was withdrawn a year ago by Biogen Idec Inc. and Elan Corp. PLC, only months after it had been approved. The Food and Drug Administration last month agreed to allow testing to resume after the company said no more cases of the brain disease had emerged.

Rituxan's OK lifts drug-maker's prospects


BOSTON ---- The approval of the nation's top-selling cancer drug as a new treatment for rheumatoid arthritis could lead to further uses for Rituxan, which is being studied for other autoimmune disorders such as lupus.

An industry analyst said Wednesday that Rituxan's use for diseases other than cancer could make it a key long-term growth product for the two biotechnology companies behind the drug, Genentech Inc. and Biogen Idec Inc.

Rituxan's prospects are particularly important for Cambridge, Mass.-based Biogen Idec, which is seeking to recover from its withdrawal last year of a multiple sclerosis drug because of safety concerns.

OPEC president: Oil prices not too high


WASHINGTON ---- Crude-oil futures rose Wednesday in spite of U.S. government data that showed growing supplies, and the president of OPEC said he sees no problem with prices above $60 a barrel so long as the global economy continues to grow.

"A fair price is what the market can sustain," Edmund Daukoru, the Nigerian oil minister and president of the Organization of Petroleum Exporting Countries, told The Associated Press.

However, when prices approach $70 a barrel, "everybody gets nervous," said Daukoru, who is in Washington this week to meet with Bush administration officials.

On Wednesday, light sweet crude for April delivery on the New York Mercantile Exchange rose 56 cents, to settle at $61.97 a barrel. April Brent crude on London's ICE Futures exchange gained 68 cents, to $62.44 a barrel.

Consumer spending surges in January


WASHINGTON ---- The warmest January in more than 100 years lured consumers to the shopping malls to spend money at the fastest clip in six months, giving a strong boost to the economy as the new year began.

The nation's factories were also enjoying good times, with a closely watched gauge of manufacturing activity posting a strong increase in February.

But despite the warm weather, construction spending grew far below expectations in January as home building, the economy's standout performer for many years, managed only a tiny increase.

Gateway agrees to pay $47 million to HP


SAN JOSE ---- Gateway Inc. agreed Wednesday to pay $47 million to Hewlett-Packard Co. to settle a series of patent lawsuits, and the rival computer-makers entered into a seven-year cross-licensing deal.

The agreement settles a series of lawsuits and countersuits that began in March 2004, when HP claimed in U.S. District Court in San Diego that five of its patents were being infringed by Gateway.

It was the same month that Gateway had acquired its smaller rival, eMachines Inc., which already had a cross-licensing agreement with HP. Shortly afterward, HP exercised a right within the deal and terminated the license, said Joe Beyers, HP's vice president of intellectual property and licensing.

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