NATIONAL

DRUGMAKER WARNED SALES REPS TO KEEP QUIET ABOUT SUICIDE RISK NEWARK, N.J. – Barely two months after the first government warning linking suicide risk and antidepressants, the maker of one of the drugs implicated told its sales representatives to keep mum about the problems, according to a published report. British pharmaceutical giant GlaxoSmithKline sent a memo last September to its sales people, telling them in bold letters that they should not speak to doctors about concerns over the safety of its blockbuster Paxil, The Star-Ledger of Newark reported in yesterday’s editions. The newspaper obtained a copy of the memo, in which GlaxoSmithKline informed its sales representatives about study results indicating there was a high rate of suicide and hostility among adolescents and children taking the medication. Paxil had been one of the company’s biggest-selling drugs until it got generic competition in America in September 2003. In June 2003, the Food and Drug Administration, following the lead of its British counterpart, issued warnings specifically about Paxil, saying no one under age 18 should be prescribed the drug for major depression because it might increase a child’s risk of suicide. Mary Anne Rhyne, a GlaxoSmithKline spokeswoman, told The Star-Ledger that the sales force was told not to discuss the safety concerns because Paxil was only approved for use in adults. “Our sales reps are prohibited from discussing, sharing or leaving behind off label information with health care providers,” Rhyne told the newspaper. Deviations from officially approved uses are called off-label use. But like many drugs officially approved only for use in a particular group of patients or for a specific disease, doctors sometimes prescribed Paxil for people under age 18.

– Associated Press

TIME WARNER SAYS AOL ‘STABILIZING’ Time Warner Inc. is considering a joint bid for Adelphia Corp. with Comcast Corp., Time Warner executive Jeff Bewkes confirmed. However, “it’s pretty early” and unclear how the auction for Adelphia, which put itself up for sale as part of bankruptcy proceedings, will unfold, he told investors at a Merrill Lynch media and entertainment conference in California. Mr. Bewkes, who is chairman of Time Warner’s entertainment and networks group, said there is “too much emphasis on deals.” He added that Time Warner can invest in its businesses, without making acquisitions, and still have “very visible results.” Mr. Bewkes said Time Warner’s America Online unit, which has been struggling as its dial-up subscribers defect to cheaper or faster Internet services, isn’t “totally out of the woods” yet, but is “certainly stabilizing and improving.” He noted that AOL continues to throw off about $1 billion a year in cash. As the number of dial-up subscribers steadily declines, the company is offsetting the loss by adding high-speed customers and offering premium services, he said. When asked whether Time Warner would own AOL in five years, Mr. Bewkes said, “I don’t know.” He hastened to add, however, that, theoretically, that could be said about any of the company’s businesses.

– Dow Jones Newswires

TECHNOLOGY

SOFTWARE FIRM ELIMINATING 800 JOBS WORLDWIDE Computer Associates International Inc. announced a restructuring plan yesterday that would reduce its work force by 800 people worldwide, saving the business software maker $70 million annually once the plan is fully implemented. The announcement comes in the wake of the Islandia, N.Y.-based company’s recent agreement to pay $225 million to shareholders in a settlement letting it defer criminal prosecution in relation to an accounting probe conducted by the Department of Justice and the Securities and Exchange Commission. In the unusual deal, an outside monitor will track the company’s financial reporting while it makes three restitution payments of $75 million to shareholders over 18 months. The company’s former CEO, Sanjay Kumar, pleaded not guilty last week to federal securities fraud and other charges. The company’s former head of worldwide sales, Stephen Richards, also entered a not guilty plea. A statement from the company yesterday said the plan would focus on driving marketing efficiencies and improving productivity. It said the job cuts would affect all departments but that the impact on its sales force would only be minimally affected. A majority of the reductions are expected to be completed by October. Computer Associates officials predict the cost of the restructuring plan will be about $40 million. About $25 million of that is expected to be incurred in the second quarter of fiscal 2005.

– Associated Press

IBM TO SETTLE PENSION SUIT, BOOK 3Q CHARGE ARMONK, N.Y. – International Business Machines Corp. agreed in principle to settle a class-action lawsuit related to its pension plan, and it will book a $320 million charge in the third quarter as a result.

A year ago, an Illinois federal judge ruled that IBM discriminated against some of its older workers when, in 1999,it converted to a cash balance pension plan. A couple of weeks ago, IBM settled a smaller component of the pension lawsuit issue.

The company had said that in an effort to settle all the claims, it expected to recalculate its pensions and pay out an additional $6.5 billion to current and future retirees.

In a press release yesterday, the Dow 30 component said under the agreement in principle, its liability for the claims being appealed is capped at $1.4 billion. A spokeswoman for IBM said the $320 million third-quarter charge is a pretax figure. On a per-share basis, the charge will amount to about 13 cents, she said. On average, 21 analysts surveyed by Thomson First Call expect IBM to earn $1.14 a share in the third quarter. A year ago, IBM’s third-quarter profit was $1.79 billion, or $1.02 a share. The charge encompasses the latest agreement as well as the ancillary claim that was settled earlier. IBM said it will appeal the cash balance pension claims associated with the case, Cooper et al v. the IBM Personal Pension Plan, to the Seventh District Court of Appeals. The technology company said it believes it will be successful on appeal. The tentative settlement says that plaintiffs will receive an incremental pension benefit worth about $300 million, which includes a yet-to-be-determined legal fees. In exchange, IBM and the plaintiffs will settle certain claims and will agree upon a remedy in the event that IBM loses its remaining cash balance claims on appeal.

– Dow Jones Newswires

MARKETS

WAL-MART WILL REPURCHASE UP TO $10 BILLION IN SHARES Wal-Mart Stores Inc., the world’s biggest retailer, will buy back as much as $10 billion in shares as it prepares for a decline in its representation in the Standard & Poor’s 500 Index. The new plan replaces a previous $7 billion repurchase program, Bentonville, Ark.-based Wal-Mart said in a statement. Wal-Mart has increased the amount it spends on buying shares for the past four years. Wal-Mart’s weighting in the S &P index will be reduced as the index compiler adopts a “free float” methodology. That will require funds that track the benchmark index to shift money out of stocks such as Wal-Mart that are largely owned by insiders or other companies.

– Bloomberg News

COPPER SURGES TO SEVEN-MONTH HIGH ON SUPPLY CONCERN Copper prices in New York rose to the highest in almost seven months on expectations demand will outpace production amid declining inventory. Copper futures for December delivery rose 2.35 cents, or 1.7%, to $1.393 a pound on the Comex division of the New York Mercantile Exchange. Prices reached $1.396,the highest for a most-active contract since March 2,when the metal hit an eight-year high of $1.403. Stockpiles monitored by the London Metal Exchange fell 450 metric tons to 93,825 tons today and have dropped 78% this year. Prices rose to a six-month high on September 27 after supplies plunged 3.7%, the most since April 1997.

– Bloomberg News