Tag Archives: REGS

China acquires ‘golden shares’ in two Alibaba units

BEIJING, China, Jan 13 (Reuters) – China has acquired minority stakes with special rights in two domestic units of tech giant Alibaba Group Holding Ltd (9988.HK), business registration records showed, as Beijing extends a campaign to strengthen control over online content.

Beijing has been taking ‘golden shares’ in private online media and content companies for more than five years, and in recent years expanding such arrangements to companies with vast troves of data.

The stakes taken over the last four months in the Alibaba units are the first ones to come to light for the e-commerce firm. Alibaba has been one of the most prominent targets of China’s two-year-long regulatory crackdown on tech giants.

These golden shares, typically equal to about 1% of a firm, are bought by government-backed funds or companies which gain board representation and/or veto rights for key business decisions.

Public business registration records showed that in September last year an investment vehicle of state-owned Zhejiang Media Group took a 1% stake in Alibaba’s Youku Film and Television unit, which is based in Shanghai.

Zhejiang Media Group has also appointed Jin Jun, the general manager of one of its subsidiaries, to the board of the Alibaba unit, the records showed.

Separate business registration records showed that in December WangTouSuiCheng (Beijing), an entity under the China Internet Investment Fund (CIIF) set up by the Cyberspace Administration of China (CAC), acquired a 1% stake in Alibaba unit Guangzhou Lujiao, whose main focus is “research and experimentation”.

The Financial Times, which first reported the WangTouSuiCheng investment on Friday, said the goal of the investment is for Beijing to tighten control over content at the e-commerce giant’s streaming video unit Youku and web browser UCWeb.

Alibaba didn’t respond to a request to comment.

The FT also reported, citing unidentified sources, that discussions was under way for the government to take golden shares in gaming giant Tencent Holdings (0700.HK) which would involve a stake in one of the group’s main subsidiaries. Tencent declined to comment.

Other firms that have such golden share arrangements include Full Truck Alliance Co (YMM.N), as well as mainland subsidiaries of TikTok owner ByteDance, Kuaishou Technology (1024.HK) and Weibo , Reuters previously reported.

Having such golden shares can be helpful to firms when they try to secure licences to disseminate online news and to show online visual and audio programmes, sources have told Reuters.

Reporting by Yingzhi Yang, Brenda Goh and Josh Horwitz; Additional reporting by Rishabh Jaiswal and Mrinmay Dey; Editing by Uttaresh.V, Rashmi Aich and Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

U.S. airports rumble back to life after FAA computer outage

WASHINGTON, Jan 11 (Reuters) – U.S. flights were slowly beginning to resume departures and a ground stop was lifted after the Federal Aviation Administration (FAA) scrambled to fix a system outage overnight that had forced a halt to all U.S. departing flights.

The cause of the problem, which delayed thousands of flights in the United States, was unclear, but U.S. officials said they had so far found no evidence of a cyberattack.

“Normal air traffic operations are resuming gradually across the U.S. following an overnight outage to the Notice to Air Missions system that provides safety info to flight crews. The ground stop has been lifted. We continue to look into the cause of the initial problem” the FAA said in a Tweet.

More than 4,300 flights had been delayed and 700 canceled as officials said it will take hours to recover from the halt to flights.

The FAA had earlier ordered airlines to pause all domestic departures after its pilot alerting system crashed and the agency had to perform a hard reset around 2 a.m., officials said.

The FAA said shortly before 8:30 a.m. departures were resuming at Newark and Atlanta airports.

The FAA is expected to implement a ground delay program in order to address the backlog of flights halted for hours. Flights already in the air had been allowed to continue to their destinations during the ground stop.

U.S. President Joe Biden ordered the Transportation Department to investigate the outage and said the cause of the failure was unknown at this time. Asked if a cyber attack was behind the outage, Biden told reporters at the White House, “We don’t know.”

Transportation Secretary Pete Buttigieg pledged “an after-action process to determine root causes and recommend next steps.”

The FAA said it was working to restore the Notice to Air Missions system that alerts pilots to hazards and changes to airport facilities and procedures that had stopped processing updated information.

A total of 4,314 U.S. flights were delayed as of 9:04 a.m. ET, flight tracking website FlightAware showed. Another 737 were canceled.

MODERNIZATION NEEDED

United said it has resumed operations. The Chicago-based carrier, however, warned that customers might continue to see some delays and cancellations.

Shares of U.S. carriers fell in Wednesday’s premarket trading. Southwest Airlines (LUV.N) was down 2.4%, while Delta Air Lines Inc (DAL.N), United Airlines (UAL.O) and American Airlines (AAL.O) were down about 1%.

“America’s transportation network desperately needs significant upgrades … We call on federal policymakers to modernize our vital air travel infrastructure.” said Geoff Freeman, President and CEO of the U.S. Travel Association, a group representing U.S. airlines, hotels, car rental companies, and theme parks.

FAA’s system outage comes weeks after an operational meltdown at Southwest at the end of last year left thousands of passengers stranded.

A severe winter storm right before Christmas coupled with the Texas-based carrier’s dated technology led to over 16,000 flight cancellations last month.

The DOT, FAA’s parent agency, heavily criticized Southwest’s failures and pressured the airline to compensate passengers for missed flights and other related costs. There is no legal requirement that the FAA must compensate passengers for flight delays caused by agency computer issues.

ESSENTIAL INFORMATION

A NOTAM is a notice containing information essential to personnel concerned with flight operations, but not known far enough in advance to be publicized by other means.

Information can go up to 200 pages for long-haul international flights and may include items such as runway closures, bird hazard warnings and construction obstacles.

United Airlines (UAL.O) said it had temporarily delayed all domestic flights and would issue an update when it learned more from the FAA.

Germany’s Lufthansa and Air France both said they were continuing to operate flights to and from the United States, while the French airline said it was monitoring the situation.

The operator of Paris international airports – Paris Charles de Gaulle airport and Orly airport – said it expects delays to flights.

Austin-Bergstrom International Airport said on Twitter that ground stops across the country were causing delays. A ground stop is an air traffic control measure that slows or halts aircraft at a given airport.

In an earlier advisory on its website, the FAA said its NOTAM system had “failed”, although NOTAMs issued before the outage were still viewable. Earlier this month, a problem with a different airline computer control system delayed dozens of flights in Florida.

A total of 21,464 flights are scheduled to depart airports in the United States on Wednesday with a carrying capacity of nearly 2.9 million passengers, data from Cirium shows.

American Airlines has the most departures from U.S. airports with 4,819 flights scheduled, followed by Delta and Southwest, Cirium data showed.

Reporting by Doina Chiacu and David Shepardson in Washington, Abhijith Ganapavaram in Bengaluru, Jamie Freed in Sydney and Rajesh Kumar Singh in Chicago; Additional reporting by Nathan Gomes and Steve Holland in Washington
Writing by Shailesh Kuber and Alexander Smith Editing by Edmund Blair and Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

U.S. asks Tesla about Musk tweet on driver monitoring function

WASHINGTON, Jan 9 (Reuters) – The National Highway Traffic Safety Administration (NHTSA) Monday said it was in contact with Tesla (TSLA.O) about a tweet Chief Executive Elon Musk wrote about a driver monitoring function.

A Dec. 31 tweet suggested drivers with more than 10,000 miles using Tesla’s “Full Self-Driving” (FSD) software system should be able to disable the “steering wheel nag,” an alert that instructs drivers to hold the wheel to confirm they are paying attention. Musk responded: “Agreed, update coming in Jan.”

NHTSA Monday said it “is in contact with Tesla to gather additional information.” The Associated Press reported NHTSA’s statement earlier. Tesla did not immediately comment.

The auto safety agency confirmed the questions about Musk’s tweet are in connection with its ongoing defect probe into 830,000 Tesla vehicles with driver assistance system Autopilot and involving crashes with parked emergency vehicles.

NHTSA is reviewing whether Tesla vehicles adequately ensure drivers are paying attention, and previously said evidence suggested drivers in most crashes under review had complied with Tesla’s alert strategy that seeks to compel driver attention, raising questions about its effectiveness.

Tesla sells the $15,000 FSD software as an add-on which enables its vehicles to change lanes and park autonomously. That complements its standard “Autopilot” feature, which enables cars to steer, accelerate and brake within their lanes without driver intervention. Both systems use the steering wheel monitoring function.

Last month, NHTSA said it had opened two new special investigations into crashes involving Tesla vehicles where advanced driver assistance systems are suspected to have been in use. Since 2016, NHTSA has opened more than three dozen Tesla special crash investigations where advanced driver assistance systems such as Autopilot were suspected of being used with 19 crash deaths reported.

In December 2021, NHTSA opened a probe into Tesla’s decision to allow games to be played by passengers on the front center touchscreen covering 580,000 vehicles over the vehicle’s “Passenger Play” over driver distraction concerns.

Soon after the investigation was opened, Tesla told NHTSA it would stop allowing video games to be played on vehicle screens while its cars are moving, the agency said.

Reporting by David Shepardson
Editing by Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Eisai, Biogen receives U.S. FDA approval for Alzheimer’s drug, applies for full approval

Jan 7 (Reuters) – The U.S. Food and Drug Administration on Friday approved the Alzheimer’s drug lecanemab developed by Eisai Co Ltd (4523.T) and Biogen Inc (BIIB.O) for patients in the earliest stages of the mind-wasting disease.

Eisai and Biogen said on Saturday the Japanese drugmaker had applied for full FDA approval of the drug.

The drug, to be sold under the brand Leqembi, belongs to a class of treatments that aims to slow the advance of the neurodegenerative disease by removing sticky clumps of the toxic protein beta amyloid from the brain.

Nearly all previous experimental drugs using the same approach had failed.

“Today’s news is incredibly important,” said Dr. Howard Fillit, chief science officer of the Alzheimer’s Drug Discovery Foundation. “Our years of research into what is arguably the most complex disease humans face is paying off and it gives us hope that we can make Alzheimer’s not just treatable, but preventable.”

Eisai said the drug would launch at an annual price of $26,500. Biogen shares, which had been halted, were up 3% at $279.40.

The Japanese company said it also plans to apply for marketing authorization for Leqembi in Japan and the European Union by the end of its business year on March 31.

Eisai estimated the number of U.S. patients eligible for the drug would reach around 100,000 within three years, increasing gradually from there over the medium to long term.

Dr. Erik Musiek, A Washington University neurologist at Barnes-Jewish Hospital, said he was “pleasantly surprised” by the drug’s price.

“Considering the marketplace and the fact that we have no other good disease-modifying treatments, I think it’s in the ballpark of what I would expect,” he said.

Initial patient access will be limited by a number of factors including reimbursement restrictions by Medicare, the U.S. government insurance program for Americans aged 65 and older who represent some 90% of individuals likely to be eligible for Leqembi.

“Without Centers for Medicare & Medicaid Services (CMS) and insurance coverage … access for those who could benefit from the newly-approved treatment will only be available to those who can pay out-of-pocket,” the Alzheimer’s Association said in a statement.

Leqembi was approved under the FDA’s accelerated review process, an expedited pathway that speeds access to a drug based on its impact on underlying disease-related biomarkers believed to predict a clinical benefit.

“This treatment option is the latest therapy to target and affect the underlying disease process of Alzheimer’s instead of only treating the symptoms of the disease,” FDA neuroscience official Billy Dunn said in a statement.

CMS said on Friday that current coverage restrictions for drugs approved under the accelerated pathway could be reconsidered based on its ongoing review of available information.

If the drug receives traditional FDA approval, CMS said it would provide broader coverage. Eisai officials have said the company plans to submit data from a recent successful clinical trial in 1,800 patients as the basis for a full standard review of Leqembi.

The CMS decision was largely in response to a previous Alzheimer’s treatment from Eisai and Biogen. Aducanumab, sold under the brand name Aduhelm, won accelerated approval in 2021 with little evidence that the drug slowed cognitive decline and despite objections by the FDA’s outside experts.

Biogen initially priced Aduhelm at $56,000 per year before cutting the price in half. With limited acceptance and insurance coverage, sales were only $4.5 million in the first nine months of 2022.

Lecanemab is intended for patients with mild cognitive impairment or early Alzheimer’s dementia, a population that doctors believe represents a small segment of the estimated 6 million Americans currently living with the memory-robbing illness.

To receive the treatment, patients will need to undergo testing to show they have amyloid deposits in their brain – either through brain imaging or a spinal tap. They will also need to undergo periodic MRI scans to monitor for brain swelling, a potentially serious side effect associated with this type of drug.

The medicine’s label says doctors should exercise caution if lecanemab patients are given blood clot preventers. This could be a safety risk, according to an autopsy analysis published this week of a lecanemab patient who had a stroke and later died.

In the large trial of lecanemab, which is given by infusion, the drug slowed the rate of cognitive decline in patients with early Alzheimer’s by 27% compared to a placebo. Nearly 13% of patients treated with Leqembi in the trial had brain swelling.

Dr. Babak Tousi, a neuro-geriatrician at the Cleveland Clinic, said the approval will make a “big difference” in the field because it is based on biomarkers rather than just symptoms.

“It’s going to change how we make a diagnosis for Alzheimer’s disease, with more accuracy,” he said.

Tousi acknowledged that the benefit of the drug will likely be modest. “Still, it is a benefit that we were not able to achieve” before this approval.

Reporting by Deena Beasley in Los Angeles and Bhanvi Satija in Bengaluru, additional reporting Jaiveer Shekhawat; Editing by Bill Berkrot, David Gregorio and William Mallard

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Exclusive: FTX’s former top lawyer aided U.S. authorities in Bankman-Fried case

Jan 5 (Reuters) – FTX’s former top lawyer Daniel Friedberg has cooperated with U.S. prosecutors as they investigate the crypto firm’s collapse, a source familiar with the matter said, adding pressure on founder Sam Bankman-Fried who was arrested on criminal fraud charges last month.

Friedberg gave details about FTX in a Nov. 22 meeting with two dozen investigators, the person said. The meeting, held at the U.S. Attorney for the Southern District of New York’s office included officials from the Justice Department, Federal Bureau of Investigation, and the U.S. Securities and Exchange Commission, the source said. Emails between attendees scheduling the meeting with those agencies were seen by Reuters.

At the meeting, he told prosecutors what he knew of Bankman-Fried’s use of customer funds to finance his business empire, the source said. Friedberg recounted conversations he had with other top executives on the subject and provided details of how Bankman-Fried’s hedge fund Alameda Research functioned, the source said.

Friedberg’s cooperation has not been previously reported. He has not been charged and has not been told he is under criminal investigation, the source said. Instead, he expects to be called as a government witness in Bankman-Fried’s October trial, the person said.

Friedberg’s lawyer, Telemachus Kasulis, the FBI and FTX did not respond to requests for comment on his cooperation. The SEC, the Department of Justice and Bankman-Fried’s spokesman declined to comment.

Bankman-Fried is accused of diverting billions of dollars in FTX client funds to Alameda to bankroll venture investments, luxury real estate purchases, and political donations. On Tuesday, he pleaded not guilty in Manhattan federal court.

Manhattan U.S. Attorney Damian Williams, who is leading the criminal case against now bankrupt FTX, said last month: “If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it.”

Two of Bankman-Fried’s closest associates, Caroline Ellison, Alameda’s former chief executive, and Gary Wang, FTX’s former chief technology officer, pleaded guilty to fraud and agreed to cooperate. A lawyer for Ellison didn’t respond to a request for comment. Wang’s lawyer declined to comment.

MEETING WITH PROSECUTORS

FTX filed for bankruptcy protection on Nov. 11. A few days later, on Nov. 14, Friedberg received a call from two FBI agents based in New York. He told them he was willing to share information but needed to ask FTX to waive his attorney-client privilege, according to a person familiar with the matter and emails viewed by Reuters.

Friedberg wrote to FTX the next day asking the company to waive his privilege so he could cooperate with prosecutors, according to the email seen by Reuters. FTX did not do so, but agreed with Friedberg on the points he could disclose to investigators, the person said.

Friedberg then wrote back to the two FBI agents, telling them in an email reviewed by Reuters: “I want to cooperate in all respects.”

The U.S. Attorney’s Office set up a meeting where Friedberg signed so-called proffer letters prepared for him by the SEC and other agencies, according to the source and an email exchanged by participants. Proffer letters typically describe a potential agreement between authorities and individuals who are witnesses or subjects of an investigation.

“THROUGH THICK AND THIN”

Prior to his work advising FTX, Friedberg advised a mix of banking, fintech, and online gaming companies.

One of his previous employers, a Canadian online gaming firm named Excapsa Software, where he was general counsel, also drew controversy due to a cheating scandal involving a poker site it operated called Ultimate Bet. A Canadian gaming commission in 2008 fined Ultimate Bet $1.5 million for failing to enforce measures to prevent fraudulent activities. Excapsa has since dissolved.

According to an audio recording available on the website PokerNews, Friedberg and some other Ultimate Bet associates privately discussed that year how to handle the scandal and minimize the amount of refunds owed to players. Friedberg previously told NBC News that the audio was illegally recorded but NBC’s article did not say that Friedberg challenged its authenticity.

Friedberg first represented Bankman-Fried in 2017 as outside counsel while at U.S. law firm Fenwick & West, where he chaired its payment systems group, the source familiar with the matter said. At the time, the source said Friedberg advised Bankman-Fried on running Alameda, which he founded that year.

In 2020, when Bankman-Fried launched a separate exchange for U.S. customers called FTX.US, Friedberg moved in-house as FTX’s chief regulatory officer.

In a now-deleted blog post published that year on FTX’s website, Bankman-Fried wrote that Friedberg was FTX’s legal advisor “from the very beginning,” noting he had been “with us through thick and thin.”

Friedberg resigned from his position on Nov. 8, a day after Bankman-Fried disclosed to top executives that FTX was almost out of money, according to the source and three other people briefed on the talks, along with text messages his legal team exchanged at the time.

Additional reporting by Hannah Lang; editing by Megan Davies and Anna Driver

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

South Korea fines Tesla $2.2 mln for exaggerating driving range of EVs

SEOUL, Jan 3 (Reuters) – South Korea’s antitrust regulator said it would impose a 2.85 billion won ($2.2 million) fine on Tesla Inc (TSLA.O) for failing to tell its customers about the shorter driving range of its electric vehicles (EVs) in low temperatures.

The Korea Fair Trade Commission (KFTC) said that Tesla had exaggerated the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers” on its official local website since August 2019 until recently.

The driving range of the U.S. EV manufacturer’s cars plunge in cold weather by up to 50.5% versus how they are advertised online, the KFTC said in a statement on Tuesday.

Tesla could not be immediately reached for comment.

On its website, Tesla provides winter driving tips, such as pre-conditioning vehicles with external power sources, and using its updated Energy app to monitor energy consumption, but does not mention the loss of driving range in sub-zero temperatures.

In 2021, Citizens United for Consumer Sovereignty, a South Korean consumer group, said the driving range of most EVs drop by up to 40% in cold temperatures when batteries need to be heated, with Tesla suffering the most, citing data from the country’s environment ministry.

Last year, the KFTC fined German carmaker Mercedes-Benz and its Korean unit 20.2 billion won for false advertising tied to gas emissions of its diesel passenger vehicles.

The challenge for electric vehicle performance in extreme temperatures is widely known, though EVs are popular in markets like Norway, where four out of five vehicles sold last year were battery-powered, led by Tesla.

A 2020 study of 4,200 connected EVs of all makes by Canada-based telematics provider Geotab found that most models had a similar drop in range in cold weather, primarily because the battery is also used to heat the car for the driver and passengers.

At just above 20 degrees Celsius, the average EV outperformed its stated range, but at minus 15 degrees the average EV had only 54% of its rated range, the study found.

Reporting by Ju-min Park and Hyunsu Yim; Editing by Himani Sarkar and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Power outage forces Philippines to suspend flights, shut airspace

  • More than 280 flights delayed, diverted on New Year’s Day
  • Transportation chief blames power outage for failure
  • System partially restored, airlines offer free rebooking

MANILA, Jan 1 (Reuters) – Philippine authorities halted flights in and out of Manila on New Year’s Day due to a malfunction of air traffic control, which also prevented airlines bound to other destinations from using the country’s airspace.

A total of 282 flights were either delayed, cancelled or diverted to other regional airports, affecting around 56,000 passengers at Manila’s Ninoy Aquino International Airport (NAIA), the airport operator said on Sunday.

It was unclear how many overflights were affected.

Transportation Secretary Jaime Bautista apologized for the inconvenience to passengers as he blamed a power outage for the breakdown of the central air traffic control system that also affected operations at other airports in the country.

He said the outdated existing facility should be upgraded immediately and that a back-up system was also needed.

“This is air traffic management system issue,” he said in a media briefing. “If you will compare us with Singapore, for one, there is a big difference, they are at least 10 years ahead of us.”

As of 0800 GMT, “the system has been partially restored thereby allowing limited flight operations”, the Manila International Airport Authority said in a statement. By late evening, eight flight arrivals and eight departures had been allowed, according to the airport operator.

Video clips and photos posted on social media showed long queues at the airport and airline personnel distributing food packs and drinks to stranded passengers.

“We’re told radar and navigation facilities at NAIA down. I was on my way home fm Tokyo – 3 hours into the flight, but had to return to Haneda,” tweeted one passenger – Manuel Pangilinan, chairman of Philippine telecommunications conglomerate PLDT Inc.

“6 hours of useless flying but inconvenience to travellers and losses to tourism and business are horrendous. Only in the PH. Sigh.”

Budget carrier Cebu Pacific (CEB.PS) and Philippine Airlines (PAL.PS) said they were offering passengers due to fly on Sunday free rebooking or the option to convert tickets to vouchers.

Reporting by Enrico Dela Cruz; Editing by Neil Fullick, Peter Graff and Alison Williams

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Congressional report: U.S. FDA broke own protocols in approving Biogen Alzheimer’s drug

WASHINGTON, Dec 29 (Reuters) – The U.S. Food and Drug Administration failed to adhere to its own guidance and internal practices during the approval process for Biogen’s (BIIB.O) Alzheimer’s drug Aduhelm, which was “rife with irregularities,” a congressional report showed on Thursday.

The FDA’s interactions with Biogen were “atypical” and did not follow the agency’s documentation protocol, according to a staff report on the findings of an 18-month investigation conducted by two House of Representatives committees into the drug’s regulatory review, approval, pricing, and marketing.

The FDA approved Aduhelm in June 2021 under an accelerated approval pathway over the objections of its panel of outside advisers, who did not believe data definitively proved the drug’s benefit to patients.

It was authorized based on evidence that it could reduce brain plaques, a likely contributor to Alzheimer’s, rather than proof that it slowed progression of the lethal mind-wasting disease.

The Medicare program restricted its coverage, which has led to severely limited use of the Biogen drug.

Biogen set an “unjustifiably high” price by initially setting Aduhelm’s price at $56,000 per year despite a lack of demonstrated clinical benefit in a broad patient population, the report said, adding that the company’s own internal projections showed it expected the drug to be a burden to Medicare and costly to patients.

“The findings in this report raise serious concerns about FDA’s lapses in protocol and Biogen’s disregard of efficacy and access in the approval process for Aduhelm,” the report, prepared by the staffs of the House Committee on Oversight and Reform and House Committee on Energy and Commerce, concluded.

The agency should ensure that all substantive interactions with drug sponsors are properly memorialized, establish a protocol for joint briefing documents with drug sponsors, and update its industry guidance on the developments and review of new Alzheimer’s Drugs, the report recommended.

Biogen and other drugmakers should communicate to the FDA any concerns over safety and efficacy to the FDA as well as take value and patient access into consideration when setting prices, the report said.

An FDA spokesperson said the FDA’s decision to approve Aduhelm was based on scientific evaluation of the data contained in the application.

He pointed to the FDA’s internal review finding its staff’s interactions with Biogen appropriate.

“It is the agency’s job to frequently interact with companies in order to ensure that we have adequate information to inform our regulatory decision-making. We will continue to do so, as it is in the best interest of patients,” he said, adding that the agency will continue to use the accelerated approval pathway whenever appropriate.

The FDA has already begun implementing some of the report’s recommendations, the spokesperson said.

“Biogen stands by the integrity of the actions we have taken,” the Cambridge, Mass.-based biotech company said in an emailed statement.

“As stated in the congressional report, an (FDA) review concluded that, ‘There is no evidence that these interactions with the sponsor in advance of filing were anything but appropriate in this situation,'” Biogen said.

Documents obtained by the committees show that FDA staff and Biogen held at least 115 meetings, calls, and email exchanges over a 12-month period starting July 2019.

The total number of meetings is unknown because the FDA failed to keep a clear record of informal meetings and interactions between its staff and Biogen representatives. The investigation identified an additional 66 calls and email exchanges that were not memorialized.

The FDA inappropriately collaborated with Biogen on a joint briefing document for the Peripheral and Central Nervous System (PCNS) Advisory Committee, the report said, with FDA and Biogen staff working closely for months ahead of the Nov. 6, 2020 meeting to prepare the document, which failed to adequately represent differing views within the agency.

“Using a joint briefing document afforded Biogen advance insight into FDA’s responses and direct guidance from the agency in drafting the company’s own sections. For example, in an exchange of the draft briefing document on October 9, 2020, FDA staff asked Biogen to move a paragraph drafted by the agency into Biogen’s section of the memorandum—a change reflected when the document was finalized,” the report made public to media organizations said.

When none of the advisory panel members voted to approve Aduhelm, the FDA pivoted to using its accelerated approval pathway – typically used for rare diseases or small patient populations that lack access to effective treatments – despite having considered the drug under the traditional approval pathway for nine months, the report said.

It did so on a substantially abbreviated timeline, approving it after three weeks of review, and for a broad label indication of “people with Alzheimer’s disease” that was unsupported by clinical data, the report said.

Internal documents obtained by the investigation showed that Biogen accepted the indication despite its own reservations over the lack of evidence Aduhelm could help patients at disease stages outside of its clinical trials.

Reporting by Ahmed Aboulenein; editing by Diane Craft

Our Standards: The Thomson Reuters Trust Principles.

Ahmed Aboulenein

Thomson Reuters

Washington-based correspondent covering U.S. healthcare and pharmaceutical policy with a focus on the Department of Health and Human Services and the agencies it oversees such as the Food and Drug Administration, previously based in Iraq and Egypt.

Read original article here

Chinese jet came within 10 feet of U.S. military aircraft -U.S. military

WASHINGTON, Dec 29 (Reuters) – A Chinese military plane came within 10 feet (3 metres) of a U.S. air force aircraft in the contested South China Sea last week and forced it to take evasive maneuvers to avoid a collision in international airspace, the U.S. military said on Thursday.

The close encounter followed what the United States has called a recent trend of increasingly dangerous behavior by Chinese military aircraft.

The incident, which involved a Chinese Navy J-11 fighter jet and a U.S. air force RC-135 aircraft, took place on Dec. 21, the U.S. military said in a statement.

“We expect all countries in the Indo-Pacific region to use international airspace safely and in accordance with international law,” it added.

A U.S. military spokesperson said the Chinese jet came within 10 feet of the plane’s wing, but 20 feet from its nose, which caused the U.S. aircraft to take evasive maneuvers.

The United States has raised the issue with the Chinese government, a separate U.S. official said.

The Chinese embassy in Washington D.C. did not immediately respond to a request for comment.

In the past, China has said that the United States sending ships and aircraft into the South China Sea is not good for peace.

U.S. military planes and ships routinely carry out surveillance operations and travel through the region.

China claims vast swathes of the South China Sea that overlap with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines.

Trillions of dollars in trade flow every year through the waterway, which also contains rich fishing grounds and gas fields.

In a meeting with his Chinese counterpart in November, U.S. Defense Secretary Lloyd Austin raised the need to improve crisis communications, and also noted what he called dangerous behavior by Chinese military planes.

Despite tensions between the United States and China, U.S. military officials have long sought to maintain open lines of communication with their Chinese counterparts to mitigate the risk of potential flare-ups or deal with any accidents.

Australia’s defence department said in June that a Chinese fighter aircraft dangerously intercepted an Australian military surveillance plane in the South China Sea region in May.

Australia said the Chinese jet flew close in front of the RAAF aircraft and released a “bundle of chaff” containing small pieces of aluminum that were ingested into the Australian aircraft’s engine.

In June, Canada’s military accused Chinese warplanes of harassing its patrol aircraft as they monitored North Korea sanction evasions, sometimes forcing Canadian planes to divert from their flight paths.

Relations between China and the United States have been tense, with friction between the world’s two largest economies over everything from Taiwan and China’s human rights record to its military activity in the South China Sea.

U.S. House Speaker Nancy Pelosi’s trip to Taiwan in August infuriated China, which saw it as a U.S. attempt to interfere in its internal affairs. China subsequently launched military drills near the island.

The United States has no formal diplomatic relations with Taiwan but is bound by law to provide the island with the means to defend itself.

Reporting by Idrees Ali and Doina Chiacu
Editing by Frances Kerry and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

Idrees Ali

Thomson Reuters

National security correspondent focusing on the Pentagon in Washington D.C. Reports on U.S. military activity and operations throughout the world and the impact that they have. Has reported from over two dozen countries to include Iraq, Afghanistan, and much of the Middle East, Asia and Europe. From Karachi, Pakistan.

Read original article here

Southwest flight upheaval a ‘system failure,’ U.S. says

WASHINGTON, Dec 28 (Reuters) – U.S. Transportation Secretary Pete Buttigieg on Wednesday ratcheted up pressure on Southwest Airlines (LUV.N), saying thousands more canceled flights indicated a system failure at the low-cost carrier.

“We are past the point where they could say this is a weather-driven issue,” Buttigieg said in an interview posted by ABC News on its website. “Don’t get me wrong, all of this began with that severe storm. We saw winter weather affecting the country and severely disrupting all airlines.”

Nationwide, at least 60 people died in weather-related incidents in recent days, NBC News reported.

The rest of the aviation system and other airlines seemed to be back from the weather disruptions, Buttigieg said.

“So what this indicates is a system failure (at Southwest), and they need to make sure that these stranded passengers get to where they need to go and that they are provided adequate compensation, not just for the flights itself … but also things like hotels, like ground transportation, like meals because this is the airlines’ responsibility,” he said, adding he had spoken to the company’s leadership.

U.S. airlines had canceled thousands of flights as a massive winter storm swept over much of the country before and during the Christmas holiday weekend, but Southwest’s woes have deepened while other airlines have largely recovered.

Southwest has canceled a total of more than 14,500 flights since Friday. On Wednesday it canceled 2,500 flights, according to the flight tracking website FlightAware.

Southwest told Reuters it would reimburse customers for travel-related costs and had already processed thousands of requests.

It also said employees across the airline were helping crews in many functions.

Delta Air Lines (DAL.N) said in an email it had capped fares in all domestic and international markets where Southwest operates. The program includes over 700 nonstop markets and are valid through Dec 31. United and American announced similar programs.

U.S. Representative Rick Larsen, top Democrat on the House Transportation and Infrastructure Committee, said in a tweet that the company was treating flight cancellations as “controllable” beginning Dec. 24, which triggers reimbursement for incidental expenses and refunds for full fares.

Southwest CEO Bob Jordan said the low-cost carrier needed to upgrade its legacy systems and apologized to customers and employees in a video message.

Shares of Southwest tumbled over 5% on Wednesday after diving 6% on Tuesday. Some analysts said the cancellations will pressure profits in the fourth quarter.

“The total impact to revenue could be in the 9% range of our expected Q4 revenue, which compares to our current estimate with revenues 15% ahead of 2019 levels in 2022” Jefferies analyst Sheila Kahyaoglu said.

Kahyaoglu estimated total EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) impact from the cancellations could be in the range of $700 million.

Reporting by Kanishka Singh in Washington; Additional reporting by David Shepardson in Grand Rapids, Michigan and Abhijith Ganapavaram in Bengaluru; Editing by Mark Porter, Howard Goller, Alexandra Alper and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

Read original article here