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Business Digest: University sues Amgen

01:00 AM EDT on Wednesday, September 10, 2008

Amgen Inc., the biotechnology company that manufactures the arthritis drug Enbrel in West Greenwich, has been sued by the University of Iowa over claims that Enbrel and the colon-cancer treatment Vectibix are made using a technique patented by the school.

The company has refused to license the technology “despite diligent efforts” to reach an agreement, the university said in a complaint filed Monday in federal court in Davenport, Iowa. The two patents in dispute cover tools to promote gene expression and the production of proteins used to make drugs.

Amgen and its affiliates “have for many years infringed the Iowa patents with full knowledge of them,” the Iowa City-based university said in the complaint, brought by the state attorney general’s office.

Enbrel, used to treat rheumatoid arthritis and psoriasis, generated $1.69 billion in U.S. sales for Amgen in the year’s first six months, and Vectibix had sales of $57 million in the period, the Thousand Oaks, Calif.-based company said July 28.

“We don’t believe we have violated their patent and will defend against their allegations,” Amgen spokesman David Polk said in an e-mail.

The school didn’t specifically ask that Amgen be forced to stop selling the two medicines, but seeks royalty payments.

New Kids, Garciaparra have money waiting

New Kids on the Block, your check is ready. The recently reunited boy band, former Red Sox player Nomar Garciaparra and celebrity chef Todd English are among 40,000 people, businesses and charities on Massachusetts’ latest list of owners of abandoned property. The list maintained by State Treasurer Tim Cahill’s office includes bank and brokerage accounts and other assets that have been untouched for three years. The treasurer’s office says $800 in unclaimed stock and a $27 check are waiting for the New Kids. Garciaparra, who now plays for the Los Angeles Dodgers, can claim an uncashed check worth $121.40. English has $1,239 in unclaimed assets. The list has a combined total of $17 million in unclaimed assets, including six accounts worth more than $100,000 each.

Executive leaving KVH Industries

Middletown-based KVH Industries Inc. has made a regulatory filing with the U.S. Securities and Exchange Commission indicating that Ian Palmer, executive vice president of satellite sales, will resign to pursue other opportunities, effective Sept. 19. “His resignation is not due to any disagreement with the company,” the filing said. No replacement was named.

Stop & Shop dismisses Whole Foods suit

Quincy, Mass.-based Stop & Shop Supermarket Co. has voluntarily dismissed its lawsuit that accused Whole Foods Market Inc. of violating trademark law by using “The Real Deal” in marketing. “The dispute has been resolved amicably, and Whole Foods has agreed to cease using the ‘Real Deal’ in its marketing,” a Stop & Shop spokeswoman said. Whole Foods switched its advertising campaign to “The Whole Deal.”

Survey: CFOs plan no change in hiring

Six percent of chief financial officers in the Providence area plan to add accounting and finance staff during the fourth quarter, but another 7 percent plan reductions in personnel, according to the most recent Robert Half International Financial Hiring Index. The majority of respondents, 85 percent, plan no change in hiring. The local results reflect a two-quarter rolling average based on interviews with CFOs from a stratified random sample of companies with 20 or more employees in the Providence area.

Amtrak posts jump in August ridership

Amtrak, the national passenger railroad, posted a 10-percent increase in August ridership as higher gasoline prices helped spur more travelers to use trains. Amtrak carried 2.68 million people and ticket revenue rose 14 percent over the same month a year earlier, spokesman Cliff Black said. Ridership in the year ending Sept. 30 should exceed 28 million, “easily surpassing” last year’s record of 25.8 million, he said. All routes had more riders last month except for the Acela Express high-speed trains on the Northeast Corridor between Boston and Washington, which experienced a drop in passenger loads of 6.6 percent. Black attributed the decrease to two fewer business days in the month and a “softening” in the business travel market. However, total ridership in the Northeast corridor rose 1.2 percent, with regional passenger loads up 4.5 percent because of an extra weekend in August. Black said Acela revenue increased 2.4 percent because of higher ticket prices and different fares for certain segments.

United Rentals to pay fraud penalty

Greenwich, Conn.-based United Rentals Inc., one of the world’s largest equipment rental companies, has agreed to pay a $14-million penalty to settle fraud allegations. The company did not admit or deny the charges as part of its settlement with the U.S. Securities and Exchange Commission. The SEC alleged that the company engaged in fraudulent transactions to meet earnings forecasts and analysts’ expectations. The SEC also charged the company with a broad range of other improper accounting practices. “The misconduct is particularly troubling because it was carried out by senior officers of the company, who devised sophisticated accounting transactions in order to meet Wall Street’s earnings expectations,” said Fredric D. Firestone, associate director in the SEC’s Division of Enforcement. The SEC said it would put the $14 million in a fund for distribution to affected investors.

Needy can get free firewood in N.H.

Anticipating a cold and costly winter, Hopkinton, N.H., residents have created a fuel assistance program for neighbors in need. Members of the Wood for Warmth program have set up a wood bank at the Hopkinton-Webster transfer station, where people can drop off extra firewood or pick it up if they need it. Those interested in taking the wood need to get a voucher from a local social services agency. The group is looking for volunteers to donate, transport, chop and stack the wood, along with people to donate to a general fund for fuel assistance. A cord of wood — dried, split and delivered — costs upward of $300, and an average home goes through five or six cords a wood through the winter.

UVM auditors find irregularities

The University of Vermont’s auditors say sloppy money management was to blame for fiscal irregularities discovered last spring that led to the resignation of the college’s top financial officer. Deloitte & Touche LLP accountants found that problems with the university’s implementation of Web-based financial management software stemmed from UVM’s failure to adhere to its own policies. In April, university officials revealed that Huron Consulting Group had been awarded several contracts exceeding $250,000 without the approval of UVM’s president and board of trustees. That led to the resignation of vice president for finance J. Michael Gower, who’d been in charge of the software implementation.

Cog Railway in Bretton Woods going green

The Mount Washington Cog Railway in Bretton Woods, N.H., has gone green. Gov. John Lynch helped the railway dedicate a new, biodiesel, locomotive on Saturday, then played engineer and drove the train. For 139 years, the railway has chugged to the top of Mount Washington by burning wood or coal, which replaced wood around 1910. Each trip required more than 1 ton of coal and 1,000 gallons of water to move the 18-ton engine. With the dedication of the new locomotive, the railway signaled that it will supplement the coal-fired trains with several biodiesel engines, cutting emissions and the use of fossil fuels. Lynch broke a bottle of water from the Ammonoosuc River on the engine’s cab and an American flag was removed to reveal the locomotive’s name: Wajo Nanatasis. The name is Abenaki for “Mountain Hummingbird” and was selected from entries in a “Name That Train” contest.

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