NPR 2012-07-03

 GlaxoSmithKline is settling a historic health care fraud case for three billion dollars. The drugmaker has agreed to plead guilty to misdemeanor criminal charges that it promoted its drugs for unauthorized uses and failed to disclose to pertinent 1 information to the FDA. Among those drugs cited were Paxil, Wellbutrin and Avandia. Bill Corr, deputy secretary for the Department of Health and Human Services, says abuses in the pharmaceutical 2 industry affect everyone. 

 
“When corporations misbrand a drug, manipulate prices, improperly 3 influence doctors or keep critical safety information from the light of day, they betray people's trust and confidence in the very care they count on to get well and to stay healthy.”
 
The British-based Glaxo says it will adhere to strict US oversight 4 of its sales personnel. 
 
This hour, Kodak is shutting down its digital photo service, making way for Shutterfly, as NPR's Laura Sydell reports.
 
Kodak, the former king of the American photo industry, has been selling off bits and pieces of its business. The once great innovator 5 in the analog 6 photo era filed for bankruptcy 7 in January. The Rochester, New York-based company sold what it calls Kodak Gallery to the Silicon 8 Valley-based Shutterfly for nearly 24 million dollars. Gallery has more than 68 million customers in the US and Canada who will temporarily lose access to their photos. A Shutterfly spokesperson says they will move as quickly as possible to get the Kodak accounts up and running on their site. As part of its bankruptcy proceedings 9, Kodak is also trying to sell its digital imaging patents with an estimated value of more than 2.5 billion dollars. Laura Sydell, NPR News, San Francisco.
 
Manufacturing activity has shrunk for the first time in nearly three years. The Institute for Supply Management said today that its reading on factory activity dropped last month as new orders and production fell.
 
A year ago today, the US Education Department released what it called “gainful employment” regulations targeting four profit colleges that rake in lots of federal student aid, but lose students with crushing debt and poor job prospects 10. NPR’s Claudio Sanchez reports a US district court judge has thrown out key provisions of the regulation.
 
It was a huge win for four profit colleges this weekend after Judge Rudolph Contreras ruled that the government's gainful employment regulations were arbitrary and capricious. Under the regulations, the Department of Education would evaluate schools, based on whether students graduated with excessive debt compared to their total and discretionary income and whether students could repay their loan at all. If schools fall short of this criterion three out of four years, they would be banned from receiving federal student aid. The judge ruled that these guidelines, although legal, did not adequately assess students’ ability to pay. Education Department officials say they are reviewing their options for appeal. Claudio Sanchez, NPR News.
 
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The Associated Press is reporting at least one death from the Air National Guard cargo 11 plane crash in South Dakota yesterday. The six-member crew was helping 12 battle a wildfire when the aircraft went down. 
 
Airbus has formally announced plans to build an assembly plant in Alabama where it will make passenger airplanes. The decision gives the European aerospace 13 giant its first foothold in the US to compete with Boeing. The plant is expected to employ 1,000 people by the time it reaches full production. 
 
Swimmer Michael Phelps will compete in only seven events in London, according to his coach. NPR's Mike Pesca reports this means Phelps cannot equal his record-setting mark of eight gold medals in a single Olympics Game.
 
Phelps's coach confirmed the swimmer would skip the 200-meter freestyle, an event he won five days ago, edging out his rival Ryan Lochte by 500 of a second. But Lochet beat Phelps in the 200 at the world championship in 2011. And by jettisoning 14 the race and his preliminary heats, Phelps gives himself a bit more rest to pursue his four other individual events. During Olympic trials, Phelps beat Lochet in three out of four events in which they both competed. Lochet will also swim seven events, as will 17-year-old Missy Franklin. No US woman has ever competed in seven events in one Olympics. Mike Pesca, NPR News.
 
US stocks mixed at last check, with the Dow off 39 points at 12,841 in trading of  two billion shares, NASDAQ Composite Index up five points at 2,940, and the S&P 500 down slightly at 1,362.
 
I'm Lakshmi Singh, NPR News, Washington.