Mass. business confidence soars in May

Business confidence in Massachusetts jumped to its highest level in 3 years as Bay State companies enjoyed improving economic conditions, according to the Associated Industries of Massachusetts. AIM's business confidence index jumped nearly 5 points to 62.6 in May, its best reading since November 2000. Readings above 50 indicate optimism, and business confidence is considered a prerequisite to investment and hiring. According to the AIM survey, Massachusetts businesses see current conditions as vastly improved, and expect them to get better. And many are hiring. Last month, the number of Massachusetts firms adding staff outnumbered those cutting by a 2-to-1 ratio, according to AIM. Richard Lord, AIM's president, said the strong confidence readings indicate ''a robust, sustainable pattern of economic growth is underway, in Massachusetts as well as nationally." (Robert Gavin)

Cancer drug settlement checks mailed

Checks averaging $545 were mailed to 125 Massachusetts consumers as part of a $55 million antitrust settlement between 29 states and drug manufacturer Bristol-Myers Squibb Inc. Attorneys general in the 29 states sued in 2002 over allegations that Bristol-Myers Squibb illegally attempted to monopolize the market for its cancer fighting drug, Taxol, by stifling the generic market. The drug is used for treatment of ovarian, breast, and other types of cancer. The anticompetitive moves were widely cited as an example of how US drug manufacturers played the patent system to extend the exclusivity of their drugs. The company's tactics, said Massachusetts Attorney General Thomas F. Reilly, forced patients, state agencies, and hospitals to pay one-third more in brand-name prices. The states and the drug company reached the settlement in April 2003. (Christopher Rowland)

Stop & Shop, Shaw's raise milk prices

New England's two biggest supermarket chains both raised the price of their store brand milk over the weekend, responding to a 13-cent-a-gallon increase in the federally regulated price dairy farmers receive. Stop & Shop Supermarkets is now charging $3.75 a gallon for its store brand milk, a dime increase. Shaw's Supermarkets passed along the full 13-cent increase, boosting its price to $3.78. Spurred by a supply-demand imbalance, the price dairy farmers receive for their milk has increased 65 cents in the last month to $2.12 a gallon. As recently as April 2003, the farm price was $1.10 a gallon. (Bruce Mohl)

Thermo Electron to sell optics business

Newport Corp., which makes testing equipment for the semiconductor industry, agreed to buy Thermo Electron Corp.'s optics business for $300 million to more than double sales to health and life science customers. The total consists of $200 million in cash, $50 million in Newport stock, and a $50 million promissory note with 5 percent interest due in 2009, California-based Newport said. The Spectra-Physics unit makes products including optical lasers and light amplifiers for the telecommunications and biotechnology industries. The sale is expected to close in July. Thermo Electron chief executive Marijn Dekkers has sold businesses to cut costs and strengthen the company's position as the world's biggest maker of analytical instruments for medical laboratories. Waltham's Thermo Electron said it will have a gain of 50 cents a share on the sale. Proceeds will likely be used to make acquisitions related to the medical business, Dekkers said. (Bloomberg)

Alkermes to discontinue hormone drug

Alkermes Inc. and Genentech Inc. said they will discontinue Nutropin Depot, an injectable treatment for growth hormone deficiency in children, a move Alkermes said will reduce revenue for the year. It is too costly to continue making and marketing the product, the companies said. Nutropin Depot, approved in 1999 by US regulators, is a long-acting form of the human growth hormone somatropin, said Genentech. Cambridge-based Alkermes lowered its estimate for revenue in the year ending March 31 to a range of $90 million to $120 million, from $95 million to $125 million. (Bloomberg)

THE NATION
MCI, Qwest set wholesale local line rates

MCI Inc. and Qwest Communications International Inc. became the first large telephone companies to agree on wholesale rates for local phone lines, increasing pressure on other carriers to sign similar contracts. Qwest, the number four regional carrier, and number two long-distance company MCI said they reached a four-year accord on wholesale rates after about a month of negotiations. Federal rules governing discounted rates are set to expire June 15. The Federal Communications Commission, which has been trying to end an eight-year dispute over competition in the $127 billion local phone market, held talks with the four largest regional carriers, along with AT&T Corp. and MCI, over the holiday weekend. (Bloomberg)

Homeland Security awards $10b pact

Accenture Ltd. led a group that won a contract worth as much as $10 billion to develop a system to help the Department of Homeland Security track visitors to the United States. Accenture's group beat out offers by Computer Sciences Corp. and Lockheed Martin Corp. SRA International Inc., Raytheon Co., and Titan Corp. will be the main subcontractors in Accenture's group. The group will help implement a security program to collect and share data on foreigners entering the United States as part of the US-Visit program to protect against terrorism, the department said. (Bloomberg)

THE WORLD
Sony won't sell new hand-helds in US

Sony Electronics Inc. said it won't release new models of its Clie hand-held computers in the United States this year, effectively signaling its exit from the US market. The consumer electronics giant said it will continue sales in Japan but its efforts in the United States will end when it sells existing supplies of four Clie models. Sony Electronics had 8.4 percent of the worldwide PDA market in the first quarter, down from 12.2 percent for all of 2003, according to market researcher Gartner Inc. The company has lost ground to palmOne Inc., maker of the Tungsten T3 and Zire 72 hand-held computers. Sony didn't elaborate on the reasons for its withdrawal but Gartner analyst Todd Kort said it was increasingly difficult for the company to continue investing in what was probably a money-losing business. (AP)

. . .Etc.

Medtronic Inc. and Genzyme Corp. said they would form a joint venture to be called MG Biotherapeutics that would combine Genzyme's cell therapy research with Medtronic delivery systems. Genzyme is conducting a trial in France that is examining the possibility of using cells from leg muscles to heal heart attack damage. Medtronic would contribute a catheter-based delivery system. The companies also said they would pursue longer-range research into the possibility of using genetically modified cells and cells from someone other than the recipient . . . MFS Investment Management hired Scott Richards, former head of high-yield investments at Columbia Management Group, as a portfolio manager. Richards joined MFS last month as comanager of the $1.6 billion MFS High Income fund and $400 million MFS High Yield Opportunities fund, among other accounts. (Globe wire services)