Firm that made heart drug for blacks selling unit

NitroMed Inc., a Lexington company that developed a controversial heart disease drug aimed at blacks, plans to sell the drug business to JHP Pharmaceuticals LLC of New Jersey for $24.5 million in cash, plus up to an additonal $1.8 million. The drug, called BiDil, was the first drug approved in the United States for sale to a specific racial group and remains NitroMed's only product on the market. After the deal is complete, NitroMed said it will look into merging "with companies that have significant unrealized value or growth potential." (Todd Wallack)

Biogen Idec Inc.'s experimental pill to treat multiple sclerosis reduced the number of brain lesions associated with the autoimmune disorder, according to the Cambridge company-sponsored study. Patients taking BG-12 also tended to be less likely to suffer a relapse, wrote lead author Ludwig Kappos of the University Hospital in Basel, Switzerland. The pill may have the potential to protect the brain and counter inflammation, Kappos said in the midstage study published in the British medical journal Lancet. (Bloomberg)

Medical device maker Boston Scientific Corp. said the Food and Drug Administration approved a carotid artery stent for patients who are at high risk for surgery. Most patients with carotid artery disease are treated by making an incision in the neck and removing plaque from the vessel walls. Natick-based Boston Scientific said it will launch the Carotis Wallstent Monorail Endoprosthesis immediately in the United States. It is already approved in Europe. (AP)

A fake Internet report this month that Apple Inc. chief executive Steve Jobs had suffered a heart attack was posted by a teenager, but investigators haven't found evidence he tried to profit from driving down the stock, two people with knowledge of the matter said. The Securities and Exchange Commission is examining the 18-year-old's motives after an article on CNN's iReport.com sent Apple shares down as much as 5.4 percent Oct. 3, according to the people, who declined to be identified because the probe isn't public. While the probe is continuing, the agency hasn't unearthed any trading records that show he benefited. (Bloomberg)

The Federal Deposit Insurance Corp. has approved a program to guarantee through June 30 new senior unsecured debt and fully protect noninterest-bearing deposits at banks in an effort to bolster confidence in the financial system. The program is "aimed at unlocking credit markets, particularly interbank credit markets which have ceased to function properly," FDIC chairwoman Sheila Bair said. The actions are part of a federal effort to help banks by discouraging depositors from withdrawing funds from accounts that exceed the $250,000 maximum covered by the agency. Depositors seeking to place their funds in insured accounts have contributed to the collapse of lenders at the fastest rate in 15 years. (Bloomberg)

Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five weeks. Mortgage giant Freddie Mac reported that 30-year, fixed-rate mortgages averaged 6.04 percent, down from 6.46 percent last week. The sharp decline pushed 30-year rates to the lowest level since 5.78 percent the week of Sept. 18. Rates on 15-year fixed-rate mortgages, which are popular with people who are refinancing, fell to 5.72 percent, compared to 6.14 percent last week. Rates on five-year adjustable-rate mortgages fell to 6.06 percent, down from 6.14 percent last week. However, rates on one-year adjustable-rate mortgages rose to 5.23 percent, up from 5.16 percent last week. (AP)

Three securities firms have agreed to buy back a total of about $60 million in auction-rate securities to settle industry regulators' charges. The Financial Industry Regulatory Authority, which is the securities industry's self-regulatory body, disclosed the agreements in principle with City National Securities of Beverly Hills, Calif., BNY Mellon Capital Markets LLC of New York, and Harris Investor Services Inc. of Chicago. City National also agreed to pay a civil fine of $315,000, while BNY Mellon is paying a $250,000 fine and Harris is paying $150,000. None of the firms admitted or denied wrongdoing. (AP)