Osteoarthritis treatment hylastan misses trial goal

THE REGION

Biotechnology company Genzyme Corp. said one of its experimental treatments for pain associated with osteoarthritis of the knee works no better than traditional steroids. The therapy, hylastan, is one of several viscosupplements -- injectable substances that lubricate the joints -- that Genzyme is developing to succeed its existing product, Synvisc. The Cambridge company tested hylastan in 400 patients and results were not significantly better in the hylastan group than in the group that took a corticosteroid. (Reuters)

Parametric Technology Corp. said lower-than expected license revenue will result in total fiscal third-quarter revenue of $225 million, up 4 percent from a year earlier, but lower than its earlier forecast of $235 million to $240 million. The Needham product development and publishing services company expects earnings for the third quarter ended June 30 will be lower than its earlier prediction. Wall Street expects third-quarter earnings of 28 cents a share, on revenue of $238.2 million, according to the average estimate of analysts polled by Thomson Financial. (Dow Jones)

Joan Fabrics Corp., a bankrupt Tyngsborough seller of specialty fabrics, won a judge's approval to sell most of its assets to three buyers for about $29 million. Valdese Weavers LLC agreed to pay $13.9 million for part of the business, according to court papers. Gordon Brothers Group LLC would pay $9.5 million for equipment, and Fred J. Godley offered $5.9 million for options on Cramerton, N.C., real estate, court filings showed. (Bloomberg)

Talbots Inc. said incoming chief executive Trudy Sullivan will receive an annual base salary of $1 million, according to a Securities and Exchange Commission filing. Sullivan, who starts with the Hingham-based clothing retailer Aug. 6, will also receive 350,000 shares of restricted stock. (Dow Jones)

THE NATION

The US office vacancy rate in the second quarter fell to its lowest level in nearly six years reflecting a paucity of property, real estate research firm Reis Inc. said. Despite an additional 11.9 million square feet of new office space added to the market, the second-quarter US vacancy rate fell to 12.7 percent from 13.1 percent in the first quarter, Reis said. It was the lowest rate seen since the third quarter of 2001. Tenants leased more than 17 million square feet of space, up from 10.4 million square feet in the first quarter. So far, the amount of new office space created this year has been less than half of the 45 million built in 2006. (Reuters)

EBay Inc. launched a free classified ads site in the United States, an experiment the online auction company says could lead to new sources of revenue. Since February 2005, eBay has been operating an international classified forum called Kijiji, which means "village" in Swahili. The site allows users in more than two dozen countries to buy and sell goods and services that are difficult or impossible to ship or sell on eBay, such as baby-sitting services. EBay's US classified site, which launched Friday, covers 220 cities in 50 states. (AP)

Oil and gasoline prices advanced after renewed violence in Nigeria overshadowed a government report that fuel inventories grew faster than expected while refinery use grew at a slower than anticipated rate. Prices rose early in the day on news of kidnappings in Nigeria, then fell sharply after the inventory report. Light, sweet crude for August delivery settled 40 cents higher at $71.81 a barrel on the New York Mercantile Exchange. (AP)

THE WORLD

UBS AG, the world's biggest wealth manager, said it's replacing chief executive Peter Wuffli with Marcel Rohner, the deputy CEO. Wuffli "relinquishes all of his functions at UBS," according to an e-mail from the Zurich-based bank. Rohner has been deputy CEO since January 2006 and a member of the group executive board since 2002, UBS said. (Bloomberg)