Central Africa’s Wildlife Rangers Face Deadly Risks





ZAKOUMA NATIONAL PARK, Chad — Just before dawn, the rangers were hunched over in prayer, facing east. They pressed their foreheads into the dry earth and softly whispered Koranic verses, their lips barely moving. A cool wind bit at their faces.




All of a sudden, Djimet Seid, the cook, said he heard “one war whoop — or maybe it was a scream.”


And then: “K-k-k-k-k-k-k,” the angry bark of a Kalashnikov assault rifle, opening up on fully automatic.


In an instant, an entire Chadian squad of rangers was cut down with alarming precision by elephant poachers who were skilled at killing more than just animals. Crouching in the bush, the poachers fired from a triangle of different spots, concealed and deadly accurate.


“If you go look at the infantry books, it’s exactly how you do a first light attack, exactly,” said Rian Labuschagne, a former paratrooper and now the manager of Zakouma National Park in southern Chad. “Our guys didn’t have a chance.”


Out here, among the spent bullet shells and the freshly dug graves, the cost of protecting wildlife is painfully clear. As ivory poaching becomes more militarized, with rebel groups and even government armies slaughtering thousands of elephants across Africa to cash in on record-high ivory prices, a horrible mismatch is shaping up. Wildlife rangers — who tend to be older, maybe a bit slower and incredibly knowledgeable about their environment and the ways of animals, but less so about infantry tactics — are wading into the bush to confront hardened soldiers.


The outcome, too often, is not only firefights and battles, but also coldblooded murder, with dozens of African wildlife rangers killed in recent years, many in revenge-driven ambushes. Ivory poachers, it seems, are becoming increasingly wily and ruthless.


This summer, in the Democratic Republic of Congo, a militia of infamous elephant poachers, sneaked up to the headquarters of a wildlife reserve and killed 5 people and 14 okapi, a rare animal with a giraffelike neck and zebralike legs. One guard who narrowly escaped said the attackers sliced open the chest of a downed colleague and ate his heart. In Zimbabwe, poachers are spreading deadly poisons on elephant carcasses to kill vultures. By taking out the birds that serve as a natural early warning system that a kill has been made, the poachers make it even more dangerous for rangers because they have no idea when the poachers are around. In Mozambique, the authorities said that poachers have recently begun using land mines.


Kenya, which is considered tame compared with some of these other places, has lost six rangers this year, more than in recent memory. One of them was Florence Hadia Abae, pregnant and the mother of a small boy. In March, she was following the footprints of suspected poachers near Tsavo National Park, a fabled tourist destination, when a poacher popped out of the bush and shot her in the face.


One of her colleagues was killed in the same ambush, shot in the leg, then finished off with a short, brutish stroke of an ax.


“They had no idea what they were walking into,” said Rob Dodson, a British conservationist working near Tsavo.


In the Zakouma attack, which happened about 50 miles outside the park boundaries in September, five rangers were killed on the spot; one remains missing and is presumed dead. Mr. Seid, the cook, was seriously wounded. The attack appeared to be revenge for a raid on a poachers’ camp, and much of the evidence points to the Sudanese military. For years, wildlife groups have blamed the janjaweed — Sudanese horseback raiders who traditionally work in tandem with the government military — for wiping out many of Central Africa’s elephant herds.


But specific evidence recovered from the poachers suspected of killing Zakouma’s rangers strengthens the Sudanese government link, the Chadian authorities and human rights groups say. A few weeks before the attack, Zakouma rangers raided a poachers’ camp nearby and discovered one uniform for Abu Tira, Sudan’s notorious paramilitary service, which has been blamed for burning down villages and committing other atrocities. The rangers also found several elephant tusks and a stamped leave slip from the Sudanese Army granting four soldiers permission to go to the Chadian border.


Most incriminating, though, were the digital photos recovered from a phone showing stacks of elephant carcasses that looked similar to photos from a horrific massacre of hundreds of elephants in Cameroon this year, suggesting that the Sudanese poachers who killed the Zakouma rangers may have been involved in one of the biggest single elephant slaughters in decades.


“This is not some random group of thugs,” said Jonathan Hutson, a spokesman for the Satellite Sentinel Project, a nonprofit group that helped analyze some of the evidence. “They’re poaching for profit to fund mass atrocities in Sudan.”


Officials at the United States Africa Command, based in Stuttgart, Germany, have also been helping analyze some of the forensics.


At first, Rabie A. Atti, a Sudanese government spokesman, reflexively dismissed the evidence.


“Pictures can be fabricated,” he said.


But then he added, “If there is concrete evidence, and someone is proven to be corrupt, he can be taken to court.”


Isma’il Kushkush contributed reporting from Khartoum, Sudan.



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Some Companies Seek to Wean Employees From Their Smartphones





Resolutions to change behavior are common at this time of year, but they usually involve exercising more or smoking less. Now, some companies are adopting policies aimed at weaning employees from their electronic devices.







Matthew Ryan Williams for The New York Times

Michelle Barry and Mark Jacobsen of Centric Brand Anthropology strive for the elusive work-life balance.







Atos, an international information technology company, plans to phase out all e-mails among employees by the end of 2013 and rely instead on other forms of communication. And starting in the new year, employees at Daimler, the German automaker, can have incoming e-mail automatically deleted during vacations so they do not return to a flooded in-box. An automatic message tells the sender which person is temporarily dealing with the employee’s e-mail.


No one is expected to be on call at all hours of the day and night, and “switching off” after work is important, “even if you are on a business trip,” said Sabrina Schrimpf, a Daimler spokeswoman, referring to the company’s recently released report, “Balanced! — Reconciling Employees’ Work and Private Lives.”


Disconnecting can be more challenging for business travelers who frequently work across time zones.


And there is a ripple effect, said Leslie A. Perlow, a professor of leadership at Harvard Business School and the author of “Sleeping With Your Smartphone.” “These guys fly in the middle of the night and send e-mails back to colleagues” who wait up, ready to respond.


A study conducted last spring by the Pew Research Center’s Internet and American Life Project found that while mobile phones were valued as a way to stay productive, there were downsides to being available at all times. The nationwide survey of 2,254 adults found that 44 percent of cellphone owners had slept with their phone next to their bed and that 67 percent had experienced “phantom rings,” checking their phone even when it was not ringing or vibrating. Still, the proportion of cellphone owners who said they “could live without it” has gone up, to 37 percent from 29 percent in 2006.


Sam Chapman, chief executive of Empower Public Relations in Chicago, said he used to feel phantom vibrations and frequently read and sent e-mail on his BlackBerry in the middle of the night. He slept poorly, did not feel refreshed in the morning and considered himself addicted. “I wanted to make sure that what happened to me didn’t happen to my employees,” he said.


So Mr. Chapman adopted what he called a BlackBerry blackout policy. He and his staff of about 20 turn off their BlackBerrys from 6 p.m. to 6 a.m. on weekdays and completely on weekends for all work-related use, with rare exceptions. “When I’m well rested, I show up to work ready to go,” he said.


He maintains that regimen while traveling, and said the policy had increased company productivity.


Professor Perlow agreed that companies could improve their bottom line by encouraging employees to disconnect at times. “Being constantly on actually undermines productivity,” she said.


But it is not always easy. In early 2012, when Michelle Barry, Mark Jacobsen and a third partner created Centric Brand Anthropology, a Seattle-based company that advises clients on brand strategy, design and culture management, they gave serious thought to the issue.


“A huge priority for us was to have a good balance between work-life,” said Mr. Jacobsen, Centric’s vice president and creative director. “Yet we have found that very difficult to do while working with large multinational clients,” which often require international travel and constant availability.


Being a start-up compounded those challenges. “Just because you can e-mail at 2 a.m., doesn’t mean it’s a good thing,” he said.


Centric encourages employees to prepare a week before a trip, designating a colleague as backup, informing clients about their travel plans, and trying to avoid deadlines immediately after they return. Employees are also encouraged to take spouses or partners on longer assignments and to build in downtime, said Ms. Barry, the company’s president and chief executive. When traveling, she said, “I make a commitment to myself not to stay up all night answering e-mails.”


Experts say there is no firm data for how many companies have policies restricting the use of electronic devices outside the office. “The companies I know actively encourage workers to stay connected after hours and on weekends,” said Dennis J. Garritan, a managing partner of the private equity firm Palmer Hill Capital and an adjunct professor at Harvard Business School.


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Recipes for Health: Warm Lentil Salad — Recipes for Health


Andrew Scrivani for The New York Times







This recipe started out as something else. I had in my pantry a bag of mixed sprouted lentils – black, green, and brown. I cooked them with the intention of making dal, but I so liked the integrity of the cooked lentils – green and black lentils remain intact even after they soften – that I didn’t want to mash them. Meanwhile I had roasted some squash with balsamic vinegar. I ended up warming the lentils in a cumin-scented vinaigrette and serving them with the squash.




For the squash:


2 pounds kabocha or butternut squash, peeled and cut in small dice (about 3 cups peeled and diced, weighing 1 1/2 to 1 3/4 pounds), or 1 large acorn squash, cut in half*


Salt to taste


1 tablespoon balsamic vinegar (2 tablespoons if using acorn squash)


1 tablespoon extra virgin olive oil


 


For the lentils:


1 cup black lentils (also known as beluga lentils), green Le Puy lentils, or a mixture, rinsed


1 teaspoon minced ginger


1 teaspoon turmeric


1/2 onion (intact)


1 quart water


Salt to taste


 


For the salad:


1 tablespoon sherry vinegar or red wine vinegar


1 teaspoon balsamic vinegar


1 teaspoon Dijon mustard


1/2 teaspoon cumin seeds, ground


Salt and freshly ground pepper to taste


3 tablespoons extra virgin olive oil


1 tablespoon walnut oil


1/4 cup chopped or slivered flat leaf parsley


 


*If using acorn squash, place in a 425 degree oven for 20 minutes before cutting in half and seeding. It will be much easier to cut.


1. Combine the lentils, ginger, turmeric, onion, water, and salt to taste in a medium saucepan and bring to a boil. Reduce the heat to medium and cook at a moderate bubble until the lentils have softened and produced a flavorful broth, about 35 to 40 minutes. Remove from the heat. Remove the onion and discard. Place a strainer over a bowl and drain the lentils.


2. Meanwhile, preheat the oven to 425 degrees. Line a baking sheet with foil. If using cut up squash, place in a bowl or directly on the baking sheet and toss with salt to taste, the balsamic vinegar and 1 tablespoon of the olive oil. Spread on the baking sheet in an even layer and make sure to tip all of the liquid remaining in the bowl over the squash. Roast for 20 to 30 minutes, stirring every 10 minutes so that the squash browns evenly. The squash should be tender all the way through. Remove from the heat. If using acorn squash, spoon a tablespoon of the balsamic vinegar into both cavities, season with salt, brush with olive oil, and place cut side up on a foil-lined baking sheet. Bake 40 to 50 minutes, basting every 10 minutes, until thoroughly tender. Remove from the heat and when cool enough to handle remove the skin and cut the squash into dice.


3. In a small bowl or measuring cup whisk together the vinegars, mustard, salt and pepper, olive oil, and walnut oil. Toss with the lentils and return to the saucepan. Add a few tablespoons of the lentil broth, stir in the parsley and heat through.


4. Place the squash in the middle of a wide bowl or serving platter, surround with the lentil salad and serve.


Yield: Serves 4 to 6


Advance preparation: The cooked lentils will keep for 3 or 4 days in the refrigerator. Keep the broth in a jar and moisten if desired when you reheat. The squash will keep for 2 or 3 days. Reheat gently in a pan or in a medium-low oven.


Nutritional information per serving (4 servings): 381 calories; 18 grams fat; 2 grams saturated fat; 4 grams polyunsaturated fat; 11 grams monounsaturated fat; 0 milligrams cholesterol; 44 grams carbohydrates; 13 grams dietary fiber; 40 milligrams sodium (does not include salt to taste); 14 grams protein


Nutritional information per serving (6 servings): 254 calories; 12 grams fat; 2 grams saturated fat; 3 grams polyunsaturated fat; 7 grams monounsaturated fat; 0 milligrams cholesterol; 29 grams carbohydrates; 9 grams dietary fiber; 27 milligrams sodium (does not include salt to taste); 10 grams protein


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Recipes for Health: Warm Lentil Salad — Recipes for Health


Andrew Scrivani for The New York Times







This recipe started out as something else. I had in my pantry a bag of mixed sprouted lentils – black, green, and brown. I cooked them with the intention of making dal, but I so liked the integrity of the cooked lentils – green and black lentils remain intact even after they soften – that I didn’t want to mash them. Meanwhile I had roasted some squash with balsamic vinegar. I ended up warming the lentils in a cumin-scented vinaigrette and serving them with the squash.




For the squash:


2 pounds kabocha or butternut squash, peeled and cut in small dice (about 3 cups peeled and diced, weighing 1 1/2 to 1 3/4 pounds), or 1 large acorn squash, cut in half*


Salt to taste


1 tablespoon balsamic vinegar (2 tablespoons if using acorn squash)


1 tablespoon extra virgin olive oil


 


For the lentils:


1 cup black lentils (also known as beluga lentils), green Le Puy lentils, or a mixture, rinsed


1 teaspoon minced ginger


1 teaspoon turmeric


1/2 onion (intact)


1 quart water


Salt to taste


 


For the salad:


1 tablespoon sherry vinegar or red wine vinegar


1 teaspoon balsamic vinegar


1 teaspoon Dijon mustard


1/2 teaspoon cumin seeds, ground


Salt and freshly ground pepper to taste


3 tablespoons extra virgin olive oil


1 tablespoon walnut oil


1/4 cup chopped or slivered flat leaf parsley


 


*If using acorn squash, place in a 425 degree oven for 20 minutes before cutting in half and seeding. It will be much easier to cut.


1. Combine the lentils, ginger, turmeric, onion, water, and salt to taste in a medium saucepan and bring to a boil. Reduce the heat to medium and cook at a moderate bubble until the lentils have softened and produced a flavorful broth, about 35 to 40 minutes. Remove from the heat. Remove the onion and discard. Place a strainer over a bowl and drain the lentils.


2. Meanwhile, preheat the oven to 425 degrees. Line a baking sheet with foil. If using cut up squash, place in a bowl or directly on the baking sheet and toss with salt to taste, the balsamic vinegar and 1 tablespoon of the olive oil. Spread on the baking sheet in an even layer and make sure to tip all of the liquid remaining in the bowl over the squash. Roast for 20 to 30 minutes, stirring every 10 minutes so that the squash browns evenly. The squash should be tender all the way through. Remove from the heat. If using acorn squash, spoon a tablespoon of the balsamic vinegar into both cavities, season with salt, brush with olive oil, and place cut side up on a foil-lined baking sheet. Bake 40 to 50 minutes, basting every 10 minutes, until thoroughly tender. Remove from the heat and when cool enough to handle remove the skin and cut the squash into dice.


3. In a small bowl or measuring cup whisk together the vinegars, mustard, salt and pepper, olive oil, and walnut oil. Toss with the lentils and return to the saucepan. Add a few tablespoons of the lentil broth, stir in the parsley and heat through.


4. Place the squash in the middle of a wide bowl or serving platter, surround with the lentil salad and serve.


Yield: Serves 4 to 6


Advance preparation: The cooked lentils will keep for 3 or 4 days in the refrigerator. Keep the broth in a jar and moisten if desired when you reheat. The squash will keep for 2 or 3 days. Reheat gently in a pan or in a medium-low oven.


Nutritional information per serving (4 servings): 381 calories; 18 grams fat; 2 grams saturated fat; 4 grams polyunsaturated fat; 11 grams monounsaturated fat; 0 milligrams cholesterol; 44 grams carbohydrates; 13 grams dietary fiber; 40 milligrams sodium (does not include salt to taste); 14 grams protein


Nutritional information per serving (6 servings): 254 calories; 12 grams fat; 2 grams saturated fat; 3 grams polyunsaturated fat; 7 grams monounsaturated fat; 0 milligrams cholesterol; 29 grams carbohydrates; 9 grams dietary fiber; 27 milligrams sodium (does not include salt to taste); 10 grams protein


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Senate Passes Tax Increases on Wealthy Americans


Drew Angerer/Getty Images


Vice President Joseph R. Biden Jr. arrived for a closed-door meeting with Senate Democrats on Monday evening.







WASHINGTON – The Senate, in a pre-dawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.




     The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89-8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.


     Quick passage before the markets reopen Wednesday would likely negate any economic damage from Tuesday’s breach of the so-called “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.


“This shouldn’t be the model for how to do things around here,” Senator McConnell said just after 1:30 a.m. “But I think we can say we’ve done some good for the country.”


“You surely shouldn’t predict how the House is going to vote,” Mr. Biden said late New Year’s Eve after meeting with leery Senate Democrats to sell the accord. “But I feel very, very good.”


The eight senators who voted no included Marco Rubio, Republican of Florida and a potential presidential candidate in 2016, two of the Senate’s most ardent small-government Republicans, Rand Paul of Kentucky and Mike Lee of Utah, and Senator Charles E. Grassley, who as a former Finance Committee chairman helped secure passage of the Bush-era tax cuts, then opposed making almost all of them permanent on Tuesday. Two moderate Democrats, Tom Carper of Delaware and Michael Bennet of Colorado, also voted no, as did the liberal Democrat Tom Harkin, who said the White House had given away too much in the compromise. Senator Richard Shelby, Republican of Alabama, also voted no.


The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members – and the American people – have been able to review the legislation.”


     Even with that cautious assessment, Republican House aides said a vote Tuesday is possible.


 


Under the agreement, tax rates would jump to 39.6 percent from 35 percent for individual incomes over $400,000 and couples over $450,000, while tax deductions and credits would start phasing out on incomes as low as $250,000, a clear victory for President Obama, who ran for re-election vowing to impose taxes on the wealthy.


“Just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans,” Mr. Obama said before the vote at a hastily arranged news briefing Monday, with middle-income onlookers cheering behind him. “Obviously, the agreement that’s currently being discussed would raise those rates and raise them permanently.”


 Democrats also secured a full year’s extension of unemployment insurance without strings attached and without offsetting spending cuts, a $30 billion cost. But the two-percentage point cut to the payroll tax that the president secured in late 2010 lapsed at midnight and will not be renewed.


In one final piece of the puzzle, negotiators agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit reduction talks continue. Those cuts begin to go into force on Wednesday, and that deadline, too, might be missed before Congress approves the legislation.


To secure votes, Mr. Reid also told Democrats the legislation would cancel a pending congressional pay raise — putting opponents in the politically difficult position of supporting a raise — - and extend an expiring dairy policy that would have seen the price of milk double in some parts of the country.


The nature of the deal ensured that the running war between the White House and Congressional Republicans on spending and taxes would continue at least until the spring. Treasury Secretary Timothy F. Geithner formally notified Congress that the government reached its statutory borrowing limit on New Year’s Eve. Through some creative accounting tricks, the Treasury Department can put off action for perhaps two months, but Congress must act to keep the government from defaulting just when the “pause” on pending cuts is up. Then in late March, a law financing the government expires.


Jennifer Steinhauer and Robert Pear contributed reporting.



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Cold-Weather Aid Trickles Into Afghan Camps



But camp leaders and Afghan government officials criticized the aid delivery as inadequate to protect residents from the weather and to prevent more deaths.


Last winter, more than 100 children died of the cold in refugee camps around Kabul, with 26 dying in the Charahi Qambar camp alone. That is the same camp where the 3-year-old died Friday; it was the first confirmed death because of the cold this winter.


The distribution of supplies at the camp, which is home to about 900 families in western Kabul, had been scheduled before news reports about the child’s death, said Mohammad Nader Farhad, a spokesman for the United Nations refugees agency in Kabul.


On less than an hour’s notice, the agency convened a news conference with Afghan government officials at the camp to announce the distribution.


Each family was given warm children’s clothing, blankets, tarps, cooking utensils and soap. Separately, other aid groups, financed by the United Nations and other donors, will be distributing charcoal once every month through February, officials said.


United Nations officials acknowledged, however, that the fuel distributions in themselves were not enough to heat the mud and tarp huts throughout the season, and there were no plans to distribute food to the families. In most cases the men, who are largely war-displaced refugees, are unable to find day work as laborers in the cold weather, so they are usually unable to buy food.


“We are happy to receive this,” said Tawoos Khan, one of the camp representatives. “But we want food, and we need more fuel; we have all run out of firewood and charcoal.” He and other camp officials said large sacks of charcoal were distributed to every family more than two weeks ago, but supplies had run out.


“It’s supplementary,” said Douglas DiSalvo, a protection officer with the United Nations agency who was at the Charahi Qambar camp. “People have some level of support they can achieve for themselves.”


Mr. Farhad said, “The assistance we are providing, at least it is mitigating the harsh winter these families are experiencing right now.”


The estimated 35,000 people in 50 camps in and around Kabul are not classified as refugees from an international legal point of view, but as “internally displaced persons.” Since the United Nations agency’s mandate is to primarily help refugees — defined as those who flee across international borders — it has not provided support to the Kabul camps in the past. That changed late last winter when the Afghan government asked it to do so in response to the conditions that were taking so many lives.


This year, the agency is spearheading the effort to supply the camps, along with the Afghan government’s Ministry of Refugees and Repatriation, other United Nations agencies, and several aid groups, in order to prevent a recurrence of the crisis last winter.


Ministry officials, however, criticized the effort on Sunday — even though they were among the sponsors. “We have never claimed that we provided the internally displaced Afghans with sufficient food items, clothing or means of heat. We admit this. What the internally displaced people have received so far is not adequate at all,” said Islamuddin Jurat, a spokesman for the Ministry of Refugees and Repatriation.


“Before the arrival of harsh winter,” he added, “we asked the international community and donor countries to help the internally displaced people, and luckily today U.N.H.C.R. provided them with some humanitarian assistance. But again we believe it’s not sufficient at all.”


Both aid officials and the Afghan government have said they are wary about providing too much aid for fear that it would encourage more people to leave their homes. That fear has also been why the Afghan government has refused to allow permanent buildings to be erected in the camps, many of which are five or more years old.


“The illegal nature of these squatter settlements poses an obstacle to more lasting interventions and improvements,” said Mr. Farhad of the United Nations refugees agency. “Coordination this year has been very strong, and we expect that the multiagency effort will help us to detect and respond to particular problem areas as the winter progresses.”


Little is provided in the way of food aid. The only food aid in the Charahi Qambar camp is a hot lunch program for 750 students at a tented school run by Aschiana, an Afghan aid group.


The United Nations High Commissioner for Refugees is providing the cold-weather packages to 40,000 families, 5,000 of them in the Kabul camps, at a cost of $6 million. Other Kabul camps will receive distributions in the next two days, Mr. Farhad said.


The packages, which cost about $150 each, include two tarps, three blankets, six bars of soap, a cooking utensils set, and 26 items of clothing ranging from jackets and sweaters to socks and hats, mostly for children.


Taj Mohammad, the father of the child who died, Janan, said Sunday that he believed that his son might have survived if the cold-weather kit had arrived earlier. But like many of the refugees, he was critical of its contents, which he said were hard to sell in exchange for food.


“I didn’t know a package costs $150,” he said. “It’s a lot of money. It would have been much better if they had given us the money, and we would have spent it on what we need the most.”


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Questcor Finds Profit for Acthar Drug, at $28,000 a Vial


Kevin Moloney for The New York Times


Christina Culver with her son Tyler, 6, at home in Colorado Springs this month. In 2007, Tyler was hospitalized when the price of Acthar soared.





THE doctor was dumbfounded: a drug that used to cost $50 was now selling for $28,000 for a 5-milliliter vial.


The physician, Dr. Ladislas Lazaro IV, remembered occasionally prescribing this anti-inflammatory, named H.P. Acthar Gel, for gout back in the early 1990s. Then the drug seemed to fade from view. Dr. Lazaro had all but forgotten about it, until a sales representative from a company called Questcor Pharmaceuticals appeared at his office and suggested that he try it for various rheumatologic conditions.


“I’ve never seen anything like this,” Dr. Lazaro, a rheumatologist in Lafayette, La., says of the price increase.


How the price of this drug rose so far, so fast is a story for these troubled times in American health care — a tale of aggressive marketing, questionable medicine and, not least, out-of-control costs. At the center of it is Questcor, which turned the once-obscure Acthar into a hugely profitable wonder drug and itself into one of Wall Street’s highest fliers.


At least until recently, that is. Now some doctors, insurance companies and investors are beginning to have doubts about whether the drug is really any better than much cheaper alternatives. Short-sellers have written scathing criticisms of the company, questioning its marketing tactics and predicting that its shareholders are highly vulnerable.


 That Acthar is even a potential blockbuster is a remarkable turn of events, considering that the drug was developed in the 1950s by a division of Armour & Company, the meatpacking company that once ruled the Union Stock Yards of Chicago. As in the 1950s, Acthar is still extracted from the pituitary glands of slaughtered pigs — essentially a byproduct of the meatpacking industry.


The most important use of Acthar has been to treat infantile spasms, also known as West syndrome, a rare, sometimes fatal epileptic disorder that generally strikes before the age of 1.


For several years, Questcor, which is based in Anaheim, lost money on Acthar because the drug’s market was so small. In 2007, it raised the price overnight, to more than $23,000 a vial, from $1,650, bringing the cost of a typical course of treatment for infantile spasms to above $100,000. It said it needed the high price to keep the drug on the market.


“We have this drug at a very high price right now because, really, our principal market is infantile spasms,” Don M. Bailey, Questcor’s chief executive, told analysts in 2009. “And we only have about 800 patients a year. It’s a very, very small — tiny — market.”


Companies often charge stratospheric prices for drugs for rare diseases — known as orphan drugs — and Acthar’s price is not as high as some. Society generally tolerates those costs to encourage drug companies to develop crucial, possibly lifesaving drugs for these often neglected diseases.


But Questcor did almost no research or development to bring Acthar to market, merely buying the rights to the drug from its previous owner for $100,000 in 2001. And while the manufacturing of Acthar is complex, it accounts for only about 1 cent of every dollar that Questcor charges for the drug.


Moreover, the tiny “orphan” market soon became much bigger. Before long, Questcor began marketing the drug for multiple sclerosis, nephrotic syndrome and rheumatologic conditions, even though there is little evidence that Acthar is more effective for those other conditions than alternatives that are far cheaper. And the company did so without being required to prove that the drug actually works. That is because Acthar was approved for use in 1952, before the Food and Drug Administration required clinical trials to show a drug is effective for a particular disease. Acthar is essentially grandfathered in.


Today, only about 10 percent of the drug’s sales are for infantile spasms. The new uses, Mr. Bailey has told analysts, represent multibillion-dollar opportunities for Acthar and Questcor, its sole maker.


The results have been beyond even the company’s wildest dreams. Sales of Acthar, which accounts for essentially all of Questcor’s sales, totaled nearly $350 million in the first nine months this year, up 145 percent from the period a year earlier. In the same period, Questcor’s earnings per share nearly tripled, to $2.12. In the five years after the big Acthar price increase in August 2007, Questcor shares rose from around 60 cents to about $50, in one of the best performances of any stock in any industry.


But in September, the shares plummeted after Aetna, the big insurer, said it would no longer pay for Acthar, except to treat infantile spasms, because of lack of evidence the drug worked for other diseases. The stock now trades at $26.93.


Peter Wickersham, senior vice president for cost of care at Prime Therapeutics, a pharmacy benefits manager that has found the drug is possibly being overused, says the huge increase in Acthar’s price for patients “just invites the type of scrutiny that it’s received.”


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Chinese Firm Is Cleared to Buy American DNA Sequencing Company


Ramin Rahimian for The New York Times


DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.







The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.




The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.


Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.


The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.


A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.


But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.


Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.


Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.


BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.


“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”


BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”


BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.


Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.


Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.


“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.


Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.


BGI and Complete Genomics dismissed such concerns as preposterous.


Read More..

Chinese Firm Is Cleared to Buy American DNA Sequencing Company


Ramin Rahimian for The New York Times


DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.







The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.




The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.


Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.


The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.


A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.


But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.


Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.


Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.


BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.


“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”


BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”


BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.


Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.


Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.


“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.


Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.


BGI and Complete Genomics dismissed such concerns as preposterous.


Read More..

Chinese Firm Is Cleared to Buy American DNA Sequencing Company


Ramin Rahimian for The New York Times


DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.







The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.




The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.


Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.


The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.


A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.


But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.


Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.


Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.


BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.


“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”


BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”


BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.


Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.


Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.


“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.


Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.


BGI and Complete Genomics dismissed such concerns as preposterous.


Read More..