U.S. says China nuclear programs lack transparency

The United States said on Tuesday the lack of transparency surrounding China’s nuclear programs raises questions about the country’s future strategic intentions.

“China’s nuclear arsenal remains much smaller than the arsenals of Russia and the United States,” the Obama administration said in a nuclear policy document unveiled on Tuesday. “But the lack of transparency surrounding its nuclear programs — their pace and scope, as well as the strategy and doctrine that guides them — raises questions about China’s future strategic intentions.”

(Reporting by Phil Stewart, Editing by Sandra Maler)

U.S. limits use of nuclear weapons

The Obama administration announced on Tuesday restrictions in U.S. use of nuclear arms, renouncing development of new atomic weapons and heralding cuts in America’s stockpile.

It also announced plans to pursue high-level bilateral dialogues with Russia and China to promote “more stable and transparent strategic relationships,” according to a defense department document.

Vertical*i Showcase at BIO-International Convention: Power Partnering for Success

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Copyright Business Wire 2010

Terrorism a by-product of Pak’s past mistakes: Zardari

London, Sep. 19 (ANI): President Asif Ali Zardari has revealed that extremism was a by-product of Pakistan’s past mistakes and was deliberately created during the 1980s.

He said the employment of a liberal policy encouraged religious fanaticism and achieved of certain strategic objectives of terror perpetrators.

“What we are witnessing today is the outcome of that policy of the 80′s and even earlier.The policy of using religious extremism as an instrument of war. We in Pakistan have paid a very heavy price for this policy,” The News quoted Zardari, as saying.

Addressing a gathering at London’s International Institute of Strategic Studies (IISS), Zardari pointed out that militants and militancy were not created in a vacuum; they have been the product of a deliberate policy to fight the rival ideology.

The free world adopted a novel strategy that was based on the exploitation of religion to motivate Muslims around the world to wage jehad, he added.

Furthermore, Zardari pointed out that the strategy may have worked well but some serious mistakes were also made as the world abandoned Afghanistan in a hurry and no thought was given to its stability after the withdrawal of foreign forces.

“After the retreat of foreign forces, Afghanistan was abandoned and left at the mercy of the warlords and the jehadis…Pakistan has suffered more than others. For decades we had to host and continue to host millions of Afghan refugees,” he said. (ANI)

British troops far from defeating Taliban, says Brit Defence Secretary

London, Sep.16 (ANI): British troops are a long way from winning the battle against a resilient Taliban in Afghanistan, and the conflict in the country could lead to “major shifts” in military spending, said British Defence Secretary Bob Ainsworth.

“We are facing a resilient enemy which we are far from succeeding against yet,” he told an audience of defence experts at King’s College London.

“I reject the proposition we are not making progress. I also reject the proposition a reduced military presence will lead to less Taliban success,” The Telegraph quoted Ainsworth, as saying further.

A leading thinktank warned earlier that the presence of large numbers of foreign troops in Afghanistan made it harder to achieve a political settlement to the conflict.

The International Institute for Strategic Studies said western forces in Afghanistan needed a “more cunning” strategy if they were to achieve their aims.

Ainsworth said a military failure in Afghanistan would have “profound consequences for our national security” and “undermine the Nato alliance”.

He also called for an open debate about future defence policy and how money for the military should be spent before the government publishes a defence review green paper in advance of next year’s general election. (ANI)

Taliban now terrorise 80% of Afghanistan after eight years of war: Report

Kabul, Sep. 11 (ANI): Almost eight years after the war began in Afghanistan in the aftermath of the 9/11 carnage, the Taliban insurgency has spread across 80 percent of the country.

The violent incidents this week have drawn attention to the deteriorating security situation of northern Afghanistan, which had largely remained peaceful so far, the Christian Science Monitor reports.

The northern provinces are facing difficult times as heavy insurgent activity has spread to 80 percent of the country – up from 54 percent two years ago, the report says.

The militants’ focus has shifted to northern parts following continuous pressure from their Pakistani counterparts to attack NATO’s second supply route situated here, it adds.

“[Militants] have been trying to widen the ground for the insurgency in Afghanistan and now they have got momentum. The militants are eager to target this route to prevent a smooth supply chain from northern Afghanistan,” the report quoted Waliullah Rahmani, executive director of the Kabul Center for Strategic Studies, as saying.

Last week’s airstrike targeted two fuel tankers headed to supply NATO troops in Kabul that had been hijacked by the Taliban.

Although the increase in violence is only a recent phenomenon, the conditions had worsened long ago, the report says.

The violence can be linked to districts with large Pashtun populations, whose grievances the government has failed to address – making them sympathetic to the Taliban, who share their ethnicity and language, it adds.

“The districts which are turning violent are those which have had a very recent history of abuses against the Pashtuns.

The government has allowed these conditions to go unaddressed and this is now being addressed by the population by giving shelter to the Taliban and other insurgents,”the report quoted Prakhar Sharma, the head of research at the Center for Conflict and Peace Studies, as saying.(ANI)

Saraswat takes charge as new DRDO chief

New Delhi, Sep 1 (ANI): Dr Vijay Kumar Saraswat, who is in charge of the development of missile and strategic systems in the country, today took charge as scientific adviser to Defence Minister AK Antony and will also serve as Director General of the Defence Research and Development Organisation.

Dr. Saraswat, who replaced the present incumbent M Natarajan on September 1, will also serve as Secretary Department of Defence Research and Development,.

He is presently Chief Controller Research and Development (Missiles and Strategic Systems) since November 2005 in DRDO.

In this capacity, he spearheaded the development of country’s strategic and tactical missile systems, including the AGNI series of strategic missiles covering a range up to 3000 kms.

Dr Saraswat, who has a doctorate in Combustion Engineering, started his career in DRDO in 1972 at Defence Research and Development Laboratory (DRDL), Hyderabad and was responsible for the development of country’s first Liquid Propulsion Engine.

As Project Director ‘PRITHVI’, he steered the design, development, production and induction of first indigenous Surface-to-Surface missile system ‘PRITHVI’, into armed forces.

The successful testing of DHANUSH missile on board a moving ship with high terminal accuracy brought new dimension in the national defence capability. Dr. Saraswat also pioneered the concept of theatre defence system and integration of national Air Defence elements.

He was Director RCI before taking over as CCR and D(MSS). He has headed various committees of national importance.

Dr Saraswat is forerunner in the development of number of critical missile technologies that were under denial due to Missile Technology Control regime, thus making India self-reliant in Missile Technologies.

He has received several awards including Prof Jai Krishna Memorial Award of Indian National Academy of Engineering (INAE) and National Systems Gold Medal by Systems Society of India.

International Academy of Engineering, Russia, elected Dr. Saraswat as Member of Academy and honoured him as an academician. (ANI)

Saraswat appointed new scientific adviser to Defence Minister

New Delhi, Aug 27 (ANI): Dr Vijay Kumar Saraswat has been appointed as scientific adviser to Defence Minister AK Antony and will also serve as Director General of the Defence Research and Development Organisation.

Dr. Saraswat, who will replace the present incumbent M Natarajan on September 1, will also serve as Secretary Department of Defence Research and Development,.

He is presently Chief Controller Research and Development (Missiles and Strategic Systems) since November 2005 in DRDO.

In this capacity, he spearheaded the development of country’s strategic and tactical missile systems, including the AGNI series of strategic missiles covering a range up to 3000 kms.

Dr Saraswat, who has a doctorate in Combustion Engineering, started his career in DRDO in 1972 at Defence Research and Development Laboratory (DRDL), Hyderabad and was responsible for the development of country’s first Liquid Propulsion Engine.

As Project Director ‘PRITHVI’, he steered the design, development, production and induction of first indigenous Surface-to-Surface missile system ‘PRITHVI’, into armed forces.

The successful testing of DHANUSH missile on board a moving ship with high terminal accuracy brought new dimension in the national defence capability. Dr. Saraswat also pioneered the concept of theatre defence system and integration of national Air Defence elements.

He was Director RCI before taking over as CCR and D(MSS). He has headed various committees of national importance.

Dr Saraswat is forerunner in the development of number of critical missile technologies that were under denial due to Missile Technology Control regime, thus making India self-reliant in Missile Technologies.

He has received several awards including Prof Jai Krishna Memorial Award of Indian National Academy of Engineering (INAE) and National Systems Gold Medal by Systems Society of India.

International Academy of Engineering, Russia, elected Dr. Saraswat as Member of Academy and honoured him as an academician. (ANI)

US, Pak to revive strategic dialogue to strengthen bilateral ties

Islamabad, Aug.21 (ANI): The United States and Pakistan have agreed to revive strategic dialogue between them to strengthen their bilateral ties.

According to sources, the fourth round of Strategic Dialogue between both nations will be held in Islamabad during Secretary of State Hillary Clinton’s visit to Pakistan in October.

The Dawn reported that Clinton is likely to co-chair the talks with Foreign Minister Shah Mehmood Qureshi.

The resumption of talks marks a clear change in America’s policy, as after the appointment of Richard Holbrooke as the region’s Special Envoy, most of the dialogue between the two countries took place through him. (ANI)

Mullen acknowledges possibility of Iran acquiring nuclear weapons

Washington, July 8(ANI): Admiral Michael Mullen, the Chairman of the US Joint Chiefs of Staff (CJCS), has acknowledged the possibility of Iran succeeding in acquiring a nuclear weapon.

Admiral Mullen acknowledged this while addressing the Center for Strategic and International Studies in Washington on Tuesday.

“I believe Iran is very focused on developing this capability, and I think when they get it, or should they get it, it will be very destabilizing,” The Jerusalem Post quoted Admiral Mullen, as saying.

Admiral Mullen also highlighted that an attack on Iran would be similarly destabilizing.

“There are unintended consequences that are very difficult to predict in a very volatile, highly volatile part of the world,” he added.

He specifically warned about the consequences of any step taken by both countries, indicating retaliatory violence spreading throughout the region and potentially to other parts of the world.

He backed the President Obama’s approach of holding talks with Iran, but refused to rule out the use of military strikes despite potential negative effects.

“There is a great deal that certainly depends on the dialogue and the engagement, and I think we need to do that with all options remaining on the table, including, certainly, military options,” Admiral Mullen said.

Estimating that Iran would take one to three years to develop a nuclear weapon, he warned that the time window is closing and that the clock is ticking. (ANI)

N-deal will boost US security, economy: Lugar

By Arun Kumar
Washington, July 7 (IANS) The landmark India-US civil nuclear deal resulting in a strong and enduring partnership with New Delhi would enhance America’s national security and economy, a top US lawmaker said Tuesday.

However, the implementation of this historic deal would depend greatly on the diplomatic work by the new US ambassador to India, Senator Dick Lugar, the top Republican on the Senate Foreign Relations Committee said at a confirmation hearing for Tim Roemer, President Barack Obama’s nominee for the job.

“With this pact, our country embraced a policy based on the premise that the national security and economic future of the United States would be enhanced by a strong and enduring partnership with India,” he said.

“Although the agreement has been concluded, its success will depend greatly on the diplomatic work overseen by our next ambassador,” the senator said, adding: “Roemer’s national security experience will be put to excellent use as ambassador to India.”

The landmark India-US Peaceful Nuclear Cooperation Agreement concluded in 2008 was one of the most important strategic diplomatic initiatives undertaken by the US in the last decade, he said.

India, Japan agree to fast track work on freight, industrial corridors

Tokyo, July 3 (ANI): India and Japan on Friday agreed to take steps to fast track work on the Dedicated Freight Corridor (DFC) and the Delhi Mumbai Industrial Corridor Project.

The decision was announced at a joint press conference by the Foreign Ministers of the two countries-Hirofumi Nakasone and S.M. Krishna-after the conclusion of the two-day Third Japan-India Strategic Dialogue here.

Foreign Minister Nakasone also confirmed bilateral collaboration on the Indian Institute of Technology (IIT), Hyderabad.

On the issue of disarmament and non-proliferation, the Japanese Minister revealed that he had shared Tokyo’s ’11 benchmarks’ for promoting the same, and added that Krishna and he had agreed that both countries should work together to commence negotiations on the Fissile Material Cut-Off Treaty (FMCT) at the earliest.

It was also agreed that there was a need to enhance bilateral exchange of views between Japan and India, on the regional situation in South Asia, international challenges and regional situations.

Both ministers shared the view that the nuclear and missile development by North Korea is a threat to the international community, and that there was a need to implement the measures set out in the UN Security resolution 1874 and make North Korea to take this very seriously.

Endorsing the views of Nakasone, Krishna said New Delhi attached high importance to its bilateral relations with Tokyo.

“We thoroughly reviewed our bilateral relations since my Prime Minister’s visit to Tokyo in October 2008. We agreed that the Strategic and Global Partnership between us is an important factor in furthering our ties, as well as in promoting peace, stability and prosperity in Asia and the world,” said Krishna.

“We are making progress in our negotiations on a Comprehensive Economic Partnership Agreement. Foreign Minister Nakasone and I agreed on the necessity of concluding a high quality and mutually beneficial agreement,” he added.

Krishna also revealed that Japan’s Official Development Assistance to India was reviewed and New Delhi appreciated Tokyo’s contribution to “our economic development”.

He also said that both ministers reviewed the follow-up on the implementation of the Joint Declaration on Security Cooperation.

Other issues taken up were UN reform and the important global challenge of climate change.

Krishna said that he would be calling on Prime Minister Taro Aso before returning to New Delhi. (ANI)

WHO: swine flu deaths in Mexico reach 62

Mexico City/Geneva – The World Health Organisation (WHO) in Geneva said Saturday that the number of deaths from swine influenza in Mexico had reached 62. WHO spokeswoman Fadela Chaib gave the figure, while saying that the organisation’s Strategic Health Operations Centre was now involved in the efforts in the region.

The WHO was in constant contact with health authorities in the United States, Mexico, and countries in the Latin American region in monitoring the situation, she said.

On Friday, Mexican authorities had confirmed the deaths of 20 people due to swine influenza over the past three weeks, while a further 48 deaths were suspected from the disease.

Amid other actions, Mexico City closed its schools and President Felipe Calderon cancelled a visit to the northern city of Ciudad Juarez.

Mexican Health Minister Jose Angel Cordova Villalobos said that the WHO was sending experts, technical support and medicine to Mexico, to assist the authorities in controlling what the minister defined as a “controlled epidemic.”

However, he stressed that Mexico has enough medication to combat the virus.

“We have fully identified the type of virus, and we have anti- viral drugs,” he said.

Cordova Villalobos said the virus is transmitted from one human to another, and noted that there were 1,004 cases of infections across the country.

On Mexico’s northern border, the US states of California and Texas have reported eight cases of swine flu since March, but no deaths as of yet, the US Centers for Disease Control said Friday. Villalobos said. (dpa)

Jordan King accuses US of engaging in torture

Washington, Apr.25 (ANI): Jordan’s King Abdullah II has said in an American TV interview that there is enough evidence available to suggest that the United States had engaged in torture, a topic that has turned into a political firestorm since the release last week of Bush-era interrogation memos.

Abdullah, when asked in an interview with NBC News if he thought the U.S. had tortured, was quoted by Fox News as saying such accounts suggest “that is the case,” calling the CIA’s controversial interrogation techniques “illegal ways of dealing with detainees.”

“But there is still a major battle out there,” he said, adding that he thought President Obama was making improvements to the American legal system.

The interview, to air Sunday on “Meet the Press,” comes after Abdullah called on the United States to support peace between Israel and the Palestinians, and both sides are already testing President Barack Obama’s resolve.

Abdullah, who talked Mid East peace with Obama at the White House earlier in the week, said the United States should have a peace plan “for 2009 and beyond,” in which negotiations produce clear and quick results.

“Now is the time for the United States to lead,” Abdullah said. He warned that time is running out to establish a viable independent Palestinian state alongside Israel. That is the goal all sides have embraced and the outline of a deal is clear, but it will take determination and a push from Washington to make it happen, Abdullah said in an address at the Center for Strategic and International Studies.

“The status quo is simply untenable,” Abdullah said.

The memos released last week by the Obama administration are from 2002 and 2005 and detail legal justification for the CIA’s interrogation techniques used on terror suspects after the Sept. 11 terrorist attacks on New York City and the Pentagon.

Obama plans to invite the Israeli, Palestinian and Egyptian leaders to the White House in the coming weeks for separate discussions on Middle East peace.

Abdullah welcomed what he called early signals from Obama that he will make Middle East peace a priority.

The White House named a special peace envoy but has made no bold moves three months into Obama’s term and during a period of political upheaval in Israel. (ANI)

Two Indian-Americans get key posts in Obama team

United States President Barack Obama on Saturday announced the appointment of two more Indian-Americans – Raj Shah and Aneesh Paul Chopra – to his key administration posts.

While Shah has been nominated as Under Secretary for Research, Education and Economics in the Department of Agriculture, Chopra will be the Chief Performance Officer, Obama announced on Saturday morning in his weekly radio address.

“As Chief Technology Officer, Chopra will promote technological innovation to help the country meet its goals from job creation, to reducing health care costs, to protecting the homeland,” the president said.

In his current position as Virginia’s Secretary of Technology, Chopra leads the strategy to effectively leverage technology in government reform, to promote Virginia’s innovation agenda and to foster technology-related economic development.

He has earlier worked as Managing Director with the Advisory Board Company, leading the firm’s Financial Leadership Council and the Working Council for Health Plan Executives.

On the other hand, another Indian-American Shah is currently the Director of Agricultural Development in the Global Development Programme for Bill and Melinda Gates Foundation. Said to be Gates Foundation’s sharpest executives, Shah, 36, lives in Seattle.

In this capacity, he manages the Foundation’s Agricultural Development programme — including grant-making portfolios in science and technology, farmer productivity, market access, and policy and statistics — with the goal of helping the world’s poor lead healthy and productive lives.

Having joined the Foundation in 2001, he has served as the Foundation’s Director of Strategic Opportunities and Deputy Director of Policy and Finance for Global Health.

In these roles, he helped develop and launch the Foundation’s Global Development Programme and International Finance Facility for Immunisation — an effort that raised more than USD 5 billion for child immunisation and hopes to save more than five million lives around the world.

Prior to joining the Foundation, Shah was the health care policy advisor on the Gore 2000 presidential campaign and a member of Governor Ed Rendell’s transition committee on
health.

Co-founder of Health Systems Analytics and Project IMPACT for South Asian Americans, he has served as a policy aide in British Parliament and worked at World Health Organisation.

Currently, Shah serves on the boards of the Alliance for a Green Revolution in Africa, the Seattle Public Library, and the Seattle Community College District. Shah earned his MD from the University of Pennsylvania Medical School and Master of Science in health economics at Wharton School of Business.

He is a graduate of the University of Michigan and London School of Economics and has published articles on health policy and global development. In 2007, he was named a Young Global Leader by the World Economic Forum.

Obama backs treaty to curb flow of guns over border

MEXICO CITY (Reuters) – President Barack Obama said on Thursday he will push the U.S. Senate to ratify a long-stalled arms trafficking treaty meant to curb the flow of guns and ammunition to drug cartels in Latin America.

Activists want Washington to push for ratification of the Inter-American Convention against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives and Other Related Materials.

The convention, known by Spanish acronym CIFTA, has been languishing in the U.S. Senate since it was adopted in 1997.

Obama, who visited Mexico to show his support for President Felipe Calderon’s efforts to reduce violence and rein in drug cartels, said he would put his weight behind the treaty’s ratification.

“I am urging the Senate in the United States to ratify an inter-American treaty known as CIFTA to curb small arms trafficking that is a source of so many weapons used in this drug war,” he told a joint news conference with Calderon.

Denis McDonough, Director of Strategic Communications at the White House’s National Security Council, told reporters the treaty was on a list that had been submitted to the Senate of treaties the president viewed as priorities.

“This is one of the priority treaties that we’d like to see the Senate’s advise and consent on,” he said.

That may be difficult.

Senate Majority Leader Harry Reid said the United States had to help reduce violence without violating Americans’ right to bear arms, which is enshrined in the Second Amendment of the U.S. Constitution.

“We must work with Mexico to curtail the violence and drug trafficking on America’s southern border, and must protect Americans’ Second Amendment rights,” he said in a statement. “I look forward to working with the President to ensure we do both in a responsible way.”

The treaty has to garner 67 votes in the 100-member Senate, where lawmakers have been loathe to take on the National Rifle Association (NRA), a powerful gun lobby, despite a spate of domestic shootings that have resulted in multiple deaths.

The NRA opposes the treaty.

Wayne LaPierre, NRA executive vice president, said his organization takes “a back seat to no one” in opposing illegal arms trafficking.

“The answer is to enforce the current law. Everything these drug cartels are doing involving firearms is illegal on both sides of the border already,” he told Reuters in a telephone interview.

Jonathan Winer, a former deputy assistant secretary of state who was the main negotiator of the treaty during the Clinton administration, said the treaty would not impose any new restrictions on legal gun sales or ownership in the United States.

“It is designed to help U.S. law enforcement track abuses of firearms of criminals back to the last lawful sale so they can determine what went wrong. It is completely consistent with all U.S. laws and does not ever impose a foreign law on a U.S. person who has abided by U.S. law,” Winer told Reuters.

(Editing by Todd Eastham; additional reporting by Richard Cowan)

Natco Pharma Enters Into Strategic Deal With Dr Reddy’s Lab; Stock Up 12.1%

The Hyderabad based, Natco Pharma, on Wednesday, announced that it has signed up a deal with pharmaceutical major Dr Reddy’s Laboratories.

Under the deal, both the firms will develop, manufacture and sell generic cancer products jointly.

However, the financial details of the deal are not yet known.

Mr. Rajeev Nannapaneni, COO, Natco Pharma stated, “We are delighted to be working with Dr Reddy’s, which has strong reputation and proven track record in the global pharmaceutical industry. We look forward to a mutually beneficial strategic collaboration.”

In a statement, Natco said that Dr Reddy’s will pay an undisclosed amount as upfront in order to secure the rights to sell the products and for capacities to manufacture drugs.

The statement also said that the companies also have a profit-sharing agreement in place.

The products to be made under this strategic partnership include currently selling oral and injectable products, including paclitaxel, which have multi-million dollar sales all through the world.

Paclitaxel is a generic version of Abraxis Bioscience’s breast cancer drug Abraxane.

Natco will exclusively supply the products to Dr Reddy’s, which will sell them throughout the world.

The deal could be extended to comprise more products, Natco added.

The shares of Natco Pharma, on Wednesday (April 15), closed at Rs 73.40, up 12.1%, on the Bombay Stock Exchange (BSE). The total volume of shares traded stood at 74.715. The share price has seen a 52-week high of Rs 105 and a low of Rs 38 on BSE.

India-Pakistan ties vulnerable to Mumbai type attacks: US analysts

Washington, April 14 (IANS) Indian and Pakistani governments’ means of detecting, preventing and responding to Mumbai type incidents needs to be strengthened to reduce the vulnerability of their relations to them, two US analysts have suggested.

The Nov 26-29 terror attacks blamed on Pakistan based terror outfit Lashkar-e-Taiba (LeT) ushered in a period of high tension between India and Pakistan, noted Teresita C. Schaffer and Sabala Baskar.

Schaffer is director of the South Asia Programme at the Centre for Strategic and International Studies (CSIS), a Washington think tank, while Baskar is a research intern there.

Mumbai attacks also sparked the beginnings of an effort to reform India’s internal security response, and may have opened a door to expanded cooperation between the US and India against terrorism.

But, more importantly, the attacks underscored how vulnerable India-Pakistan relations are to incidents of this sort, especially when governments are weak or elections loom, Schaffer and Baskar said.

‘After the Mumbai attacks, caution prevailed during India’s internal deliberations. However, analysts were convinced that another attack of this sort might push India’s political leaders to a more forceful’ and potentially more dangerous ‘response’, the duo said.

‘This possibility reflects the need for a democratic government, especially one facing elections, to show that it can defend its country,’ they said, suggesting ‘the argument that a stable Pakistan serves India’s interest has little political resonance within the country’.

While details of the forensic cooperation between India and the US have not been released, it is clear that US officials were impressed and sobered by what they found, and that the US conveyed this clearly to Pakistan.

This appears to have been a factor in facilitating a relatively constructive Pakistani response.

The 2008 Mumbai episode contrasts with several previous terrorist incidents in which US-India cooperation was clearly hamstrung by US inability to straightforwardly deal with the problem of actual or potential Pakistani involvement.

This may open the door to stronger anti-terrorism cooperation between Delhi and Washington, an important potential addition to the relationship the two countries have been developing, the two researchers said.

But the Mumbai attacks also demonstrated how quickly a seemingly stable India-Pakistan environment can deteriorate.

‘Besides the familiar arguments for political leadership and persistent diplomacy between India and Pakistan, one factor in reducing this vulnerability is strengthening both governments’ means of detecting, preventing, and responding to such incidents,’ Schaffer and Baskar suggested.

Roche’s Humer said to have had Genentech buy doubts

NEW YORK (Reuters) – Roche Chairman Franz Humer, the driving force behind the company’s acquisition of the 44 percent of Genentech it did not already own, apparently did not always think that was good idea.

David Mott, who was chief executive of MedImmune when it was acquired by AstraZeneca (AZN.L), said on Tuesday that he had sought Humer’s advice in 2007 as Mott pondered his future with AstraZeneca shortly after that $15.6 billion deal was announced.

“Our model is a lot like your model with Genentech. We’re going to have an independent operating entity and run it that way,” Mott recalled telling Humer of his integration plan.

“He laughed at me and he said, ‘it will never work because if we owned all of Genentech we would kill it’,” Mott said Humer told him at the time.

“‘We wouldn’t be able to resist tinkering and playing with it and AZ owns all of you, so they say it’s going to be independent but we’d never be able to have that discipline,’” Mott said, quoting Humer.

Mott, who left AstraZeneca a year later, was speaking on a panel at the Windhover Pharmaceutical Strategic Outlook conference at a New York hotel when he related his anecdote about the then CEO of Roche Holding AG (ROG.VX). Mott is currently general partner of venture capital firm New Enterprise Associates.

Roche now believes it can resist the kind of tinkering that might kill the golden goose.

Current Roche management, including Humer and new CEO Severin Schwan, have insisted they will preserve the informal California science-based culture at Genentech that has produced a remarkable number of innovative and lucrative medicines.

The nearly $47 billion deal made sense for Roche as it not only gives it full U.S. revenue from Genentech’s multibillion-dollar cancer drugs, such as Avastin and Herceptin, but fills out what had been a rather sparse developmental pipeline for the Swiss drugmaker.

Following the panel discussion on the ability of biotech companies to survive within big pharmaceutical companies, Mott was asked what he thought Humer might tell him today about Roche owning all of Genentech.

“That it’s going to work,” Mott said with a chuckle. “It’s pretty interesting with hindsight, isn’t it?”

(Reporting by Bill Berkrot; Editing by Tim Dobbyn)

Maoists win three of six seats in Nepal by-elections

KATHMANDU (Reuters) – Nepal’s Maoist former rebels, who now lead a coalition government, have won three of six parliamentary seats in by-elections, their first popularity test since last year.

The Election Commission also said on Sunday that the centrist opposition Nepali Congress party and two other constituents of the ruling coalition won a seat each.

The results of Friday’s by-elections for six seats in the special constituent assembly which also doubles as the Himalayan nation’s parliament, would not significantly affect the government, an analyst said.

Lok Raj Baral, chief of independent think-tank Nepal Center for Strategic Studies said the Maoists’ top position in parliament compared to other parties hadn’t been affected.

“But the popular votes cast for the Maoist candidates and the margin with which they won has narrowed, which shows that they are not as popular as they were during last year’s constituent assembly elections,” he said.

The Maoists, who waged a decade-long civil war from 1996 against the 239-year-old monarchy, abandoned the conflict under a 2006 peace deal and scored a surprise victory in last year’s election for the 601-seat assembly.

Following their election victory last year the Maoists — who after the by-elections will hold 238 seats in the assembly — got the monarchy abolished, their main demand during the war, and have headed the governing coalition since August.

When they took power the Maoists pledged to create a “new Nepal” and provide relief to the people. Nearly one third of the 27 million Nepalis still live on less than a dollar a day.

The government is also battling the highest inflation in more than a decade and a crippling power shortage that has sparked some anti-government protests.

Other political parties, including their allies in the government, also accuse the Maoists of continuing violence.

(Reporting by Gopal Sharma; Editing by Jerry Norton)