Wall Street drifts after two-day run, Dow record in sight

NEW YORK (Reuters) - U.S. stocks edged higher on Thursday with investors hard-pressed to lift indexes to multi-year highs despite strong economic data.


The U.S. economy ticked up in the fourth quarter, reversing an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a string of data that suggests the economy improved early this year.


Still, the positive revision to GDP data was expected and the claims continue a trend that is baked into prices. The market lacks catalysts as it digests its recent move higher, according to Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey, where he helps oversee $120 billion in assets under management.


"That's why I think you're seeing a fairly listless trading environment today," Caron said.


The Dow was within striking distance of a record high after a more than 7 percent year-to-date run. The Dow transports index <.djt>, seen as a bet on future growth, is up almost 13 percent this year and hit a record intraday high Thursday before turning slightly negative.


The Dow Jones industrial average <.dji> rose 14.79 points or 0.11 percent, to 14,090.16, the S&P 500 <.spx> gained 3.12 points or 0.21 percent, to 1,519.11 and the Nasdaq Composite <.ixic> added 9.13 points or 0.29 percent, to 3,171.39.


The Dow's intraday record, set October 11, 2007, stands at 14,198.10.


The S&P 500 has gained more than 2 percent in the past three sessions.


Equity markets suffered steep losses earlier in the week on concerns over the impact of an Italian election on the European economy, but bounced back on strong data and recent comments by Federal Reserve Chairman Ben Bernanke that showed continued support for the Fed's economic stimulus policy.


J.C. Penney Co Inc slumped 17.9 percent to $17.38 after the department store reported a steep drop in sales on Wednesday. Groupon Inc also slumped on weak revenue, with the stock off 20 percent at $4.76.


Cablevision shares tumbled nearly 10 percent after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.


Mylan Inc shares were on track to close at their highest ever after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd. Shares were last up 3.8 percent at $29.66.


Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.


With 93 percent of the S&P 500 companies having reported results so far, 69.5 percent have beaten profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


(Reporting by Rodrigo Campos, additional reporting by Ryan Vlastelica; Editing by Nick Zieminski)



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The Lede: Video of Pope Benedict’s Public Farewell

An English translation from the Vatican of Pope Benedict XVI’s last general audience before his formal resignation on Thursday.

As our colleagues, Rachel Donadio and Alan Cowell report, Pope Benedict XVI held his final general audience in St. Peter’s Square on Wednesday, a day before he withdraws from the public for a cloistered life of prayer and meditation.

Before tens of thousands of people gathered in the square, the pope acknowledged the difficulties he faced during his papacy, describing “moments of joy and light but also moments that were not easy.”

From the full text of his address:

When, almost eight years ago, on April 19th, [2005], I agreed to take on the Petrine ministry, I held steadfast in this certainty, which has always accompanied me. In that moment, as I have already stated several times, the words that resounded in my heart were: “Lord, what do you ask of me? It a great weight that You place on my shoulders, but, if You ask me, at your word I will throw out the nets, sure that you will guide me” – and the Lord really has guided me. He has been close to me: daily could I feel His presence.

[These years] have been a stretch of the Church’s pilgrim way, which has seen moments joy and light, but also difficult moments. I have felt like St. Peter with the Apostles in the boat on the Sea of Galilee: the Lord has given us many days of sunshine and gentle breeze, days in which the catch has been abundant; [then] there have been times when the seas were rough and the wind against us, as in the whole history of the Church it has ever been – and the Lord seemed to sleep. Nevertheless, I always knew that the Lord is in the barque, that the barque of the Church is not mine, not ours, but His – and He shall not let her sink. It is He, who steers her: to be sure, he does so also through men of His choosing, for He desired that it be so. This was and is a certainty that nothing can tarnish. It is for this reason, that today my heart is filled with gratitude to God, for never did He leave me or the Church without His consolation, His light, His love.

On Twitter, the pope’s account, @Pontifex, which has more than 1.5 million followers, posted:

Shortly after he announced his resignation, he asked on Twitter for people “to pray for me and for the church, trusting as always in divine providence.”

From St. Peter’s Square, people posted photographs from the crowd, including a shot of the pope arriving in the so-called popemobile, on his way to deliver his final farewell.

Pius Pietrzyk, a Dominican priest from the United States, shared multiple photos from the square on his blog, and wrote about his experience in the square and the words in the pope’s farewell address that touched him the most.

I followed what I could of the audience in Italian. (It is already available online.) A number of lines struck me, but more than anything else probably was when he said, “the Barque of the Church is not mine, it’s not ours, it’s His and he will not let it flounder.”

As my colleague, Laurie Goodstein reports, the church faces, among its many challenges as cardinals gather to select a new pope, the wounds caused by sexual abuse cases involving minors all over the world that have been mishandled for years.

In St. Peter’s Square, the pope also spoke briefly in English to the crowd.

The pope spoke in English, and asked Catholics to pray for both him and the new pope.

I offer a warm and affectionate greeting to the English-speaking pilgrims and visitors who have joined me for this, my last General Audience. Like Saint Paul, whose words we heard earlier, my heart is filled with thanksgiving to God who ever watches over his Church and her growth in faith and love, and I embrace all of you with joy and gratitude. During this Year of Faith, we have been called to renew our joyful trust in the Lord’s presence in our lives and in the life of the Church. I am personally grateful for his unfailing love and guidance in the eight years since I accepted his call to serve as the Successor of Peter. I am also deeply grateful for the understanding, support and prayers of so many of you, not only here in Rome, but also throughout the world.

The decision I have made, after much prayer, is the fruit of a serene trust in God’s will and a deep love of Christ’s Church. I will continue to accompany the Church with my prayers, and I ask each of you to pray for me and for the new Pope. In union with Mary and all the saints, let us entrust ourselves in faith and hope to God, who continues to watch over our lives and to guide the journey of the Church and our world along the paths of history. I commend all of you, with great affection, to his loving care, asking him to strengthen you in the hope which opens our hearts to the fullness of life that he alone can give. To you and your families, I impart my blessing. Thank you!

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Josh Brolin and Diane Lane's Split Was 'Mutual,' Says James Brolin















02/27/2013 at 12:30 PM EST



James Brolin said his son Josh is doing fine in the wake of his impending divorce from Diane Lane, calling their split "mutual."

Brolin – who accompanied wife Barbra Streisand as she performed at the Oscars Sunday night – said his son, 45, was watching the Academy Awards show at a party with famed film directors the Coen brothers and his daughter.

"He's great," Brolin said. "You know, everything is mutual. It's all okay."

Josh Brolin and Lane, 48, were introduced by Streisand at a 2002 party and were married in 2004 at the actor's California ranch. They were separated for some time before Lane signed divorce papers on Valentine's Day, a source tells PEOPLE.

"This was a hard decision for both of them to make," added the source. "The relationship just ran its course."

James Brolin said his son, who had been married before to Alice Adair and who has two children, was coping well. "Evidently he's doing well," said James of Josh. "Everything is fine."

Reporting by AILI NAHAS

For much more on this story, pick up the latest issue of PEOPLE, on newsstands now

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Vt. lye victim gets new face at Boston hospital


BOSTON (AP) — A Vermont nurse disfigured in a 2007 lye attack has received a new face at a Boston hospital.


Carmen Blandin Tarleton's full facial transplant at Brigham & Women's Hospital included transplanting a female donor's facial skin to Tarleton's neck, nose and lips, along with facial muscles, arteries and nerves.


Hospital officials say the 44-year-old Thetford, Vt., woman suffered burns on more than 80 percent of her body after her estranged husband attacked her.


Tarleton's sister said Wednesday she showed "great appreciation" for the gift she's been given.


The donor's family believes their loved one's spirit lives on in Tarleton.


Tarleton has undergone more than 50 surgeries. The latest took 15 hours and included a team of more than 30 medical professionals.


Tarleton once worked as a transplant nurse.


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India Ink: Image of the Day: Feb. 26

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Ben Affleck Finally Comes Clean - and Shaves His Beard!









02/26/2013 at 12:40 PM EST







Jennifer Garner and Ben Affleck


David Livingston/Getty


And what did Ben Affleck do after his Argo won Best Picture on Sunday night? He took it all off – his facial hair, that is.

A friend of the actor-filmmaker's confirms to PEOPLE that following the Oscars ceremony Affleck, 40, shaved his beard at Craig's restaurant in Hollywood, – where wife Jennifer Garner and pal and Argo co-producer George Clooney were celebrating with him.

"The whole family was tired of [his] beard," says the friend.

Sure enough: "Jen brought clippers!" he added.

According to TMZ.com, the shave took place in the middle of the restaurant's hallway.
Shakthi Jothianandan

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C. Everett Koop, 'rock star' surgeon general, dies


NEW YORK (AP) — Dr. C. Everett Koop has long been regarded as the nation's doctor— even though it has been nearly a quarter-century since he was surgeon general.


Koop, who died Monday at his home in Hanover, N.H., at age 96, was by far the best known and most influential person to carry that title. Koop, a 6-foot-1 evangelical Presbyterian with a biblical prophet's beard, donned a public health uniform in the early 1980s and became an enduring, science-based national spokesman on health issues.


He served for eight years during the Reagan administration and was a breed apart from his political bosses. He thundered about the evils of tobacco companies during a multiyear campaign to drive down smoking rates, and he became the government's spokesman on AIDS when it was still considered a "gay disease" by much of the public.


"He really changed the national conversation, and he showed real courage in pursuing the duties of his job," said Chris Collins, a vice president of amfAR, the Foundation for AIDS Research.


Even before that, he had been a leading figure in medicine. He was one of the first U.S. doctors to specialize in pediatric surgery at a time when children with complicated conditions were often simply written off as untreatable. In the 1950s, he drew national headlines for innovative surgeries such as separating conjoined twins.


His medical heroics are well noted, but he may be better remembered for transforming from a pariah in the eyes of the public health community into a remarkable servant who elevated the influence of the surgeon general — if only temporarily.


"He set the bar high for all who followed in his footsteps," said Dr. Richard Carmona, who served as surgeon general a decade later under President George W. Bush.


Koop's religious beliefs grew after the 1968 death of his son David in a mountain-climbing accident, and he became an outspoken opponent of abortion. His activism is what brought him to the attention of the administration of President Ronald Reagan, who decided to nominate him for surgeon general in 1981. Though once a position with real power, surgeon generals had been stripped of most of their responsibilities in the 1960s.


By the time Koop got the job, the position was kind of a glorified health educator.


But Koop ran with it. One of his early steps involved the admiral's uniform that is bestowed to the surgeon general but that Koop's predecessors had worn only on ceremonial occasions. In his first year in the post, Koop stopped wearing his trademark bowties and suit jackets and instead began wearing the uniform, seeing it as a way to raise the visual prestige of the office.


In those military suits, he surprised the officials who had appointed him by setting aside his religious beliefs and feelings about abortion and instead waging a series of science-based public health crusades.


He was arguably most effective on smoking. He issued a series of reports that detailed the dangers of tobacco smoke, and in speeches began calling for a smoke-free society by the year 2000. He didn't get his wish, but smoking rates did drop from 38 percent to 27 percent while he was in office — a huge decline.


Koop led other groundbreaking initiatives, but perhaps none is better remembered than his work on AIDS.


The disease was first identified in 1981, before Koop was officially in office, and it changed U.S. society. It destroyed the body's immune system and led to ghastly death, but initially was identified in gay men, and many people thought of it as something most heterosexuals didn't have to worry about.


U.S. scientists worked hard to identify the virus and work on ways to fight it, but the government's health education and policy efforts moved far more slowly. Reagan for years was silent on the issue. Following mounting criticism, Reagan in 1986 asked Koop to prepare a report on AIDS for the American public.


His report, released later that year, stressed that AIDS was a threat to all Americans and called for wider use of condoms and more comprehensive sex education, as early as the third grade. He went on to speak frankly about AIDS in an HBO special and engineered the mailing of an educational pamphlet on AIDS to more than 100 million U.S. households in 1988.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop's speeches and empathetic approach made him a hero to a wide swath of America, including public health workers, gay activists and journalists. Some called him a "scientific Bruce Springsteen." AIDS activists chanted "Koop, Koop" at his appearances and booed other officials.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


Koop angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


He got static from some staff at the White House for his actions, but Reagan himself never tried to silence Koop. At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day.


After his death was reported Monday, the tributes poured forth, including a statement from New York Mayor Michael Bloomberg, who has made smoking restrictions a hallmark of his tenure.


"The nation has lost a visionary public health leader today with the passing of former Surgeon General C. Everett Koop, who was born and raised in Brooklyn," Bloomberg said. "Outspoken on the dangers of smoking, his leadership led to stronger warning labels on cigarettes and increased awareness about second-hand smoke, creating an environment that helped millions of Americans to stop smoking — and setting the stage for the dramatic changes in smoking laws that have occurred over the past decade."


Dr. Anthony Fauci of the National Institutes of Health taught Koop what was known about AIDS during quiet after-hours talks in the early 1980s and became a close friend.


"A less strong person would have bent under the pressure," Fauci said. "He was driven by what's the right thing to do."


Carmona, a surgeon general years later, said Koop was a mentor who preached the importance of staying true to the science in speeches and reports — even when it made certain politicians uncomfortable.


"We remember him for the example he set for all of us," Carmona said.


Koop's nomination originally was met with staunch opposition. Women's groups and liberal politicians complained Reagan had selected him only because of his conservative views, especially his staunch opposition to abortion.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed as surgeon general after he told a Senate panel he would not use the post to promote his religious ideology. He kept his word and eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy.


Koop was modest about his accomplishments, saying before leaving office in 1989, "My only influence was through moral suasion."


The office declined after that. Few of his successors had his speaking ability or stage presence. Fewer still were able to secure the support of key political bosses and overcome the meddling of everyone else. The office gradually lost prestige and visibility, and now has come to a point where most people can't name the current surgeon general. (It's Dr. Regina Benjamin.)


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


He maintained his personal opposition to abortion. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


Worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, Koop opened an institute at Dartmouth College in New Hampshire to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats. He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


He received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it. In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children. Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine. He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


___


Contributing to this report were Associated Press writers Wilson Ring in Montpelier, Vt.; Jeff McMillan in Philadelphia; and AP Medical Writer Lauran Neergaard in Washington.


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South Korea’s Park Geun-hye Warns North Against Nuclear Pursuits


Park Jin-Hee/Getty Images


Park Geun-Hye, South Korea's president, salutes during her inauguration ceremony in front of the National Assembly building on Monday in Seoul.







SEOUL, South Korea — The country’s new president, Park Geun-hye, was sworn into office on Monday, facing far more complicated fissures both within South Korea and with North Korea than her father did during his Cold War dictatorship, which ended with his assassination 33 years ago.




Ms. Park, 61, is the first child of a former president to take power here, as well as the first woman, a remarkable turn for a country where Parliament, the cabinet and corporate board rooms are predominantly male and the gender income gap is the widest among member countries of the Organization for Economic Cooperation and Development.


In her address, Ms. Park called for the revival of an economic boom her father, Park Chung-hee, had once overseen and urged North Korea to abandon its nuclear weapons program.


After the ceremony, in front of the National Assembly, her motorcade moved through a downtown Seoul packed with well-wishers. Her return to the presidential Blue House, her childhood home, was a triumphant moment for her and old South Koreans loyal to her father. His quashing of dissent and censorship of the press in his 18-years of iron-fisted rulewere much maligned among South Koreans during the country’s struggle for democracy.


She was elected Dec. 19, thanks largely to the support of South Koreans in their 50s and older who grew disenchanted with fractured politics and recalled how, South Korea under the dictatorship had begun its evolution from a country where per-capita income was just $100 a year into what is now a global economic powerhouse whose smartphones, cars and ships are exported around the world.


But while her father, Ms. Park begins a single, five-year term facing sharp criticism from younger and liberal South Koreans who have no fear of speaking out. When she named Queen Elizabeth I of Britain as her role model, they filled blogswith derision for her sense of entitlement. They openly called her election a return to the past, arguing that the seeds of some of the country’s biggest problems, such as the unruly influence of family controlled conglomerates, were sown under her father and accused her of glorifying his rule.


South Korea’s political rivalries are freewheeling, evidenced most recently by the arrest of a 76-year-old Christian pastor last week who claimed that Ms. Park had sex with the North Korean leader Kim Jong-il during her visit to Pyongyang in 2002. His videotaped allegations were circulated widely through the Internet.


Meanwhile, two weeks before Ms. Park’s inauguration, North Korea detonated an underground nuclear device, testing her campaign promise to reach out to the North to help end five years of diplomatic silence and high tension on the divided Korean Peninsula under her predecessor, Lee Myung-bak, a fellow conservative.


In her inaugural address, “North Korea’s recent nuclear test is a challenge to the survival and future of the Korean people, and there should be no mistake that the biggest victim will be none other than North Korea itself.”


Speaking before a large crowd that was entertained by the rapper Psy of “Gangnam Style” fame on the lawn in front of the National Assembly, she urged North Korea to abandon its nuclear ambitions without delay, “instead of wasting its resources on nuclear and missile development and continuing to turn its back to the world in self-imposed isolation.”


Ms. Park invoked her father’s era, calling for a “second miracle on the Han River.” The first was the transformation under him of Seoul, the capital city, which straddles the river, from the rubble of the 1950-53 Korean War into an industrialized metropolis. He nurtured a handful of family controlled companies, such as Samsung and Hyundai, as engines of an export-driven economy. These companies have grown into globally recognized conglomerates.


Now, decades later, his daughter vowed to bring South Korea’s slowing economy “rejuvenation” and “revival,” terms favored under her father. But she nodded to the biggest complaints of ordinary South Koreans — widening economic inequality and the conglomerates’ overpowering expansion at the cost of smaller businesses — grievances, saying the second Han River miracle should be based on “economic democratization.”


Ms. Park promised to end unfair practices by big businesses and strengthen small and medium-sized enterprises so that “such businesses can prosper alongside large companies.”


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Jennifer Aniston: The Real Reason I Loved My Oscar Gown







Style News Now





02/25/2013 at 01:10 AM ET











Jennifer Aniston Oscars gownJason Merritt/Getty


Need another reason to love Jennifer Aniston — and her elegant Oscars gown? Just wait until you hear why she picked it: “It fits, it’s comfortable and it’s easy to pee in,” the superstar joked to PEOPLE of her Valentino dress. “You just lift, hoist and do a couple squats!”


Can’t argue with that logic, but wait, there’s more! When fiancĂ© Justin Theroux prompted her, “It’s Valentino red,” she agreed: “Yes, Valentino red! I just loved the color.” No wonder she loves the guy — he’s cute, funny and is well-versed in designers’ signature shades!


RELATED PHOTOS: The Most Fabulous Oscar Party Dresses


That vivid hue is also the reason PEOPLE StyleWatch editors admired Aniston’s dramatic, full-skirted gown. She normally favors neutral looks, so her striking scarlet dress was even more of a standout on a night that featured a lot of subdued shades.


For much more scoop from Aniston (when is that wedding going to be, anyway?) check out this week’s issue of PEOPLE magazine.


Tell us: Did you love Aniston’s Valentino gown? Do you appreciate her favorite thing about it?


–Alex Apatoff, reporting by Aili Nahas


RELATED PHOTOS: 10 Unforgettable Oscars Quotes




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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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