exxon found reckless in 1989 valdez oil spill
TRANSCRIPT
NEWS OF THE WEEK
pores, and you can fill those pores with polymers, metals, semiconductors, or other materials. The size of the nanostructure you make is limited by the pore diameter. Tom [Bein] now has the record—3 nm is pretty small/'
According to Sailor, "Living systems can communicate on a molecular-size scale. For instance, (3-carotenes conduct energy or electrons over a truly molecular wire. Thomas Bein's work shows you can do this in a size regime that's pretty close to that." Achieving conductivity in such a small fiber, he says, "is a key achievement in pushing electronic devices down toward the molecular level."
Stu Borman
Merck chooses outsider to head firm in new era In a move that has stunned the industry, Merck has named Raymond V. Gilmartin, an outsider to the world's largest drug maker with no experience in the pharmaceutical field, as the company's new president and chief executive officer (CEO).
In succeeding P. Roy Vagelos to head the New Jersey-based firm, Gilmartin, 53, will also take the title of chairman upon Vagelos' retirement on Nov. 1 at age 65. Gilmartin is currently president, CEO, and chairman of Becton Dickinson & Co., a $2.5 billion medical supply company also based in New Jersey. Vagelos has headed Merck, which had sales of $10.5 billion last year, for nine years.
Gilmartin comes to Merck at a tumultuous time, with the drug industry under attack for its pricing practices. He brings to Merck seven years of experience gained at Becton Dickinson to guide the drug company through the pressures of health care reform and managed health care. He is known for his success in strategic planning and marketing, aggressive cost cutting, and reorganization.
At the same time, says Vagelos, Gilmartin understands and respects "the crucial link between business and science and technology" and is expected to continue Merck's more than $1.2 billion annual investment in R&D.
The choice of Gilmartin surprised industry observers because he lacks direct experience in pharmaceuticals and he is the first outsider to become CEO in the firm's 103-year history.
Speculation about Vagelos' successor has been rampant since he announced
about two years ago that he would retire in 1994. And the candidates whose names surfaced changed as frequently as Merck executives came and went.
In early 1993, Richard J. Markham, now 43, was promoted to president and chief operating officer of Merck, and it was generally assumed that he was the most likely successor. However, he resigned about seven months later for "personal reasons" and became Marion Merrell Dow's president in late 1993. John L. Zabriskie, 54, executive vice president and president of Merck's manufacturing division, left the company in late 1993 to become Upjohn's chairman and CEO.
And just last month, another candidate, Martin J. Wygod, resigned. Wygod, 54, was chairman of Medco Containment, the managed health care and pharmaceutical distribution firm that Merck took over for $6 billion in late 1993.
Ann Thayer
Dow Coming mulls over filing for bankruptcy Dow Coming's handling of litigation related to problems with its silicone breast implant materials has taken a new and unusual turn.
Earlier this month, company chairman Keith McKennon told a Wall Street Journal reporter that, although the company was not thinking of filing for bankruptcy now, it could be an option in the future if too many women decide to sue the company individually rather than join a proposed $4.2 billion settlement.
His comments, in response to rumors about the company's plan to file for bankruptcy, led some financial analysts to suggest the chairman was trying to "scare" women into joining the settlement, which could potentially save the company millions of dollars in litigation fees.
William R. Young, a vice president and principal with investment bankers Donaldson, Lufkin & Jenrette, New York City, says McKennon's comments were made "to scare those [women] thinking of opting out" of the proposed settlement, under which women would receive compensation for claims that the implants compromised their health. The deadline for joining the settlement was June 17.
The company, Young points out, has already set up reserves it can live with to fund the proposed settlement. However,
if too many women decide to pursue their individual claims instead, Dow Corning could face billions of dollars more in litigation costs than it now faces in its $2 billion commitment in the proposed implant settlement.
In addition to Dow Corning, which had sales of $2 billion and income of $128 million from its 1993 operations, companies participating in the proposed settlement are other implant makers and silicone suppliers: Bristol-Myers Squibb, Baxter Health Care, 3M, and Union Carbide. But Dow Corning, which at one time supplied almost half of all silicone breast implants, has the most to lose if the settlement falls apart.
Paul Raman, vice president of brokerage firm S. G. Warburg, New York City, agrees with Young's assessment. As Raman figures it, women who sign on will get an average $4,800 each— barely enough to remove the implants. Judging by settlements to date, women might receive awards of $6 million or more on some of the more than 10,000 federal lawsuits outstanding, he says.
If women opt out, however, they will have to prove that silicones made them sick or that the implant manufacturers misled them. Both assertions could be difficult to prove, Raman says.
A new study reported in the New England Journal of Medicine last week [330, 1697 (1994)] may, in fact, influence more women to accept the implant settlement than reject it. The study, based on data from the Mayo Clinic, casts doubt on claims that breast implants lead to disease. Researchers compared the records of 749 women with implants with those of 1,498 women who do not have implants. They found no increase in the likelihood of developing disease among implant recipients.
Marc Reisch
Exxon found reckless in 1989 Valdez oil spill A federal jury in Anchorage last week found that Exxon's reckless conduct caused the 1989 Exxon Valdez accident that spilled 10.9 million gal of oil into Alaska's Prince William Sound.
The decision, the first phase of a four-part civil case over the spill, opens Exxon to punitive damages as high as $15 billion and compensatory claims as high as $1.5 billion. Most of the plain-
8 JUNE 20,1994 C&EN
Boats and booms clean up Exxon Valdez oil spill in 1989 in Alaska's Saw Mill Bay.
tiffs, at least 14,000, are commercial fishermen and native Alaskans.
The trial's second phase, to consider compensatory damages, begins this week; punitive damages are on the docket of a third phase, scheduled for later this summer. The fourth phase will consider thousands of individual claims brought by other plaintiffs.
Plaintiffs argued that Exxon was reckless in allowing Joseph Hazelwood to serve as captain of the supertanker knowing that he had a history of alcoholism and had resumed drinking. Witnesses testified he drank up to 14 shots of vodka the afternoon before the Valdez grounded, says one of the plaintiffs' attorneys, Lori Wagner, from the Minneapolis firm Faegre & Benson. "As a result of being impaired, he left the bridge to an unendorsed mate," she says. "Exxon was aware of all of the things that led up to the spill. And with Hazelwood's position, as managing agent of the company, his act should be attributable to the company."
Hazelwood, whom the jury found negligent and reckless, admitted to drinking but said he was neither impaired nor negligent in leaving the bridge.
"We are disappointed with the jury's finding," says Exxon chairman Lee Raymond. "We believe, however, that the evidence presented in the next phases of the trial showing what Exxon has already spent and done will convincingly demonstrate that no award of punitive damages should be made."
Exxon has voluntarily spent $2.2 billion on cleanup and $300,000 on settling damage claims. It has also paid
$1.1 billion in settlements of state and federal litigation.
Wagner says the $300,000 has not offset the spill's impact on the salmon and herring markets, the long-term damage to fish stocks, and the decline in value of commercial fishing licenses.
Industry analysts do not expect that a large award would destroy Exxon or push it into bankruptcy as a $10.3 billion award forced Texaco to do in 1987. Exxon had $111 billion in revenues in 1993. Michael Mayer, director of the investment banking firm Wertheim Schroeder, New York City, calculates that every $1 billion in damages, assiiming a tax deduction and no insurance, would affect the company's 1.24 billion shares by 50 cents per share. By June 15, two days after the verdict, Exxon stock had dropped to a 52-week low of $57 a share.
Elisabeth Kirschner
Platelet growth factor cloned and characterized In work with potential implications for cancer chemotherapy, the long-sought platelet regulatory factor thrombopoietin (TPO) has been cloned and characterized.
Platelets (thrombocytes) are necessary for blood clotting. Cancer patients treated with chemotherapy or bone marrow transplants often develop thrombocytopenia, a dangerous reduction in platelet levels that can cause hemorrhaging. Researchers have long believed that the blood factor TPO can increase platelet levels, but no one has been able to purify it. Now, TPO has been iso
lated, cloned, and tested by several research groups.
Dan L. Eaton of Genentech, South San Francisco, Calif., and coworkers report purifying TPO from the plasma of pigs and cloning the human gene for the protein [Nature, 369, 533 (1994)]. The researchers show that recombinant TPO significantly increases platelet production when injected into animals.
Donald C. Foster and coworkers at Seattle-based ZymoGenetics Corp., a subsidiary of Novo Nordisk in Denmark, also report cloning the TPO gene [Nature, 369, 565 (1994)]. They find that injecting mice with the recombinant protein increases circulating platelet levels more than fourfold after seven days. Other thrombocytopenia drugs in development have shown only 30 to 70% increases in platelet levels, according to the company.
Further work by Kenneth Kaushansky of the University of Washington's School of Medicine, Seattle, and coworkers there and at ZymoGenetics shows that TPO stimulates in vitro proliferation of megakaryocytes (cells from which platelets arise) and increases platelet levels in mice [Nature, 369,568 (1994)].
Currently, thrombocytopenia is treated with transfusions of platelets, which are often attacked by the body's immune system. Several interleukins act to increase platelet levels, but they work slowly and have undesirable side effects. TPO could potentially be a more effective drug—assuming clinical trials show that it can improve platelet counts significantly.
Foster says the TPO development "represents a major step forward in our understanding of the regulation of blood cell production and potentially in the development of a treatment for life-threatening platelet deficiencies."
In a commentary in the same issue of Nature, Donald Metcalf of the Royal Melbourne Hospital, Victoria, Australia, a researcher who has also sought to isolate TPO, says, "Prospects look good that [TPO] will quickly find wide clinical applications, provided that there are no unforeseen side effects."
Novo Nordisk and Genentech have both filed patent applications for recombinant TPO, and Metcalf comments that "with at least one other group rumored to have cloned TPO, it will... be a busy time for the lawyers arguing who has the patent rights to what should prove to be a . . . valuable new therapeutic agent."
Stu Borman
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