YELLOW

* * * * * * MONDAY, JULY 21, 2014 ~ VOL. CCLXIV NO. 17 WSJ.com HHHH $2 .00

LucrativeDrug NicheSparks LegalScramble

Lastweek: DJIA 17100.18 À 156.37 0.9% NASDAQ 4432.15 À 0.4% NIKKEI 15215.71 À 0.3% STOXX600 339.66 À 0.8% 10-YR. TREASURY À 10/32 , yield 2.485% OIL $103.13 À $2.30 EURO $1.3525 YEN 101.35

CONTENTSAbreast of the Market C1CFO Journal................. B5Corporate News B2,3,6Global Finance............ C3Heard on the Street C6Markets Dashboard C4

Media & Marketing B4Moving the Market C2Opinion................... A11-13Sports.............................. B8U.S. News................. A2-4Weather Watch........ B7World News.. A6-10,14

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-WidenThe U.S. charged Russiawith supplying Ukraine sepa-ratists with the rocket used todown aMalaysian plane andwith hiding evidence. The EUthreatened sanctions. A1nThe remains of at least 200of the 298 victims of Flight 17were placed in a refrigeratedtrain as workers combed fieldsfor the rest of the bodies. A1n U.N. air-safety officialsarrived in Kiev and begantalks to take possession ofthe plane’s black boxes. A6-8n Israeli forces enteredGaza’s most densely popu-lated city, drawing heavy fire.Israel said 13 soldiers died andGaza officials said 96 Palestin-ians were killed in the deadli-est day for both sides. A1, A14n Iraqi officials said specialforces secured control of aformer U.S. base, after rebelsbegan pushing into the basewith suicide bombers. A10n Boko Haram seized astrategic town in northeastNigeria. Over 100 residentswere reportedly killed. A10n The audit of votes in Af-ghanistan’s presidential elec-tion has been slowed by a dis-pute over how to disqualifyfraudulent ballots. A14n Fighting in Syria betweenregime forces and Islamistmilitants for control of a gasplant has killed over 100. A10n Iran has turned all of its20%-enriched uranium intomore harmless forms, theU.N. nuclear agency said. A10n Died: James Garner, 86,TV star of “Maverick”and“The Rockford Files.” A2

i i i

Barclays’s dark pool drewcomplaints over high-speed

traders months before NewYork’s attorney general allegedthe firm lied to clients. C1nHedge fund Elliott has takena stake of over $1 billion in EMCand plans to push for a breakupof the data-storage firm. B1nA top Allergan shareholderhas sold nearly all its stake asthe Botox maker tries to staveoff Valeant’s hostile bid. B1n Japanese defense firms aretaking their first steps towardselling arms abroad since anexport ban was eased. B1nSomeworkers at a Caterpil-lar unit said they have done bo-gus railcar repairs due to pres-sure to produce billablework.B1nHouse Republicans aremounting fresh criticism ofthe Dodd-Frank law in a reportto be released Monday. C1nR.J. Reynolds was hitwitha $23.6 billion jury verdict,the latest blow against the to-bacco industry in Florida. B6n Law firm Bingham, hit bypartner departures, is hunt-ing for a merger partner. B5nVerizon’s FiOS is set to un-veil much faster upload Inter-net speeds for its customers.B3n GM detailed the reasonsbehind last month’s recall of7.6 million midsize cars. B6nEspírito Santo said it wouldrepay retail clients who in-vested in commercial paper. C3nDeVry is facing a New Yorkprobe into whether the educa-tion company’s marketing vio-lates false-advertising laws. A3

Business&Finance

GAZA CITY—Israeli groundforces waded into Gaza’s mostdensely populated city for thefirst time in nearly two weeks offighting, destroying tunnels anddrawing heavy fire from Hamasmilitants in the deadliest day offighting for both sides since theconflict began.

Israel said 13 soldiers werekilled and Gaza officials said 96Palestinians were killed Sunday,including 60 in the Gaza Cityneighborhood of Shajaiyeh wherethe battle of the tunnels wasfought. It was also the highesttoll for Israeli soldiers in a singleday since a brief war with theLebanese Shiite militant groupHezbollah in 2006, according tomilitary records.

Hamas’s military wing alsoclaimed it captured an Israelisoldier. Israel said it was check-ing on the claim.

Two American citizens whowere soldiers for the Israel De-fense Force were among the 13killed. “We can confirm thedeaths of U.S. citizens Max Stein-berg and Sean Carmeli in Gaza,”Jen Psaki, State Departmentspokeswoman, said late Sunday.

Israel launched a ground inva-sion of Gaza on Thursday nightwith a high priority on destroy-ing a network of cross-bordertunnels that militants use to in-filtrate Israel. On Saturday, Pal-estinians entered Israel throughone of those tunnels and killedtwo soldiers.

Israel Prime Minister Benja-min Netanyahu had been initiallyreluctant to send in groundforces for fear the military wouldsuffer heavy casualties.

The Israeli attack began withpredawn drone strikes and artil-lery shelling followed by small-arms fire and the sound of Israelifighter jets whooshing overhead.The Israelis came under fire fromantitank missiles and rocket-pro-pelled grenades launched fromdensely populated neighbor-hoods, the military said.

Lt. Col. Peter Lerner, a mili-tary spokesman, described thebattles as “heavy fighting andclose combat.”

Mr. Netanyahu vowed that at-tacks would go on.

“We will complete what theybegan and return quiet to Israel,”he told relatives of the dead sol-diers.

The violence set off a pan-icked exodus of thousands of ci-vilians from Shajaiyeh. Bodieswere carted to a morgue whilehundreds of onlookers utteredmourning chants.

PleaseturntopageA14

BY NICHOLAS CASEYAND TAMER EL-GHOBASHY

Israel,HamasClash inDeadlyDay

The U.S. leveled its most-ex-plicit allegations yet of Russia’sinvolvement in the downing ofMalaysia Airlines Flight 17 andsubsequent efforts to conceal ev-idence, and European leadersthreatened broad new sanctionsagainst Moscow, marking a turn-ing point in the standoff be-tween the West and the Kremlin.

Secretary of State John Kerryon Sunday warned Russian Pres-ident Vladimir Putin “for the lasttime” to accede to Western de-mands to disarm pro-Russianseparatists and stabilize Ukraine.

Officials in Europe, mean-while, departed from their ini-tially muted reaction as angergrew across the continent overthe attack that left 298 peopledead and the chaos at the crasharea in eastern Ukraine. Reportsthat bodies were being handledhaphazardly and that separatistguards on the scene were drunkhave caused fury in Europeancountries where victims camefrom, including the Netherlands.

Mr. Putin, in a Kremlin-web-site posting overnight, called foran international investigation ofthe crash site and said that“Russia will do everything possi-ble to shift the current conflictin the east of Ukraine from to-

PleaseturntopageA8

By Jay Solomon inWashington and AntonTroianovski in Moscow

West Raises Pressure on PutinU.S. Charges Moscow With Supplying Rocket That Downed Jet, Hiding Evidence

The pharmaceutical industry’sbattle for dominance in the fast-growing and lucrative market fortreatments of hepatitis C isprompting an unprecedented le-gal scramble.

The prospect that hepatitis-Cdrug sales could soar to $20 bil-lion annually by the end of thedecade is spurring attempts bydrug companies to assert thepatent rights they’ll need to graba piece of the pie.

The frenzy has acceleratedwith the launch of Gilead SciencesInc.’s hepatitis-C treatment,Sovaldi, which racked up an esti-mated $5 billion in sales in thefirst half of 2014, in what is be-lieved to be the best-selling pre-scription drug launch in history.

Several companies, includingRoche Holding and Merck & Co.,have taken aggressive legal steps

Pleaseturntothenextpage

BY PETER LOFTUS

EvgeniyMaloletka/A

ssociatedPress

PORTLAND, Ore.—High in thehills of Washington Park, a groupof bikers awaits darkness everySunday. Their mission: to speedthrough town—on tiny children’sbicycles.

Wearing everything from slip-pers to leatherpants and jackets,about 15 ridersrolled through thetrees to take theirmarks on thestreet on a recentnight. Facing downa dark curve,“Handsome” DaveTerry announcedsafety protocols:“If you see a car on a blind turn,yell, ‘Car!’ If you see a police of-ficer, yell, ‘Pepper!’ ” Also: givethe right of way to riders withsmaller wheels.

With seasoned bikers up front,

new riders in back, the count-down commenced. “…Three, two,one, Zoobomb!”

Twelve years ago this summer,“Zoobombing” was born in one ofAmerica’s bike-friendliest cities.The “zoo” is because participantsride a commuter train uphill to aspot near the Oregon Zoo, and

the “bomb” is forwhat happens afterkickoff.

Tiny bikes arethe zoobomb sig-nature, and thesmaller the wheels,the more gloriousthe rider. The idealsilhouette is the12-inch, designedfor 3-year-olds, but

many ride on 16- and 20-inchwheels.

Over the years, people havealso brought gravity bikes—sanspedals and chains—skateboards,

PleaseturntopageA10

BY LUCY FELDMAN

In Portland, ‘Zoobombers’Seek the Thrill of the Hill

i i i

Oregon Bikers Meet Rain or Shine to ZoomThrough City on Tiny Bicycles; Tackling ‘K2’

Zoobomb monument

On the Ground, GrimWork Amid ChaosThe remains of at least 200 of

the 298 victims from MalaysiaAirlines Flight 17 languished inbags piled into a refrigeratedtrain with no clear destinationSunday, as Ukrainian rebels hag-gled over where the remainsshould go and volunteer coalminers joined emergency work-ers combing fields to secure therest of the bodies.

More than three days after

the crash, with internationaloutrage mounting over the lackof access to the crash site andunsettling images of bodies de-composing, pro-Russia separat-

ists in charge of the easternUkrainian territory where the jetwas shot down finally placedwhat appeared to be the bulk ofthe remains in a cold storage fa-cility. It was unclear exactly howmany victims had been recov-ered, as rescue workers collectedbody parts as well as fullcorpses. Dozens of bodies re-mained unaccounted for.

The scene on the ground in and

around Hrabove, Ukraine, yieldeda grim, emotional tableau. The vic-tims’ remains have been subject toindignities rarely seen in the after-math of civilian airline crashes.About 20 bodies were still lying inbags in the roughly 85-degreesummer heat at one of the crashsites on Sunday, the stench of de-composition continuing to waft inthe air. Journalists swarmed the

PleaseturntopageA6

By Paul Sonnein Torez, Ukraine,

Margaret Coker in Kievand Alexis Flynn in

Amsterdam

Emergency workers carry the body of a victim from Malaysia Airlines Flight 17 Sunday near the village of Hrabove in eastern Ukraine.

Tragedy’s Wake Investigators push to secure

black boxes........................... A6 Separatists are ill-equipped

to deal with bodies............ A7 Crash sparks questions over

flight bans............................. A8

JASON GAY IN SPORTS

A Father’s Bold WagerMONEY & INVESTING Former Boxing Champ’s Bond Bout

Reuters

Building a CaseThe U.S. accused Russia of hiding evidence after the downing ofFlight 17 and cited video posted on social media. An image fromfootage released by the Ukrainian Interior Ministry, above, purports toshow a truck carrying a missile system out of Ukraine toward Russia.

AssociatedPress

Call us at 1-800-869-0206 or visitus at myoptimizerplus.com to get startedusing promo codeWSJ.

* Trademark of Synchrony Bank.1,2Annual Percentage Yields (APYs) are accurate as of 7/19/14 and subject to change at any time withoutnotice. Fees may reduce earnings. Visit myoptimizerplus.com for current rates, terms and accountrequirements. Offers apply to personal accounts only. Funds must come from a source outsideSynchrony Bank.

1 The minimum balance required to earn the advertised APY is $2,000 and must be deposited in asingle transaction. Accounts with balances of $2,000 or more earn 1.20% APY. The minimum balanceto open a CD is $2,000. A penalty may be imposed for early withdrawals. After maturity, if you chooseto roll over your CD, you will earn the base rate of interest in effect at that time.

2 For High Yield Savings Accounts, rates are variable and subject to change any time after the accountis opened without notice. The minimum balance required to earn the advertised APY and to opena High Yield savings account is $0 but a minimum balance of $50 is required to avoid a $5 monthlyservice charge.

Member FDIC.FromMONEY®Magazine, November 2013 © 2013 Time Inc. Used under license. MONEY Magazine andTime Inc. are not affiliated with, and do not endorse products or services of, Licensee.Synchrony Bank has received the Bankrate.com® Top Tier award for consistently offering annualpercentage yields (APYs) that were among the highest reported in 100 Highest Yields® for 1st quarter 2014.© 2014 Synchrony Bank

Save for the future.Enjoy the journey.Two ways to save:

1.20%on balances of $2,000 or more

15-Month CD

0.95%on all balances

HighYield Savings

APY1

APY2

We’ve been recognized by Bankrate.com®andMONEY®Magazine.

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW202000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW202000-6-A00100-1--------XA