ARTICLE
4 October 2011

Life Sciences Newsbriefs: Week of September 26, 2011

The FDA has granted Verax Biomedical clearance to label and market its Platelet PGD test as a safety measure for blood platelet transfusions.
United States Food, Drugs, Healthcare, Life Sciences

CONTENTS:

  • Medical Devices
  • Drugs & Biologics
  • Food & Dietary Supplements
  • Tobacco

Medical Devices

Verax Biomedical gets FDA OK for platelet PGD test
The FDA has granted Verax Biomedical clearance to label and market its Platelet PGD test as a safety measure for blood platelet transfusions. The $30 assay, which is being marketed by Fenwal globally, takes less than 30 minutes to spot bacterial contamination in platelets prior to transfusion.

Optos to acquire Opko's instrumentation division for $17.5 million
Scotland-based Optos hopes to expand its product portfolio by agreeing to buy Opko Health's ophthalmic instruments division for $17.5 million, plus royalties. The buyout, which is expected to be completed during the fourth quarter, will allow Optos to improve its diagnostic systems by integrating its retinal imaging device with Opko's OCT SLO technology.

Zoll Medical CEO talks about Medicare payment change for LifeVest
A Medicare reimbursement change for Zoll Medical's LifeVest wearable defibrillator would affect only 8% of the company's total sales, CEO Richard Packer said at the recent UBS Global Life Sciences Conference. Restricting doctors' access to the device, which can prevent sudden cardiac arrest after a heart attack, would remove "the only tool cardiologists have to maintain ICD implants within guidelines," he said.

Cardiovascular diagnostics firm restructures C-suite team
CardioDx has appointed Andrew Guggenhime, former chief financial officer at Calistoga Pharmaceuticals, as its CFO and Mark Monane, former executive at Needham, as chief medical officer. The Palo Alto, Calif.-based company is the maker of the Corus CAD gene expression assay designed to help doctors diagnose obstructive coronary artery disease.

CDC backs nucleic-acid testing for organ transplants
The CDC has released new draft guidelines aimed at preventing the transmission of infectious diseases, including HIV and hepatitis, through organ transplants. As part of the guidance, the agency has recommended the use of nucleic-acid testing no more than seven days before organ recovery. The guidelines also include a modified list of donor risk factors.

Toshiba's M-Power interface secures FDA clearance
Tustin, Calif.-based Toshiba America Medical Systems has obtained FDA clearance for its M-Power interface, an MR system designed to streamline the scanning process. The device will be used in combination with Toshiba's Titan 3T, Vantage Atlas and Vantage Titan 1.5 systems.

Kips Bay Medical hits regulatory bump for surgical mesh
The FDA has asked Kips Bay Medical to submit additional data to back its application for an investigational device exemption to start clinical studies of its eSVS surgical mesh, which is designed for use in coronary artery bypass operations. The company's shares fell 34% on the news.

Medtronic wins $101.2 million in patent infringement lawsuit
A California jury has awarded Medtronic $101.2 million in damages as a result of a lawsuit filed against NuVasive for purportedly infringing patents of Medtronic's spinal implants. NuVasive, which will receive $660,000 in damages for Medtronic's alleged infringement of one of its patents, pledged to challenge the jury's verdict.

Varian Medical to acquire Calypso for $10 million
Calypso Medical Technologies, which develops real-time tumor-monitoring software and devices, will be acquired by Varian Medical Systems for $10 million in cash, plus earn-outs. The deal, which is expected to close early next month, would boost growth for Varian in the motion management technology arena, said Timothy Guertin, company president and CEO.

Spinal device firm hopes to raise $20.1 million in stock offering
Wilmington, N.C.-based TranS1 is selling 6.2 million shares of its stock for $3.25 apiece in an offering slated to close Monday. The company seeks to obtain as much as $20.1 million from the offering, which it will use to fund clinical studies of its surgical tools designed to treat degenerative spinal disorders in the lower lumbar region.

Former Wright Medical exec joins Intrinsic as CEO
Intrinsic Therapeutics, a Woburn, Mass.-based maker of the Barricaid spinal implant designed to treat herniated lumbar discs, has appointed Cary Hagan as president and CEO. Hagan, a former executive at Wright Medical, replaces Greg Lambrecht, who will remain as Intrinsic's executive director.

GI Dynamics brings weight loss device to Austria
GI Dynamics said its EndoBarrier gastrointestinal sleeve, which is designed to treat obesity and type 2 diabetes, has been released in Austria. The Lexington, Mass.-based firm also established the Hallein Clinic and Barmherzige Brüder Hospital to serve as "Centers of Excellence" for implanting the device.

Carl Zeiss Meditec to boost sales in Spain with IMEX unit buy
Germany-based Carl Zeiss Meditec has agreed to buy the intraocular lens and ophthalmic viscoelastic devices unit of IMEX for about $12 million, plus earn-outs. The acquisition will allow Carl Zeiss to expand its sales, support and service operations in Spain.

MITA wins $200K grant to boost U.S. imaging device exports
The Commerce Department has awarded the Medical Imaging & Technology Alliance $200,000 to help boost U.S. exports of imaging tools and allow entry into Chinese and Indian markets. The grant will bolster MITA's ability "to bring innovative imaging technologies to market, improve global access to life-saving therapies and diagnostic equipment and create good-paying jobs right here at home," said Dave Fisher, the alliance's executive director.

Siemens launches adjustable fluoroscopy device
Siemens has developed a device called Luminos Agile, an X-ray system that features a dynamic flat detector and an adjustable table. The device is designed to make it easier for providers to carry out fluoroscopic and radiologic tests on patients with mobility problems.

MedX Health gets FDA OK for skin imaging system
The FDA has granted MedX Health approval to market its MoleMate skin imaging tool, which utilizes a hand-held device that uses light to allow doctors to view and examine lesions and suspicious moles.

FDA workshop will spotlight MRI safety
The FDA will hold a workshop on Oct. 25 and 26 to explore ways to reduce risks associated with MRI use. The workshop, which will take place in Silver Spring, Md., will cover topics such as screening patients with therapeutic implants, the effect of advanced technology on MRI safety and ferromagnetic sensors.

Maquet wins regulatory approvals for Sensation Plus catheter
The FDA has given Maquet Cardiovascular the go-ahead to market its Sensation Plus 50cc 8 French catheter. The British Standards Institution also granted CE Mark approval for the device, which uses intra-aortic balloon counterpulsation therapy to treat patients with heart conditions.

Wash. congresswoman: Get rid of 2.3% device excise tax
Rep. Cathy McMorris Rodgers, R-Wash., at the first Jobs and Innovation Forum, called on her fellow legislators to push for the repeal of the 2.3% medical device excise tax set to begin in 2013. Rodgers also urged making the FDA more efficient in order to make innovative tools that "can reduce the cost of health care, improve patients' lives and sustain American jobs" readily available in the U.S.

Global telehealth market to soar to $6.28 billion in 2020
An InMedica report forecasts that the global market for telehealth tools will reach $990 million in 2015 and $6.28 billion in 2020. Growth will be driven in large part by an aging population and pressure to reduce costly hospital stays. The founder of a Boston startup sees a large potential market for the remote monitoring of devices such as glucose meters and blood pressure cuffs that are used to track chronic conditions.

Coalition calls for speedy review of device identifier rule
The Advancing Patient Safety Coalition has asked the Office of Management and Budget to expedite its review of the FDA's proposal to create a unique identifier system for medical devices. "It is imperative that OMB work expeditiously to release the proposed UDI rule, as the rule is critical to patient safety improvement initiatives and medical error reduction," the coalition said in a letter to Jacob Lew, the OMB's director.

C.R. Bard offers to buy ClearStream for $68.5 million
C.R. Bard said it offered to pay about $68.5 million to acquire ClearStream Technologies, an Irish maker of catheters designed for angioplasty operations. The acquisition would allow Bard to strengthen its foothold in the vascular medical device arena, said Timothy Ring, company chairman and CEO.

Imricor Medical hopes to obtain $3 million in funding
Minnesota-based Imricor Medical Systems said in a regulatory filing that it is hoping to secure $3 million. The company is working on an MRI-safe catheter system that can be used for the treatment of atrial fibrillation and other types of cardiac rhythm disorders.

Wright Medical hires former ev3 executive as CEO
Robert Palmisano, former president and CEO at endovascular device company ev3, has been named CEO of Wright Medical. Palmisano replaces interim CEO David Stevens, who will remain as Wright's board chairman.

NeuroMetrix launches neuropathy test for the diabetes market
NeuroMetrix has commercially released its NC-stat DPNCheck test, a point-of-care assay used in assessing diabetic peripheral neuropathy and other systemic neuropathies. Similarly, the company's reverse stock split has allowed it to regain compliance with the minimum share price requirement of the NASDAQ stock exchange.

AdvaMed details objection to IOM's findings on 510(k) process
AdvaMed has maintained its objection to the Institute of Medicine's proposal to scrap the 510(k) clearance process for medical devices. "We strongly disagree with its central recommendation to abandon the current 510(k) program and to replace it at some unknown date with an untried, unproven, and unspecified new legal structure," AdvaMed's Janet Trunzo said in a statement.

FDA panel to review Medtronic's Ablation Frontiers cardiac device
An FDA panel will consider Medtronic's premarket approval application for its Ablation Frontiers cardiac ablation device on Oct. 27. Medtronic last year secured approval in Canada to market the device, which is used for the treatment of atrial fibrillation.

Health groups file brief in support of FDA's graphic tobacco warnings
Several health groups, including the American Cancer Society and the American Academy of Pediatrics, have expressed their support to the FDA's requirement that cigarette packs carry graphic warning labels about the risks of smoking. The federal government has a strong interest in bringing effective messages about the risk of smoking to consumers, and that the "current warnings fail to change consumers' decisionmaking or behavior," the groups wrote in their friend-of-the-court brief. The brief comes ahead of today's hearing on the free speech lawsuit by tobacco companies.

Missouri smokers seek up to $1 billion in damages against Philip Morris
Lawyers representing Missouri smokers have begun presenting their arguments in a class-action lawsuit that claims that Philip Morris International marketed light cigarettes as safer than regular cigarettes. The plaintiffs are seeking as much as $1 billion in damages against the tobacco firm. The trial, which opened in St. Louis, is expected to end by late November.

Health Canada adopts new mandatory problem reports policy
Effective Oct. 3, device makers and importers in Canada will be required to submit mandatory problem reports to Health Canada Vigilance-Medical Device reporting program. The new procedure will affect companies with Medical Device Establishment Licenses and those that have been accredited with the Canadian Medical Devices Conformity Assessment System.

Rapid diagnostic test device can detect malaria, dengue
U.S. and Indian researchers have developed a rapid diagnostic test device that can detect several diseases, including malaria and dengue. The device has shown 100% accuracy in laboratories and could be modified to detect HIV, researchers said. Clinical trials of the device are set to begin within a month.

Natus boosts presence in sleep diagnostics with Embla acquisition
Embla Systems, the largest developer of tools for diagnosing sleep apnea, has been acquired by Natus Medical for $16.1 million in cash. The acquisition should allow Natus to expand its footprint in sleep apnea diagnostics and move to the number one spot in the international market for these devices, the San Carlos, Calif.-based firm said.

Austin venture capital firm raises $133.8 million
Sante Ventures said in a regulatory filing that it has secured $133.8 million as part of a funding round targeted at $150 million. Among the companies in the venture capital firm's investment portfolio are Terapio, a biopharmaceutical firm, and BioStable Science & Engineering, which makes cardiovascular implants.

Funding round brings in $8.27 million for blood glucose tech firm
Glytec said in a regulatory filing that it has obtained $8.27 million in a round of Series A financing led by Sea Dragon Healthcare Partners. The company, which markets real-time systems to manage a patient's blood glucose levels, will use the proceeds to conduct further research and development as well as boost growth in the U.S. and overseas.

BioBehavioral Diagnostics pulls in $3.1 million in debt financing
BioBehavioral Diagnostics has raised about $3.1 million in its third round of debt financing this year. The company, which aims to secure a total of $5.5 million, sells the Quotient ADHD System, a test that can help diagnose attention-deficit/hyperactivity disorder in 15 minutes.

Former Millipore executive is named CEO of Quanterix
Quanterix, a developer of tools for the life science research and in vitro diagnostics markets, has appointed Martin Madaus as permanent CEO. Formerly the CEO of Millipore, Madaus had been serving as acting CEO at Quanterix since June and as chairman since October.

GE expands footprint in Russia with two development deals
General Electric has entered two agreements in Russia focused on the health care and energy sectors, which it says could yield $10 billion to $15 billion in sales. The health care contract will allow GE to develop and market CT scanners and other diagnostic tools with Russian Technologies.

Abiomed starts patient enrollment in trial of Impella cardiac pump
Abiomed has begun patient enrollment for a clinical study of its Impella heart pump for use in treating patients with heart tissue death, without the need for electric shock. The device, which will be tested in 60 patients from up to five clinical sites, was cleared by the FDA in June 2008.

Mako shares rise after commercial launch of surgical robotic arm
Mako Surgical has commercially released its RIO robotic arm, a device cleared in February last year for use in total hip replacement operations. The product's launch has bumped the company's shares to 7% on Monday.

Atricure's Synergy device slated for FDA panel review next month
An FDA panel is scheduled Oct. 26 to consider AtriCure's premarket approval application for the device firm's Synergy cardiac ablation system for use in atrial fibrillation treatment. The panel is expected to make its recommendation to the FDA on the day of review, and a final decision is expected by mid-2012, said Julie Piton, Atricure's chief financial officer.

FDA's device center reorganizes its top tier
The FDA's device center has named David Kalins acting deputy director for regulatory affairs at the Office of Compliance. Thomas Gross also has been selected as interim deputy director of the Office of Surveillance and Biometrics, while Isaac Chang has been appointed director of the OSB's postmarket surveillance unit.

Intestinal liner holds promise for obesity, type 2 diabetes
A small study presented at the European Society for the Study of Diabetes found that using a duodenal-jejunal bypass liner, an implantable weight-loss device, helped improve weight and blood glucose levels in obese patients with type 2 diabetes.

Drugs & Biologics

Court stops Mylan from marketing a generic of antibiotic Doryx
A federal court issued a preliminary injunction that blocks the launch of Mylan's generic version of 150-milligram antibiotic Doryx, made by Warner Chilcott. Warner showed a reasonable likelihood of success in proving that Mylan violated a patent covering the dose, the court said.

EU panel urges limited use of Sanofi's heart drug Multaq
A European Medicines Agency panel recommended that Sanofi's Multaq be prescribed only to certain patients with heart disease or "after alternative treatment options have been considered." Multaq, or dronedarone, was tied to increased lung, cardiovascular and liver risk. The panel acknowledged Multaq's benefit for nonpermanent atrial fibrillation.

Shire aims to end impasse on Proamatine's conditional approval
Shire will seek a public hearing to end an impasse over the FDA's post-marketing requirement for blood pressure medicine Proamatine. The agency approved Proamatine in 1996 but required Shire to conduct follow-up efficacy studies. "We now believe the fastest way to get the final approval for this medicine is to present our data at a public hearing, thereby sparing patients the additional hardships of clinical trials," said Jeffrey Jonas, senior vice president of research and development.

EU will investigate liver injury tied to obesity drug orlistat
The European Medicines Agency will evaluate rare and severe cases of liver injury that could affect the risk-benefit profile of orlistat-based obesity drugs, such as Roche Holding's Xenical. The agency said orlistat's liver risk is widely known, and the investigation aims to assess the strength of evidence.

Experts ask FDA to track side effects of antipsychotics on children
A panel of pediatric experts voted 16-1 to recommend that the FDA continuously monitor the safety of antipsychotic treatments. The committee specifically urged the FDA to make antipsychotics' labels clearer by emphasizing their health risks to children, such as weight gain and diabetes. In the next few weeks, the FDA is set to issue a revised label for Bristol-Myers Squibb and Otsuka Pharmaceutical's Abilify, an antipsychotic approved for use in children. The label will cite metabolic risk and the latest clinical studies, among other data, said an FDA official.

FDA issues clinical hold on cancer drug by Immunomedics
The FDA suspended a clinical trial of Immunomedics' drug candidate for pancreatic cancer after one patient was given a higher-than-recommended dose. Immunomedics said the patient "remains on study with no critical toxicity."

Ruling protects Baxter from claims tied to Teva's IV drug propofol
A Delaware judge upheld an arbitration panel's finding that Teva Pharmaceutical Industries is obligated to indemnify Baxter International for any legal action concerning IV sedative propofol. As of July, there were 300 lawsuits alleging that reused vials of propofol caused a 2008 hepatitis C outbreak in southern Nevada. Baxter marketed Teva's product until 2009.

Roche ends patent rift with Mylan regarding cancer drug Xelota
Roche Holding and Mylan entered a licensing agreement to resolve patent litigation involving the former's cancer drug Xelota. Roche sued Mylan in 2009 for attempting to launch a generic version before patent expiration. The settlement is subject to review by the Federal Trade Commission and the Justice Department.

Report promotes generic-drug use to boost health care savings
Generic medicines accounted for $931 billion in health care savings over the past 10 years, according to a report prepared by IMS Health for the Generic Pharmaceutical Association. The report outlines four policy goals to achieve greater savings through generics use, including pursuing an approval pathway for biosimilars and eliminating restrictions on patent settlements.

Servier founder is under French scrutiny for Mediator-related deaths
France is investigating Les Laboratoires Servier founder and President Jacques Servier on suspicion that the company and its five units engaged in fraudulent practices related to diabetes treatment Mediator. The drug, withdrawn from the French market in November 2009, was associated with almost 2,000 deaths. Servier must post bail of about $5.4 million plus a guarantee of about $8.1 million before Dec. 15.

VA ceases ophthalmic use of Avastin amid infection reports
The Veterans Affairs Department stopped using Roche Holding's Avastin to treat patients with wet age-related macular degeneration, as officials investigate reports of increased infection risk. Avastin, a cancer drug, is prescribed by some clinicians as a low-cost alternative to Lucentis, also by Roche. "Once the investigation is complete, VA will reassess how Avastin and similar therapies may be made available for ophthalmologic use and will issue further guidance," the department said.

FDA tentatively OKs Matrix's 3-drug package of generic HIV therapy
Matrix Laboratories' co-package of three anti-retroviral medicines was tentatively approved by the FDA, under the President's Emergency Plan for AIDS Relief. The drugs are generic versions of Gilead Sciences' Viread, Boehringer Ingelheim's Viramune and GlaxoSmithKline's Epivir.

Lupin gains FDA approval for generic of contraceptive Nor-QD
The FDA granted Lupin marketing approval for a generic version of Watson Pharmaceuticals' oral contraceptive Nor-QD. The generic, norethindrone, is Lupin's first birth control pill. Lupin will launch its product "shortly."

FTC seeks more info on 2 proposed takeovers by Valeant
The Federal Trade Commission wants additional information about Valeant Pharmaceuticals International's proposed takeover of the dermatology units of Sanofi and Janssen Pharmaceuticals. Both transactions are still expected to be finalized by year-end, Valeant said.

EU approves Vertex's hepatitis C drug Incivo
Vertex Pharmaceuticals partner Janssen Pharmaceutica received EU approval to commercialize Incivo, a hepatitis C medicine intended to be taken with ribavirin and pegylated interferon. Vertex markets the drug in the U.S. as Incivek.

FDA awards $6.5 million grant to school for food inspectors
The Michigan-based International Food Protection Training Institute has secured a five-year $6.5 million grant from the FDA to help it establish a network of training instructors as part of the implementation of the food safety law. "The training being done at IFPTI is preparing thousands of food safety professionals who are on the front lines protecting our food supply and keeping our families safe," said Sen. Debbie Stabenow, D-Mich.

Pharma opposes Obama's deficit-cutting proposal
Drugmakers criticized health care provisions in President Barack Obama's $3.6 trillion deficit-reduction plan. The cuts would increase unemployment and limit patient access to the latest therapies, said the Pharmaceutical Research and Manufacturers of America. Matt Bennett, PhRMA's senior vice president, opposed the proposal's intent to strengthen the Independent Payment Advisory Board, saying it could hurt Medicare beneficiaries.

FDA issues new guidance on unapproved drugs
Companies marketing unapproved drugs that change a formulation to evade attention are high on the FDA's list for enforcement, according to this article. The agency has issued a revised guidance on unapproved drugs. "All unapproved drugs introduced onto the market after [Sept. 19, 2011] are subject to immediate enforcement action at any time, without prior notice." the FDA said.

FDA expands approval of Amgen's bone drug Prolia
The FDA approved Amgen's Prolia to prevent bone fractures in patients with breast or prostate cancer who are undergoing certain hormone therapies. Prolia was originally indicated for postmenopausal women at high risk of osteoporotic fracture.

Sanofi obtains favorable ruling on Eloxatin patent
A federal court upheld Sanofi's market exclusivity for Eloxatin, a drug for colon cancer. The ruling prevents Sun Pharmaceutical Industries and other generic-drug makers from launching their versions through August.

Watson partner Amphastar gets FDA OK for generic Lovenox
Watson Pharmaceuticals said partner Amphastar Pharmaceuticals secured FDA approval for a generic version of Sanofi's injectable anti-clotting drug Lovenox, or enoxaparin. Momenta Pharmaceuticals and Novartis unit Sandoz exclusively co-marketed enoxaparin during the past year. Teva Pharmaceutical Industries is awaiting an FDA decision on its generic Lovenox.

Appeal filed in ruling on stem cell funding
Two scientists challenging federal funding for studies involving human embryonic stem cells filed an appeal against a July ruling by a U.S. district judge that dismissed their lawsuit. The scientists claim that such research channels funding away from adult stem cell studies, such as theirs.

Obama proposes shorter market exclusivity for branded biologics
President Barack Obama's deficit-reduction plan includes a proposal to shorten market exclusivity for biologic drugs from 12 years to seven, allowing competitors to introduce potentially cheaper biosimilar versions earlier.

Food safety: Home kitchens may be riskier than restaurants
Restaurants sometimes get blamed for foodborne illnesses that originate much closer to home; public-health officials say most food-poisoning cases happen in our own kitchens. The Centers for Disease Control and Prevention offers food safety tips for home cooks looking to emulate the safety of restaurant kitchens as they deal with newer, more dangerous pathogens in the food supply.

Chip would screen toxicity of drug candidates
The NIH and the Defense Advanced Research Projects Agency will each invest as much as $70 million over five years on a chip to test compounds for toxicity before they are administered to humans. The agencies will also coordinate with the FDA, which could utilize the chip to accelerate the drug-approval process. "If things are going to fail, you want them to fail early," said NIH Director Francis Collins. "Now you'll be able to find out much quicker if something isn't going to work."

Food & Dietary Supplements

Senator asks FDA to craft standards for imported juices
Sen. Charles Schumer, D-N.Y., has asked the FDA to develop standards for imported juices and intensify inspections of such products from China and other countries. Schumer said more precautions are needed because children frequently drink fruit juices. The lawmaker's call is in response to a statement last week by Dr. Mehmet Oz on his show that some apple juice brands contain high levels of arsenic. The FDA said it has been monitoring arsenic concentrations in fruit juices.

BPA level in canned food is considered safe, study finds
A Breast Cancer Fund survey of canned food at supermarkets found a level of bisphenol A, or BPA, in food packaging well below the amount considered safe by the government. "The BPA exposure levels cited in this latest supermarket survey are very consistent with similar, but much broader, surveys of packaged food conducted within the past year by government agencies, including the FDA and Health Canada," said John Rost, chairman of the North American Metal Packaging Alliance.

Del Monte Fresh seeks to resolve conflict with FDA over cantaloupes
Del Monte Fresh Produce said it is in discussions with the FDA to resolve a dispute on import restrictions on cantaloupes and expects to reach an agreement soon. In August, Del Monte Fresh filed a lawsuit against the agency to lift an import alert issued on a farm in Guatemala that is owned by the company and was suspected to be the source of cantaloupes that have been found to be contaminated. The alert was used by inspectors to block imports of melons grown on the farm.

Bachmann calls for fewer food safety laws
Food safety regulations are placing burdens on processors and should be eased, said Republican presidential candidate Michele Bachmann. The Minnesota congresswoman did not specify which rules she would like repealed, but said safety must be balanced with common sense. "When they make it complicated, they make it expensive and so then you can no longer stay in business," she said.

FDA says tainted cantaloupe caused listeria outbreak
The FDA confirmed that a listeria outbreak that killed four people and infected 35 in 10 states was caused by contaminated cantaloupe grown at a Colorado farm. Jensen Farms recalled the cantaloupe after health officials in Colorado discovered the problem.

Tobacco

Hearing on FDA's graphic tobacco warnings begins
Government attorneys and lawyers representing tobacco makers presented their arguments during a hearing on the companies' request for a preliminary injunction against the FDA's requirement of graphic warning labels on cigarette packs. "If you tell people what they already know over and over again, in flashy letters and big color pictures, it doesn't cause a reduction in smoking," said Noel Francisco, a lawyer for R.J. Reynolds Tobacco. "The government's interest here is not in preventing habits, it's in preventing death," said Mark Stern of the Department of Justice.

Report: New York spends little on anti-smoking programs
A report by the American Cancer Society revealed that only 4% of $10 billion in tobacco taxes collected by New York state in the past six years went to anti-smoking campaigns. The report also showed that the state government's annual spending on tobacco control initiatives declined from $85.5 million in 2007 to about $27 million this year. "The money collected in New York goes up in smoke," said Blair Horner, co-author of the study. "Very little of it gets spent on anti-smoking programs."

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