Wall Street dips at open on "cliff" overhang


NEW YORK (Reuters) - Wall Street dipped at the open on Friday as investors digested the latest round of economic data, while concerns about a lack of progress by politicians in ongoing fiscal negotiations remained at the forefront.


The Dow Jones industrial average <.dji> dropped 7.22 points, or 0.05 percent, to 13,163.50. The Standard & Poor's 500 Index <.spx> dropped 3.65 points, or 0.26 percent, to 1,415.80. The Nasdaq Composite Index <.ixic> dropped 16.49 points, or 0.55 percent, to 2,975.67.


(Reporting by Chuck Mikolajczak; Editing by James Dalgleish)



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WORLD: Assad’s Grip on Power Is Questioned

December 13, 2012

The Times’s Anne Barnard on Thursday’s violence in Syria and the significance of the statement by a top Russian envoy on President Bashar al-Assad’s weakening grip.

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Online gambling companies struggle to clear EU hurdles






LONDON (Reuters) – A partnership stuck on Friday between bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.


The agreement came a month after bwin.party’s co-CEO was questioned by Belgian authorities in an escalating license dispute the company said was costing it 700,000 euros ($ 916,000) in monthly revenue.






By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a license for online poker, casino and sports betting.


The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.


Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.


“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.


“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximize their tax take?” he said.


The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.


Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.


Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.


William Hill, Britain‘s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.


STAKES RISE


The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($ 17 billion) by 2015, according to EU figures.


The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations and promote cooperation between member states, ruling out EU-wide legislation for the time being.


“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.


The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.


Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.


However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.


“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association. “What we really need is for them to take some to the European Court and take enforcement action.”


BRITISH TAXES


Gambling companies themselves have taken advantage of different tax regimes where they work in their favor.


This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centers for 50 years.


In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.


New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($ 435 million) by 2016-17.


Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.


“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalized companies.”


In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.


“I think there is a lot more M&A activity to come,” said Batram.


(Additional reporting by Rosalba O’Brien; Editing by David Holmes)


Internet News Headlines – Yahoo! News


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Taylor Swift & Harry Styles Get Away - Far Away - for Her Birthday















12/13/2012 at 10:00 AM EST







Taylor Swift and Harry Styles


Courtesy Magda


Taylor Swift is taking the road less traveled for her birthday.

The country star, who turns 23 on Thursday, has been getting a tour of rural northern England – where a fan snapped this photo – from her beau, One Direction singer Harry Styles.

The couple ate dinner by an open fire in a country pub and toured the picturesque Lake District, picking up classic children's souvenirs – and goofing around to seasonal songs in a shop.

On Tuesday night they popped into the Rising Sun pub in Hope Valley, in the Peak District, about 170 miles north of London, where they dined on "traditional English food," manager Sarah Walker tells PEOPLE.

Sitting in an alcove by the fire, they were joined by two friends about their age, locals report. There was little evidence of them behaving like boyfriend and girlfriend, Walker says.

"She was polite and pleasant – fantastic," Walker says. "She is just having a nice tour of England. They were like any typical group of people having dinner. Everyone thinks they are a couple, but to be honest, we had no sense of that at all."

Swift said she "loved" being in Britain and was "excited about her birthday," Walker adds.

With calls coming into the pub from as far away as California and Canada, it shows the reach of the boy band and country star. People are already asking to sit in their special table, Walker reports.

The following day, the couple were spotted a little further northwest, in the Lake District. At Bowness, they stopped into the World of Beatrix Potter to visit the store. Swift bought some soft toys, and she and Styles struck the workers as "nice and charming," chief executive Andy Poole says.

Styles, who is from the north of England, and Swift were being shepherded around by Styles's mom.

"They were dancing around to the seasonal music being played. Harry was being the most boisterous," Poole reports. Sadly, they didn’t break into song. "They didn’t give any impromptu concert, no!"

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Dozens sue pharmacy, but compensation uncertain


NASHVILLE, Tenn. (AP) — Dennis O'Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.


He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They've filed a lawsuit seeking $4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.


"I don't have a life anymore. My life is a meningitis life," the 59-year-old former school teacher said, adding that he's grateful he survived.


His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.


The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.


"The truth is the chance of recovering damages from NECC is extremely low," said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.


To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.


This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.


Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.


"Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial," he said.


A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.


"A Boston venue is probably the best scenario," Fern said in an email. "That's where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred."


Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company's pharmacy licenses have been surrendered, and it's unclear whether NECC had adequate liability insurance.


Fern said NECC has insurance, but they were still determining what the policy covers.


But Day says, "It's clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent."


As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.


Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $100 million. An NECC spokesman didn't respond to a request for the pharmacy's revenue.


While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.


Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.


"I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued," said Fitzpatrick.


Plaintiffs' attorneys said they're considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.


Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.


"Did they use due care in determining from whom to buy these drugs?" Day said.


Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.


"We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past," he said.


Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.


Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn't set a precedent for the current litigation.


The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.


A binder of snapshots shows what life is like in the O'Briens' rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He's had three spinal taps. His 11-day stay in the hospital cost over $100,000, which was covered by health insurance.


His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.


"In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it," said Kaye O'Brien.


Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.


Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.


Marjorie Norwood's husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.


"It doesn't just change her life, it changes everyone else's life around her because we care about her and want her to be happy and well and have everything that she needs," said her daughter, Melanie Norwood.


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Wall Street opens flat on "fiscal cliff" worry

LONDON, Dec 13 (Reuters) - The departure of Spanish strugglers HRT from Formula One still leaves the sport with one team too many, commercial supremo Bernie Ecclestone said on Thursday. Madrid-based HRT have not been included on the official 2013 entry list published by the governing International Automobile Federation, a move that leaves 11 teams and 22 cars on the starting grid. "I'd rather have 10," Ecclestone told Reuters. "I never wanted 12. "It's just that 10 is easier to handle, for the promoters, for transport. We'd rather have 10...so long as we don't lose Ferrari. ...
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Kim Jong-un’s Image Bolstered by Rocket Launching





SEOUL, South Korea — For North Korea’s inexperienced young leader, Kim Jong-un, the largely successful launching on Wednesday of a long-range rocket could not have come too soon.




Analysts say the launching was sure to bolster Mr. Kim’s grip on power after months of political purges meant to tame the elite class and hints of dissatisfaction among his hungry people. It was also expected to serve as an antidote to a humiliating failure early in his rule: a rocket test in April that fizzled before an international audience.


In the insular world of North Korea, the country’s ability to send a rocket hurtling hundreds of miles on roughly the course it set is a fulfillment of promises that have kept people loyal to the Kim dynasty for decades. Under that mythology, the launching was a sign that the so-called arduous march — soldiering on despite isolation and sanctions — was paying off, building a nuclear deterrent that would keep imperialist powers at bay.


Another promise — becoming increasingly important to the people, yet harder for the government to deliver on in the face of sanctions — is to resolve economic mismanagement that has kept North Koreans in chronic hunger.


Still, the success of the rocket was critical, analysts say, to Mr. Kim’s continuing attempts to strengthen his grip on the country’s powerful military, a process that in recent months has led to the dismissals of top generals loyal to his father and the elevation of a new crop of officers.


“It helps Kim Jong-un solidify internal unity,” said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.


Ever since Mr. Kim took over after the death last December of his father, the longtime North Korean leader Kim Jong-il, he has been trying to show himself to be a worthy successor to his father and his grandfather, Kim Il-sung, the North Korean founder. He badly needed a propaganda boon this year, when North Korea observes the first anniversary of his father’s death and the centennial of his grandfather’s birth.


On Wednesday, after state television announced the “important news” that the rocket had put the satellite Kwangmyongsong-3, or Shining Star-3, into orbit, government vehicles blaring the news rolled through the North Korean capital, Pyongyang, according to the North’s state-run Korean Central News Agency. The Associated Press, which has a bureau in Pyongyang, reported people dancing in the streets.


“Suddenly, the whole country is engulfed with happiness and the people endlessly inspired,” the Korean Central News Agency reported, attributing the success to Mr. Kim’s father, whose main legacy was the missile program that his son just advanced, and the country’s nuclear program.


(The West considers such rocket launchings to be crucial tests of the same technology as that used by intercontinental ballistic missiles, which can carry nuclear warheads.)


“Domestically, the test provides Kim with a much-needed propaganda boost following April’s launch failure and what North Korea watchers believe have been a series of disputes with the military,” said James Hardy, a security expert at IHS Jane’s Defense Weekly.


An ability to deploy unconventional weapons has long been integral to the North Korean government’s survival strategy, analysts say, not only as a means of creating a sense of empowerment among the impoverished masses, but also for catering to the elite. Without the revenues from selling such technology abroad or the aid and investment packages North Korea’s neighbors often provide to appease it, the government can hardly afford resources to buy privileges for the military, the secret police and top party members whose loyalty is the linchpin in maintaining totalitarian control.


Recently, Mr. Kim was believed to have given out special cash cards containing foreign currency to party, military and state elites, Park Hyong-joong, an analyst, said in a recent report posted on the Web site of the government-run Korea Institute for National Unification in Seoul. Mr. Kim also opened a series of high-rise apartments, supermarkets and amusement parks in Pyongyang, where most of the elites and their families live.


The rocket achievement was timed well for Mr. Kim’s attempts to bolster his credibility among the North’s hard-line military, which forms the backbone of his political control. For months, Mr. Kim has been testing the loyalty of top generals by dismissing or demoting them and letting them try to win his favor again, according to South Korean officials and analysts. Meanwhile, they said, he has been putting his stamp on the military leadership by elevating a new lineup of officers who will owe their promotions to him.


These new elites — many of them reportedly also close to Mr. Kim’s aunt, Kim Kyong-hee, and her husband, Jang Song-thaek — have been depriving the old elites of lucrative rights, including the ability to trade in commodities, Mr. Park said.


Such abrupt changes have created “losers and discontent” and resulted in “indications of domestic instability,” according to a senior South Korean government official who spoke during a background briefing last week.


The launching, the analysts say, will help Mr. Kim tame such discontent by bolstering the military’s morale.


“With this first major achievement as new leader, Kim Jong-un can boost his legitimacy as a hereditary successor and consolidate the loyalty of the elite,” said Chang Yong-seok, an analyst at the Institute for Peace and Unification Studies at Seoul National University. “It helps subdue the friction and tension between the old and new elites in the military and solidify its unity.”


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iPad mini deemed a ‘game changer,’ outgrew Kindle Fire by nearly 50%






Smaller tablets in the 7-inch range have been on the market for more than two years now, but it looks like it took Apple (AAPL) just one month to vault to the top of the category. Mobile advertising firm Millennial Media recently published the findings of a study pitting the iPad mini against Amazon’s (AMZN) popular Kindle Fire, which has been an extremely popular iPad alternative since it first launched last year. According to Millennial, iPad mini usage grew about 50% faster during early November than the Kindle Fire did immediately following its successful launch last year, as measured by ad impressions served by the firm’s network.


Millennial found that impressions served to the iPad mini in early November grew at an average daily rate of 28%. In the weeks following the Kindle Fire’s launch last year, usage of Amazon’s tablet grew roughly 19% each day.






“In the first weeks after the iPad mini went on sale, we saw an average daily growth in impressions of 28 percent. Last holiday season, Amazon launched the Kindle Fire to much anticipation, Millennial Media’s Matt Mills wrote on the company’s blog. “As a comparison, we saw Kindle Fire impressions grow at an average daily rate of 19 percent in the first two weeks after it went on sale last year. So, by our math it looks like Apple could have itself another massive holiday season.”


Mills called the iPad mini a “game changer” and said he expects “a massive amount” of iPad mini tablets to be given as gifts this holiday season.


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Gadgets News Headlines – Yahoo! News


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SAG Award Nominations Go to Lincoln, Silver Linings Playbook, Downton Abbey















12/12/2012 at 09:30 AM EST







from left: Maggie Smith (in Downton Abbey) and Nicole Kidman (in The Paperboy)


Getty; Millennium Entertainment


The 2013 Award Season officially kicked off Wednesday morning with the announcement of the 19th annual Screen Actors Guild Awards nominations – and double nominees Nicole Kidman (for HBO's Hemingway and Gellhorn and the movie The Paperboy) and Maggie Smith (for PBS's Downton Abbey and the film The Best Exotic Marigold Hotel), as well as Kevin Costner, Julianne Moore, Jim Parsons, Alec Baldwin, Betty White, Tina Fey, Javier Bardem and Anne Hathaway all have reasons to be smiling.

In the theatrical motion picture division, the SAG/AFTRA nominated the following for outstanding performance for a cast (SAG's version of the best picture prize):
Argo
The Best Exotic Marigold Hotel
Les Misérables
Lincoln
Silver Linings Playbook

The nominees for outstanding performance by a male actor in a leading role are:
• Bradley Cooper in Silver Linings Playbook
• Daniel Day-Lewis in Lincoln
• John Hawkes in The Sessions
• Hugh Jackman in Les Misérables
• Denzel Washington in Flight

Nominees for outstanding performance by a female actor in a leading role are:
• Jessica Chastain in Zero Dark Thirty
• Marion Cotillard in Rust and Bone
• Jennifer Lawrence in Silver Linings Playbook
• Helen Mirren in Hitchcock
• Naomi Watts in The Impossible

In the TV divisions, the shows in the running for outstanding performance by an ensemble in a drama series are:
Boardwalk Empire
Breaking Bad
Downton Abbey
Homeland
Mad Men

In a comedy series (a tie in the balloting resulted in six nominees):
30 Rock
The Big Bang Theory
Glee
Modern Family
Nurse Jackie
The Office

For a complete list of nominees, go to sagawards.org.

On Thursday morning, the Hollywood Foreign Press Association will name its nominees for the Golden Globes. Oscar nominations will be announced Tues., Jan. 15, 2013.

The 19th Annual Screen Actors Guild Awards will air live on TNT and TBS on Sunday, Jan. 27, 2013, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles. PEOPLE Magazine and the Entertainment Industry Foundation are sponsors of the event.

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DA investigating Texas' troubled $3B cancer agency


AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.


No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.


That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.


"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.


Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."


Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.


Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.


Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.


"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.


Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.


Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.


Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.


The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.


"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.


Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.


Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.


Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.


Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.


"There appears to be a cover-up going on," Bonner said.


Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.


___


Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber


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