Intel CEO Becomes Third Chief to Quit Trump Council After Riots

Intel Corp.’s Brian Krzanich joined Under Armour Inc.’s Kevin Plank in becoming the latest chief executives to quit President Donald Trump’s council of U.S. business leaders, as membership on the panel has become enmeshed in the country’s volatile politics after violent riots in Virginia over the weekend.

The moves come hours after Merck & Co.’s Kenneth Frazier first stepped down from the business council. Plank’s departure is a particularly sharp rebuke to Trump, after the Under Armour executive earlier this year came under fire for commenting that the president was a “real asset” for the country.

"I resigned to call attention to the serious harm our divided political climate is causing to critical issues, including the serious need to address the decline of American manufacturing," Intel’s Krzanich said in a company blog post.

Plank said in a tweeted statement that “Under Armour engages in innovation and sport, not politics,” while Merck’s Frazier said he quit “as a matter of personal conscience, I feel a responsibility to take a stand against intolerance and extremism.” 

Trump responded to Frazier with a couple jabs, tweeting late Monday that “@Merck Pharma is a leader in higher & higher drug prices while at the same time taking jobs out of the U.S.”

Over the weekend, one woman was killed and many others were injured after a man in a car rammed a group of counter-demonstrators during a daylong melee in Charlottesville, Virginia. White supremacists and other hate groups had massed in the city to protest the removal of a statue of Confederate General Robert E. Lee.

Trump was widely criticized by U.S. lawmakers and other officials for not denouncing white supremacists in a statement on Saturday in which he said “many sides” were at fault for the violence. The president has repeatedly drawn fire for his relations with white nationalist groups and his handling of issues related to minorities.

Speaking from the White House on Monday, Trump denounced white supremacists and declared racism “evil.”

“To anyone who acted criminally in this weekend’s racist violence, you will be held accountable,” Trump said, calling for unity in the wake of the tragedy.

The CEO departures show how corporate leaders are walking a narrow line in working with the Trump administration to help shape policy around taxes, immigration and other issues, while trying not to alienate customers in an increasingly tense political environment.

Plank’s pro-Trump commentary earlier this year sparked an uproar from shoppers and very public dissent among Under Armour’s athletes, including his most-valued sneaker pitchman, basketball star Stephen Curry. The CEO in a television interview had declared that Trump is “pro-business” and a “real asset.”

After a Wall Street analyst downgraded the company, Plank took out a full-page newspaper ad, saying his words praising Trump “did not accurately reflect” his intent. He said the company opposed the president’s executive order to ban refugees from certain countries.

The president’s council has included top executives from Boeing Co., Dow Chemical Co. and Johnson & Johnson. A handful of CEOs have stepped down from two White House business groups, which have met only sporadically, over political controversies.

The president hasn’t been shy about calling out businesses for perceived missteps. After his 2016 election victory Trump took aim at defense contractors Boeing and Lockheed Martin Corp. for what he called the high cost of some aircraft, and muscled United Technologies Corp. unit Carrier into keeping a plant in Indiana after the company said it would be closed and production shifted to Mexico. 

Corporate Pushback

Trump created two CEO advisory groups early in his presidency. Blackstone Group CEO Steve Schwarzman leads one described as a strategy and policy forum, and Dow Chemical’s Andrew Liveris organized a manufacturing initiative. After an initial burst of activity and press attention, the councils have fizzled with neither meeting since April.

Earlier this year, Elon Musk of Tesla Inc. and Walt Disney Co. CEO Bob Iger quit the strategy and policy panel after Trump said he would withdraw from the Paris climate pact. Former Uber Technologies Inc. CEO Travis Kalanick quit in February after Trump’s executive order on immigration.

Trump and a range of corporations have previously been at odds on other fronts.

The administration drew criticism from a wide swath of companies over its executive order restricting immigration. More than 160 technology firms, including Amazon.com Inc., Facebook Inc., and Google corporate parent Alphabet Inc. joined a legal brief criticizing the order. Technology firms have also criticized the administration’s efforts to restrict access to H-1B visas for high-skilled workers, and eliminate an Obama Administration program that would have provided visas for foreign entrepreneurs who received startup funding.

Other members of the Trump councils, including Lockheed Martin and PepsiCo Inc., declined to say whether they would follow the moves of the other executives in stepping down.

Merck’s Prices

Merck has in the past taken stands on social issues. In 2012, the company’s foundation ended funding for the Boy Scouts of America over the group’s exclusion of gays from its leadership ranks. Frazier is a registered Democrat, according to Pennsylvania voter records.

Trump made U.S. drug prices an issue during the presidential campaign and after — at one point accusing drug companies of “getting away with murder.” While his rhetoric on the subject has cooled, the Food and Drug Administration has taken steps to try and bring more competition to the market for some drugs, and speed more generic drugs to the market.

Frazier, in December, said his company has a “restrained” approach to price increases, calling aggressive price increases a foolhardy move by the industry. In a company report published this year, Merck said it has a “long history of making our medicines and vaccines accessible and affordable through responsible pricing practices.”

For 2016, the list price on its drugs rose by 9.6 percent on average while the net price, which more closely reflects what is paid by consumers, rose 5.5 percent, according to the report.

Merck shares were up 0.7 percent to $62.79 at 12:02 p.m. in New York, roughly in line with a broader advance in the U.S. stock market.

Toby Cosgrove, the CEO of the Cleveland Clinic, plans to remain on the strategy and policy group, said Eileen Sheil, a spokeswoman for the health system. She said the group hasn’t met since April, and there are no meetings scheduled.

Goldman Sachs Group Inc. CEO Lloyd Blankfein also took to Twitter Monday in response to the violence, citing former president Abraham Lincoln. “A house divided against itself cannot stand,” wrote Blankfein, whose inaugural tweet in June expressed disapproval over Trump’s decision to ditch the Paris climate accord.

    Read more: http://www.bloomberg.com/news/articles/2017-08-14/merck-ceo-quits-trump-council-as-matter-of-personal-conscience

    Lilly Uses Horny Goat Weed to Fend Off Cialis Royalty Demands

    Eli Lilly & Co. told a federal jury that a German company is trying to take credit for centuries-old Chinese medicine in seeking royalties on the use of its erectile-dysfunction drug Cialis to treat an enlarged prostate.

    Erfindergemeinschaft UroPep GbR, a company founded by researchers from Hannover Medical School, claims it’s entitled to royalties from Lilly’s sale of Cialis based on a patent for prostate treatment. UroPep is seeking $84.3 million, or 12 percent of the $704 million in Cialis sales since 2011 that relate to its use in treating benign prostatic hyperplasia, also known as BPH.

    “We offered to give Eli Lilly permission” to use the patented invention, UroPep lawyer John Hughes of Bartlit Beck in Denver told a federal jury in Marshall, Texas. “Their response: silence.”

    Lilly said the patent didn’t cover anything new — and pointed to Chinese home remedies including one known as Horny Goat Weed, which it said is used both for erectile dysfunction and to treat BPH. It’s not the first time Lilly has brought up the herb — it was used to successfully invalidate part of a Pfizer Inc. patent for the rival impotence drug Viagra.

    “UroPep filed a patent with nothing more than an idea,” Lilly lawyer Todd Vare of Barnes & Thornburg in Indianapolis told the jury. The idea “is well-known and obvious throughout the world.”

    The drug, more commonly prescribed for erectile dysfunction, generated almost $2.5 billion last year, more than 11 percent of the Indianapolis-based company’s revenue. It’s Lilly’s second-biggest seller, behind the insulin Humalog, used to treat diabetes. Hughes told the jury that UroPep was not seeking royalties on any sales of Cialis for impotence.

    The UroPep patent, issued in the U.S. in 2014, is for the use of a class of compounds to treat certain prostate diseases, including BPH. Lilly contends the patent doesn’t cover the specific active ingredient in Cialis, called tadalafil.

    Cialis was approved by U.S. regulators to treat erectile dysfunction in 2008 and in December 2010 Lilly asked the U.S. Food and Drug Administration to also approve Cialis for treatment of the signs and symptoms of BPH.

    After Lilly got approval, one of the UroPep inventors emailed Lilly to inform it of the then-pending patent application. Lilly didn’t respond to requests for licensing talks, UroPep contends.

    This isn’t the only case in which Lilly is trying to fend off royalty demands from Cialis. The drugmaker is working to invalidate a patent owned by Los Angeles Biomedical Research Institute for a method of arresting penile fibrosis.

    Presiding over the trial is Circuit Judge William Bryson, who occasionally handles district court cases but normally sits on the U.S. Court of Appeals for the Federal Circuit in Washington, which handles all patent appeals. While neither Lilly nor UroPep are based in Texas, the case was filed there because the court is the most popular for patent litigation.

    The jury is expected to begin deliberations by Friday.

    The case is Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co., 15cv1202, U.S, District Court for the Eastern District of Texas (Marshall).

    Read more: http://www.bloomberg.com/news/articles/2017-04-17/lilly-uses-horny-goat-weed-to-fend-off-cialis-royalty-demands

    Lilly Uses Horny Goat Weed to Fend Off Cialis Royalty Demands

    Eli Lilly & Co. told a federal jury that a German company is trying to take credit for centuries-old Chinese medicine in seeking royalties on the use of its erectile-dysfunction drug Cialis to treat an enlarged prostate.

    Erfindergemeinschaft UroPep GbR, a company founded by researchers from Hannover Medical School, claims it’s entitled to royalties from Lilly’s sale of Cialis based on a patent for prostate treatment. UroPep is seeking $84.3 million, or 12 percent of the $704 million in Cialis sales since 2011 that relate to its use in treating benign prostatic hyperplasia, also known as BPH.

    “We offered to give Eli Lilly permission” to use the patented invention, UroPep lawyer John Hughes of Bartlit Beck in Denver told a federal jury in Marshall, Texas. “Their response: silence.”

    Lilly said the patent didn’t cover anything new — and pointed to Chinese home remedies including one known as Horny Goat Weed, which it said is used both for erectile dysfunction and to treat BPH. It’s not the first time Lilly has brought up the herb — it was used to successfully invalidate part of a Pfizer Inc. patent for the rival impotence drug Viagra.

    “UroPep filed a patent with nothing more than an idea,” Lilly lawyer Todd Vare of Barnes & Thornburg in Indianapolis told the jury. The idea “is well-known and obvious throughout the world.”

    The drug, more commonly prescribed for erectile dysfunction, generated almost $2.5 billion last year, more than 11 percent of the Indianapolis-based company’s revenue. It’s Lilly’s second-biggest seller, behind the insulin Humalog, used to treat diabetes. Hughes told the jury that UroPep was not seeking royalties on any sales of Cialis for impotence.

    The UroPep patent, issued in the U.S. in 2014, is for the use of a class of compounds to treat certain prostate diseases, including BPH. Lilly contends the patent doesn’t cover the specific active ingredient in Cialis, called tadalafil.

    Cialis was approved by U.S. regulators to treat erectile dysfunction in 2008 and in December 2010 Lilly asked the U.S. Food and Drug Administration to also approve Cialis for treatment of the signs and symptoms of BPH.

    After Lilly got approval, one of the UroPep inventors emailed Lilly to inform it of the then-pending patent application. Lilly didn’t respond to requests for licensing talks, UroPep contends.

    This isn’t the only case in which Lilly is trying to fend off royalty demands from Cialis. The drugmaker is working to invalidate a patent owned by Los Angeles Biomedical Research Institute for a method of arresting penile fibrosis.

    Presiding over the trial is Circuit Judge William Bryson, who occasionally handles district court cases but normally sits on the U.S. Court of Appeals for the Federal Circuit in Washington, which handles all patent appeals. While neither Lilly nor UroPep are based in Texas, the case was filed there because the court is the most popular for patent litigation.

    The jury is expected to begin deliberations by Friday.

    The case is Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co., 15cv1202, U.S, District Court for the Eastern District of Texas (Marshall).

    Read more: http://www.bloomberg.com/news/articles/2017-04-17/lilly-uses-horny-goat-weed-to-fend-off-cialis-royalty-demands