United States Moves Closer To Default, No Solution In Sight

Actually, the United States Has Defaulted Before

Marketed by Novartis, TOBI(R) had annual sales of approximately $350 million in the United States, according to IMS data as of June 30, 2013. About Teva Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) is a leading global pharmaceutical company, committed to increasing access to high-quality healthcare by developing, producing and marketing affordable generic drugs as well as innovative and specialty pharmaceuticals and active pharmaceutical ingredients. Headquartered in Israel, Teva is the world’s leading generic drug maker, with a global product portfolio of more than 1,000 molecules and a direct presence in about 60 countries. Teva’s branded businesses focus on CNS, oncology, pain, respiratory and women’s health therapeutic areas as well as biologics. Teva currently employs approximately 46,000 people around the world and reached $20.3 billion in net revenues in 2012. Teva’s Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management’s current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to develop and commercialize additional pharmaceutical products, including our ability to develop, manufacture, market and sell biopharmaceutical products, competition for our innovative products, especially COPAXONE(R) (including competition from innovative orally-administered alternatives, as well as from potential purported generic equivalents), competition for our generic products (including from other pharmaceutical companies and as a result of increased governmental pricing pressures), competition for our specialty pharmaceutical businesses, our ability to achieve expected results through our specialty, including innovative, R&D efforts, the effectiveness of our patents and other protections for innovative products, decreasing opportunities to obtain U.S. market exclusivity for significant new generic products, our ability to identify, consummate and successfully integrate acquisitions, the effects of increased leverage as a result of recent acquisitions, the extent to which any manufacturing or quality control problems damage our reputation for high quality production and require costly remediation, our potential exposure to product liability claims to the extent not covered by insurance, increased government scrutiny in both the U.S.

US default looming, no solution in sight

1 after conservative Republicans aligned with the tea party movement demanded that Obama defund his 3-year-old health care overhaul law. Reid and McConnell – five-term senators hardened by several budget disputes and years of negotiations – remain at an impasse over yet another source of fiscal fighting: the automatic, across-the-board spending cuts known as sequestration that took effect earlier this year, as part of a previous high-stakes budget deal. Republicans want to keep spending at the reduced levels while Democrats are pressing for a higher amount. The shutdown has furloughed 350,000 federal workers, impeded various government services, put continued operations of the federal courts in doubt and stopped the federal tax agency from processing tax refunds. Several parks and monuments remain closed, drawing a protest at the National World War II Memorial on Sunday that included conservative tea party-backed lawmakers. “I’m optimistic about the prospects for a positive conclusion to the issues before this country today,” Reid said as the Senate wrapped up a rare Sunday session. McConnell insisted a solution was readily available as he embraced the proposal from a bipartisan group of 12 senators, led by Republican Sen. Susan Collins and Democratic Sen. Joe Manchin that would re-open the government and fund it at current levels for six months while raising the debt limit through Jan. 31. It also would give agencies greater flexibility in dealing with the automatic budget cuts, delay an Obamacare-related medical device tax for two years and establish income verification for individuals receiving subsidies to buy health insurance. “It’s time for Democrat leaders to take ‘yes’ for an answer,” McConnell said in a statement.

Teva Announces FDA Approval of Generic TOBI(R) in the United States

They did. Turn-of-the-year cash management disrupted rates as 1978 became 1979. And rates spiked and fell in October 1979 when Paul Volcker announced that the Fed would target monetary aggregates rather than interest rates (the Saturday night special). The fourth big move was the day of the first default, when T-bill rates rose almost 0.6 percentage points (i.e., 60 basis points).Theres no indication this increase reversed in the days that followed (the vertical line on the chart is just a marker for the day of default). Indeed, using more sophisticated means, including comparing T-bill rates to interest on commercial paper, the authors conclude that default led to a persistent increase in T-bill rates and, therefore, higher borrowing costs for the federal government. The financial world has changed dramatically in the intervening decades. T-bill rates hover near zero compared to the 9-10 percent range of the late 1970s; that means a temporary delay in payments would be less costly for creditors. Treasurys IT systems are, one hopes, more reliable that 1970s vintage word processors. And one should take care not to make too much of a single data point. But its the only data point we have on a U.S. default. Not surprisingly it shows that even small, temporary default is a bad idea. Our leaders shouldnt come close to risking it.

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