Protesters surge around Egypt’s presidential palace

CAIRO (Reuters) – Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi‘s call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.

The Islamist leader’s deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi‘s powers.

“The people want the downfall of the regime” and “Leave, leave,” crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt‘s first freely elected president.

Their slogans echoed those used in a popular revolt that toppled Mursi’s predecessor Hosni Mubarak in February 2011.

Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.

The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. “Tomorrow everything will be on the table,” a presidential source said of the talks.

The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting in Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was made to seem like a concession but would not change the opposition’s stance.

He said the core opposition demand was to freeze Mursi’s decree and “to reconsider the formation and structure of the constituent assembly”, not simply to postpone the referendum.

The opposition organized marches converging on the palace which elite Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo’s al-Azhar mosque for six Mursi partisans who were among the dead. “With our blood and souls, we sacrifice to Islam,” they chanted.

“ARM-TWISTING”

In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front’s coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as “arm-twisting and imposition of a fait accompli”.

Murad Ali, spokesman of the Brotherhood’s Freedom and Justice Party (FJP), said opposition reactions were sad: “What exit to this crisis do they have other than dialogue?” he asked.

Mursi’s decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt’s hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.

The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.

Caught in the middle are many of Egypt’s 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.

“We are so tired, by God,” said Mohamed Ali, a laborer. “I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven’t had work for a week.”

ECONOMIC PAIN

A long political standoff will make it harder for Mursi’s government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $ 4.8-billion IMF loan that Egypt hopes to clinch this month.

U.S. President Barack Obama told Mursi on Thursday of his “deep concern” about casualties in this week’s clashes and said “dialogue should occur without preconditions”.

The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.

The Muslim Brotherhood’s spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue “it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim”.

Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.

“He is the president of the republic. He can’t just work for the Muslim Brotherhood,” Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.

(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)

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‘Post-PC’ is more than just marketing buzz for Apple CEO Tim Cook

Apple (AAPL) is no stranger to ditching technologies when it deems them to no longer be useful. The company dropped the floppy disk for a CD-ROM drive on the first iMac and most recently has shifted to building MacBooks and iMacs without any physical disc drives. In his first televised interview on NBC’s Rockcenter with Brian Williams, Apple CEO Tim Cook revealed that he has “ditched physical keyboards” now that he spends 80% of his time using his iPad “authoring email” and “working on things.” Cook says he’s gotten quite good at typing on the screen and advises people to trust auto-correction as it’s “quite good” — though it’s a feature we still blast iOS for some five years after the first iPhone launched. But what does it mean when the boss of the country’s most valuable company and the most revered technology company in the world doesn’t even use physical keyboards anymore? Perhaps the “post-PC” era will become mainstream sooner than we thought.

For years, Apple has touted the idea that we’re entering the “post-PC” era – a period when touchscreen-equipped smartphones and tablets will eclipse desktops, notebooks and complex operating systems as they slowly fade away into a niche reserved for professionals.

While there will still be a need for notebooks, Windows PCs and Macs, the increasing numbers of smartphones and tablets sold and continued decline of worldwide PC sales support Apple’s claim that mobile is where the next tech battleground is, even if Microsoft (MSFT) thinks otherwise.

The term “dogfooding” is often thrown around between tech blogs and Cook is doing exactly that — using his “own product to demonstrate the quality and capabilities of the product.”

As Steve Jobs once said, Apple only builds products its own engineers and designers would use themselves.

Cook’s not saying, “iPads are great” for some people and some tasks. The fact that Cook uses his iPad for 80% of his work and an iPhone all the time suggests he and Apple are serious about this post-PC era. Apple wants iPads and iPhones to be great for all of your computing needs.

Apple is serious enough about it that the big boss has shifted his habits from old-school typing on actual keyboards to using virtual keyboards. And for all we know, Cook could be using even more natural human interfaces such as more voice recognition (ex: Siri in iOS and built-in dictation in OS X Mountain Lion).

Will physical keyboards go the way of the dodo in the next handful of years? It’s doubtful, but don’t be surprised if you see fewer and fewer offices with QWERTY keyboards attached to PCs and more desks and execs just carrying tablets and a smartphone on the side.

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GlaxoSmithKline in deal with MD Anderson on cancer drugs

(Reuters) – GlaxoSmithKline signed a collaboration agreement with the MD Anderson Cancer Center in Houston to develop new drugs that promote a patient’s immune system to attack cancer based on discoveries by Anderson researchers.

Anderson, one of the world’s premier cancer research and treatment centers, announced the agreement on Friday. Under terms of the deal, it will receive an undisclosed upfront payment and research funding from Glaxo and could earn $ 335 million plus royalties if the collaboration leads to approved medicines.

The British drugmaker will get exclusive worldwide rights to develop and sell antibodies that activate OX40, a protein on the surface of T cells – a type of white blood cell that is an important component of the body’s immune system. The antibodies were discovered by Dr. Yong-Jun Liu and colleagues when he was professor and chair of MD Anderson’s Department of Immunology.

“This agreement is … a testament to the vision shared by GSK and MD Anderson that successful clinical development of oncology drugs requires seamless integration of drug development expertise and deep biological knowledge,” Dr Giulio Draetta, director of Anderson’s Institute for Applied Cancer Science, said in a statement.

So-called immunotherapies, which help the body’s immune system to more efficiently attack cancer, are seen as an important new frontier is the fight against the disease in its many forms. Several companies are developing promising cancer immunotherapies.

Any drugs that come out of the Glaxo-Anderson collaboration would be several years away as more preclinical testing is needed before the OX40 approach will be tested in human subjects, MD Anderson said.

(Reporting by Bill Berkrot; Editing by Nick Zieminski)

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UK’s Kate and William “saddened” by nurse’s death

LONDON (Reuters) – Britain’s Prince William and his wife Kate said on Friday they were “deeply saddened” by the death of a nurse who fell victim to a prank call from an Australian radio station seeking details of the duchess’s condition while she was in hospital for morning sickness.

The King Edward VII hospital earlier confirmed the death of the nurse, Jacinda Saldanha.

“Their Royal Highnesses were looked after so wonderfully well at all times by everybody at King Edward VII Hospital, and their thoughts and prayers are with Jacintha Saldanha‘s family, friends and colleagues at this very sad time,” said a statement from William’s office.

(Reporting by Tim Castle; editing by Stephen Addison)

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Obama accepting corporate cash for inaugural

After the most expensive campaign in U.S. history, President Obama is dropping his principled objection to some forms of political fundraising to help pay for the post-election party.

ABC News has learned that the Presidential Inaugural Committee will accept unlimited corporate donations to help fund Obama's inauguration festivities next month, reversing a voluntary ban on the money he imposed on the inaugural four years ago and during the 2012 Democratic National Convention.

Obama will also allow individuals to contribute up to the legal maximum for the 2013 inauguration - $250,000 - lifting a $50,000 cap he voluntarily imposed in 2008, sources said.

The shift appeared to be driven by fundraising challenges in the wake of a multi-billion dollar campaign. Obama and GOP nominee Mitt Romney each raised north of $1 billion for the election cycle - historic highs - according to Federal Election Commission filings released Thursday.

Obama's 2009 inaugural celebration cost $47 million.

Officials said cost considerations for the 2013 festivities would mean less elaborate events than four years ago. There will not be a star-studded concert on the National Mall, for example, and there will be fewer inaugural balls.

A spokeswoman for the committee said Obama will still not accept donations from lobbyists or PACs, or allow any individuals or corporations to formally sponsor specific inaugural events, such as the parade.

"Our goal is to make sure that we will meet the fundraising requirements for this civic event after the most expensive presidential campaign in history," said Addie Whisenant. "To ensure continued transparency, all names of donors will be posted to a regularly updated website."

Whisenant told ABC News that the Inaugural Committee will "fully vet" all individual and corporate donors and that "contributions from those not meeting the vetting standard will not be accepted." Among those barred by law are foreign nationals and corporations; the committee says it will also reject funds from companies that have outstanding TARP payments.

Obama's reversal is not the first time he has dropped self-imposed campaign financing rules meant to "change business as usual in Washington." Earlier this year, Obama dropped his long-standing opposition to super PACs, giving his approval for top aides to support Priorities USA Action. During the 2008 campaign, he broke a standing promise to accept public financing for the general election.

The Inaugural weekend will kick off on Saturday, Jan. 19, with a National Day of Service that will include participation from the First Family, Vice President Biden, and members of the Cabinet - a tradition started by the Obamas in 2009.

On Jan. 20, as is constitutionally required, Obama will be sworn in during a private ceremony. A public-swearing in, parade and inaugural balls will take place on Monday, Jan. 21.

Leading the fundraising effort for inauguration are four of Obama's most loyal surrogates and financiers: Former ambassador Matt Barzun, the Obama campaign's national finance chair and a top bundler; actress Eva Longoria, an Obama campaign co-chair and bundler; Jane Stetson, finance chairwoman of the DNC; and businessman Frank White.

News of Obama's shift on inaugural financing was first reported by Politico's Donovan Slack.

UPDATE: A nonpartisan government watchdog group, Public Citizen, assailed Obama's decision to accept unlimited corporate funding for his 2013 inauguration, calling the arrangement "Obama Inc."

"The American people have a right to expect something other than an inauguration brought to them by Bank of America," said Public Citizen president Robert Weissman.

"Every corporation's donations create a conflict of interest, because they all have business before the government in one way or the other," he said. "The problem with donations from lobbyists is that they expect something in return for their contribution. The situation is exactly the same with corporate contributors, virtually all of whom employ lobbyists."

Weissman called it doubly disappointing that the "corporate-funded" inaugural activities will fall on the anniversary of the U.S. Supreme Court decision in "Citizens United," which opened the door to unlimited corporate spending in campaigns - a decision Obama has decried.

Public Citizen appealed to Obama last week with a petition of 30,000 signatures to refuse corporate money for the inauguration.

This post has been updated.

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Toronto mayor to stay in power pending appeal of ouster

TORONTO (Reuters) – Toronto Mayor Rob Ford can stay in power pending an appeal of a conflict of interest ruling that ordered him out of his job as leader of Canada’s biggest city, a court ruled on Wednesday.

Madam Justice Gladys Pardu of the Ontario Divisional Court suspended a previous court ruling that said Ford should be ousted. Ford’s appeal of that ruling is set to be heard on January 7, but a decision on the appeal could take months.

Justice Pardu stressed that if she had not suspended the ruling, Ford would have been out of office by next week. “Significant uncertainty would result and needless expenses may be incurred if a by-election is called,” she said.

If Ford wins his appeal, he will get to keep his job until his term ends at the end of 2014. If he loses, the city council will either appoint a successor or call a special election, in which Ford is likely to run again.

“I can’t wait for the appeal, and I’m going to carry on doing what the people elected me to do,” Ford told reporters at City Hall following the decision.

Ford, a larger-than-life character who took power on a promise to “stop the gravy train” at City Hall, has argued that he did nothing wrong when he voted to overturn an order that he repay money that lobbyists had given to a charity he runs.

Superior Court Justice Charles Hackland disagreed, ruling last week that Ford acted with “willful blindness” in the case, and must leave office by December 10.

Ford was elected mayor in a landslide in 2010, but slashing costs without cutting services proved harder than he expected, and his popularity has fallen steeply.

He grabbed unwelcome headlines for reading while driving on a city expressway, for calling the police when a comedian tried to film part of a popular TV show outside his home, and after reports that city resources were used to help administer the high-school football team he coaches.

The conflict-of-interest drama began in 2010 when Ford, then a city councillor, used government letterhead to solicit donations for the football charity created in his name for underprivileged children.

Toronto’s integrity commissioner ordered Ford to repay the C$ 3,150 ($ 3,173) the charity received from lobbyists and companies that do business with the city.

Ford refused to repay the money, and in February 2012 he took part in a city council debate on the matter and then voted to remove the sanctions against him – despite being warned by the council speaker that voting would break the rules.

He pleaded not guilty in September, stating that he believed there was no conflict of interest as there was no financial benefit for the city. The judge dismissed that argument.

In a rare apology after last week’s court ruling, he said the matter began “because I love to help kids play football”.

Ford faces separate charges in a C$ 6 million libel case about remarks he made about corruption at City Hall, and is being audited for his campaign finances. The penalty in the audit case could also include removal from office.

(Reporting by Claire Sibonney; Editing by Janet Guttsman, Russ Blinch, Nick Zieminski; and Peter Galloway)

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Vitamin D, calcium disappoint in dementia study

NEW YORK (Reuters Health) – Vitamin D and calcium supplements taken together in low doses offered no protection against dementia in a large U.S. study of older women, but scientists are still holding out hope for vitamin D alone.

Past research has suggested that vitamin D might protect against memory loss and overall functional decline in the aging brain. But more than 2,000 women in the new study who took 400 international units of vitamin D and 1,000 mg of calcium daily for an average of eight years developed cognitive impairments at the same rates as a comparison group on placebo pills.

During the many years that study was ongoing, however, experts gained a better understanding of how calcium and vitamin D might have conflicting effects, so the combination of the two might explain the disappointing results, the study’s authors say.

“I think the definitive study will just look at the effects of vitamin D,” said lead author Dr. Rebecca Rossom, from HealthPartners Institute for Education and Research, a nonprofit arm of a health maintenance organization (HMO) based in Minneapolis.

But this study is important because it “gets closer to how women take vitamin D now,” as a way build bone density, Rossom added.

Her team’s report, which is published in the Journal of the American Geriatrics Society, is also the first to use the rigorous approach known as a randomized, double-blind trial with a placebo group to look at the possible effects of vitamin D and calcium on cognitive decline.

Rossom and her colleagues analyzed data on 4,100 women who were simultaneously enrolled in two trials, including the Women’s Health Initiative (WHI) Calcium and Vitamin D trial that ended in 2005, and a WHI memory study.

All of the women, who averaged 71 years old at the outset of the studies, were also free of cognitive problems to start.

Half of the women were assigned to take the supplements and the rest were given identical looking dummy pills.

Ultimately, about 100 women, or five percent, in each group developed mild cognitive impairment – a term that can include everything from memory trouble to the serious dementia found in Alzheimer’s disease.

The researchers note that since the study ended, guidelines on vitamin and mineral intakes have changed. Currently the U.S. Institute of Medicine suggests getting 600 IUs per day of vitamin D for men and women up to age 70, and 800 IUs for older people. Suggested calcium amounts range from 700 mg to 1,300 mg per day, based on age, with an upper limit of 3000 mg. In both cases, intake recommendations cover both food and supplement sources.

So, the authors point out, their findings are specific only to the assigned amounts of vitamin D and calcium taken by women in the study – which are relatively low by today’s standards.

More than 16 million Americans suffer from some form of cognitive impairment, according to the U.S. Centers for Disease Control and Prevention, and the problem is expected to grow as more baby boomers age. Vitamin D might still be viewed as potentially offering a measure of protection against a condition with no formal treatment, if its effects can be decisively demonstrated.

“The sum of information shows conflicting evidence,” said Katherine Tucker of Northeastern University, who was not involved in the current study.

“Some recent studies suggest that too much calcium could have negative effects. The preponderance of evidence shows that vitamin D is protective, but some studies have shown no effect,” she told Reuters Health.

But, Tucker said, “This study by no means closes the door on the need for more research to clarify vitamin D’s effects.”

Rossom’s team acknowledges their study’s limitations. In addition to the doses of supplements in the trial, the results are strictly limited to women, who were mostly white. Also, older age is a significant risk factor for dementia and the study participants, by comparison, were relatively young.

“The next step is to test a higher dose of vitamin D,” said study coauthor JoAnn Manson of Harvard Medical School. “Higher doses will bring a study population to an achieved blood level that has been associated with reduced risk of cognitive decline in (past) studies.”

Manson is currently leading a large clinical trial designed primarily to look at the effects of vitamin D and omega-3′s on cancer risk, but the study will also monitor cognitive function. Results are expected in 2017.

A French study slated to finish next year is examining the cognitive effects of vitamin D versus a placebo in patients who already have Alzheimer’s disease.

“The bottom line is that we still just don’t know,” Tucker told Reuters Health. “We’re in the process of gathering more scientific evidence and will need to continue to do so until more studies point in a certain direction.”

SOURCE: http://bit.ly/VCIs9H Journal of the American Geriatrics Society, online November 23, 2012.

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mtvU honors Frank Ocean, wounded Pakistani teen

NEW YORK (AP) — The mtvU network is honoring a rap superstar who detailed his love for another man and a Pakistani girl shot for her education advocacy as its Man and Woman of the Year.

Frank Ocean, who earned six Grammy nominations Wednesday, published a letter online about his first love, a man, just as his “channel ORANGE” disc was being released. MtvU on Thursday called it “an incredibly brave move for an artist on the verge of superstardom.”

Fifteen-year-old Malala Yousufzai (mah-LAH’-lah YOO’-suf-ZAY’) blogged about her support of education for girls in Pakistan. For that, Taliban militants stormed her school bus and shot her in the head and neck, but she survived.

The mtvU network is geared toward college students and is seen on more than 750 campuses.

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Death toll from Philippine typhoon nears 300

NEW BATAAN, Philippines (AP) — Stunned parents searching for missing children examined a row of mud-stained bodies covered with banana leaves while survivors dried their soaked belongings on roadsides Wednesday, a day after a powerful typhoon killed nearly 300 people in the southern Philippines.

Officials fear more bodies may be found as rescuers reach hard-hit areas that were isolated by landslides, floods and downed communications.

At least 151 people died in the worst-hit province of Compostela Valley when Typhoon Bopha lashed the region Tuesday, including 78 villagers and soldiers who perished in a flash flood that swamped two emergency shelters and a military camp, provincial spokeswoman Fe Maestre said.

Disaster-response agencies reported 284 dead in the region and 14 fatalities elsewhere from the typhoon, one of the strongest to hit the country this year.

About 80 people survived the deluge in New Bataan with injuries, and Interior Secretary Mar Roxas, who visited the town, said 319 others remained missing.

“These were whole families among the registered missing,” Roxas told the ABS-CBN TV network. “Entire families may have been washed away.”

The farming town of 45,000 people was a muddy wasteland of collapsed houses and coconut and banana trees felled by Bopha’s ferocious winds.

Bodies of victims were laid on the ground for viewing by people searching for missing relatives. Some were badly mangled after being dragged by raging flood waters over rocks and other debris. A man sprayed insecticide on the remains to keep away swarms of flies.

A father wept when he found the body of his child after lifting a plastic cover. A mother, meanwhile, went away in tears, unable to find her missing children. “I have three children,” she said repeatedly, flashing three fingers before a TV cameraman.

Two men carried the mud-caked body of an unidentified girl that was covered with coconut leaves on a makeshift stretcher made from a blanket and wooden poles.

Dionisia Requinto, 43, felt lucky to have survived with her husband and their eight children after swirling flood waters surrounded their home. She said they escaped and made their way up a hill to safety, bracing themselves against boulders and fallen trees as they climbed.

“The water rose so fast,” she told AP. “It was horrible. I thought it was going to be our end.”

In nearby Davao Oriental, the coastal province first struck by the typhoon as it blew from the Pacific Ocean, at least 115 people perished, mostly in three towns that were so battered that it was hard to find any buildings with roofs remaining, provincial officer Freddie Bendulo and other officials said.

“We had a problem where to take the evacuees. All the evacuation centers have lost their roofs,” Davao Oriental Gov. Corazon Malanyaon said.

The International Federation of Red Cross and Red Crescent Societies issued an urgent appeal for $ 4.8 million to help people directly affected by the typhoon.

The sun was shining brightly for most of the day Wednesday, prompting residents to lay their soaked clothes, books and other belongings out on roadsides to dry and revealing the extent of the damage to farmland. Thousands of banana trees in one Compostela Valley plantation were toppled by the wind, the young bananas still wrapped in blue plastic covers.

But as night fell, however, rain started pouring again over New Bataan, triggering panic among some residents who feared a repeat of the previous day’s flash floods. Some carried whatever belongings they could as they hurried to nearby towns or higher ground.

After slamming into Davao Oriental and Compostela Valley, Bopha roared quickly across the southern Mindanao and central regions, knocking out power in two entire provinces, triggering landslides and leaving houses and plantations damaged. More than 170,000 fled to evacuation centers.

As of Wednesday evening, the typhoon was over the South China Sea west of Palawan province. It was blowing northwestward and could be headed to Vietnam or southern China, according to government forecasters.

The deaths came despite efforts by President Benigno Aquino III’s government to force residents out of high-risk communities as the typhoon approached.

Some 20 typhoons and storms lash the northern and central Philippines each year, but they rarely hit the vast southern Mindanao region where sprawling export banana plantations have been planted over the decades because it seldom experiences strong winds that could blow down the trees.

A rare storm in the south last December killed more than 1,200 people and left many more homeless.

The United States extended its condolences and offered to help its Asian ally deal with the typhoon’s devastation. It praised government efforts to minimize the deaths and damage.

___

Associated Press writers Jim Gomez, Teresa Cerojano and Oliver Teves in Manila contributed to this report.

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With Teva at crossroads, new CEO set to unveil vision

NEW YORK/TEL AVIV (Reuters) – Teva Pharmaceutical Industries‘ new Chief Executive Jeremy Levin has promised investors it will be a very different company going forward. Next week he has to prove it.

Levin’s ability to paint a bright future for the world’s biggest maker of generic drugs at a meeting with investors and analysts on December 11 in New York became a bit more difficult last week, when Teva issued a 2013 earnings forecast that fell short of Wall Street estimates.

Levin, a big pharma veteran, is expected to shift Teva’s focus to branded drugs even as its most important such product, top-selling multiple sclerosis treatment Copaxone, faces new competition and a 2015 patent expiration. Investors are also hoping for a meaningful boost to the annual dividend while new management works to jumpstart a stagnant share performance.

“I’ve made a lot of money in Teva and I’ve seen this company wither in front of my eyes,” said Dan Hunt, a co-portfolio manager for RCM Capital Management’s Wellness Fund. Hunt’s fund no longer includes Teva shares, but RCM has small Teva holdings.

“The most important signal (shareholders) need to hear on the record from Levin is ‘whatever it takes I will protect you’,” Hunt said, adding that Teva has not delivered for its shareholders in years.

Teva’s U.S. shares are up about 2 percent in 2012 after falling 22.6 percent in 2011. They are off 35 percent from a 2010 peak at about $ 64. Shareholders of smaller Teva rivals Watson Pharmaceuticals Inc and Mylan Inc have fared far better with Watson up about 45 percent this year and Mylan shares up about 27 percent over the same period.

Levin has taken some preemptive steps to placate investors ahead of the meeting by announcing that the company plans to cut $ 1.5 billion to $ 2 billion in costs over the next five years, streamline operations and discontinue some research programs.

Morgan Stanley estimated that Copaxone sales account for 58 percent of Teva’s projected 2013 earnings. Levin will have to reveal how he plans to make up for the anticipated decline in Copaxone revenue beyond cost-cutting efforts.

Generic drugs accounted for 56 percent of Teva’s revenue last year, but the company faces obstacles to generic growth in the United States, the world’s largest market.

Following a wave of major patent expirations, the number of multibillion-dollar drugs going generic will diminish after the next couple of years. And new generic drugs are facing competition sooner along with faster price declines. Generic drugs are also facing considerable price pressure in Europe.

SMALL ACQUISITIONS

South African-born Levin, a former senior vice president for strategy at Bristol-Myers Squibb Co, took over as CEO of Israel’s biggest company in May, replacing Shlomo Yanai.

In five years at the helm, Yanai engineered a number of large acquisitions, including last year’s $ 6.5 billion purchase of U.S. drugmaker Cephalon, which has been viewed by some analysts as a disappointment. The company last month took a $ 481 million impairment charge related to the Cephalon deal.

Levin last week signaled a desire for more targeted acquisitions focused on Teva’s core areas of expertise, such as central nervous system disorders and respiratory diseases.

He has begun to whittle away at non-core businesses, selling Teva’s U.S. animal health unit to Bayer for up to $ 145 million. Investors said Teva needs to improve production efficiency and downsize or close some of its plants.

Levin, who implemented at Bristol-Myers a series of deals and alliances with small and large companies, has been credited with helping to guide Bristol through its enormous patent cliff as the blood clot preventer Plavix, which had been the world’s second biggest selling prescription medicine, lost exclusivity.

“The key is smart deals and getting an estimate of what a reasonable growth rate is going forward,” said Robert Caravella, equity research analyst for Victory Capital Management, which holds about $ 9 million in Teva convertible bonds.

“The biggest issue is there’s not an understanding of where revenue and earnings are going to go and how we’re going to get to that point,” he said.

BIGGER DIVIDEND?

Shareholders would also like to see Teva raise its dividend, which provides only a 2.5 percent return on the stock, below the industry average of about 4 percent. Alternatively, the company may decide to increase shareholder returns by boosting its $ 3 billion share buyback.

Steven Tepper, an analyst at brokerage Harel Finance, said Levin must demonstrate how Teva can again become a growth company or that it will be a value investment going forward through a significant dividend increase. “This plan will have to convince investors it’s making that move,” Tepper said.

RCM Capital’s Hunt said Levin must present “a strong, formed, clear strategic vision” of where the company is headed.

The question is whether it will be enough to convince disenchanted investors such as Stewart Capital, which has more than $ 1 billion in assets under management but sold its Teva holdings shortly after Levin took over.

Matthew DiFilippo, chief portfolio strategist for Stewart, was skeptical that one individual could effect the change necessary to transform Teva back into an industry darling. “So while we recognized his talents, we also recognized the challenges they face and we sold,” he said.

A lot of money remains on the sidelines waiting for what Levin has to say, said Ori Hershkovitz, managing partner at Israel-based pharmaceutical hedge fund Sphera. Levin needs to say he is committed to replenishing Teva’s branded pipeline and will do whatever it takes to replace those lost sales by 2016, Hershkovitz said, and he must “make the market believe it”.

(Additional reporting by Steven Scheer in Jerusalem; Editing by Leslie Gevirtz)

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