Archive for March, 2011

Column: OSU Treads Too Lightly on Tressel

John U. Bacon

John U. Bacon

On Tuesday night, Ohio State athletic director Gene Smith flew back from New York, where he had been running the NCAA basketball selection committee, to conduct a press conference. He announced he was suspending his head football coach, Jim Tressel, for the first two games of the 2011 season.

It looks like Tressel has gotten himself into a bit of hot water. That’s why Smith, his boss, flew back to make sure everybody said they were “taking responsibility” – a phrase which changed some time in the last decade, and now means the exact opposite.

It was fine theater. [Full Story]

Caption Incorrect

A photo essay on the FoolMoon workshop at the Workantile Exchange incorrectly identified one of the participants, Elaine Reed. We note the error here, and have corrected the caption in the original photo essay.

Beyond Pot: Development, Liquor, Parks

Ann Arbor city council meeting (March 7, 2011) Part 1: The city council’s Monday meeting lasted nearly until midnight, with most of the five hours devoted to discussion of a proposed medical marijuana ordinance, which the council ultimately elected to postpone. The meeting included other significant business as well, and Part 1 of this meeting report is devoted to just those non-marijuana-related business items.

Tony Derezinski Ann Arbor city council

At the March 7, 2011 city council meeting, Tony Derezinski (Ward 2) was appointed as a hearing officer to consider appeals of recommendations to revoke liquor licenses. To Derezinski's right are Margie Teall (Ward 4), Sandi Smith (Ward 1) and Stephen Kunselman (Ward 3). (Photos by the writer.)

Also postponed – until the council’s first meeting in April – was a resolution that would outline a way for the Ann Arbor Downtown Development Authority to lead the process of transforming surface parking lots currently owned by the city of Ann Arbor to alternate uses.

The resolution, which articulates the so-called “parcel-by-parcel plan,” had already been postponed once before. In explaining the rationale for the postponement, Christopher Taylor (Ward 3) cited the desire of the DDA to ensconce the parcel-by-parcel plan in a contractually binding agreement, which he said had not been previously indicated.

Not postponed was a vote on appointing a hearing officer for appeals of recommendations that liquor licenses not be renewed. The original resolution was to appoint the members of the council’s liquor license review committee to a hearing board, but it was amended at the table – to the surprise of some councilmembers – to allow for appointment of just one hearing officer: Tony Derezinski (Ward 2). Derezinski also serves on the liquor license review committee. Voting against the amendment, as well as the final appointment, were three councilmembers, including Stephen Rapundalo (Ward 2). Rapundalo chairs the council’s liquor license committee and has served on it since it became a permanent council committee in 2008, as well as before that, when it was an ad-hoc committee.

The council also approved the city’s Parks and Recreation Open Space (PROS) plan – an inventory, needs assessment and action plan for the city’s parks system, which is required by the state for certain grant applications. The deadline faced by the council to renew the five-year plan was April 1, 2011.

In other non-marijuana business, the council approved a “complete streets” policy, authorized a stormwater study in the Swift Run drain system, established a loan loss fund for the Property Assessed Clean Energy (PACE) program, and authorized the purchase of LED streetlight fixtures.

The council also heard its usual range of public commentary and communications from its own members. A public hearing was held on the establishment of a Washtenaw Avenue corridor improvement authority (CIA), during which Ypsilanti mayor Paul Schreiber spoke. The Chronicle will cover the mayor’s comments as part of a future report on a CIA public meeting conducted by city planning staff. [Full Story]

UM: Groupon

Michigan Today magazine profiles University of Michigan graduate Brad Keywell, who co-founded Groupon.com, a popular online coupon business. The concept started with another company he co-founded called The Point, which struggled until they adapted it to the commercial market. Says Keywell: “In the midst of potential failure came massive success. We originally saw a social-media formula with The Point that could mobilize people to do great things through the tipping-point mechanism. The difference with Groupon is that people use the tipping point to save money, and that’s a very big difference.” [Source]

A2: Business

The New York Stock Exchange plans to remove Borders Group’s common stock from the NYSE listing on March 21, according to a report in the Detroit News. The stock exchange had already halted the trading of Borders’ shares when the Ann Arbor bookstore chain filed for Chapter 11 bankruptcy on Feb. 16 – though shares remained listed. Borders did not appeal the delisting decision, according to a filing with the U.S. Securities & Exchange Commission. [Source]

AAPS Superintendent Choice: Hard Decision

Ann Arbor Public Schools board of education special meeting (March 5, 2011): The Ann Arbor Public Schools search for a new superintendent came to an end last Saturday afternoon, when the board of trustees selected Patricia Green as their preferred choice for the position.

Green is currently the superintendent of schools at North Allegheny School District in Pennsylvania. She’s a career educator, with her own educational background including a bachelor’s degree in elementary education and a doctorate in education policy, planning and administration. The AAPS website includes additional biographical material on Green. [See also Chronicle coverage of first round interviews with the candidates: "AAPS: Final Phase of Superintendent Search"]

Patricia Green

Patricia Green answers questions at a community forum held at Pioneer High School on March 4, 2011.

The decision to enter into negotiations with Green was made after the board held second interviews with Green and Michael Muñoz last Saturday morning, which followed a community forum the night before. At the forum, held at Pioneer High School, both candidates answered questions submitted by many of the roughly 100 members of the public who attended. Several board members also attended the forum.

The board selected Green after lengthy deliberations, which included reports on reference calls, an extensive discussion of candidates’ strengths and weaknesses and a number of straw polls displaying support for both candidates.

The fact that straw votes by trustees at one point had five of the seven supporting Muñoz – before the board eventually decided on Green – indicated that the board’s consensus was reached only with a great deal of effort. Board members frequently expressed their satisfaction with both candidates.

“We have two excellent candidates,” board president Deb Mexicotte said. “This is good for the outcome but tough for making the decision.”

Other board members agreed, frequently prefacing their statements of support for one candidate by allowing that, ultimately, they would be fine with either choice.

This report describes how the board’s discussion on Saturday unfolded. [Full Story]

Art Commission Drafts Artist Selection Form

Ann Arbor public art commission meeting (March 1, 2011): Marsha Chamberlin chaired AAPAC’s March meeting, and began by welcoming guests: Six students from Skyline High School, who were there for a class assignment, and Susan Froelich, the new president of the Arts Alliance.

Susan Froelich

Susan Froelich, the new president of the Ann Arbor-based Arts Alliance, at the March 1, 2011 meeting of the Ann Arbor public art commission. She was appointed in late February and replaces former president Tamara Real, who resigned last year. (Photo by the writer.)

Froelich – who was a member and former chair of AAPAC’s predecessor group, the commission for art in public places – told commissioners she was just there to say hello, and that the alliance looked forward to working with AAPAC. She passed out bookmarks promoting the A3Arts web portal, which launched last year and features profiles of artists and institutions in the area, along with an events calendar and other information. Finally, Froelich thanked commissioners for their work.

During the meeting, commissioners approved spending up to $2,000 to get an evaluation of the damaged Sun Dragon at Fuller Pool, and to secure a cost estimate for repair or replacement. Margaret Parker, an AAPAC member and the artist who originally designed the colored-plexiglas sculpture, recused herself from that discussion.

Commissioners also discussed a draft of an artist evaluation rubric and interview protocol, and debated whether local artists should be given extra points in the process. Also debated was the definition of local – they plan to continue the discussion at their next meeting.

Nomination forms for the annual Golden Paintbrush awards are now available from AAPAC’s website, with a May 2 deadline for submission. The awards are given to individuals and institutions for their contributions to public art in Ann Arbor.

Scheduling came up in several different ways. A special meeting has been called to vote on site recommendations from AAPAC’s mural task force. That meeting is set for Friday, March 11 at 11 a.m. on the seventh floor of the City Center building at Fifth and Huron. Commissioners also discussed possibly changing their monthly meeting day. It’s now set for the first Tuesday of each month at 4:30 p.m., but two commissioners have scheduling conflicts at that time. AAPAC’s newest member, Malverne Winborne, reported that he’d told mayor John Hieftje prior to his nomination that the meeting day would be difficult for him, but that had not been communicated to the rest of the commission. [Full Story]

UM: Film Incentives

In the Detroit Free Press, Priscilla Lindsay – chair of the University of Michigan Department of Theatre & Drama – writes an opinion piece that argues for support of the state’s tax incentives for the film industry, which Gov. Rick Snyder wants to eliminate: “Ever since I arrived in Ann Arbor to begin my stint as chairwoman, theatre students have been knocking on my door, sitting down and telling me about their latest audition for a film, their Detroit agents, their roles in movies shot last summer and this fall as well as projects coming up for spring and summer. The perception of this state as a place to make a living in ‘the biz’ has changed. There is actual ‘work’ … [Full Story]

UM: Climate Change

USA Today reports that more Americans believe in “climate change” than they do “global warming,” according to a recent University of Michigan study. The largest differences in perception were found in people who identified themselves as Republicans, with 44% believing in global warming and 60% believing climate change was real. Norbert Schwarz, one of the study’s authors, writes that the issue is not as partisan as previously thought: “When the issue is framed as global warming, the partisan divide is nearly 42 percentage points. But when the frame is climate change, the partisan divide drops to about 26 percentage points.” [Source]

WCC: President Search

Washtenaw Community College has scheduled forums for the public to meet three finalists for the job of president, to replace outgoing WCC president Larry Whitworth: 1) Thursday, March 10, 3 p.m. with Irene Kovala, vice president for academic and student affairs at Minneapolis Technical and Community College in Minneapolis, Minn.; 2) Friday, March 11, 3 p.m. with Vicki Martin, executive vice president and provost of Milwaukee Area Technical College in Milwaukee, Wis.; and 3) Monday, March 14, 2 p.m. with Donald Doucette, senior vice president and provost of Ivy Tech Community College in Indianapolis, Ind. All forums will be held at WCC’s Towsley Auditorium. [Source]

UM: Lily Tomlin

The Detroit News reports that actress Lily Tomlin has written a letter to University of Michigan president Mary Sue Coleman, calling for UM to stop using live animals in its survival flight training for nurses. From Tomlin’s letter: “As a Michigan native, I was disappointed to learn from my friends at PETA that the University of Michigan is allowing cats and pigs to be tormented and killed in its survival flight course, even though the use of humanlike simulators – which are readily available at the school – is the preferred standard for this training across the country and better prepares medical providers to treat adults and children in life and death situations.” [Source]

AAPS Preps to Push for Special Ed Tax

Ann Arbor Public Schools board of education regular meeting (March 2, 2011): The board’s decision – made at a special meeting held Saturday – to begin negotiations with Patricia Green about becoming the district’s next superintendent was preceded earlier in the week by a regular, routine meeting of the board.

At Wednesday’s regular meeting, the highlight was a presentation on the special education millage that will appear on the ballot on May 3, 2011. The proposed tax would renew an existing levy for the next seven years, and is projected to generate $14 million to support special education services in school districts across Washtenaw County. Of that amount, AAPS would be allocated around $5.7 million.

The special ed millage is not the same kind of proposal as the unsuccessful November 2009 ballot proposal – which was to levy a new, additional 2 mill tax to support general operations for districts countywide.

In addition to the presentation, the board heard its usual range of board and association reports during the meeting. [Full Story]

Miller & Spring

Two guys get a large bag full of raw chicken scraps from Knight’s Market – bait for coyote hunting.

Photo Essay: Fat Tuesday in Ann Arbor

Editor’s note: It’s Fat Tuesday, when thoughts turn to paczki – those dense but irresistible Polish pastries that mark the last hurrah before Lent. This year, for the first time in their 18-year history, Zingerman’s Bakehouse staff got up well before dawn to make their own version, and local photographer Anne Savage was there to catch the action. She’s sharing some of her work with Chronicle readers – you can find many more photos on her new food blog, The Savage Feast. Enjoy!

Nina Huey at Zingerman's Bakehouse

Nina Huey sprinkles powdered sugar on a tray of paczki at Zingerman's Bakehouse Tuesday morning. Ingredients for the dough include bit of Spiritus, a Polish grain alcohol.

[Full Story]

Ypsi: Business

The Detroit Free Press reports that Karen and Eric Maurer – landlords for Ann Arbor SPARK’s Ypsilanti business incubator – takes issue with a proposal by Gov. Rick Snyder to eliminate historic district and brownfield tax credits. The Maurers used both to renovate the historic building now occupied by SPARK, a local economic development agency that Snyder co-founded. Mike Finney, SPARK’s former CEO who Snyder tapped to lead the Michigan Economic Development Corp., tells the Freep that incentives will still exist in some form to help projects like the ones undertaken by the Maurers. [Source]

Ann Arbor: We’re For Complete Streets

At its March 7, 2011 meeting, the Ann Arbor city council adopted a resolution expressing its commitment to the concept of “complete streets” – the idea that streets should be constructed to accommodate a full range of users, from pedestrians, to bicyclists, to public transit vehicles, to privately owned automobiles.

The impetus for the city’s proclamation comes from the state of Michigan’s enactment in 2010 of Public Act 134 and 135, which amended the state’s planning enabling statute and the transportation funding law. The resolution is meant to make sure that Ann Arbor continues to qualify for state transportation funding.

In the resolution approved by the Ann Arbor city council, the city’s complete streets policy is described as including the city’s transportation master plan, the city’s non-motorized transportation plan, a city council resolution setting aside a percentage of Ann Arbor’s Act 51 funds for non-motorized transportation, and a policy that includes construction of non-motorized elements as part of each road construction project and requirements in the city’s public services standards.

At its March 1, 2011 meeting, the city’s planning commission briefly discussed the resolution that would be coming before the city council.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Ann Arbor OKs Swift Run Stormwater Study

At its March 7, 2011 meeting, the Ann Arbor city council approved a $88,250 contract with J.F. New to conduct a study of the Swift Run drain system near the city’s composting facility. The study is prompted by a 2009 Michigan Dept. of Natural Resources and Environment (MDNRE) inspection. The inspection determined that a small pond near the northern compost pad required maintenance.

At that time, the MDNRE also requested improvements to the stormwater management system at the compost facility to reduce the impact of nutrient loading on the Swift Run drain. In 2004, the U.S. Environmental Protection Agency issued a Total Maximum Daily Load (TMDL) for biota in the Swift Run drain.

The concept behind the study is to examine the various interconnected ponds and ditches as a unified system, so that the MDNRE’s concerns can be satisfied. J.F. New was selected from seven engineering firms who responded to the city’s request for proposals.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Ann Arbor Sets PACE Loan Loss Fund

At its March 7, 2011 meeting, the Ann Arbor city council voted to set up a $432,800 loan loss reserve fund to support the city’s planned Property Assessed Clean Energy (PACE) program. The money for the fund comes from an Energy Efficiency and Conservation Block Grant (EECBG) awarded to the city by the U.S. Department of Energy (DOE).

Through its PACE program, which is still under development by the city, Ann Arbor will help property owners finance energy improvements through voluntary special assessments. By establishing a loan loss pool, the city can reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments. [Some previous Chronicle coverage of PACE: "Special District Might Fund Energy Program"]

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Ann Arbor Adopts Park Planning Document

At its March 7, 2011 meeting, the Ann Arbor city council voted unanimously to adopt the Park and Recreation Open Space (PROS) plan for the city. The plan provides an inventory, needs assessment and action plan for the city’s parks system, and is updated every five years – this version of the planning document covers 2011 through 2015. The updated document is required by the state in order for the city to be eligible to apply for certain grants.

Approval of the plan came over the dissent of Mike Anglin (Ward 5), who read aloud a statement with objections, including issues with the proposed Fuller Road Station and public-private partnerships in the parks.

The city’s park advisory commission recommended approval of the plan at its Feb. 15, 2011 meeting. The city’s planning commission also recommended approval at its Feb. 15, 2011 meeting.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Ann Arbor Mulls Medical Pot Info Policy

At its March 7, 2011 meeting, the Ann Arbor city council considered but delayed voting on a resolution that would have set forth a policy on non-disclosure of certain information, like names and birth dates for patients and caregivers, that might be collected in the course of the zoning and licensing process for medical marijuana businesses.

The resolution was introduced by Sabra Briere (Ward 1) in the context of the council’s current work on zoning and licensing ordinances for medical marijuana businesses – legislation which has not yet been given final approval by the council. [.pdf of original draft resolution]

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

City to Mull Liquor License Non-Renewal

At its March 7, 2011 meeting, the Ann Arbor city council approved the appointment of Tony Derezinski (Ward 2) as a hearing officer to make recommendations to the city council on decisions not to renew liquor licenses. The original resolution, as a general principle, appointed all members of the city’s liquor license review committee to a hearing board to make those recommendations to the council. The three-member committee consists of Derezinski, Mike Anglin (Ward 5), and Stephen Rapundalo (Ward 2).

The resolution was amended at the meeting over the objection of Sabra Briere (Ward 1), Marcia Higgins (Ward 4), Stephen Kunselman (Ward 3) and Stephen Rapundalo (Ward 2) – who chairs the liquor license review committee.

The city code provides that before any final decision is made not to renew a license, a business must be provided with a chance to present arguments on its behalf, confront witnesses, and possibly be represented by an attorney.

The establishment of a hearing officer is prompted by a Feb. 25, 2011 meeting of the council’s liquor license review committee meeting, when the members recommended non-renewal of annual licenses for some on-premise liquor-licensed businesses.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

DDA-Led Development Stalls Again

At its March 7, 2011 meeting, the Ann Arbor city council again delayed action on a resolution that would have authorized the city’s downtown development authority to create a parcel-by-parcel plan for the development of downtown city-owned surface parking lots. The council had also considered but postponed a vote on the proposal at its Jan. 18, 2011 meeting. Objections at that meeting to the proposal included “resolved” clauses in the resolution that would (1) require placement of items on the city council’s agenda; and (2) under some circumstances require the city to reimburse the DDA for its expenses.

The postponement at the March 7 meeting was accomplished on a 10-1 vote, with Sandi Smith (Ward 1) casting the dissenting vote. Smith also serves on the DDA board. Christopher Taylor (Ward 3) noted that the DDA appeared to be interested in creating a contractual, binding relationship – instead of working based on city council and DDA board resolutions – and in light of that he wanted to postpone the issue until the council’s first meeting in April.

The two “mutually beneficial” committees of the city council and the DDA board met for the first time since the council’s Jan. 18 meeting on the morning of March 7, providing little lead time for the discussion by the whole council of the latest proposal. The committees are negotiating a revision to the contract under which the DDA manages the city’s public parking system, as well as a framework under which the DDA would lead the redevelopment of city-owned downtown surface parking lots.

At its Jan. 5 board meeting, the Ann Arbor DDA had passed a resolution urging passage of the council resolution, which had been circulated as early as the city council’s Dec. 20, 2010 meeting, when Taylor attached a copy of the the draft resolution to the council’s meeting agenda, and alerted his council colleagues to it at that meeting.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Medical Marijuana Postponed Again

At its March 7, 2011 meeting, the Ann Arbor city council again delayed consideration of a set of licensing requirements for medical marijuana businesses. The council has now delayed its initial vote on the licensing requirements at five meetings, dating back to Dec. 6, 2010. The postponement was until March 21, 2011, the council’s next meeting.

At the March 7 meeting, the council undertook several additional amendments to the licensing proposal. But ultimately they elected to postpone in the face of several unresolved issues. Christopher Taylor (Ward 3) was the sole vote against the postponement to March 21.

The vote that was again postponed is the first of two votes the council must take on any new ordinance it enacts. At its meetings over the last few months, the council has heard extensive public commentary on medical marijuana, but that commentary does not constitute a formal public hearing, which will be held at the same meeting when the council votes on final approval of the licensing, provided it eventually gives initial approval to the licensing system.

At its Oct. 18, 2010 meeting, the  council gave its initial approval to a set of zoning regulations for medical marijuana businesses, but it has not yet given its final approval to those regulations. The council’s strategy is to bring licensing and zoning forward at the same time for a final vote.

The context for development of zoning regulations was set at the council’s Aug. 5, 2010 meeting, when councilmembers voted to impose a moratorium on the use of property in the city for medical marijuana dispensaries or cultivation facilities, and directed its planning commission to develop zoning regulations for medical marijuana businesses. Subsequently, the city attorney’s office also began working on a licensing system.

At its Jan. 3 meeting, the council heavily amended the licensing proposal, removing home occupation businesses from licensing requirements. At its Jan. 18 meeting, the council was poised to undertake further amendments to the licensing proposal, including many that concerned limiting the amount of information that is required to be divulged by those associated with license applications. However, the council did not amend the proposal further at that meeting. The council undertook additional amendments to the licensing proposal at its Feb. 7, 2011 meeting.

The moratorium on additional facilities in the city to be used as medical marijuana dispensaries and cultivation facilities was extended by the council at its Jan. 18 meeting to go through March 31, 2011. Extension of the moratorium will be addressed at the next council meeting on March 21.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Lutz & Soule

Movie shoot on the street involving ambulance and dog. If an animal were injured in the making of this film, there’d be a way to deal with it, I guess.

County Board Gets Update on State Budget

Washtenaw County board of commissioners meeting (March 2, 2011): This year’s update from Lansing – delivered by lobbyist Kirk Profit and his colleagues at Governmental Consultant Services Inc. – brought little positive news to county commissioners.

Kirk Profit, Leah Gunn

Kirk Profit of GCSI – a Lansing governmental consulting firm – talks with commissioner Leah Gunn during a break at the March 2, 2011 Washtenaw County board of commissioners meeting. (Photos by the writer.)

At his presentation to the board a year ago, Profit foreshadowed that a change in leadership at all levels in Lansing would affect the county. On Wednesday, he outlined more details of that impact, specifically related to the state budget recently proposed by Gov. Rick Snyder, the Ann Arbor Republican who was elected to office last November.

Responding to GCSI’s presentation, commissioners expressed concerns on a range of topics, including legislation giving broader emergency financial management powers to the state, potential changes to collective bargaining, and K-12 education funding. Leah Gunn made the most direct plea, asking Profit to convey a message to legislators: “Just send us money!”

Aside from the state budget update, commissioners dispatched the rest of their agenda with little discussion. Included in their actions was approval of a resolution allowing the United Way of Washtenaw County to secure a necessary state gambling permit for the nonprofit’s March 9 Power of the Purse fundraising event. The permit is needed so that United Way can auction off gift baskets.

The board also approved changes to its annual calendar that eliminated all future administrative briefings from the board’s meeting schedule. The decision to eliminate the administrative briefings – informal meetings that have been held the week prior to the board’s regular meetings, to review the upcoming agenda – was made at their final briefing on Feb. 26. There was no discussion of the issue on Wednesday.

During public commentary, Tom Wieder returned to address the board about per diem payments for commissioners, an issue he originally raised five months ago. He said he couldn’t quite believe that some commissioners still hadn’t repaid the amounts that an independent audit had determined they owed.

The audit showed that nearly all commissioners needed to reimburse the county for some per diems or mileage that they had inappropriately claimed. The amounts ranged from $25 to $14,385 – an amount repaid by former commissioner Mark Ouimet, who was elected to the state House last fall. All but board chair Conan Smith and Barbara Bergman, and former commissioners Jessica Ping and Ken Schwartz have repaid the amounts they owed as determined by the audit. [Full Story]

A2: Hash Bash

The Detroit Free Press reports that Adam Brook, who has organized the Hash Bash in Ann Arbor for many years, has been arrested and charged on eight felony counts, including possession of more than a pound of marijuana. According to the report, the arrest prompted Brook to drop his lawsuit that challenges Royal Oak’s new medical-marijuana ordinance. However, Brook still intends to manage this year’s Hash Bash, set for April 2. [Source]

UM: Drug Industry

The New York Times reports on the challenges facing major pharmaceutical companies, such as Pfizer. This year, Pfizer’s patent on its “blockbuster drug” Lipitor will run out, and cheap generic replacements are expected to take over the market. Along with patent expirations, pharmaceutical companies must face an FDA more reluctant than ever to approve new drugs. The result: many companies are cutting research and development and focusing only on areas to maximize profit. The article quotes Erik Gordon, a clinical assistant professor at the University of Michigan business school who follows the pharmaceutical industry: “You don’t lay off R&D if it’s just a cycle. That kills progress.” [Source]