Business Briefs for Nov. 5

VIRGINIA

Star Scientific plans CigRx nutraceutical

Star Scientific Inc. said yesterday that it plans to introduce the CigRx nutraceutical product developed by its Rock Creek Pharmaceuticals subsidiary for worldwide marketing and sales in partnership with inVentiv Health Inc.

"Our goal is to make CigRx available to adult smokers worldwide who wish to maintain a nicotine-free metabolism," said Jonnie R. Williams, Star Scientific's CEO.

Rock Creek Pharmaceuticals will be responsible for manufacturing CigRx. Star Scientific expects that inVentiv Health, which provides services for the pharmaceutical and life-sciences industries, will be involved in the product marketing and sales.

Star Scientific also has retained McColl Partners LLC to advise the company on a range of corporate finance matters, including the assessment of strategic initiatives involving new products.

McColl Partners, an independent investment banking firm, was co-founded by Hugh McColl, former chairman of Bank of America.

THE NATION

N.Y. files antitrust lawsuit against Intel

The legal challenges to Intel Corp.'s sales tactics mounted yesterday as New York's attorney general accused the world's biggest computer-chip maker of using "illegal threats and collusion" to dominate.

In filing a federal antitrust lawsuit, Attorney General Andrew Cuomo accused Intel of using its market prowess to "rule with an iron fist."

Intel chips act as the brains of 80 percent of the world's personal computers. Cuomo said Intel paid billions of dollars in kickbacks to computer manufacturers and retaliated against those that did too much business with Intel's competitors, namely Advanced Micro Devices Inc.

Chrysler announces 5-year business plan

Chrysler plans to overhaul its cars with technology from new Italian partner Fiat SpA and says it has the cash to pay for it, helped by the U.S. government and lower costs.

CEO Sergio Marchionne, who also runs Fiat, began unveiling Chrysler's new five-year business plan yesterday.

The plan includes new vehicles for the Chrysler, Jeep, Dodge and Ram brands, most based on Fiat's more efficient transmissions and small engines.

He said the troubled company's cash has grown by nearly $2 billion since it exited bankruptcy protection in June, and its operations broke even in September because of savings from job cuts and factory closings by the prior owner and through combining Chrysler and Fiat operations.

But future growth hinges on offering better cars. The company's midsize sedans, the Dodge Avenger and Chrysler Sebring, along with many other models, have flopped. Chrysler said it will update these cars to make them more comfortable and quieter, then replace them in 2012 with Fiat designs.

Chrysler will introduce four new Dodges by 2013, including a seven-passenger crossover vehicle, a mini-car and a compact. The Chrysler brand also will get six new vehicles, including a Fiat small car and a new midsize crossover in 2013.

Service sector grew at slower pace in Oct.

The U.S. service sector grew in October for a second straight month, but at a slower pace than in September, as a broad economic recovery creeps along.

The Institute for Supply Management said its service index dipped to 50.6 last month from 50.9. Any reading above 50 signals growth.

Analysts expected a reading of 51.5 for the index that tracks the country's hospitals, retailers, financial-services companies and truckers.

Elsewhere

• JPMorgan Chase & Co. has agreed to a settlement worth more than $700 million to resolve regulators' charges that it made unlawful payments to friends of public officials to win municipal-bond business in Jefferson County, Ala. The Securities and Exchange Commission announced the settlement with JPMorgan, which canceled interest-rate swap contracts worth $700 million.

• Cisco Systems Inc. CEO John Chambers said the company's latest quarterly numbers reinforce his observation that recession-dampened orders are improving after passing a "tipping point" this summer.

• Federal prosecutors say billionaire hedge-fund manager Raj Rajaratnam, charged in a $25 million insider-trading case, must remain held under a $100 million bail because he has the money and incentive to flee. His attorney had asked last week that bail be reduced to $25 million. But prosecutors say Rajaratnam has the means to live anywhere in the world and knows he could face more than 10 years in prison if convicted.

Kellogg Co. says it will pull immunity claims from its Rice Krispies and Cocoa Krispies cereal boxes amid the public's growing concern about swine flu. Kellogg began adding extra antioxidants to its cereal last year, which it says help support the immune system. The company began advertising the change with large labels on cereal boxes that read in bold letters: "Now helps support your child's immunity." -- Staff and Wire Reports