By Brian E. Clark
RISING
Mithridion
Mithridion, a Madison start-up company that does drug development, has
begun Phase 1 clinical trials on its first drug candidate, MCD-386.
The small-molecule compound is designed to treat Alzheimer’s patients
and stop or slow the processes leading to brain cell death.
Earlier this year, Mithridion merged with Cognitive Pharmaceuticals of
Toledo, Ohio. MCD-386 was developed by Cognitive. Mithridion had its
own Alzheimer’s drug in development, but it wasn’t successful.
See a recent WisBusiness.com interview with Mithridion’s Trevor Twose
http://www.wisbusiness.com/index.iml?Article=128677
MIXED
State banks
Banks all over the country got the jitters after federal regulators
seized IndyMac Bancorp., a southern California lender that was facing a
run on its resources and was on the verge of failing.
In Wisconsin, investors are waiting for tomorrow’s release of
second-quarter results from Milwaukee’s Marshall & Ilsley Corp.
Last week, the company said it expects to report a second quarter net
loss of $1.50 to $1.60 per share as it absorbs up to $900 million in
losses in the deteriorating housing market in Florida and Arizona.
Overall, officials say M&I is strong and the state’s banks are in
good shape, even though many have seen the price of their shares
decline in recent months. That’s because banks are required to have
reserves large enough to get them through difficult times, said Lorrie
Keating Heinemann, secretary of the Department of Financial
Institutions.
Kurt Bauer, president and CEO of the Wisconsin Bankers Association,
agreed and said no Wisconsin lenders are in danger of failing. He said
they are in much better shape than their peers around the country.
“You can’t compare what happened with IndyMac and Wisconsin banks,” he
said. “They were engaged in below prime lending and the California
housing market is much different than Wisconsin’s.”
FALLING
Midwest Airlines
Midwest Airlines, struggling to avoid bankruptcy as it deals with
soaring fuel costs, says it will slash its workforce by 1,200 people as
it grounds its 12 MD-80s starting this fall. The cuts — which
represent about 40 percent of current staffing at Midwest and its
Skyway subsidiary — will occur by mid-September.
The company said it has begun notifying affected employees. The job
cuts will include unionized pilots and flight attendants. The airline
is also continuing to seek major wage cuts from pilots and flight
attendants to reduce costs.
The private equity firm TPG Capital acquired Midwest Air Group in
January. It paid roughly 53 percent of the $450 million purchase price.
Northwest Airlines Corp., which has also announced layoffs, owns the
remainder.