Israel to hold fire during Egypt premier's Gaza visit

JERUSALEM (AP) — Israel offered to suspend its offensive in the Gaza Strip on Friday during a brief visit by Egypt's premier there if militants refrain from firing rockets at Israel, an official said, the first possible break in the escalating conflict.

An official in Prime Minister Benjamin Netanyahu's office said the Israeli leader was responding to an Egyptian request.

Prime Minister Hesham Kandil crossed into Gaza before midday through the only border post between Egypt and Gaza.

Israel told the Egyptians the military "would hold its fire on the condition that during that period, there won't be hostile fire from Gaza into Israel," the Israeli official said. "Prime Minister Netanyahu is committed to the peace treaty with Egypt, which is in the strategic interest of both countries," he added, speaking on condition of anonymity to discuss the diplomatic exchange.

Shortly after Kandil arrived, Gaza militants fired off repeated rocket salvoes, but there were no immediate reports of Israeli retaliation.

It wasn't clear whether Israel hoped to use the possible suspension of hostilities to seek a broader truce or was agreeing to the halt in fighting only as a gesture to Egypt.

Three days of fierce fighting between Israel and Gaza militants has widened the instability gripping the region, straining already frayed Israel-Egypt relations. The Cairo government recalled its ambassador in protest.

Egypt said Kandil's three-hour visit Friday was meant as a show of solidarity with the Palestinian territory's militant Hamas rulers.

Egyptian intelligence officials involved in negotiations to end previous rounds of fighting are accompanying Kandil on his visit, an Egyptian diplomat said, suggesting it was more than a display of support.

The diplomat said Gaza militants have told Egyptian intelligence officials they would be willing to hold their fire if Israel would commit to mediation to stop its military operation and targeted killings.

Word of the possible pause in the fighting came after a night of fierce exchanges and signals that Israel might be preparing to invade Gaza. Overnight, the military said it targeted about 150 of the sites Gaza gunmen use to fire rockets at Israel, as well as ammunition warehouses, bringing to 450 the number of sites struck since the operation began Wednesday.

Israeli troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be imminent.

Militants unleashed dozens of rocket barrages overnight.

Fighting between the two sides escalated sharply Thursday with a first-ever rocket attack from Gaza on the Tel Aviv area, menacing Israel's most densely populated area. No casualties were reported there, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in Gaza was 19, including five children, according to Palestinian health officials.

Early Friday, 85 missiles exploded within 45 minutes in Gaza City, sending black pillars of smoke towering above the coastal strip's largest city. The military said it was targeting underground rocket-launching sites.

One missile flattened sections of the Interior Ministry, leaving a huge pile of rubble, and another hit an uninhabited house belonging to a senior Hamas commander. Those strikes, together with an attack on a generator building near the home of Gaza's Hamas prime minister, Ismail Haniyeh, signaled that Israel was expanding its offensive beyond military targets.

Ten-month-old Haneen Tafesh was killed Thursday when flying shrapnel from an air attack on a field next to her family's shack struck her in the head.

"What did she do? Did she fire any rockets?" asked her 23-year-old father, Khaled Tafesh, as he waited outside the Shifa hospital morgue in Gaza City, waiting for the funeral of his only child to begin.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations continued sporadically.

The latest flare-up exploded into major violence Wednesday when Israel assassinated Hamas' military chief, following up with a punishing air assault meant to cripple the militants' ability to terrorize Israel with rockets.

The Israeli offensive has not deterred the militants from firing more than 400 rockets aimed at southern Israel, the military said. On Thursday, they also unleashed for the first time the most powerful weapons in their arsenal — Iranian-made Fajr-5 rockets capable of reaching Tel Aviv.

The two rockets that struck closest to Tel Aviv appear to have landed in the Mediterranean Sea, defense officials said, and another hit an open area on Tel Aviv's southern outskirts.

No injuries were reported, but the rocket fire sowed panic in Tel Aviv and made the prospect of a ground incursion more likely. The government later approved the mobilization of up to 30,000 reservists for a possible invasion.

Netanyahu said the army was hitting Hamas hard with what he called surgical strikes, and warned of a "significant widening" of the Gaza operation. Israel will "continue to take whatever action is necessary to defend our people," said Netanyahu, who is up for re-election in January.

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area.

An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated parts of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

In the current round of fighting, the civilian casualties have been relatively low and the Israeli strikes seem to be more surgical.

In other ways, the latest hostilities are reminiscent of the first days of that three-week offensive against Hamas. Israel also caught Hamas off guard then with a barrage of missile strikes and threatened to follow up with a ground offensive.

Since then, Israel has improved its missile defense systems, but it is facing a more heavily armed Hamas. Israel estimates the militants have 12,000 rockets, including more sophisticated weapons from Iran and from Libyan stockpiles plundered after the fall of Moammar Gadhafi's regime there last year.

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Laub reported from Gaza City, Gaza Strip.

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RIM offers free voice calls over Wi-Fi with BBM

TORONTO (AP) — BlackBerry users will be able to make free voice calls over a Wi-Fi network using the popular BBM messaging service.

Research In Motion Ltd. announced Wednesday that it’s adding the feature to BBM. Users will be able to switch back and forth from a text chat to a voice call. A split-screen option will let them talk and text at the same time.

The new feature is a free update for existing customers and comes months before RIM introduces its new BlackBerry 10 smartphones, which are seen critical to RIM’s survival.

RIM surprised analysts in September when it announced that the number of BlackBerry subscribers grew, thanks in part to emerging markets and its popular BBM service. It’s struggling in North America as customers migrate to flashier iPhones and Android phone.

RIM stopped short of offering the BBM voice feature over wireless carriers’ own cellular networks. Doing so would have potentially created more congestion on cellular data networks and deprive carriers of revenue for voice calls. With the new feature, the free calls are limited to times and places where Wi-Fi is available.

The Canadian company said the BBM voice feature is especially attractive for developing markets. Unlike regular texts, BBM messages are not charged on a per-text basis.

Although RIM is struggling in North America, the BlackBerry continues to sell well in such markets as South Africa, Nigeria and Indonesia.

The BBM service has long been a reason for BlackBerry users to not defect to other smartphones but there are rival messaging services. There are more than 60 million BBM users worldwide.

RIM said the BBM voice update is currently available for BlackBerry smartphones running the BlackBerry 6 operating system or higher, with plans for BlackBerry 5 later. RIM’s latest phones run the 7 operating system. The next version, BlackBerry 10, will come soon after a Jan. 30 launch event.

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Erdrich wins her first National Book Award

NEW YORK (AP) — The National Book Awards honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story, the second of a planned trilogy, about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

The works of two other winners also centered on young boys — Boo's for nonfiction, and William Alexander's fantasy "Goblin Secrets," for young people's literature. David Ferry won for poetry.

Boo's book, set in a Mumbai slum, is the story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Boo was chosen from one of the strongest lists of nonfiction books in memory, from the fourth volume of Robert Caro's Lyndon Johnson series to Shadid's memoir "House of Stone" and Anne Applebaum's "House of Stone." Finalists in fiction, which in recent years favored lesser known writers, included such established names as Dave Eggers and Junot Diaz. Publishers have been concerned that the National Book Awards have become too insular and are considering changes, including expanding the pool of judges beyond writers.

Winners, chosen by panels of their peers, each will receive $10,000.Judges looked through nearly 1,300 books.

Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. Attempting to find poetry in victory, he called the award a "pre-posthumous" honor.

Alexander quoted fellow fantasy writer Ursula K. Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony was hosted by commentator-performer Faith Salie and went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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A look at China's new leaders in apex ruling body

BEIJING (AP) — China's once-in-a-decade power transition crested Thursday with 59-year-old Xi Jinping taking over as the general secretary of the ruling Communist Party. He will be assisted by six technocrats in the Standing Committee, the apex of power in China. Here are the new leaders in order of how they were presented at Beijing's Great Hall of the People.

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Xi Jinping: The new party leader is seen as a pro-market reformer and a staunch believer in party power. The son of a veteran revolutionary, Xi spent much of his career in economically vibrant provinces. Little known abroad, Xi took a side trip during a key visit to the U.S. this year to meet privately with the Iowans who had hosted him on a 1985 study tour when he was a mid-level provincial official in charge of the pork industry.

Li Keqiang: Expected to be the next premier, Li, 57, is a protege of outgoing President Hu Jintao. The two worked together in the Communist Youth League in the 1980s. Hu initially wanted Li to succeed him as party chief before accepting Xi. Li ran two important industrial provinces, and as vice-premier his portfolio includes health reforms, energy and food safety. Still, questions of inexperience on economy have dogged him as he prepares to take the post of premier, the top economy job in the country.

Zhang Dejiang: A vice premier who was called on to run the mega-city of Chongqing after the ouster of the ambitious but tainted Bo Xilai, Zhang is seen as a capable, low-key administrator. The son of a former army general, Zhang, 66, ran two economic powerhouse provinces and oversaw safety issues in recent years as a vice-premier. A Korean speaker, Zhang studied economics at North Korea's Kim Il Sung University and is an ally of party elder Jiang Zemin.

Yu Zhengsheng: Yu, 67, is a member of the red elite, but with a problematic family history. His brother, an official in the secret police, defected to the U.S. in the mid-1980s. Yu's pedigree helped salvage his career. His father was the ex-husband of a woman who later married Mao Zedong. A missile engineer by training, Yu has run the financial hub of Shanghai since 2007. His family connections to patriarch Deng Xiaoping kept his name in the running for promotion to the top leadership.

Liu Yunshan: As head of the party's Propaganda Department for the past 10 years, Liu has tightened controls over domestic media even as he encouraged big state media to expand overseas to purvey the government's line. Liu, 65, rose through the ranks in Inner Mongolia. He has a foot in each of two political camps. He started his career in the Youth League, outgoing President Hu Jintao's power base, but in the past decade also served a conservative ideology czar who was a staunch supporter of party elder Jiang.

Wang Qishan: A technocrat with deep experience in finance and trade issues, Wang, 64, is a vice premier and a top troubleshooter. Over his career, Wang cleaned up collapsed investment firms in southern China, calmed Beijing amid the SARS pneumonia scare and, more recently, fended off U.S. pressure over China's currency policies. Son-in-law of a now-deceased conservative state planner, Wang would bring added experience on economic policy.

Zhang Gaoli: A low-key technocrat who is said to adhere to the motto "Do more, speak less," Zhang, 66, has presided over the development boom in Tianjin and less successful efforts to turn the northern port city into a financial hub. Trained as an economist, Zhang rose through state oil-and-gas companies in the south before entering government service. He has served in a string of prosperous cities and provinces and is a protege of party elder Jiang.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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FBI veteran started Petraeus email probe

The FBI agent who investigated harassing emails to a Florida socialite, a probe that set off a chain of events leading to the resignation of CIA director David Petraeus over an extramarital affair, was a veteran investigator who has worked on high-profile terrorism cases.

The agent was identified as Frederick Humphries by a former federal agent, a source familiar with the Petraeus investigation and Humphries' attorney, Lawrence Berger.

Humphries, 47, received the initial complaint from Jill Kelley, 37, a Tampa, Fla., socialite, about "harassing" emails that an investigation traced back to Paula Broadwell, a 40-year-old author who co-wrote a biography of Petraeus, 60.

The investigation ultimately uncovered evidence of an affair between Broadwell and Petraeus, prompting Petraeus to resign last week.

Berger said his client's family "knew the Kelley family socially for several years." Jill Kelley asked Humphries for advice on what she perceived to be threatening e-mails and he "referred the matter to the bureau as appropriate."

Berger said his client has been wrongly characterized as a "whistleblower," but there is "no action pending against him, nor does he anticipate any future action."

Humphries "referred the matter to the FBI in accordance to proper protocol," Berger added, and the FBI investigation is taking its course.

Berger flatly declined to confirm or provide any details at all regarding Humphries' alleged contacts with the offices of either Rep. Dave Reichert, R-Wash., or House Majority Leader Rep. Eric Cantor, R-Va.

According to the New York Times, Humphries was allegedly concerned the case had been stalled for political reasons, and in late October contacted Reichert, whom he knew from his time working in Washington. The Times reported that Reichert put him in touch with Cantor, who then passed the message to FBI director, Robert Mueller.

An associate of Humphries told ABC News that it was hard to believe that Humphries had contacted elected officials about the case because "everyone knows that's professional suicide" and Humphries is "top notch."

Humphries has worked as a supervisor on Joint Terrorism Task Force in Tampa and has worked on high-profile terrorism cases.

In Seattle, Humphries worked the so-called Millenium terror plot in 1999, which prevented an Algerian al Qaeda member from bombing Los Angeles International Airport.

More recently, he testified in Florida in a terrorism case of Florida student Youssef Megahed and his associates.

In that case, back in 2007, a sheriff's deputy with the Berkeley County Sherriff's Office in South Carolina became suspicious when University of South Florida student Ahmed Mohamed and his companion, fellow USF student Megahed, did not initially stop when they were pulled over for speeding. The officer said he saw Megahed disconnect a power cord from a laptop computer as he approached the car. The deputy searched the vehicle. According to court records, he found safety fuses, several sections of cut PVC piping containing a potassium nitrate explosive mixture and containers filled with gasoline.

The pair was arrested that night for transporting explosives. Following the arrest, the FBI in Tampa and South Carolina began an investigation with the Joint Terrorism Task Force.

Regarding a "shirtless" photo that Humphries reportedly sent to Jill Kelley, Berger told ABC News that several years ago, Humphries sent a "joke picture" of himself to the Kelley family showing Humphries "posing shirtless between two shooting range dummies."

"There was absolutely no romantic involvement or relationship whatsoever between Agent Humphries and Jill Kelley," said Berger.

According to Berger, sharing funny photos was part of the family's relationship.

Berger objected to unattributed comments in the New York Times that his client was "obsessed" with pursuing the matter.

"Is he a dogged, professional, passionate law enforcement officer? Yes," Berger told ABC News. But it would be "incorrect to describe him as obsessed" with this case, said Berger.

According to Berger, Humphries "reported what he knew according to FBI protocol and then let the investigation take its course."

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Papa John’s falls on news of class-action suit

NEW YORK (AP) — Shares of Papa John‘s declined on Tuesday following news of class-action certification for a lawsuit that claims the pizza chain had unsolicited text messages sent to cell phones.

THE SPARK: The lawsuit filed with the U.S. District Court for the Western District of Washington in Seattle claims Papa John‘s violated state and federal law when they had the marketing company OnTime4U send unsolicited text messages on its behalf to cell phones advertising their pizza products. The lawsuit says that 500,000 illegal text messages were sent to Papa John’s customers across the U.S.

Papa John’s faces potential damages of more than $ 250 million. The plaintiffs may each potentially receive $ 500 or more in damages for each text message.

Messages left with Papa John’s seeking comment were not immediately returned.

SHARE ACTION: Papa John’s International Inc.’s stock fell 34 cents to $ 49.10 in afternoon trading after dropping as low as $ 46.72 earlier in the session. Over the past year, the shares have traded in a range of $ 35.21 to $ 56.41.

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Guilty plea expected by reputed Conn. mobster

HARTFORD, Conn. (AP) — A 76-year-old reputed Connecticut mobster is expected to plead guilty in a weapons and prescription drugs case that has revealed the FBI's belief that he has information about the largest art heist in history.

Robert Gentile, of Manchester, has a change-of-plea hearing scheduled in Hartford federal court on Wednesday. He has pleaded not guilty to allegations he illegally possessed firearms and explosives and sold illegally obtained prescription drugs.

It's not clear whether there is a plea deal. Gentile's lawyer and a spokesman for the U.S. attorney's office declined to comment about the hearing.

Gentile hasn't been charged in the museum theft. His attorney, A. Ryan McGuigan, has said his client knows nothing about the heist and isn't a Mafia member.

At a court hearing in March, Assistant U.S. Attorney John Durham said the FBI believes Gentile "had some involvement in connection with stolen property" related to a 1990 heist at Boston's Isabella Stewart Gardner Museum.

Thieves disguised as police officers struck as the city finished celebrating St. Patrick's Day, tying up two guards and making off with 13 pieces of art including masterworks by Rembrandt, Vermeer, Degas and Manet worth more than a half-billion dollars. The artwork hasn't been found and the museum is still offering a $5 million reward.

Durham has said that FBI agents had unproductive discussions with Gentile about the theft, but he didn't elaborate on his allegations. Durham also said the FBI believes Gentile is a made member of a Philadelphia crime family.

Gentile has been detained since February when he and an associate, Anthony Parente, were charged with selling illegally obtained prescription drugs including OxyContin, Dilaudid and Percocet.

Authorities searched Gentile's home and reported finding homemade dynamite sticks, several guns, ammunition, homemade silencers, a bulletproof vest, handcuffs, police scanners, brass knuckles and $22,000 in cash at the bottom of a grandfather clock.

Federal agents swarmed Gentile's home again in May in what McGuigan called a veiled attempt to find the stolen paintings. McGuigan said at the time that the FBI got a new warrant allowing the use of ground-penetrating radar to look for buried weapons, but he believed they really were looking for the artwork.

"This is nonsense," McGuigan said in May. "This is the FBI. Are you trying to tell me they missed something the first time? They're trying to find $500 million of stolen artwork. ... All they're going to find is night crawlers."

All McGuigan would say on Tuesday was that Gentile has been confined in a cell by himself and "looks terrible."

"They have him in a hole 24 hours a day where he can't see anybody," McGuigan said.

Gentile is charged with three weapons crimes that each carry up to 10 years in prison and six drug crimes that carry up to 20 years in prison apiece. He wasn't supposed to have any guns because of a 1990s larceny conviction.

The drug case against Parente remains pending. He is free on bail.

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Panetta: Don't jump to conclusions about Allen

PERTH, Australia (AP) — Defense Secretary Leon Panetta cautioned Wednesday against reaching early conclusions about the veracity of allegations against the top U.S. commander in Afghanistan, Gen. John Allen, who is under investigation for what Pentagon officials have said may be "inappropriate" correspondence with a Florida woman linked to the David Petraeus sex scandal.

At a news conference in Australia's Indian Ocean coastal city of Perth, Panetta said no one should "leap to any conclusions here." He also said he is fully confident in Allen's ability to continue to lead in Afghanistan.

They were Panetta's first public remarks about the matter since it was disclosed Tuesday.

The Pentagon chief declined to explain the nature of Allen's correspondence with Jill Kelley, the Florida socialite connected to the scandal that led to Petraeus' resignation last week as director of the CIA.

Panetta announced Tuesday while flying to Australia that he had ordered the Defense Department's inspector general to investigate Allen based on material referred to the Pentagon on Sunday by the FBI. Pentagon officials said the material included at least 20,000 pages of Allen correspondence.

Panetta had also announced Tuesday that the Obama administration put on hold Allen's nomination to be the next commander of U.S. European Command and the top NATO general. Allen's Senate confirmation hearing was to have been held Thursday.

Panetta said in Perth that putting a hold on the nomination was the "prudent" thing to do.

Allen, who was in Washington when Panetta announced the investigation and has not yet returned to his headquarters in Kabul, has not publicly commented on the matter.

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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