Futures rise in rebound after steep losses on Italy vote

NEW YORK (Reuters) - U.S. stock index futures rose on Tuesday, indicating equities would partially rebound from a steep drop over Italian election results as investors saw opportunities to buy beaten-down shares.

Market participants speculated a coalition government would eventually emerge in Italy and ease worries about a new euro zone debt crisis.

Groups in Italy opposed to economic reforms posted a strong showing, resulting in a political deadlock with a comedian's protest party leading the poll and no group securing a clear majority in parliament.

"We've gone to an environment of political stability to instability, and until we get some type of clarity over who is in charge, which could take days, the market will have renewed concerns," said Art Hogan, managing director of Lazard Capital Markets in New York.

"Investors are taking advantage of the drop, and once some kind of coalition government is formed most of our concerns will be put to rest," Hogan said.

S&P 500 futures rose 3.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 38 points and Nasdaq 100 futures rose 5.75 points.

Major indexes fell more than 1 percent on Monday, with the S&P 500 having its biggest daily drop since November as investors fretted that if Italy does not undertake reforms, that could once again destabilize the euro zone. European equities <.fteu3>, which closed before the results on Monday, fell 1.1 percent.

Investors will pay close attention to the first of two days of congressional testimony by Federal Reserve Chairman Ben Bernanke for insight into the central bank's view of the economy, as well as the outlook for its bond buying program. Last week, equities fell on concerns the program might end sooner than had been anticipated.

Bernanke appears before the Senate Banking Committee at 10 a.m. (1500 GMT).

Economic data will include the CaseShiller report on December home prices at 9 a.m. (1400 GMT). Analysts expect a 0.5 percent rise. January consumer confidence is scheduled for 10 a.m. and is seen rising to 61.0 from 58.6 in the previous month. New-home sales for January also are due at 10 a.m.

The rise in U.S. futures suggests that a recent trend of investors buying on dips will continue. Last week, concerns the Fed might roll back its stimulus policy earlier than expected prompted a sharp two-day decline, though equities recovered most of the lost ground by the end of the week.

Financial shares may be among the most volatile, as the group is closely tied to the pace of global economic growth. Morgan Stanley was one of the top percentage losers on the S&P on Monday, dropping more than 6 percent on concerns about the company's exposure to European debt. It rose 0.8 percent to $22.20 in premarket trading on Tuesday.

Dow component Home Depot Inc , the world's largest home improvement retailer, reported adjusted earnings and sales that beat expectations. Its stock rose 1.5 percent to $64.90 in premarket trading.

For the benchmark S&P 500 index, 1,500 will be watched as a key level after the index closed below it on Monday for the first time since February 4, with selling accelerating after falling below it. An inability to break back above it could portend further losses.

The S&P remains 4.3 percent higher on the year. With 83 percent of the S&P 500 having reported so far, 69 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data. Fourth-quarter S&P earnings are seen having risen 6 percent, above a 1.9 percent forecast at the start of the earnings season.

(Editing by Chizu Nomiyama and Kenneth Barry)

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India Ink: Laliji, the Octogenarian from Bihar

Why do millions of people, from entire Indian villages to urbane middle managers to foreign tourists, brave the crowds at the Kumbh Mela? During this year’s 55-day pilgrimage, to Allahabad, Uttar Pradesh, an estimated 100 million Hindus and others are expected to take a holy dip in the Ganges River to wash away their sins. India Ink interviewed some of them.

Laliji, 80, from Chhapra, Bihar, was one among them. This is what she had to say.

Why did you come to the Kumbh Mela this year? Is it your first time?

I have come to the Kumbh before, but this is the first time my son brought me here. It was his way of showing his gratitude.

How have you found it so far?

I like it, especially since all my friends and fellow-villagers are here. We are celebrating it. The dip was memorable, though the water was cold. But I am enjoying.

Describe your journey to the Kumbh. Did you travel alone? How long did it take?

We took a bus from our house to the district headquarters, from where the village leaders had promised to arrange transport for us. But that seemed to be a crowded option, hence we decided to take another bus and come here.

Do you consider yourself a religious person?

I am very religious, and have brought up my eight sons that way. We are God-fearing people. We think twice before we can hurt anyone or anything. It’s not for nothing that we are respected in our village.

Who do you think is going to win the 2014 election?

I don’t understand politics. Last year, someone paid us to vote for them — we did.

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Anne Hathaway's Oscar Dress Had You Talking

By Maggie Coughlan

02/25/2013 at 08:30 AM EST

The Oscars may honor the best in film, but they'd be nothing without the fashion.

When Anne Hathaway stepped on to the red carpet in a light pink backless Prada gown at Sunday's 85th Annual Academy Awards, she made quite the fashion statement.

While the gown seemed simple from the front, at second glance, an open back and thigh-high slit gave it a sexy edge. Hathaway, 30, told Kristin Chenoweth on ABC's red carpet that her mom called the dress "business in front, party in the back."

Viewers had their own opinions on the dress – which seemed to emphasize Hathaway's bust – which later inspired its own parody Twitter account.

But the dress may have served as a lucky charm for Hathaway, who took home the Oscar for Best Supporting Actress for her role in Les Misérables.

"It came true. Thank you so much to the Academy for this and for nominating me with Helen Hunt, Jacki Weaver, Amy Adams and Sally Field. I look up to you all so much and it's just been such an honor. Thank you," Hathaway said upon receiving her Oscar.

She continued, "There are so many people whose generosity and support is the reason I'm standing here right now. I must thank Hugh Jackman. Hugh, you're the best. The cast, the crew, especially Simon Hayes and the sound wizards. Congratulations on tonight, you guys."

Hathaway continued thanking the cast and the crew before giving a romantic shout out to her husband, Adam Shulman.

"By far and away, the greatest moment of my life is the one when you walked into it. I love you so much. And thank you for this. Here's hoping that someday in the not too distant future the misfortunes of Fantine will only be found in stories and never in real life. Thank you."

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IHT Rendezvous: Opera for an Era When Money Is Tight

VIENNA—Not long ago it looked as if cuts in arts funding would sound the death knell of the Vienna Chamber Opera, known in German as the Kammeroper, an ensemble esteemed for its chamber-scale productions in an intimate, inviting setting. The Austrian federal government’s decision to eliminate entirely its support, which constituted half of the company’s governmental subsidies (the other half coming from the city) effectively put the Kammeroper out of business.

Yet the 2012-13 season has seen the Kammeroper come roaring back with five new productions—including a “Bohème” finishing up performances this weekend— put on by a resident company with an established orchestra in the pit.

How to explain this turnaround? In fact, the old company, which was founded over 50 years ago by Hans Gabor and was subsequently run by Isabella, his widow, is history. The new Kammeroper, formally known as Theater an der Wien in der Kammeroper, is a case of one opera company rushing to fill the void left by the collapse of another.

Few opera companies today are in a financial position to go into expansionary mode. But, with the city willing to continue its support, the Theater an der Wien saw an opportunity, as its director of artistic administration, Sebastian Schwarz, who oversees the Kammeroper, explained by phone. Surprisingly, as he pointed out, the Vienna Staatsoper lacks a young artists program, so the new venture helps meet a need in the city. It also adds a degree of continuity to the Theater an der Wien’s own operations, which include world-class productions of interesting repertory that are assembled individually, with visiting performers and orchestras.

What has happened at the Kammeroper would be akin the Metropolitan Opera taking over the name and venue of a smaller New York company in financial trouble, giving the city the “Mini-Met” audiences have fancied for decades. The Kammeroper’s venue is especially choice: the gilded former ballroom, dating from the turn of the last century, of the venerable Hotel Post in the old Fleischmarkt district of the city. Outfitted with an orchestra pit, it comfortably seats 300. The performance I attended was packed, and with ticket prices ranging from 16 to 48 euros ($21-64), it is a bargain.

At the core of the new Kammeroper is an ensemble of seven young singers, which Mr. Schwarz described as constituting a “cast for ‘Così Fan Tutte’ ”—two sopranos, a mezzo soprano, a tenor, a baritone and a bass, plus a counter-tenor. In addition to their Kammeroper duties, the singers take smaller roles at the Theater an der Wien.

“La Bohème” can make a special impact when cast with young singers, and so it does here, as performed in Jonathan Dove’s 1986 chamber version with newly composed modernistic music at the start and between acts by Sinem Altan. Basically, the opera is performed straight, but with choral and other big moments from Acts 2 and 3 excised. The interludes, which included prerecorded music, are atmospheric and intermittently engaging, but essentially peripheral. For one not knowing what to expect, it was a relief when—with Rodolfo and Marcello already onstage—the familiar music of Act 1 began to unfold and continued on uninterrupted.

The lively, updated staging is by Lotte de Beer, the young director of Robin de Raaff’s recent “Waiting for Ms. Monroe” at the Netherlands Opera. The set by Clement & Sanôu, who also did the lighting, focuses on the modern kitchen of the bohemians’ apartment, which also, somewhat confusingly seems to be part high-end boutique (at least until the merchandise is removed after Act 2). In any case, it is handsome and full of stylish details. The playwright Rodolfo writes at a laptop and throws pages of his opus into the oven for warmth.

There is an inevitable loss of grandeur in Act 2, but Ms. de Beer nicely handles Rodolfo and Mimi’s growing attraction to each other and the conflicts of Act 3. The setting of Mimi’s hospital room for Act 4 is rather contrived, however, especially since the others, not at first being allowed in, communicate with her from pay phones in the lobby, which detracts from the emotional impact. Mimi has lost her hair, presumably as a result of treating a fatal illness different from that specified by Puccini. Still, this is an engaging show

The vocal ensemble, which is capably augmented by two guests, Oleg Loza as Schaunard and Martin Thoma as Benoit and Alcindoro, is uniformly strong. From the opera’s opening line by Marcello, one admired Ben Connor’s rich, fluent baritone, and it didn’t take long for the tenor Andrew Owens to catch his stride as Rodolfo and spin his own handsomely lyrical phrases and a fine high C.

All the singers displayed ample voices that could be overpowering in a hall this size, but they didn’t allow that to happen. Cigdem Soyarslan’s Mimi was a little uneven at first, but one came to appreciate her warm spinto sound, especially in her Act 3 aria, and Anna Maris Sarra sings Musetta with a glinting soprano that is heard to fine effect in her animated account of the waltz aria.

Igor Bakan brings a full, resonant bass voice and a strong emotional charge to Colline’s farewell to his overcoat. The fine Vienna Chamber Orchestra is in the pit, led with assurance by Claire Levacher.

The newly constituted Kammeroper has thus emerged as a bright spot on the Viennese opera scene.

Two more productions remain this season, a double bill of Britten’s “Curlew River” and “Prodigal Son” and Handel’s “Orlando.”

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You're Invited to PEOPLE.com's Oscars Party!

02/24/2013 at 08:40 AM EST

From left: Bradley Cooper, Oscar, Jessica Chastain

AFP/Getty; Wireimage; Splash News Online

Oscars host Seth MacFarlane isn't the only one gearing up for Hollywood's biggest night – we are too!

Be a part of the glamour and excitement Sunday at 6 p.m. ET when we roll out the red carpet for our PEOPLE.com VIPs.

Here's what you can expect:
• Tune in to our red carpet preshow for exclusive A-list interviews
• Be the first to see the gorgeous gowns – and make your own best-dressed list
• Download your own Oscars ballot – and make your own Academy Awards picks
• Tweet with our editors at #PeopleOscars
• Take our up-to-the-minute Oscars polls

And come back the next day for so much more ...
• See the night's best dresses from all angles with our 360º slideshow
• Come inside the most exclusive Oscars after-parties
• Relive the most memorable quotes of the show
• Get the scoop on the night's biggest shockers and funniest moments everyone is talking about

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FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

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India Ink: In Hyderabad, Anger and Frustration

Srinivas Mahesh, 28, was snacking outside his hostel near the Konark Theater in Dishknagar, his usual hangout in Hyderabad, when he heard a loud explosion Thursday evening. Not long after, he saw smoke filling up the air. Once he realized it was a bomb blast, instead of rushing back to his hostel he resolved to helping the injured.

“I saw disfigured bodies for the first time in my life,” he said. He helped three severely injured people into ambulances and took another injured man by auto to Osmania Hospital.

Mr. Mahesh, who is originally from Kurnool, came to Hyderabad two years ago to do a graduation in engineering from Ashok Institute in Dilsukhnagar. After yesterday’s blasts though, he might have to return home.

“My parents were visiting Hyderabad in 2007, when there were blasts. They had a tough time then,” he said. “After yesterday, they are convinced that this city is cursed and want me home.”

More than 24 hours after two bombs went off near the ever-crowded Dilsukhnagar bus stand, there is palpable frustration and anger in the area. N.Pradeep Reddy, 29, a chartered accountant who lives in Dilsukhnagar, heard the first blast and came to the balcony of his house. Then he saw the second explosion. Aghast, he couldn’t move for several seconds, he said.

Mr. Reddy’s family has been in Hyderabad for 10 years now, but now he is disillusioned with the charm of the city, he said. “No one cares for our lives here – not the politicians, not the media not the police,” he added.

Hyderabad has been the site of numerous explosions in recent years, including two in 2007 attacks that killed dozens of people.

Soon after Thursday’s blasts, the road in front of the Dilsukhnagar bus stand had a median dividing it into two. While traffic was allowed on one side, the other side of the road was cordoned off by the police.

“This is obstructing traffic and adding to the commotion,” said P. Sadanandam, who commutes through the road regularly. “They are not doing this for security, it is just so that the VIPs can visit the blast site and have a photo-op,” he said angrily.

Andhra Pradesh Director General of Police and other senior police officers visited the at blast site today to look for evidence.

All the shops on a two kilometer stretch on the Dilsukhnagar main road were shuttered down all day today. Some security men outside the shops said that this was not due to the bandh, or shutdown, that the Bharatiya Janata Party had called, but because the shop owners were sure that there would be no customers today. They might open on Monday, they said.

Narsing Vennala, 25, sells flowers on the main road. He is one of the only three flower vendors who reopened their shops today. A temple next door needs flowers, he said, and therefore he had to come to work.

His 18-year-old sister is so paranoid about his coming to work a day after the blasts that she keeps calling him every half-an-hour to check if he is alright.  Mr Vennala walks home at 11 p.m. every night, and he plans to do the same even today.

“Whatever had to happen, happened,” he said. “Now how long can we stay hungry and not earn because of that?”

“Bharat mata ki jai,” (Victory for mother India) was loudly shouted by a bunch of residents. They said that was their answer to those that were against peace in the country.  There was also some anti-Pakistan sloganeering.

One resident estimated that there were 500 to 600 educational institutions in Dilsukhnagar. They have offerings ranging from short-term computer courses to three-year degrees. Thousands of students, from smaller towns and neighboring districts, live in hostels around their respective institutions. Many of them were on the streets yesterday to help the injured.

While some students don’t see any option but to stay in the city, others, like Mr. Mahesh, are packing their bags.

“I have to go home, even if I don’t like to,” he said “My family will be worried every day I stay in Hyderabad.”

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Biggest Loser's Francelina Morillo: Jeff Nichols and I 'Have Something Special'

TV Watch

The Biggest Loser

By Patrick Gomez

02/23/2013 at 08:30 AM EST

Francelina Morillo and Jeff Nichols

Trae Patton/NBC (2)

Francelina Morillo may have lost the chance to win the title of Biggest Loser, but she has found love.

"We have something special," Morillo said Tuesday about falling for fellow constant Jeff Nichols while on the ranch. "I have found a bond with him that I haven't had with anyone else. It's like a mirror when I look at him."

Morillo, 26, and Nichols, 25, both lost their fathers while in their teens and bonded in the gym as they began to shed their weight – and emotional baggage.

"You get to see the person at their worst and you see them blossom and grow and become this better version of themselves. You learn to appreciate and admire them in a different way," Morillo says of her time with Nichols on the show.

But the couple was temporarily separated when Morillo was sent home for losing the least amount of weight in the episode that aired last Monday.

"I knew I had gathered the tools in there that I needed to survive in the real world," Morillo says of her tearful sendoff. "I've learned I can do this for the rest of my life and that I can keep the weight off – which is my ultimate goal."

Morillo returned home to New York but soon joined Nichols in Chicago. Now the couple are motivating each other to continue to lose weight.

"We balance each other out. He has the nutrition down pat and I am an exercise junky," Morillo says about working out with Nichols, whose status as a finalist or contender for the at-home prize has yet to be revealed. "It's just so much easier when you have the support of somebody else that knows exactly what you're going through."

Morillo arrived at the ranch weighing 267 lbs., after having lost 100 lbs. at home on her own, and now continues to lose weight by working with a trainer, spending two hours a day on the stairmill and monitoring her portion sizes.

"I was eating a lot of healthy stuff, but I was binging on everything," says Morillo, who used to eat large amounts of apples or oatmeal throughout the day. "If you have too much of good thing, it's also bad. Now I'm all about portion size."

With her eye on the $100,000 at-home prize, Morillo is also looking forward to applying to medical school and eventually fulfilling her dream to become a doctor.

"The new me is positive, outgoing, always smiling and wants the best for me," she says. "I've learned the best way to do that is to surround yourself with positive energy, positive people. That's who I am, and that’s what I radiate from now on."

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FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

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