November 21, 2024

An Afghan Media Mogul, Pushing Boundaries

Around him, 4,000 Afghan fans were enjoying a break from the typical grind and violence of the nation’s daily life to swing flags and roar for their newly created teams. And in the rickety stands behind him, a clutch of well-groomed Afghan V.I.P.’s in traditional shalwar kameez clapped politely at Mr. Mohseni’s unlikely creation, a televised soccer final in a poor country still at war and in a location — a sports stadium — that only a decade and a half ago could as likely have been the bloody scene of a Taliban public execution as a soccer championship.

“Isn’t it fun?” said Mr. Mohseni, 47, a smooth, always-on-the-go networker with curly black hair and stylish brown-rimmed glasses.

He gesticulated with his BlackBerry as, 100 yards away, his TV cameras swiveled to follow the winning team parading before the crowd.

“It is normal,” he added.

Mr. Mohseni has brought a modicum of normalcy to Afghanistan. His new commercial soccer league is part of a broader Afghan media empire — the holding company is called the Moby Group — that he and his family have built after their return to Kabul from Australia in 2002. As a private company, Moby does not state its earnings publicly, but people familiar with its performance say it is likely to post revenue of more than $60 million in its current fiscal year.

In a country where the Taliban once banned television, where a television set costs about one-fourth of an average Afghan’s annual income and where the electricity supply is uneven, Mr. Mohseni has built a business in the bubble of security and prosperity afforded by the international presence in the country. He has done this with the start-up help of United States government money and with a cash injection last year from News Corporation, led by his friend Rupert Murdoch, with whom he shares an Australian background, a love of gossip and an obvious industriousness.

Now, like his native country, Mr. Mohseni stands on the cusp of the next phase of development. In the coming year, Afghanistan is facing both the withdrawal of most international troops and a tense political transition after presidential elections. Outside the stadium, beyond the police guards poised on nearby towers, the reality is that Afghanistan remains a poor, turbulent, chaotic nation that, some fear, may plunge into something even worse as its army confronts the Taliban alone without international support, as outside aid money dwindles and as warlords jostle for supremacy.

The coming years could leave Mr. Mohseni and his family empire perilously vulnerable to the Taliban and other political groups with whom he has clashed over the past decade. Moby employees have already endured death threats and detentions because of their breaking of conservative taboos like showing women on television and their criticisms of the government and insurgent groups.

Any return of the Taliban to power or the rise of a more conservative government — or even just an unpredictable breakdown in security — could make life painfully uncomfortable for those, like Mr. Mohseni, who are associated with pro-Western development. Their accomplishments, their wealth, even their lives could be at risk.

As the involvement of the United States winds down, the big question is what the American legacy will be. A flourishing independent media industry is an important pillar of the American strategy for rebuilding the country, and Moby has become an important part of that media landscape. But after creating three of the most-watched television channels in the country, two radio networks, a production company, an advertising agency, a music label, a mobile phone broadcast service and a magazine, Mr. Mohseni is focused on expanding beyond Afghanistan.

His company employs about 1,000 people, most of them in Kabul, but it will soon have about 20 offices in six countries. Its headquarters is in Dubai, and its strategy is to continue to grow in Afghanistan but to diversify into other countries in the region — like Iran, Iraq and Libya. He explains the new direction as a natural progression: to set up operations in large, underserved and often under-stress countries with the potential to grow.

“The business model now is a diversified media group that is active around the region,” he said in a recent phone conversation. “The strategy is to go into high-risk countries with growth of 20 to 30 percent. It is like a portfolio of junk bonds.”

Article source: http://www.nytimes.com/2013/07/28/business/an-afghan-media-mogul-pushing-boundaries.html?partner=rss&emc=rss

Sony Reports First Annual Profit Since 2008

The Tokyo-based electronics and entertainment giant said Thursday it had booked a net profit of ¥43.0 billion, or $458 million, in the financial year through March, compared with a loss of ¥456.7 billion a year earlier, making 2012 its first full year in the black since 2008.

Sales for the fiscal year grew 4.7 percent to ¥6.8 trillion, it said.

For the January-March quarter, Sony said net profit came to ¥93.9 billion, compared with a net loss of ¥255.2 billion in the same quarter the previous year. Sony said it expected profit to grow a further 16 percent in the current fiscal year, which ends in March 2014, to ¥50 billion.

To climb back to profit, Sony has done much streamlining, dissolving flat-panel television manufacturing ventures with Sharp and Samsung, shedding its chemical-products business and selling off its office buildings, including its New York headquarters on Madison Avenue for $1.1 billion.

A dramatic fall in the value of the yen, prompted by the economic policies of Prime Minister Shinzo Abe, is also helping Sony buttress its bottom line by increasing the value of its overseas earnings.

Now, Kazuo Hirai, who took over as chief executive in April 2102, faces the uphill task of reviving Sony’s storied electronics division. Once a consumer electronics powerhouse, Sony has in recent years been outshone by the likes of the design-savvy Apple, and outgunned by the marketing and manufacturing prowess of Asian rivals like Samsung.

But there are early signs of revival. After disentangling itself from an unproductive smartphone venture with Sweden’s Ericsson, Sony has scored a series of hits, including its snazzy Xperia Z smartphone, which went on sale in February to mostly rave reviews. Sony is also counting on the release of its next-generation video game console, the PlayStation 4, to spur holiday-season sales. And the company is still seeking to exploit the relationships between its hardware business and its vast catalog of games, music and films.

For now, investors are bullish on Sony’s prospects. Sony’s share price has doubled in the past six months, though it ended trading Thursday down 1.36 percent at ¥1,744, as investors locked in profits before the earnings release. Still, its shares remain valued at less than a third of the heights seen five years ago, underscoring just how far Sony has fallen, as well as the upside it now hopes to regain.

Article source: http://www.nytimes.com/2013/05/10/business/global/10iht-sony10.html?partner=rss&emc=rss

Medtronic Bone-Growth Product Scrutinized

Recently, the Food and Drug Administration turned down the company’s application to sell a new spinal fusion device that is essentially a high-strength version of an approved one called Infuse. An agency review of clinical studies raised questions about a higher rate of cancers in patients treated with the new product, which is called Amplify, compared with those who did not get it.

Meanwhile, a long-running investigation by the Justice Department into the marketing of Infuse is apparently widening. In recent years, a number of physicians were contacted by prosecutors in connection with that inquiry, but just a few weeks ago, another doctor said he had also been contacted by Justice Department officials. He asked not to be identified because the inquiry is under way.

Prosecutors have also sought records from United States Army researchers involved in studies of Infuse, a bioengineered bone growth product that has also been used to treat severely wounded American soldiers, according to people who have been contacted as part of the inquiry.

Medtronic has said it plans to discuss the rejection of Amplify with regulators to try to allay their concerns, and the company has not been charged with any wrongdoing in the criminal inquiry. But the developments could pose significant future problems for Medtronic, a medical device giant whose other products include heart pacemakers and defibrillators.

A Wall Street analyst, Larry Biegelsen of Wells Fargo Securities, said Infuse accounts for the vast majority of Medtronic’s sales of biologic products, which he projected would reach $897 million in the company’s current fiscal year.

Mr. Biegelsen said the continuing federal investigation of Infuse, along with the F.D.A.’s rejection of Amplify, could lead to a slowdown of Infuse sales over the next year. He estimated that off-label use by doctors of the bone-growth protein made up 70 to 80 percent of Infuse sales.

The extent of the federal criminal inquiry involving Infuse is not clear. But the doctor who was recently contacted by Justice Department officials also said that it was his understanding that prosecutors had contacted other physicians in recent months.

One military surgeon testified before a federal grand jury in Boston investigating the Infuse issue about a year ago, said people with knowledge of the inquiry who also requested anonymity because it was continuing.

Army officials have also provided the Justice Department with the results of a military investigation into the experimental use of Infuse on dozens of soldiers at Walter Reed Army Medical Center in Washington, said Col. Norvell V. Coots, commander of the Walter Reed Health Care System. The Army’s 2008 report on that investigation found that a former military doctor, Dr. Timothy R. Kuklo, had overstated Infuse’s benefit in a medical journal study that examined its use in the treatment of solders whose shin bones had been severely shattered by explosive devices in Iraq.

Dr. Kuklo, who became a Medtronic consultant, also forged the signatures of that study’s co-authors in a journal submittal, the Army said. Medtronic later broke its ties to him, and the medical journal that published the article retracted it.

Medtronic has previously disclosed both the existence of a federal inquiry into its marketing of Infuse as well as the Justice Department’s interest into research it underwrote at Walter Reed.

In response to an inquiry from The New York Times, the company released a statement noting its previous disclosures. It declined to say whether federal officials were examining specific issues like company-sponsored research.

“Medtronic does not comment on what precise topics the government may or may not be examining at any point in the investigation,” the company said.

Henry J. Dane, who represented Dr. Kuklo in the Walter Reed investigation, said the Justice Department had subpoenaed the doctor’s records. Mr. Dane said he understood that prosecutors had also sought records from academic researchers and doctors outside the military who worked on other studies about Infuse that had been financed by Medtronic.

“He’s far from the only one,” to get a subpoena, said Mr. Dane, referring to Dr. Kuklo.

Mr. Dane said that a lawyer in Boston, Thomas C. Frongillo, has represented Dr. Kuklo and other physicians contacted by the Justice Department in the Infuse investigation. Reached by telephone, Mr. Frongillo declined comment. Several academic researchers involved in Medtronic-financed studies about Infuse did not respond to inquiries or declined to comment.

A spokeswoman for the United States attorney’s office in Boston, Christina DiIorio-Sterling, cited Justice Department policy in declining to confirm or deny the existence of an investigation.

In 2002, the Food and Drug Administration approved the use of Infuse for a certain type of spinal fusion procedure, in which problem spinal vertebrae are joined in an effort to stop severe back pain. Doctors are free to use an approved product in any way they choose, and many surgeons began using Infuse for other types of spinal fusion operations.

Some of the doctors who performed research studies into such so-called off-label uses of Infuse received millions of dollars in consulting fees from Medtronic, Congressional investigations have found.

In 2008, the F.D.A. issued a warning about the use of bone-growth proteins like Infuse in one off-label fusion procedure used to treat neck pain, citing reports of life-threatening injuries.

Article source: http://feeds.nytimes.com/click.phdo?i=37afb8e7001c28a201826e18162dc225