Dried and cracked earth is visible on an unplanted field at a farm on April 29, 2014 near Mendota, California. ; Credit: Justin Sullivan/Getty Images

• Summer is upon us, and KPIX in San Francisco reports three years of drought in the Central Valley has turned America's salad bowl into a "dust bowl." (KPIX)
• Speaking of summer and San Francisco, it appears denizens of the City by the Bay have done such a good job of conserving water, their water agency has already decided there will be no mandatory restrictions this summer. (San Jose Mercury News)
• Meanwhile, SFGate columnist Mark Morford wonders how water availability will factor into property values for summer get-aways north of San Francisco:

Wait, what? Right, the water. The Looming Issue. The Unexpected Fear. Water – or rather, the potential lack thereof – is something I didn’t realize I’d be quite so worried about when I started my search. But now? It’s damn near unavoidable. (SFGate)

• "As the Water Bond Turns" continues in Sacramento. In the latest episode, Gov. Brown stops playing hard to get and decides to commit, but will he find a willing (political) partner? Stay Tuned. (Sacramento Bee)

This content is from Southern California Public Radio. View the original story at SCPR.org.

Money manager Adrian Day reviews an exploration company that he rates a "strong buy."

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Bob Moriarty of 321gold discusses gold, financial collapse and consequences of quarantining.

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Remdesivir, an experimental antiviral drug made by Gilead Sciences, has been authorized by the Food and Drug Administration for emergency use in treating severely ill COVID-19 patients.; Credit: Ulrich Perry/POOL/AFP via Getty Images

Now that the Food and Drug Administration has authorized remdesivir for emergency use in seriously ill COVID-19 patients, the experimental drug is another step closer to full approval. That's when most drugs get price tags.

Gilead Sciences, which makes remdesivir, is donating its initial supply of 1.5 million doses, but the company has signaled it will need to start charging for the drug to make production sustainable. It's unclear when that decision might be made.

"Going forward, we will develop an approach that is guided by the principles of affordability and access," Gilead CEO Daniel O'Day told shareholders during the company's annual meeting Wednesday.

In a quarterly financial filing made the same day, Gilead said its investment in remdesivir this year "could be up to $1 billion or more," much of it for scaling up manufacturing capacity.

The company also acknowledged that it's in the spotlight. "[G]iven that COVID-19 has been designated as a pandemic and represents an urgent public health crisis, we are likely to face significant public attention and scrutiny about any future business models and pricing decisions with respect to remdesivir," Gilead said in the quarterly filing.

How will the company balance its business calculations with the drug's potential value to society?

"Gilead has not yet set a price for remdesivir," company spokeswoman Sonia Choi wrote in an email to NPR. "At this time, we are focused on ensuring access to remdesivir through our donation. Post-donation, we are committed to making remdesivir both accessible and affordable to governments and patients around the world."

Among potential treatments for COVID-19, remdesivir, an intravenous drug that was once studied for Ebola, is one of the furthest along.

"It's hard to imagine a situation in which there will be more public scrutiny," said Michael Carrier, a professor at Rutgers School of Law who specializes in antitrust and pharmaceuticals. "On the one hand, Gilead will try to recover its R&D in an atmosphere in which it is able to potentially make a lot of money. On the other hand, the pressure will be intense not to charge what's viewed as too high a price."

Breaking with its usual practices, the Institute for Clinical and Economic Review, or ICER, an influential nonprofit that analyzes drug pricing, issued an expedited report on remdesivir.

"Under normal circumstances, we would be unlikely to do a report when the evidence is this raw and immature," ICER President Steven Pearson said in an interview with NPR. "But it was quite clear that the world is moving at a much quicker pace."

If the price is based just on the cost of making the drug, then a 10-day course of remdesivir should cost about $10, according to the ICER report. (Gilead said results of a recently completed study suggest a five-day course of treatment may be just as effective.)

But if the drug is priced based on the drug's effectiveness, ICER estimates it should cost around $4,500 — assuming the drug is proven to have some benefit on mortality. If it doesn't and the drug only shortens hospital stays, that value-based price goes down to $390.

Results from a federally funded study described by Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, suggested that remdesvir could reduce recovery time by a median of four days — 11 days to recovery for patients treated with remdesivir compared with 15 days for those who got a placebo. A potential survival benefit is less clear.

Rutgers's Carrier said he expects Gilead to set the remdesivir price somewhere between the $10 and $4,500 that ICER estimated. The company has already shown that it can respond to public pressure when it asked the FDA to rescind the orphan drug status it won for remdesivir, he pointed out.

"When you see that $10 figure, that sets a benchmark for a figure that is eminently affordable," Carrier said. Ultimately, he said a price more than $1,000 per treatment course would be unpopular.

Gilead "will be watched very carefully," he said, because of its prior history of pricing. He referred to two other Gilead drugs that drew scrutiny over high price tags. The company charged $1,000 per pill for Sovaldi, a cure for hepatitis C. And its HIV drug Truvada can cost $22,000 per year.

But there is such a thing as pricing remdesivir too low, said Craig Garthwaite, who directs the health care program at Northwestern University's Kellogg School of Management.

"We don't think this is the only drug we need," he said, adding that remdesivir doesn't appear to be a "home run" against the coronavirus, based on existing data. "The thing that would worry me the most is that we're somehow telling people that if you take the risky bet to try, and you'll go after a coronavirus cure and you do it, you're not going to get paid."

Instead, he said he would like to see acceptance of a generous price for remdesivir to send the message to drug companies that the best thing they can do is "dedicate every waking moment to trying to develop that cure, and that if they do that, we will pay them the value they create," he said.

During a Gilead earnings call on April 30, analysts asked executives whether they could expect similar financial returns on remdesivir as they've seen with Gilead's other drugs.

"There is no rulebook out there, other than that we need to be very thoughtful about how we can make sure we provide access of our medicines to patients around the globe," Gilead CEO O'Day said. "And do that in a sustainable way for the company, for ... shareholders, and we acknowledge that."

On May 1, the FDA authorized remdesivir for emergency use, meaning it will be easier to administer to hospitalized patients with severe disease during the pandemic, but the drug is not yet officially approved. The federal government is coordinating distribution of the treatment.

Day acknowledged on the recent earnings call that the company "could" charge for remdesivir under an emergency use authorization, but he stressed that Gilead is donating its current supply, which should last through "early summer."

To date, the National Institutes of Health said it has obligated $23 million toward its COVID-19 remdesivir trial. And the U.S. Army Medical Research Institute of Infectious Diseases did some of the early in vitro and animal studies with the medicine prior to the pandemic.

"Taxpayers are often the angel investors in pharmaceutical research and development, yet this is not reflected in the prices they pay," Reps. Lloyd Doggett, D-Texas, and Rosa DeLauro, D-Conn., wrote in a April 30 letter to Health and Human Services Secretary Alex Azar.

Concerned about remdesivir's price, they asked for a full breakdown of taxpayer funds that have gone toward the development of the medicine. "An unaffordable drug is completely ineffective," they wrote in the letter. "The substantial taxpayer investments in COVID-19 pharmaceutical research must be recognized."

This content is from Southern California Public Radio. View the original story at SCPR.org.

Remdesivir, an experimental antiviral drug made by Gilead Sciences, has been authorized by the Food and Drug Administration for emergency use in treating severely ill COVID-19 patients.; Credit: Ulrich Perry/POOL/AFP via Getty Images

Now that the Food and Drug Administration has authorized remdesivir for emergency use in seriously ill COVID-19 patients, the experimental drug is another step closer to full approval. That's when most drugs get price tags.

Gilead Sciences, which makes remdesivir, is donating its initial supply of 1.5 million doses, but the company has signaled it will need to start charging for the drug to make production sustainable. It's unclear when that decision might be made.

"Going forward, we will develop an approach that is guided by the principles of affordability and access," Gilead CEO Daniel O'Day told shareholders during the company's annual meeting Wednesday.

In a quarterly financial filing made the same day, Gilead said its investment in remdesivir this year "could be up to $1 billion or more," much of it for scaling up manufacturing capacity.

The company also acknowledged that it's in the spotlight. "[G]iven that COVID-19 has been designated as a pandemic and represents an urgent public health crisis, we are likely to face significant public attention and scrutiny about any future business models and pricing decisions with respect to remdesivir," Gilead said in the quarterly filing.

How will the company balance its business calculations with the drug's potential value to society?

"Gilead has not yet set a price for remdesivir," company spokeswoman Sonia Choi wrote in an email to NPR. "At this time, we are focused on ensuring access to remdesivir through our donation. Post-donation, we are committed to making remdesivir both accessible and affordable to governments and patients around the world."

Among potential treatments for COVID-19, remdesivir, an intravenous drug that was once studied for Ebola, is one of the furthest along.

"It's hard to imagine a situation in which there will be more public scrutiny," said Michael Carrier, a professor at Rutgers School of Law who specializes in antitrust and pharmaceuticals. "On the one hand, Gilead will try to recover its R&D in an atmosphere in which it is able to potentially make a lot of money. On the other hand, the pressure will be intense not to charge what's viewed as too high a price."

Breaking with its usual practices, the Institute for Clinical and Economic Review, or ICER, an influential nonprofit that analyzes drug pricing, issued an expedited report on remdesivir.

"Under normal circumstances, we would be unlikely to do a report when the evidence is this raw and immature," ICER President Steven Pearson said in an interview with NPR. "But it was quite clear that the world is moving at a much quicker pace."

If the price is based just on the cost of making the drug, then a 10-day course of remdesivir should cost about $10, according to the ICER report. (Gilead said results of a recently completed study suggest a five-day course of treatment may be just as effective.)

But if the drug is priced based on the drug's effectiveness, ICER estimates it should cost around $4,500 — assuming the drug is proven to have some benefit on mortality. If it doesn't and the drug only shortens hospital stays, that value-based price goes down to $390.

Results from a federally funded study described by Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, suggested that remdesvir could reduce recovery time by a median of four days — 11 days to recovery for patients treated with remdesivir compared with 15 days for those who got a placebo. A potential survival benefit is less clear.

Rutgers's Carrier said he expects Gilead to set the remdesivir price somewhere between the $10 and $4,500 that ICER estimated. The company has already shown that it can respond to public pressure when it asked the FDA to rescind the orphan drug status it won for remdesivir, he pointed out.

"When you see that $10 figure, that sets a benchmark for a figure that is eminently affordable," Carrier said. Ultimately, he said a price more than $1,000 per treatment course would be unpopular.

Gilead "will be watched very carefully," he said, because of its prior history of pricing. He referred to two other Gilead drugs that drew scrutiny over high price tags. The company charged $1,000 per pill for Sovaldi, a cure for hepatitis C. And its HIV drug Truvada can cost $22,000 per year.

But there is such a thing as pricing remdesivir too low, said Craig Garthwaite, who directs the health care program at Northwestern University's Kellogg School of Management.

"We don't think this is the only drug we need," he said, adding that remdesivir doesn't appear to be a "home run" against the coronavirus, based on existing data. "The thing that would worry me the most is that we're somehow telling people that if you take the risky bet to try, and you'll go after a coronavirus cure and you do it, you're not going to get paid."

Instead, he said he would like to see acceptance of a generous price for remdesivir to send the message to drug companies that the best thing they can do is "dedicate every waking moment to trying to develop that cure, and that if they do that, we will pay them the value they create," he said.

During a Gilead earnings call on April 30, analysts asked executives whether they could expect similar financial returns on remdesivir as they've seen with Gilead's other drugs.

"There is no rulebook out there, other than that we need to be very thoughtful about how we can make sure we provide access of our medicines to patients around the globe," Gilead CEO O'Day said. "And do that in a sustainable way for the company, for ... shareholders, and we acknowledge that."

On May 1, the FDA authorized remdesivir for emergency use, meaning it will be easier to administer to hospitalized patients with severe disease during the pandemic, but the drug is not yet officially approved. The federal government is coordinating distribution of the treatment.

Day acknowledged on the recent earnings call that the company "could" charge for remdesivir under an emergency use authorization, but he stressed that Gilead is donating its current supply, which should last through "early summer."

To date, the National Institutes of Health said it has obligated $23 million toward its COVID-19 remdesivir trial. And the U.S. Army Medical Research Institute of Infectious Diseases did some of the early in vitro and animal studies with the medicine prior to the pandemic.

"Taxpayers are often the angel investors in pharmaceutical research and development, yet this is not reflected in the prices they pay," Reps. Lloyd Doggett, D-Texas, and Rosa DeLauro, D-Conn., wrote in a April 30 letter to Health and Human Services Secretary Alex Azar.

Concerned about remdesivir's price, they asked for a full breakdown of taxpayer funds that have gone toward the development of the medicine. "An unaffordable drug is completely ineffective," they wrote in the letter. "The substantial taxpayer investments in COVID-19 pharmaceutical research must be recognized."

This content is from Southern California Public Radio. View the original story at SCPR.org.

Money manager Adrian Day reviews an exploration company that he rates a "strong buy."

Tesoro says it’s been planning for a strike and will continue operating two of the effected refineries, including one in Carson.; Credit: Getty Images

More than 800 workers walked off the job early Sunday at an oil refinery in Carson because of a labor dispute, joining workers at eight other refineries around the country. 

National strikes have been rare in the refining business. The last one happened in 1980, and it took three months to resolve. If this dispute lasts that long, analysts say gas prices could rise.

“It’s very possible we may have seen the last of two dollar gasoline in the near term,” said Carl Larry director of oil and gas at consulting firm Frost & Sullivan. “Without production from these refineries, we’re going to see tighter supply and higher prices."

Making matters worse, many refineries are switching over to summer blend gas, which is cleaner burning, but also more expensive.

Jim Burkhard, Managing Director at IHS Cambridge Energy Research Associates, cautions that it is too soon to know what the effect of the strike will be, and even though the steelworkers have 64 percent of U.S. oil output in their hands, there’s still a lot of other supply.

 “Remember the oil market overall is very well supplied right now,” said Burkhard. "There's plenty of refining capacity around the world, you would just have some modification of trade flows."

The Carson refinery processes 363,000 barrels per day at peak capacity and employs 1,450 workers. Tesoro Corporation, which operates the plant, says it’s been planning for a strike and will continue operations.

"Tesoro is confident that the Company can continue to safely operate the refineries and meet customer commitments until resolution is reached with the [United Steel Workers]," Tesoro said in a written statement.

The USW represents workers at 65 U.S. refineries. It says the facilities where workers have not walked out will continue operating under a rolling 24-hour contract extension. 

“This work stoppage is about onerous overtime; unsafe staffing levels; dangerous conditions the industry continues to ignore; the daily occurrences of fires, emissions, leaks and explosions that threaten local communities without the industry doing much about it; the industry’s refusal to make opportunities for workers in the trade crafts; the flagrant contracting out that impacts health and safety on the job; and the erosion of our workplace, where qualified and experienced union workers are replaced by contractors when they leave or retire,” USW International Vice President Gary Beevers said in a written statement.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Shares of WPX Energy traded 25% higher after President Trump tweeted that he expected a deal between Russia and Saudi Arabia to scale back oil production.

The price of electrical and electronic equipment has risen by an average of 2.19% since the implementation of the Waste from Electrical and Electronic Equipment (WEEE) Directive, new research suggests. Researchers investigated products across 27 EU Member States, with the increases in price reflecting the fact that the consumer is bearing at least part of the cost of e-waste disposal.

Ecosystems in the Catalan coastal system in Spain are worth €2,573 million per year to local citizens, according to new research. By placing a value on ecosystems the research has provided insight into integrated coastal zone management (ICZM) in the area.

Consumers are willing to pay more for food that has been produced via sustainable processes and with a reduced environmental impact. A large-scale US survey, that questioned strawberry consumers on aspects of sustainable food production, suggests that food producers could benefit from increased premiums if product ecolabels were to advertise specific environmental virtues.

New research in Australia has investigated the impact of labelling groceries with their level of CO2 emissions. A convenience store that introduced these labels found that the share of green (low CO2 emissions) purchases increased by 5 per cent. If these products were also low priced, the share of green purchases from the store increased by 20 per cent.

Organic growth will be difficult and consumers will only buy a phone out of necessity or maybe settle for a refurbished one depending on their spending ability

The updated iPhone SE will start at $399, or less than half the price of its leading flagship devices and be available as of Friday.

Gold mining areas in the Peruvian Amazon rainforest expanded from under 10 000 hectares in 1999 to over 50 000 hectares by 2012, and now destroys more forest than agriculture and logging combined, new research has shown. Using high-resolution satellite imaging, researchers estimated gold mining areas to be twice as large as estimated by previous studies, which did not include the combined effects of thousands of small, mainly illicit, mining operations.

Record high prices for gold have driven a recent six-fold increase in deforestation in parts of the Peruvian Amazon with damage that can be measured from space, according to a new study. Rates of forest clearance and imports of mercury, used to process gold ore by local, small-scale miners, were both found to increase with the rising international price of gold.

Effective greenhouse gas (GHG) mitigation measures to stabilise global temperature change to no more than 2°C above pre-industrial temperatures would also substantially reduce air pollutant emissions, recent research predicts. A variety of mitigation options are available, including switching from fossil fuels to renewable sources of energy. To achieve the necessary GHG emission reductions, one key option is to impose carbon taxes. However, these would need to be high to help achieve this target, according to the study’s authors.

Transactions will fall by up to 60% this spring then steadily tick back up, with a rebound by the end of 2021, according to most likely scenario forecast by Zillow

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New problem in the Middle East is likely to raise old political arguments in Washington.

Philippe Starck unveils a line of energy-efficient prefab homes with European wood builder Riko.

Sleek, slender and topped with solar panels, Heijmans ONE is a rental unit that addresses the dearth of affordable housing options for young professionals.

You have until Aug. 28 to get your lifetime National Park Service senior pass at the lower rate of $10.

Single roots can have thousand-dollar price tags, attracting poachers into protected lands, so what makes ginseng so valuable?

Web site and mobile app help you find the lowest gas prices in your area.

Now that oil is trading for half of what it was last summer, will investors want to put their money into alternative energy sources? We look at the data.

Stock up on Endangered Species chocolate — just 49 cents for full-size candy bars.

Some experts are predicting that you may have to spend more on chocolate in the future. Here are some things to consider.

Why does the North Dakota outpost of Williston have the highest rents for a one-bedroom apartment in the entire country according to a new survey?

If your taste buds demand bacon, but the price is straining your food budget, try a recipe that uses just a little bacon but brings a lot of bacon flavor.

Your car could capture and store carbon dioxide for later disposal, making it zero climate emission even without batteries.

The key question isn't why Tesla stock dipped below $200, but why GM and Ford are at $30 and $14.

A new study shows that share prices increase slightly after a carbon disclosure is made.

Thanks to Energy Star qualification, the most affordable high-quality LED on the market, the Cree LED Bulb, just got even cheaper.

By focusing only on the utilities industry, Kerry may be able to get Republican support, but will it cost him votes in his own party?

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