Star Tribune from Minneapolis, Minnesota • Page 27

INDEX For executives only Page D2 Business briefing PageD3 Stocks Mutual funds Page D7 Tuesday FEBRUARY3, 1998 SECTION Stocks Markets Stocks soar, sputo Dow Industrials CLOSE 8107.78 4 i up 20128 Asian rally felt around the world The Dow Jones industrial average produced its fourth-largest point gain ever 20128 points after many Asian stock markets rose more than 10 percent Monday. The Dow closed near the levels it was at in August, when the Asian market slide begaa it a iv rally in Asia mantels Monday dose W07.78 1 1 Dow surges 201.28 points; tops 1,000 DM weekly closes since August eeKiy closes since August 1 1 8,500 8250 8,000 7,750 7500 7250 7,000 oi; Aug. Sept Oct Asian market closes Hong Kong (Hang Seng) 143 Indonesia (Jakarta S) 14.0 Singapore (Straits Times) 13.7 Manfla (Philippine SE) 102 Source: Associated Press, Bloomberg News It was the fourth-biggest point gain ever for the Dow and the fourth of 200 points or more. The Standard Poor's 500-stock index pushed above 1,000 early in the session, blowing past Thursday's record 985.49. The New York Stock Exchange composite index rose to a record high for the first time since Dec.

5. Other broad-market indicators also rallied after the main stock indexes in Hong Kong, Singapore, Indonesia, Malaysia, Thailand and the Philippines all soared more than 10 percent. Nov. Dec Jaa Taiwan (Main stock index) 4.0 Japan (Nikkei 225) 0.9 Australia (All Ordinaries) 0.5 Seoul (Korea S) 42 Associated Press NEW YORK The Dow Jones industrial average surged 200 points Monday and the 500 shot above 1,000 for the first time, with a powerful rally in Southeast Asia spurring Wall Street to its best day in three months. The Dow rose 201.28 to 8,107.78, its first finish above 8,000 since Dec.

9 and about 150 points shy of its all-time best close of 8,259.31, set nearly six months ago on Aug. 6. beta1 Retailing BUSINESS FOCUS: Pharmaceuticals The word on Wall Street is that bigger drugmakers produce better results. But some large companies are performing poorly, while some small companies are sitting pretty. Tennessee-based developer buys tags ansa in ergers: urnsville Center iegger may aiS to Drug company stocks get a boost Merger talks between Glaxo Wellcome and SmithKline Beecham sparked interest in drug company stocks on Wall Street All of the top drug companies saw their shares rise except for jilted SmithKline merger partner American Home Products.

Global Chattanooga firm pays $81 million for the 20-year-old shopping complex By Janet Moore Star Tribune Staff Writer A Tennessee-based developer and owner of shopping centers has extended its holdings to Minnesota by buying Burnsville Center for $81 million. Chattanooga-based CBL Associates Properties one of the country's largest real estate investment trusts (REITs), with $146 million in revenue last year, bought the 20-year-old mall from Corporate Property Investors of NASDAQ CLOSE: 1,65239 up 3353 VOLUME 8081 million NYSE CLOSE 520.72 up 1009 VOLUME 7312 million 500 CLOSE 100127 up 20.99 Gold CLOSE 30150 down 335 Handy Harman 6 Oil CLOSE 17.05 down 13 West Texas crude Dollar 12653 YEN, -32 13190 MARKS, -0109 Key rates PRIME RATE 850 3ATO.T-B11 521 526 537 Elsewhere Honeywell strike The surprise strike against Honeywell has some labor experts shaking their heads. Turn to M. Atherton Bean dies Atherton Bean, retired chairman of International Multifoods and a renowned philanthropist, died Monday. He was 87.

Turn to B5. FYI Omega Man He's only 6 inches tail, but Omega Man has big ideals. The socially conscious superhero action figure is the latest creation of Alonzo Washington, 30, a Associated Press Alonzo Washington entertains sons Kahlld, left, and Malcom with Omega Man figures. civil rights and social activist whose Omega 7 Inc. publishes comic books.

Omega Man, available in dark and light brown skin tones, is being introduced at Toys Us stores around the country. Washington, who was approached by Precision Design Workshop of Hong Kong in 1996 about creating the Figure, said, "Omega Man comes from the future. He's intelligent. He carves out his own destiny." Associated Press Comments? For comments about this section, call section coordinator Kim Yeager at 673-4899 or send an e-mail at businessgw.startribune-.com For questions about the stock listings, call Patrick Kennedy at 673-7926 or e-mail at kennepjgw.startri-bune.com. For inquiries or complaints about individual stories, call Lou Gelfand, our reader's representative, at 673-4450 or e-mail at A 6 1 I i I I -A market Monday Pet share close Change chng.

Merck 4.6 $117.75 037V4 03 Glaxo WencamV 71 4.6 62.75 8.93 NovarUs 43 8837V6 237 33 BristoHWyers Squibb 3.7 10243 275 23" Johnson Johnson 35 6831 137 23 35 "8262 "037 11 American Home Products 33 91.62 -3BVA Roche Holdings 106j0 250 2.4 SmithKline Beecham 2.9 6750 437 6.9 23 3850 325 92 Figures include prescription drugs only. Sources: Mehta Partners, Wall Street Journal Several of those markets had been closed toward the end of last week for Lunar New Year celebrations. Japanese and South Korean stocks, which have rebounded sharply over the past two weeks, didn't share in the rally, but the burst of enthusiasm elsewhere in the Pacific Rim proved very contagious in Europe and on Wall Street. Turn to MARKET on D4or Report of possible merger boosts interest in drug stocks. New York City.

This is the fourth regional mall to be sold over the past year. Others were Southdale in Edina, Brookdale in Brooklyn Center and Northtown Mall in Blaine. Charles B. Lebovitz, CBL's chairman, president and CEO, said CBL is broadening its geographic base by buying strong regional malls in growing markets. The company bought another mall this month in Asheville, N.C.

"We feel confident that the Burnsville Center will continue to be the dominant retail facility in the Burnsville area of the fast-growing Minneapolis metro area," he said. Turn to MALL on D2fon "Sophisticated buyers." fainting spells, a difficult-to-diag-nose medical problem that accounts for more than 160,000 hospital visits annually. People with the condition must deal not only with the effects of fainting, such as the potential for injury from a fall, they also might have serious underlying cardiac problems. The Reveal device, which is placed under the skin of the chest area, can monitor electrocardiogram data over a year and capture information during the spells, considered to be the most valuable in determining the cause of the fainting. Turn to MEDTRONIC on Vlfor.

Dual-sensor pacemaker OlCd. Northwest The new James Page label SmithKline, Glaxo talks produce buzz in industry By John Hendren Associated Press NEW YORK The principle behind SmithKline Beecham PLC's merger talks with Glaxo Wellcome PLC is the same one that has Wall Street forecasting an orgy of drug unions: Bigger is better. The more money the combined drugmaker could sink into its research and development machine, the idea goes, the more likely the company can come up with a big-money drug. The theory works, but not for everyone. Some big companies do poorly: Pharmacia Upjohn Inc.

still is struggling after its $7 billion 1995 merger. Some small companies do well: Warner-Lambert dwarfed by Glaxo, SmithKline. and at least 13 other drugmakers, has come up with two drugs that have turned it into a Wall Street darling. Some drugmakers such as Merck Co. and Pfizer Inc.

apparently are satisfied with the drugs they are working on and have no plans to merge anytime soon. "This deal sort of raises the bar a little bit," Bear, Stearns drug analyst Joseph Riccardo said. "That doesn't mean they're going to develop any products. It doesn't mean that smaller companies in the industry Medical devices Medtronic gets approval to sell first implantable cardiac monitor device percent of sales. Costs are rising because genetic engineering, stricter Food and Drug Administration requirements and inflation have combined to make searching for drugs more expensive, said Jeff Trewhitt, a spokesman for the trade group.

A combined Glaxo SmithKline, as negotiators are considering calling the company, could sink $3 billion into research and development, although analysts expect it to pare that to $2 billion to $2.5 billion after cutting redundant projects. That compares with $1.8 billion for Novartis AG and $1.5 billion each for Merck and Pfizer. Turn to DRUGS on D2for. Enough firepower? can't compete effectively." Bigger may not necessarily be better, but it may well describe the industry's future. Stocks for most drug companies surged Monday as talk of a deal left Wall Street believing that the merger train is unstoppable.

Big drug companies see merging as a way to cut their research and development costs. The cost of developing a drug has bolted from $54 million in 1976 or an inflation-adjusted $125 million to $400 million to $600 million today, said Pharmaceutical Research Manufacturers of America, a drug industry trade group. Drugmakers in the United States and Europe will spend an estimated $20.6 billion on research this year, or about 20 Iron Range Amber Lager will make its debut on Northwest's domestic flights in the said David Anderson, president of James Page. Northwest operates more than 1,000 domestic flights daily, primarily out of its hubs in Minneapolis-St. Paul, Detroit and Memphis.

Page, a seven-employee northeast Minneapolis microbrewery that came under new ownership in 1995, is estimating that North Firm's Kappa 400 pacemaker also gets FDA approval By Terry Fiedler Star Tribune Staff Writer Medtronic Inc. has received U.S. Food and Drug Administration approval to sell what the company says is the world's first implantable cardiac monitor. In addition, the Fridley-based company said Monday that it got the go-ahead to market the first of a new generation of pacemakers. The Reveal Insertable Loop Recorder a monitoring device addresses patients who have contract with margin on the Northwest contract will be extremely narrow, Anderson said he is hoping to gain new brand exposure.

The same Twin Cities distributor in charge of distributing Page to Northwest enjoyed a "significant" increase in local retail sales of Weinhard's beer when Northwest added Weinhard's to its beverage carts, Anderson said. Turn to BEER on D8 James Page Brewing lands Brewing one year beer west's passengers will buy 1,000 to 2,000 cases of the beer each month. The private company's overall production target for 1998 is projected to average about 8,000 cases a month, or 7,000 barrels for the year. Page's 1997 volume was 4,100 barrels, which was short of even the brewery's most modest sales goal of 6,000 barrels. Page's "stretch goal" for 1997 was 10,000 barrels.

Although the brewery's profit Beer will be served on domestic flights By Tony Kennedy Star Tribune Staff Writer James Page Brewing Co. has landed a one-year contract to supply beer to all Northwest Airlines domestic flights, a deal that could equal up to 25 percent of its projected 1998 volume..