Business memo 06/24/02

American trade deficit reaches record level

WASHINGTON -- Americans' appetite for foreign-made cars, TVs and clothes propelled the U.S. trade deficit to a record $35.9 billion in April.

The deficit was 10.7 percent higher than the $32.5 billion trade gap reported for March, the Commerce Department reported Thursday.

Imports in April rose twice as fast as exports. Imports of goods and services increased 4.7 percent to $116 billion as the U.S. economic recovery helped to boost consumer demand for cheaper-priced foreign-made goods.

Exports rose 2.2 percent to $80.1 billion. Although countries around the globe are regaining strength after a worldwide slump, they are doing so less quickly than the United States, thus restraining their demand for U.S. products.

Drug giant freezing prices of AIDS medicine

PHILADELPHIA -- Pharmaceutical giant GlaxoSmithKline PLC is freezing the wholesale prices of its HIV and AIDS drugs until January 2004.

The London-based drug maker, which has its U.S. headquarters in Philadelphia and North Carolina, said Thursday that it was implementing the price freeze to address funding shortfalls that states are facing in their AIDS drug assistance programs.

Glaxo cited an April report by the Kaiser Family Foundation, a philanthropic health care organization, stating that AIDS Drug Assistance Programs in 10 states have limited drug access, imposed waiting lists or capped new enrollments in their AIDS treatment programs because of budget shortages.

-- From wire reports