Washington government announced that 6% reduction in Medicaid reimbursements for brand-name prescription drugs will be effective from May 1. The government is also insisting on cheaper, generic drugs for low-income Medicaid clients if available and equivalent to brand-name drugs. As a revolt against to new rule, Walgreen, one of the largest U. S. pharmacy chains has planned to withdraw 44 of its 111 pharmacies from the Medicaid program. Walgreen has track record of providing efficient service to people.

Setton Farms in Terra Bella, California, the second-largest pistachio processor in the United States, is recalling roasted pistachio products under suspicion of presence of salmonella. However no illness has been reported due to consumption of its products.

Dr. David Acheson, FDA's associate commissioner said that salmonella strains were found last week during routine test by Kraft Foods, one of about three dozen companies that purchase pistachios from Setton Farms.

U. S. Food and Drug Administration gave given green signal to Afinitor made by Novartis for treating advanced kidney cancer in people that is ineffective to other therapies. Afinitor works by blocking cells' ability to communicate hence preventing the growth of tumors.

FDA said patients tested with Novartis' Afinitor lived more than twice as long without tumor growth as those who didn't receive the drug. The study by the Swiss drugmaker showed Afinitor delayed tumor growth nearly 5 months, compared with less than two months for patients not taking the drug.

New York  - Major US stock indices posted strong gains Tuesday following Europe's lead, capping the US market's best month in nearly seven years.

Financial firms led the gains on signs that banks were starting to increase lending in the current recession. An index of financial companies jumped 6.7 per cent.

The rally comes ahead of an emergency summit of the Group of 20 major economies Thursday in London to help pull the world out of recession. US President Barack Obama and other world leaders began arriving Tuesday in London.

Wellington  - New Zealand has withdrawn

Washington  - The United States on Tuesday s