Warner Chilcott (NASDAQ: WCRX), a North Ireland-based specialty drugmaker, today acquired Proctor & Gamble’s prescription drug business for $3.1 bn. The Wall Street Journal reports:

Six banks, led by J.P. Morgan Chase & Co. and Bank of America Corp. and including Credit Suisse Group AG, Citigroup Inc., Barclays PLC and Morgan Stanley, were expected to put up as much as $4 billion in financing for the transaction. Roughly $3 billion will go toward the acquisition, with the remainder refinancing $1 billion in existing Warner Chilcott debt.

“The acquisition of the P&G pharmaceutical brands and employee talent is a transformational, strategic move for us,” said Roger Boissonneault, president and chief executive officer of Warner Chilcott, in a statement. “The acquisition transforms Warner Chilcott into a global pharmaceutical company, expands our presence in women’s health care, establishes us in the urology market in advance of the anticipated launch of our erectile dysfunction treatments, and adds gastroenterology therapies to our product portfolio.”

More.

1. The White House wants to monitor your every click

If you can, forget healthcare for a minute. There’s something a little sneakier passing under the radar. President Obama wants to “reverse a longtime federal policy banning the use of web technologies to track and compile personal information that can easily be utilized to invade privacy,” according to Judicial Watch. Ironically enough, it was the pro-Obama ACLU that pointed out this creepy federal move:

A 9-year-old policy forbids the U.S. government from implementing methods on federal internet sites that track an internet user’s every click, often identify the person and even build a database of each user’s viewing habits. This poses a serious threat to Americans’ personal information, according to the…American Civil Liberties Union (ACLU).

However, with the snap of a finger the White House Office of Management and Budget (OMB) can reverse the longtime privacy rule if it determines that there is a “compelling need.” Since the OMB answers to the president and he clearly believes there is a compelling need, Americans should consider it a done deal.

2. A judge forced Google to reveal the identity of a blogger

Mashable has the scoop:

Liskula Cohen is a Canadian-born model, best known for her appearances in fashion magazines such as Vogue, Elle, and Cleo. When she discovered that a blog called Skanks in NYC, hosted on Google’s Blogger, had been referring to her as “skank” and “old hag,” she decided to press Google (Google) to reveal the identity of the blogger through court, and the court has now decided in her favor.

This also means that Google will have to reveal the identity of the blogger in question; an important move that will set a precedent for future cases such as this one. The blogger in question has, without a doubt, been very offensive towards Cohen, as can be seen in the above quote. However, as we all know, the internet is full of offensive comments and broad negative statements of all kinds.

Internet legal policies are a work in progress. The blogger case, as Mashable pointed out, sets a precedent for upcoming cases. In a few years, talking smack online may become a rare privilege.

3. A leaked music track has lead to an international manhunt

Image: ACC-TV

X Factor winner Leona Lewis was planning to release her new single, Don’t Let Me Down (featuring Justin Timberlake), sometime within the next few months. But hackers beat her to the punch. They recently leaked the track online by invading Syco’s (part of Sony BMG) computer systems.

Simon Cowell, who helped with the new album, called the police after discovering the leak. The Times Online writes:

The International Federation of the Phonographic Industry (IFPI) said it was the highest-profile hacking case the music industry had ever seen.

The police are understood to have been tracking the hackers for several weeks and are close to closing the case.

In other words: Simon Cowell calls the cops over a piece of leaked music. The cops stage an international manhunt as a result. Though this kind of international collaboration isn’t unprecedented–Pirate Bay comes to mind–it does highlight how responsive global law enforcement agencies have become to hacking attacks, not to mention record companies.

The Bank for International Settlements (BIS), a 55-member organization of central banks, announced today that “financial products should be treated like medicines,” according to Reuters. More:

The BIS was alarmed by how a collapse in the value of opaque and complex securitised products propelled the world’s financial system into crisis. It said in its annual report all financial products should be registered like medicines.

The BIS also said that while governments have moved quickly to support their economies, they have not done enough to remove problem assets from banks’ balance sheets. “A significant risk is therefore that the current stimulus will lead only to a temporary pickup in growth, followed by protracted stagnation,” it said.

I imagine that the same individuals and organizations who can pay their way into certain financial products will be able to acquire the right “prescriptions” if a program like this were to pass. The crucial difference would be a power transfer from financial institutions to governments. The BIS’s wish to rate financial products in this way is mostly self-interested.

The last time we saw the swine flu was in 1976, when it killed a New Jersey army recruit. Today, the swine flu is back with a vengeance, infecting hundreds of people in Mexico, killing at least 18 of them, and spreading into five US states, according to late-breaking New Scientist reports.

Is it a pandemic? No, but the CDC, stock market, and Department of Homeland Security are acting like it could be. That means more Tamiflu, more biosuits, and more business for these five companies and industries:

1. Roche and GlaxoSmithKline

The manufacturer of Tamiflu is enjoying status as one of two drugmakers whose products, according to the CDC, can treat the swine flu. The Department of Homeland Security has also released 12.5 million doses of Tamiflu and Relenza (zanamivir, the CDC-approved treatment), meaning that it–and citizens around the country–will be requiring more of the stuff. Additionally, Gilead Sciences, which invented Tamiflu and still receives sales royalties from Roche, is up 2.5% today in the market.

2. Novavax and BioCryst Pharmaceuticals

These two companies are helping develop a swine flu vaccine. The Street reports that both companies saw a jump in share value on Friday, when Mexico reported 60 swine flu-related deaths.

3. Health Insurance

If you’re concerned about catching the swine flu, but lack insurance, now might be the time to get some. Both Tamiflu and Relenza are prescription drugs, meaning that stocking up on them sans insurance could set you back more than $200 when you factor pricey pills and a doctor’s visit. The CDC also recommends increased travel health coverage, such as Medivac and medical tests, to ensure your safety if you travel during an outbreak. Coverage saves you additional costs–and benefits the industry.

4. The Media

Nothing drives people to news outlets like a pandemic. The swine flu has readers compulsively listening to news updates and refreshing news websites. This is a boon for ad-driven media, which will enjoy increased CPM revenues–and authority–for at least a week.

5. 3M

The Mexican government handed out six million face masks to residents of Mexico City yesterday, according to the AP. I’ll venture to guess that at least some of those masks originated at 3M, whose 8000 N95 respirator is government-approved for protection against microbes. American instapreneurs like this person are also looking to capitalize off a potential respirator craze.

However, if personal and political dramas continue to play out the way they have been, the G-20 summit could accomplish nothing at all (see this Reuters article for details of the issues). Here are 5 global presidents whose actions during the G-20 could weigh heavily on the world’s economic future:

1. Taro Aso, Japanese PM

Belief: Strong fiscal action is needed for recovery. Stimulate government spending to get the economy back on its feet.

Stance: Paternal. Long-suffering Japan knows better than everyone else how recovery works. Other countries, like the US and Germany, are still in economic-recovery diapers. Japan should be the new global stimulus leader.

Why to watch him: Japan usually isn’t this visible in the global conversation. Will Aso get his way, or assume new global status? Time will tell.

2. Nicolas Sarkozy, French President

Belief: Public spending will lead to unsustainable recovery. An internationally coordinated stimulus is a bad idea because countries like France already carry heavy debt. Instead, up regulation on international tax havens and financial companies, and let the private sector heal itself. He also has a China problem. According to the Financial Times, Sarkozy says that “Chinese opposition to the blacklisting of unco-operative tax havens was now the major sticking point for France.”

Stance: Spastic. Sarkozy said he’ll walk away from the table if the group’s action doesn’t satisfy him. He fancies himself the next Charles de Gaulle.

Why to watch him: Sarkozy may offer the most entertainment value of all the leaders involved this year. He is also a strong voice for continental Europe, which doesn’t want to spend its way out of the crisis, and may block expensive initiatives.

3. Barack Obama, US President

Belief: To get people spending money again, the government has to create and spend more money. So should the world.

Stance: Kumbaya. Obama wants everyone to agree and get along, so that appropriate action can be taken; a.k.a, spending.

Why to watch him: He may be diplomatic, but will he actually help accomplish anything?

4. Hu Jintao, PRC President

Belief: Protectionism will sink the global ship even further. The G-20 must encourage global trade. A different global currency–not the dollar–would also be a nice touch.

Stance: Frustrated. Looming increased protectionism would put even more of a damper on China’s economy. Moreoever, the United States is devaluing China’s $740 billion in US dollar reserves by enthusiastically printing more money.

Why to watch him: His country has most of our money.

5. Dmitry Medvedev, Russian President

Belief: Russia will cooperate with whoever benefits Russia. It recently agreed to a nuclear disarmament pact with the United States, but pals around with China on the topic of creating a new global currency.

Stance: Schmoozy. Medvedev wants to swing deals that will benefit Russia in the medium term, but his alignments are issue-based, not universal. Russia will stand on its own.

Why to watch him: Russia is a powerful nation. If Medvedev aligns himself with causes outside of the US interest, watch out.

Reading about Obama’s Chrysler/Fiat restructuring mandate made me wonder: What’s in it for Fiat? Quite a bit, it turns out (from ANSA):

Fiat in January signed a preliminary non-binding agreement with the struggling American carmaker (Chrysler) to create a global partnership in the production and distribution of
automobiles and other motor vehicles. The non-cash accord calls for Fiat to take a 35% stake in the Number Three American carmaker in exchange for Fiat`s platforms for its fuel-efficient, small and medium-sized compact cars, which will fill a gap in Chrysler`s range of models.

Fiat is also reported to have an option to acquire a further 20% in Chrysler should the partnership prove successful.

Obama is making the restructuring sound like it’s about Chrysler, but what I see is Cerebrus Capital, the American PE firm that owns Chrysler, edging out of a losing business proposition as best it can. Fiat gets a 35% stake debt-free, eases into the US market with existing products, and doesn’t have to fork up any cash.

Here are the benefits for both companies, in short (LeaseTrader):

Chrysler, the U.S. automaker most reliant on its home market and on trucks and sport-utility vehicles, would be able to tap Fiat’s lineup of small, fuel-efficient cars and a distribution network in Russia, China and South America.

Fiat would be able to share products such as trucks, SUVs and electric vehicles, a step toward Chief Executive Officer Sergio Marchionne’s goal of expanding an auto operation that he said on Dec. 6 was too small to survive without a partner. Italy’s biggest automaker also would return to the U.S. with main brands including Alfa Romeo that haven’t been sold in the country since 1995.

Fiat doesn’t have much going for it in the emerging regions mentioned above, with the exception of Brazil. So Chrysler isn’t exactly looking at a fabulous opportunity. It’s just a lifeline, for a company whose very existence implies political consequences.

Hungry Fiat, on the other hand, has a lot to gain–including access to crucial south-of-the-border markets. This isn’t about the US, as Obama says. It’s all about Fiat.

Knauf drywall, a German brand of drywall manufactured in China, could be releasing toxic gases in tens of thousands of US homes built between 2004-2007. ABC reports:

The Consumer Product Safety Commission is investigating whether (Knauf) drywall…may be emitting toxic gases. Most materials used to build or remodel homes are made in the United States, but the building boom and Hurricanes Katrina and Wilma caused building material shortages. That’s when some builders started buying up Chinese-made drywall. Knauf brand drywall is now at the center of several lawsuits alleging that it emits gases that harm household systems and may be dangerous to your health.

“I think ultimately you will be talking about tens of thousands of homes that will have to be completely redone or demolished,” Alters said.

The article says that black soot on the wires behind your light switch plates, in the coils of your air-conditioning unit, and on the plugs of your washer/dryer could indicate a problem.

The media is putting a China-bashing slant on this piece of news. While it’s true that China has a tendency to produce inferior or toxic products, the Knauf drywall case illustrates a much bigger issue. A western (German) manufacturer has toxic drywall made in China, but avoids taking responsibility for the quality of the product. Money-hungry American builders buy the stuff in bulk and create instant suburbs, but don’t claim responsibility for QAing the materials they buy. Home-hungry Americans flock into reasonably-priced homes without a second thought regarding the safety and integrity of the structures.

This isn’t a China issue, it’s an everyone issue. This is what happens when manufacturers and builders rush their processes in order to squeeze out maximal profits. Once again, we’re paying retroactively for a communal lack of foresight.

Supervision of financial institutions is expected to be high on the agenda.

Who will supervise in this new world order? How much power does that entity have over the world economy? How does it enforce its laws, and where do violators get incarcerated? Though the full extent of the financial crisis remains unknown, one thing is almost certain: International regulatory bodies will become more powerful than ever.

Here are the 10 best countries for medical tourism, ranked by appeal, specialties, and popularity:

10. Lithuania

If you’re interested in latest-craze stem cell treatment, look to the Baltics for treatment. Haematopoietic stem cell transplantation, which helps cancer patients and people with blood diseases, is all the rage in Vilnius, the capitol of Lithuania. They also do more mundane treatments, like gastric bypass and back surgery.

9. Turkey

Every year, nearly 200,000 people head to Turkey for eye treatments like Lasik surgery. Once your new peepers are intact, tourism companies bus you around to see beautiful sites, like the Blue Mosque. Sounds like a deal!

8. India

Ayurvedic treatments, yoga, and meditation have long been staples of Indian health tourism. Now, millions of people are also taking annual “dental holidays” to India because quality procedures can be as much as 10 times cheaper than at home. For example, a root canal only costs about $100.

7. Israel

Israel is famous for its low-cost cancer treatment centers. Once that marrow transplant takes, you can recover with special therapies that use Dead Sea mineral salts. Much of the population speaks English–an added bonus.

6. Costa Rica

Costa Ricans are famous for growing old gracefully. Now we know why: Costa Rica is leading the world in what they like to call “age management” in beautifully-located “medical spas.”

5. Hungary

Austrians and Germans have been crossing the border here to get work done for years. German influence and an influx of former healthcare professionals have contributed to Hungary’s state-of-the-art medical technology. Dental procedures, from crowns to root canals, cost 40-60% less than western prices. Apparently, the anaesthesia is world class–but you probably won’t remember.

4. Egypt

Prices for plastic surgery in Egypt are 60-70% lower than corresponding treatments in the US or UK. A thigh liposuction, for example, is done for a mere $260 in Egypt. The same procedure can cost up to $2,000 in the US and $3,000 in the UK.

3. South Africa

South Africa specializes in medical safaris. You visit the country for a safari, make a stopover for plastic surgery, and get the chance to see lions and elephants. The first human heart transplant was performed here in 1967, so quality shouldn’t be of concern.

2. Malaysia

Malaysia’s quality of care, low prices, and beautiful beaches attract customers seeking a range of treatments. You can get your knee replaced, face lifted, and cataracts removed, then spend hours recovering on the serene beach.

1. Thailand

Thailand’s King Bhumipol’s father, Prince Mahidol, made it his life’s work to modernize the healthcare system in Thailand. During his time, he convinced the Rockefeller Foundation to fund an American medical education for a group of Thai men and women, leading to the creation of one of the world’s best medical systems. Phuket, Thailand is world renowned for “aesthetic” plastic surgery procedures such as otoplasty and blepharoplasty-your ears and eyelids will look stunning.

Not really, according to Dean Baker. Here’s his scenario in case everyone else loses confidence in US financial markets (haven’t they already?):

Suppose that foreign investors refuse to buy U.S. bonds. This would have two effects. First it would drive down bond prices (pushing up interest rates). Second it would drive down the value dollar.

If large budget deficits are the mechanism that finally gets the dollar down to a sustainable level then it will be just one more benefit from the stimulus program. Rather than being a problem, as the NYT tells readers, this is an important part of the solution for getting the U.S. economy back on a sustainable growth path.

If I think back to Econ 101–and I’m not an economist–inflation looks like it will be an issue. If you print extra money, excess supply and devaluation beyond sustainable levels follow. But Baker brings up a valid point: Can the United States sustain itself with far less foreign financial intervention? Can it afford to be isolationist? Can we be clever enough with our resources at home to ride it out on a domestic level?