'The Hobbit' stays atop box office for third week


LOS ANGELES (AP) — "The Hobbit: An Unexpected Journey" continues to rule them all at the box office, staying on top for a third-straight week and capping a record-setting $10.8 billion year in moviegoing.


The Warner Bros. fantasy epic from director Peter Jackson, based on the beloved J.R.R. Tolkien novel, made nearly $33 million this weekend, according to Sunday studio estimates, despite serious competition from some much-anticipated newcomers. It's now made a whopping $686.7 million worldwide and $222.7 million domestically alone.


Two big holiday movies — and potential Academy Awards contenders — also had strong openings. Quentin Tarantino's spaghetti Western-blaxploitation mash-up "Django Unchained" came in second place for the weekend with $30.7 million. The Weinstein Co. revenge comedy, starring Jamie Foxx as a slave in the Civil War South and Christoph Waltz as the bounty hunter who frees him and then makes him his partner, has earned $64 million since its Christmas Day opening.


And in third place with $28 million was the sweeping, all-singing "Les Miserables," based on the international musical sensation and the Victor Hugo novel of strife and uprising in 19th century France. The Universal Pictures film, with a cast of A-list actors singing live on camera led by Hugh Jackman, Anne Hathaway and Russell Crowe has made $67.5 million domestically and $116.2 worldwide since debuting on Christmas.


Additionally, the smash-hit James Bond adventure "Skyfall" has now made $1 billion internationally to become the most successful film yet in the 50-year franchise, Sony Pictures announced Sunday. The film stars Daniel Craig for the third time as the iconic British superspy.


"This is a great final weekend of the year," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "How perfect to end this year on such a strong note with the top five films performing incredibly well."


The week's other new wide release, the Billy Crystal-Bette Midler comedy "Parental Guidance" from 20th Century Fox, made $14.8 million over the weekend for fourth place and $29.6 million total since opening on Christmas.


Dergarabedian described the holding power of "The Hobbit" in its third week as "just amazing." Jackson shot the film, the first of three prequels to his massively successful "Lord of the Rings" series, in 48 frames per second — double the normal frame rate — for a crisper, more detailed image. It's also available in the usual 24 frames per second and both 2-D and 3-D projections.


"I think people are catching up with the movie. Maybe they're seeing it in multiple formats," he said. "I think it's just a big epic that feels like a great way to end the moviegoing year. There's momentum there with this movie."


"Django Unchained" is just as much of an epic in its own stylishly violent way that's quintessentially Tarantino. Erik Lomis, The Weinstein Co.'s president of theatrical distribution, said the opening exceeded the studio's expectations.


"We're thrilled with it, clearly. We knew it was extremely competitive at Christmas, particularly when you look at the start 'Les Miz' got. We were sort of resigned to being behind them. The fact that we were able to overtake them over the weekend was just great," Lomis said. "Taking nothing away from their number, it's a tribute to the playability of 'Django.'"


"Les Miserables" went into its opening weekend with nearly $40 million in North American grosses, including $18.2 on Christmas Day. That's the second-best opening ever on the holiday following "Sherlock Holmes," which made $24.9 million on Christmas 2009. Tom Hooper, in a follow-up to his Oscar-winner "The King's Speech," directs an enormous, ambitious take on the beloved musical which has earned a CinemaScore of "A'' from audiences and "A-plus" from women.


Nikki Rocco, Universal's head of distribution, said the debut for "Les Miserables" also beat the studio's expectations.


"That $18.2 million Christmas Day opening — people were shocked ... This is a musical!" she said. "Once people see it, they talk about how fabulous it is."


It all adds up to a record-setting year at the movies, beating the previous annual record of $10.6 billion set in 2009. Dergarabedian pointed out that the hits came scattered throughout the year, not just during the summer blockbuster season or prestige-picture time at the end. "Contraband," ''Safe House" and "The Vow" all performed well early on, but then when the big movies came, they were huge. "The Avengers" had the biggest opening ever with $207.4 million in May. The raunchy comedy "Ted" and comic-book behemoth "The Dark Knight Rises" both found enormous audiences. And Paul Thomas Anderson's challenging drama "The Master" shattered records in September when it opened on five screens in New York and Los Angeles with $736,311, for a staggering per-screen average of $147,262.


"We were able to get this record without scratching and clawing to a record," he said.


Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.


1. "The Hobbit: An Unexpected Journey," $32.9 million ($106.5 million international).


2."Django Unchained," $30.7 million.


3."Les Miserables," $28 million ($38.3 million international).


4."Parental Guidance," $14.8 million ($7 million international).


5."Jack Reacher," $14 million ($18.1 million).


6."This Is 40," $13.2 million.


7."Lincoln," $7.5 million.


8."The Guilt Trip," $6.7 million.


9."Monsters, Inc. 3-D," $6.4 million.


10."Rise of the Guardians," $4.9 million ($11.6 million).


___


Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:


1."The Hobbit: An Unexpected Journey," $106.5 million.


2."Life of Pi," $39.2 million.


3."Les Miserables," $38.3 million.


4."Wreck-It Ralph," $20.4 million.


5."Jack Reacher," $18.1 million.


6."Rise of the Guardians," $11.6 million.


7."Parental Guidance," $7 million.


8."The Tower," $6.6 million.


9."Pitch Perfect," $6.2 million.


10."De L'autre Cote Du Periph," $4 million.


___


Online:


http://www.hollywood.com


http://www.rentrak.com


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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Chinese Firm Is Cleared to Buy American DNA Sequencing Company


Ramin Rahimian for The New York Times


DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.







The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.




The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.


Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.


The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.


A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.


But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.


Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.


Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.


BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.


“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”


BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”


BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.


Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.


Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.


“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.


Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.


BGI and Complete Genomics dismissed such concerns as preposterous.


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Tribune Co. set to exit bankruptcy protection









Tribune Co. is expected to emerge from bankruptcy protection Monday with a new board of directors composed largely of entertainment-industry veterans.


Exiting bankruptcy would mark a milestone for Tribune, the parent of the Los Angeles Times and other newspaper and television properties.


Tribune sought court protection in December 2008 after a leveraged buyout by real estate magnate Sam Zell saddled the company with $12.9 billion in debt just as advertising revenue was collapsing. It is one of the longest bankruptcy cases in U.S. corporate history.





Tribune will emerge as a slimmed-down entity with a more stable financial base. But the media conglomerate will still be buffeted by the larger forces pounding the newspaper industry, specifically uncertainty over whether papers can generate sufficient revenue from digital operations.


"Tribune is far stronger than it was when we began the Chapter 11 process four years ago and, given the budget planning we've done, the company is well-positioned for success in 2013," Eddy Hartenstein, Tribune's chief executive, wrote in a note to employees Sunday night.


Tribune's new board of directors is expected to be made up of a who's who of Hollywood players. Most have no hands-on experience running newspapers and television stations, which are Tribune Co.'s biggest assets.


Five of the seven members have ties to the entertainment and media industries, including Hartenstein and Peter Liguori, a former News Corp. executive who is expected to succeed Hartenstein as Tribune CEO in the next few weeks.


Quiz: The year in business


Also expected to be named to the board are Peter Murphy, previously a longtime executive at Walt Disney Co.; Ross Levinsohn, former head of global marketing at Yahoo Inc.; and Craig A. Jacobson, a veteran entertainment attorney.


The board will be rounded out by Bruce Karsh, president of Oaktree Capital Management, the Los Angeles distressed-debt firm that owns about 23% of the new Tribune; and Kenneth Liang, an Oaktree managing director.


Tribune, the parent of the Los Angeles Times, owns 23 local television stations, eight daily newspapers and Internet and other media properties.


Those holdings include KTLA-TV Channel 5, the Chicago Tribune, and national cable station WGN-TV. Tribune also holds slightly less than one-third of the Food Network cable channel and about a 25% stake in the CareerBuilder website.


Liguori is also a former Discovery Communications senior executive whose resume is in programming and marketing. He headed both the FX cable network and Fox Broadcasting at News Corp. At Discovery he served as chief operating officer of the cable programming giant.


Murphy spent almost two decades at Disney, rising to the position of chief strategist. He founded private investment firm Wentworth Capital Management. He has close ties to Angelo, Gordon & Co., an investment firm that will own roughly 9% of the new Tribune Co.


Levinsohn is a former head of global marketing at Yahoo. He also served briefly as its interim CEO prior to Google Inc.'s Marissa Mayer being tapped for that job. Levinsohn also is a former News Corp. executive who headed its interactive unit.


Jacobson, an attorney at Hansen, Jacobson, Teller, Hoberman, Newman, Warren, Richman, Rush & Kaller is one of Hollywood's more prominent deal-makers. His clients have included several high profile executives and performers such as Ryan Seacrest.


Tribune remained profitable throughout the bankruptcy, building cash reserves of more than $2.5 billion as of Nov. 18, according to a U.S. Bankrutpcy Court filing this month. Creditors are expected to immediately take nearly $3 billion in cash out of the new company, some of it coming from a new $1.1 billion loan that was approved as part of the bankruptcy.


A key question still to be answered is what Tribune will do with its newspapers. Some analysts believe the company will seek to sell the slower-growing newspapers to focus on TV holdings.


As for the Los Angeles Times, Rupert Murdoch's News Corp. has expressed interest, according to people familiar with the matter.


Aaron Kushner, owner of the Orange County Register, and Doug Manchester, the San Diego real estate developer who last year bought the local Union Tribune newspaper, also have shown interest.


Austin Beutner, the former venture capitalist and ex-deputy mayor of Los Angeles, told The Times in October that he has reached out to civic-minded investors who would consider acquiring the paper.


walter.hamilton@latimes.com


joe.flint@latimes.com





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Officials warn holiday revelers against firing weapons















































Los Angeles officials are warning that anyone discharging a firearm into the air to celebrate the new year not only risks killing someone but could also face a lengthy prison sentence.


"Firing into the air weapons in celebration puts innocent lives at risk," Mayor Antonio Villaraigosa said last week. "Nothing ruins the holiday season like an errant bullet coming down and killing an innocent."


Villaraigosa said the misuse of firearms is on everyone's mind in the wake of the Newtown, Conn., school shooting that left six adults and 20 children dead. The mayor vowed that authorities will pursue criminal charges for anyone caught in possession of a weapon in public.








For more than a decade, city and county leaders have tried to quell celebratory gunfire.


Los Angeles Police Chief Charlie Beck said a bullet discharged into the air falls at a rate of 300 to 700 mph, depending on the weapon — "easily enough to crack the human skull."


"Please celebrate New Year's with your family, not in [Sheriff] Lee Baca's jail or my jail," Beck said, pledging to capture anyone firing a weapon. "Firing a gun in the air isn't only dangerous and a crime but socially unacceptable."


L.A. County Dist. Atty. Jackie Lacey said that anyone caught firing a weapon — even if they don't hit someone — will face a felony charge and a fine of up to $10,000 and a possible three-year sentence. A conviction would be considered a strike offense and the suspect would lose the right to own a firearm.


Supervisor Mark Ridley-Thomas said that in some county areas, special equipment has been deployed to spot shots within seconds and track their locations.


"The madness of gun violence has to stop," he said. "This is a matter of physics. What goes up must come down."


richard.winton@latimes.com






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The Boy Genius Report: The Wii U is Nintendo’s last console






I remember it still — people flipped out about the Nintendo (NTDOY) Wii. Yes, its name was mocked for a while, but there was genuine excitement around what Nintendo was doing with motion and the entire gameplay experience. While the original Nintendo Wii was almost an Apple (AAPL)-like product — Nintendo focused on the gameplay and not on specs; the company didn’t even have HD graphics when every other console did — the Nintendo Wii U clearly demonstrates how far Nintendo has fallen and how out of touch the company is.


[More from BGR: Samsung could face $ 15 billion fine for trying to ban iPhone, other Apple devices]






I bought a Nintendo Wii U for one reason and one reason only, and that’s to play and beat “Super Mario Bros. U.” I’ll probably end up returning the console after I’m done, because that’s how horrible the Wii U actually is.


[More from BGR: Five-year-old finds porn on refurbished Nintendo 3DS from GameStop]


First of all, the fact that Nintendo actually decided to ship this joke of a controller called the GamePad with a 6.2-inch touchscreen in the middle says it all. It only lasted for around two hours per charge over the week I’ve used it, and it’s big, clunky and made of glossy Nintendo plastic. The problem it, it has no charm. It feels thrown together to try to make a statement, one that says that Nintendo isn’t afraid of the iPads or Android tablets or iPhones or iPod touches, and that it too can take on touch just as it took on motion.


It fails miserably. And that’s just the controller.


The actual console is one that finally for the first time ever supports HDMI and HD graphics, yet Nintendo’s flagship game doesn’t look good in high-definition. The console’s UI is a mess, and let’s be honest, we are living in a time where we are so connected, where so much is shared across continents instantly, that real design transcends what country it was designed in.


When you see a beautiful iPhone app’s interface, there’s a good chance you couldn’t tell if it was designed by a company in San Francisco or Paris or Hong Kong. But Nintendo’s interface is blatantly Japanese, and it lacks any and all sophistication. It’s like all of Nintendo’s designers just gave up and are living in a time when Apple’s iOS devices and Google’s (GOOG) Android devices don’t exist, blissfully ignoring the threat that their company is facing from all angles.


The Wii U experience is so terrible that it took over an hour to update the software on the console recently, and apparently that wasn’t that bad. People have told me their updates took over 4 hours when performed closer to Christmas. Do you know what that 7-year-old is doing during those 4 hours you’re making him wait? Playing Temple Run or Angry Birds on his iPad mini. Way to go Nintendo.


I’ll go on record and say that I think this is the last video game console Nintendo will make for the home. I just don’t see the future here with hardware. Not by a mile.


Nintendo needs to realize that hardware is hardware and that Nintendo’s hardware isn’t special, it isn’t elegant and it isn’t thoughtful. It’s merely a delivery mechanism in a time where design has never been more important.


Nintendo is a great company, one that has invented so many great products, but sooner or later it will be forced to offer its titles on iOS devices and Android devices. It’s going to get to that point. There’s way too much revenue to be made — Nintendo isn’t Sega, and Sega is crushing it as a software-only company.


I just hope Nintendo follows suit sooner or later, because I have $ 9.99 ready to go for the Super Mario app on iOS.


This article was originally published by BGR


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FBI removes many redactions in Marilyn Monroe file


LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning friends who drew concern from government officials and her own entourage.


But the records, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the files show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.


Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.


The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.


A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.


"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.


Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.


"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."


Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.


The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.


For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.


A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."


That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."


"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."


Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.


The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.


For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.


"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP


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Questcor Finds Profit for Acthar Drug, at $28,000 a Vial


Kevin Moloney for The New York Times


Christina Culver with her son Tyler, 6, at home in Colorado Springs this month. In 2007, Tyler was hospitalized when the price of Acthar soared.





THE doctor was dumbfounded: a drug that used to cost $50 was now selling for $28,000 for a 5-milliliter vial.


The physician, Dr. Ladislas Lazaro IV, remembered occasionally prescribing this anti-inflammatory, named H.P. Acthar Gel, for gout back in the early 1990s. Then the drug seemed to fade from view. Dr. Lazaro had all but forgotten about it, until a sales representative from a company called Questcor Pharmaceuticals appeared at his office and suggested that he try it for various rheumatologic conditions.


“I’ve never seen anything like this,” Dr. Lazaro, a rheumatologist in Lafayette, La., says of the price increase.


How the price of this drug rose so far, so fast is a story for these troubled times in American health care — a tale of aggressive marketing, questionable medicine and, not least, out-of-control costs. At the center of it is Questcor, which turned the once-obscure Acthar into a hugely profitable wonder drug and itself into one of Wall Street’s highest fliers.


At least until recently, that is. Now some doctors, insurance companies and investors are beginning to have doubts about whether the drug is really any better than much cheaper alternatives. Short-sellers have written scathing criticisms of the company, questioning its marketing tactics and predicting that its shareholders are highly vulnerable.


 That Acthar is even a potential blockbuster is a remarkable turn of events, considering that the drug was developed in the 1950s by a division of Armour & Company, the meatpacking company that once ruled the Union Stock Yards of Chicago. As in the 1950s, Acthar is still extracted from the pituitary glands of slaughtered pigs — essentially a byproduct of the meatpacking industry.


The most important use of Acthar has been to treat infantile spasms, also known as West syndrome, a rare, sometimes fatal epileptic disorder that generally strikes before the age of 1.


For several years, Questcor, which is based in Anaheim, lost money on Acthar because the drug’s market was so small. In 2007, it raised the price overnight, to more than $23,000 a vial, from $1,650, bringing the cost of a typical course of treatment for infantile spasms to above $100,000. It said it needed the high price to keep the drug on the market.


“We have this drug at a very high price right now because, really, our principal market is infantile spasms,” Don M. Bailey, Questcor’s chief executive, told analysts in 2009. “And we only have about 800 patients a year. It’s a very, very small — tiny — market.”


Companies often charge stratospheric prices for drugs for rare diseases — known as orphan drugs — and Acthar’s price is not as high as some. Society generally tolerates those costs to encourage drug companies to develop crucial, possibly lifesaving drugs for these often neglected diseases.


But Questcor did almost no research or development to bring Acthar to market, merely buying the rights to the drug from its previous owner for $100,000 in 2001. And while the manufacturing of Acthar is complex, it accounts for only about 1 cent of every dollar that Questcor charges for the drug.


Moreover, the tiny “orphan” market soon became much bigger. Before long, Questcor began marketing the drug for multiple sclerosis, nephrotic syndrome and rheumatologic conditions, even though there is little evidence that Acthar is more effective for those other conditions than alternatives that are far cheaper. And the company did so without being required to prove that the drug actually works. That is because Acthar was approved for use in 1952, before the Food and Drug Administration required clinical trials to show a drug is effective for a particular disease. Acthar is essentially grandfathered in.


Today, only about 10 percent of the drug’s sales are for infantile spasms. The new uses, Mr. Bailey has told analysts, represent multibillion-dollar opportunities for Acthar and Questcor, its sole maker.


The results have been beyond even the company’s wildest dreams. Sales of Acthar, which accounts for essentially all of Questcor’s sales, totaled nearly $350 million in the first nine months this year, up 145 percent from the period a year earlier. In the same period, Questcor’s earnings per share nearly tripled, to $2.12. In the five years after the big Acthar price increase in August 2007, Questcor shares rose from around 60 cents to about $50, in one of the best performances of any stock in any industry.


But in September, the shares plummeted after Aetna, the big insurer, said it would no longer pay for Acthar, except to treat infantile spasms, because of lack of evidence the drug worked for other diseases. The stock now trades at $26.93.


Peter Wickersham, senior vice president for cost of care at Prime Therapeutics, a pharmacy benefits manager that has found the drug is possibly being overused, says the huge increase in Acthar’s price for patients “just invites the type of scrutiny that it’s received.”


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Creating the illusion of snow becomes big business for MagicSnow









On a recent Sunday morning in Los Angeles, Adam Williams and his crew set up their blowers outside a house in Hancock Park and blanketed the yard in 20 tons of snow.


Using 15-pound blocks of crushed ice, it took Williams and his crew about 2 1/2 hours to cover the front lawn and build half a dozen snowmen in a commercial for the cable channel FearNet. In the ad, a little girl cheerfully entombs someone who appears to be her father inside one of the snowmen.


To create the effect, producers of the commercial turned to MagicSnow Systems, a 10-year-old Los Angeles company. MagicSnow is best known for its twice daily snow show at the Grove shopping center that runs through New Year's Eve, but the rest of the time it specializes in manufacturing snow effects for commercial shoots, music videos, concerts and shows at malls, Hollywood premieres, and even cruise ships.





PHOTOS: Hollywood backlot moments


"When I first moved out here, I missed a lot of things about the holidays, including the snow," said Williams, founder and president of MagicSnow. "What we're doing is filling the void by providing the experience of snow in a warm-weather climate. It's not a hard concept to sell."


Williams, raised in a small town outside of Cleveland, moved to Los Angeles to pursue his career as a magician, performing at the Magic Castle in Hollywood. During a lull in work, he began to think of ways he could expand his act by creating the illusion of something that was a novelty in Los Angeles — snow.


"I never set out to start a special effects business,'' said Williams, 35. "My goal was to become a world-famous magician. I realized when I moved out here that that wasn't a realistic goal for me, but that didn't mean I had to give up my dream of creating illusions. I still feel like I'm a magician."


Williams initially used confetti to create the snow illusion, but that proved too messy to clean up. The type of simulated "snow" used in the film industry collects on the ground. Williams needed a snow-like substance that could be used in crowds, would vanish quickly and not leave a residue.


He and a chemist friend spent weeks experimenting with various ingredients in his kitchen, shooting samples into his yard from his back porch to test the mixture. Eventually, he developed his proprietary formula made of water and a foam substance. MagicSnow also makes real snow, which was used in the FearNet ad.


Williams launched his company in 2002 and got his first big break when he pitched his idea of putting on a Christmas magic show with falling snow to Rick Caruso, developer of the newly opened Grove in the Fairfax district.


GRAPHIC: Faces to watch in 2013


"Rick said he was more interested in the snow than the magic," said Williams. "He said, 'I'd love to have you come in and create this snowfall illusion,' so I jumped at the opportunity."


The fake snow, blown from rooftops and choreographed to Christmas music and the Grove's nightly fountain show, was a hit with shoppers, prompting Caruso to add MagicSnow shows to his other shopping mall, the Americana at Brand in Glendale.


"Adam and his team have the exceptional ability to transform spaces with their customized snowfall experiences, making our nightly holiday snow shows magical," said Paul Kurzawa, chief operating officer of Caruso Affiliated. With the exposure from the Grove, Williams' company expanded rapidly, installing snow-making systems in 55 shopping centers across the country operated by General Growth Properties. MagicSnow also made snow for the Rockettes at Radio City Music Hall in New York and for numerous live television shows, concerts and movie premieres, including the 2003 premiere of "Elf" at the Grove.


More recently he has expanded into the television business, doing commercials for Land Rover and FearNet.


"It just snowballed," Williams said.


MagicSnow, which also sells and installs snow-making equipment, will generate about $3 million a year in revenue in 2012, up about 25% over the prior year, he said.


His company has gone global, installing snow-making systems for clients in Indonesia, Germany, Brazil and Mexico, where his equipment is used at a shopping center in the Polanco area of Mexico City — a deal that started after the son of the shopping center developer saw the snow show at the Grove and told his father about it.


MagicSnow's corporate clients include Princess Cruises and toy maker Mattel Inc., which recently recruited Williams and his team to create a winter wonderland theme for underprivileged children at the company's El Segundo headquarters.


Using more than 375 tons of snow supplied by MagicSnow, the volunteers and children built nearly 1,300 snowmen in an hour.


An adjudicator from Guinness World Records chronicled the work but disqualified about 20 snowmen. The reason: Their arms fell off, they didn't have a carrot nose or they were simply too short, Williams said.


"Unfortunately, we fell just short of a world record," he said.


richard.verrier@latimes.com






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Small-scale solar's big potential goes untapped









NIPTON, Calif. — Gerald Freeman unlocks the gate to the small power plant and goes inside. Three rows of solar collectors, elevated on troughs that track the sun's arc like sunflowers, afford a glimpse of California's possible energy future.


This facility and a smaller version across the road produce some 70 kilowatts of electricity, about 80% of the power required by Nipton's 60 residents, its general store and motel.


Freeman, a Caltech-trained geologist and one-time gold mine owner, understood when he bought this former ghost town near the Nevada border that being off the grid didn't have to mean going without power.





He contracted with a Bay Area company to install solar arrays on two plots of land. The town has a 20-year agreement to buy its power at a below-market rate.


Projects like these make do with scant financing opportunities and little support from the federal government.


The Obama administration's solar-power initiative has fast-tracked large-scale plants, fueled by low-interest, government-guaranteed loans that cover up to 80% of construction costs. In all, the federal government has paid out more than $16 billion for renewable-energy projects.


Those large-scale projects are financially efficient for developers, but their size creates transmission inefficiencies and higher costs for ratepayers.


Smaller alternatives, from rooftop solar to small- and medium-sized plants, can do the opposite.


Collectively, modest-sized projects could provide an enormous electricity boost — and do so for less cost to consumers and less environmental damage to the desert areas where most are located, say advocates of small-scale solar power.


Recent studies project that California could derive a substantial percentage of its energy needs from rooftop solar installations, whether on suburban homes or city roofs or atop big-box stores.


::


Janine Blaeloch, director of the nonprofit Western Lands Project, said smaller plants were never on the table when the federal solar policy was conceived early in President Obama's first term.


Utilities and solar developers wanted big plants, so that's what's sprouting in Western deserts, she said.


"There was a pivot point when they could have gone to the less-damaging alternative," Blaeloch said, referring to both federal officials and environmental groups that have supported large-scale solar projects.


"There's no question that it was a matter of choice, and it was the wrong choice."


Built in far-flung locations where there is plenty of open land, large-scale plants require utilities to put up extensive transmission lines to connect to the grid.


Utilities charge ratepayers for every dollar spent building transmission lines, for which the state of California guarantees utilities an annual return of 11% for 40 years.


By comparison, small-scale plants can be built near population centers and provide power directly to consumers, reducing the demand for electricity from the grid.


Rooftop solar goes one step further.


It not only cuts demand from the grid, but also can allow homeowners and businesses to sell back excess power.





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Makers of $99 Android-Powered Game Console Ship First 1,200 ‘Ouyas’






Like Nintendo’s Wii U game console, the Ouya (that’s “OOH-yuh”) has an unusual name and even more unusual hardware. The console is roughly the size of a Rubik’s cube, and is powered by Android, Google‘s open-source operating system that’s normally found on smartphones and tablets.


Ouya’s makers, who are preparing the console for its commercial launch, encourage interested gamers to pop the case open and use it in electronics projects … or even to write their own games for it. Especially if they’re among the 1,200 who are about to receive their own clear plastic Ouya developer consoles.






Not exactly a finished product


The limited-edition consoles, which have been shipped out to developers already, are not designed for playing games on. They don’t even come with any.


Rather, the point of these consoles is so that interested Android developers can write games for the Ouya, which will then be released to gamers when the console launches to the public. Fans who pledged at least $ 1,337 to Ouya’s record-breaking Kickstarter project will get one, and while they’re not quite suited for playing games on — “we know the D-pad and triggers on the controller still need work,” Ouya’s makers say — the clear plastic developer consoles serve as a preview of what the finished product will look like, and a reminder of Ouya’s “openness.”


You keep using that word …


In the food and drug industries, terms like “organic” and “all-natural” are regulated so that only products which meet the criteria can have them on their labels. In the tech world, however, anyone can claim that their product is “open,” for whatever definition of “open” they like.


The term was popularized by the world’s rapid adoption of open-source software, like Android itself, where you’re legally entitled to a copy of the programming code and can normally use it in your own projects (like Ouya’s makers did). But when tech companies say that something is “open,” they don’t necessarily mean that the code or the hardware schematics use an open-source license.


How Ouya is “open”


Ouya’s makers have released their ODK, or developer kit, under the same open-source license as Android itself. This allows aspiring game developers to practice their skills even without a developer console, and to improve the kit however they want. The hardware itself is currently a “closed” design, however, despite the clear plastic case. The makers have expressed enthusiasm for the idea of hardware hackers using it in projects, and have said, “We’ll even publish the hardware design if people want it,” but so far they haven’t done so.


What about the games?


The most relevant aspect of “openness” to normal gamers is that Ouya’s makers say “any developer can publish a game.” This model is unusual for the console world, where only select studios are allowed to publish their wares on (for instance) the PlayStation Network, but is more familiar to fans of the anything-goes Google Play store for Android. Several big-name Android developers — including console game titan Square-Enix — have already signed up to have their wares on the Ouya.


Preordered Ouya game consoles (the normal ones, not the developer edition) will ship in April. They will cost $ 99 once sales are opened to the general public.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News





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