Comedian Katt Williams a no-show at arraignment












SEATTLE (AP) — Comedian Katt Williams didn’t show up at an arraignment hearing in Seattle to face assault charges stemming from several run-ins with people and police last weekend.


Williams’ attorney, Thomas McAllister, told the judge Thursday that his client was under the impression that he didn’t have to attend the hearing, citing information from a Seattle Times article. McAllister says Williams is back in California.












The Times reports (http://bit.ly/VJzMhX ) that the judge rescheduled the hearing for next week.


Authorities say Williams struck a man over the head with a microphone while performing Friday night, threw chairs at fans, and threatened a bar manager with a pool cue over the weekend.


Authorities say officers had to restrain Williams before he was taken into custody after the bar incident.


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Information from: The Seattle Times, http://www.seattletimes.com


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Lurie Children's Hospital sees surge in patients at new Chicago building









Executives at the Ann & Robert H. Lurie Children's Hospital of Chicago expected a "bump" in patients when the $855 million hospital opened in June.


They weren't prepared for a mountain.


Since the former Children's Memorial traded its patchwork of aging buildings in Lincoln Park for a new high-rise in Streeterville on June 9, patient volume has surged, more than doubling hospital projections.





The number of patients is up about 16 percent in the first five months, according to hospital data, an increase driven by an influx of children with more acute health problems, including transplant patients, kids with heart problems and others in need of specialized care.


Revenue over that five-month period increased 12.9 percent to $222 million.


"We expected to have a new-hospital bump in (patients). We had a new-hospital mountain," said Michelle Stephenson, Lurie Children's chief patient care services officer and chief nurse executive. "We've had some months where the (number of inpatients) was 24 percent over what we expected. "


To meet the demand, the hospital hired 151 nurses to ensure full coverage, she said.


Those new hires came on top of about three dozen pediatric specialists and department heads Lurie Children's recruited in the run-up to the hospital opening.


Stephenson said the hospital has yet to determine the specific reasons behind the jump in patients, but said data shows it is drawing more children from the collar counties and downstate.


She also cited the location, adjacent to Northwestern Memorial Hospital, Northwestern University's Feinberg School of Medicine and Prentice Women's Hospital, which is connected to Lurie via an enclosed skyway.


Moving 31/2 miles south next to Prentice, which sends Lurie about a quarter of its patients, is likely a significant factor in the patient boom, said Jay Warden, a senior vice president at The Camden Group, a consulting firm.


"It used to be a challenge for moms to have a baby transferred to Children's while they had to stay at Prentice until they're discharged," Warden said. "Now it's the best of both worlds for both hospitals."


Warden said hospitals typically get a burst of new patients when they open facilities, in part because of the accompanying marketing and publicity blitz. That's not always the case with children's hospitals, which tend to serve the sickest and smallest of patients who have few other options.


He said limitations at the old hospital likely kept some patients away.


Indeed, Children's Memorial had a listed capacity of 247 beds, but with shared rooms and other factors, executives considered the hospital full at 220 patients, Stephenson said. The Lurie hospital has a capacity of 288 beds in all-private rooms, which it has come close to filling on a few occasions.


One ward that's consistently bursting at the seams is the neonatal intensive care unit, which was built to handle 44 patients but is averaging about 50. Some of the children have been bumped into shared space in the hospital's cardiac care unit, Stephenson said.


As for patients, the new facility has been a hit, with satisfaction scores up an average of 10 percent, hospital officials said.


Tina Sneed, whose 18-year-old daughter Whitney Ballard recently underwent a liver transplant at the hospital, said she's happy with the expanded rooms and new areas for parents.


She and her daughter have made several 7-hour trips from Kentucky in the last 18 months to see specialists, including overnight stays at both facilities.


Her only complaint?


"The waiting room was kind of crowded," she said. "It was nothing too bad, they just have so many (surgeries) going on at the same time we barely had room to move in there."


pfrost@tribune.com


Twitter @peterfrost





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Police break up dog fight in Dolton













Tribune illustration


Tribune illustration
(Tribune illustration / March 19, 2012)




















































Police rescued up to ten dogs from a dog fighting ring in Dolton on Wednesday night, authorities said.

Someone called police in the south suburb and told them about the dog fighting in the 1500 block of East 142nd Street and responding officers "were able to observe the incident and apprehend suspects at the scene," said TaQuoya Kennedy, a spokeswoman for Dolton.

“The dogs (pit bulls) showed signs of improper care and abuse / indications of dogfighting,” she said in a statement late Wednesday.“We have numerous suspects in custody, and we have called out the Cook County unit that investigats dog fighting to assist us with the charges and ongoing investigation.”

Cook County sheriff’s police were alerted to the dog fights by Dolton police and are assisting in the investigation.

“They called us immediately, knowing we handle this stuff all the time,” said Frank Bilecki, spokesman for the Cook County Sheriff’s Office.

Evidence technicians, animal crimes investigators and animal control are still at the scene, Bilecki said. 

"When police hit the building people fled out of there ... We’re told that there might be cameras. Police are going to be out there for a little bit gathering evidence," Bilecki said.

Two males are in custody, but their ages weren't immediately available, Bilecki said.

Kennedy said at least four dogs were found along with a makeshift ring. Bilecki said police found as many as 10.

pnickeas@tribune.com
Twitter: @peternickeas


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Grammys spread the love with 6 top nominees












NASHVILLE, Tenn. (AP) — The Grammy Awards celebrated the diversity of music as six different artists tied for lead nominee — Kanye West, Jay-Z, Frank Ocean, Dan Auerbach of The Black Keys, Mumford & Sons and fun.


Auerbach received five nominations as a member of the Keys and also is up for producer of the year, earning a spot with the others at the top of the list as the Grammy’s primetime television special came to his hometown Wednesday night.












“We’re speechless,” Auerbach said in a statement to The Associated Press from Germany, where he’s on tour with drummer Patrick Carney.


The rockers little resemble any of the other acts at the top of the list. The nominations for Jay-Z and West, two of hip-hop’s most important figures, is a familiar refrain. Each has routinely been at or near the top of the nominations list for the last several years.


Indie pop band fun., a featured performer during the show, aired live from Nashville’s Bridgestone Arena on CBS, rode the success of its anthemic hit “We Are Young” featuring Janelle Monae to sweep of the major categories, earning nods for best new artist, song and record for “We Are Young” and album of the year for “Some Nights.” The band’s producer Jeff Bhasker is up for four nominations.


“When you call your band fun. with a period at the end of the sentence, you set a very high standard for yourself and for fun itself,” Taylor Swift, the concert’s co-host, said in introducing them. “Fortunately this band from New York has lived up to the name in the best possible way.”


R&B singer Ocean, whose mother was in attendance, made a bold social statement earlier this year when he noted he had a same-sex relationship in the liner notes of his new album “channel ORANGE,” and The Recording Academy rewarded him with the major nominations best new artist, record for “Thinkin Bout You” and album of the year.


And British folk-rock band Mumford & Sons, which made an auspicious debut in front of an international audience during the 2011 Grammys, is up for album of the year for “Babel,” one of 2012′s best-selling releases.


Miguel, who helped Ocean shake up the R&B world this year, and jazz great Chick Corea join the Keys with five nominations apiece. Nas and recording engineer Bob Ludwig join Bhasker at four apiece.


There were no major snubs. Most of 2012′s inescapable hits are represented in some way — Gotye’s “Somebody That I Used To Know” is up for record of the year and Carly Rae Jepsen’s “Call Me Maybe” garnered a song of the year nod. Drake, Rihanna and Nashville residents Swift, Kelly Clarkson, Jack White and best new artist nominee Hunter Hayes were among 16 nominees with three nods.


In many ways the nominations reflect a singles-driven year when no album rose to the level of acclaim as Adele’s “21″ or West’s “My Beautiful Dark Twisted Fantasy,” which dominated the Grammys last February.


Rock, relegated to second stage in the era of electronic dance music, made something of a comeback, and young bands are peppered in with the nominees we’ve come to expect each year.


The best new artist category is a great example of this year’s diversity. From the minimalist R&B of Ocean, the pop-influenced sounds of fun. and Hayes, the soulful rock of Alabama Shakes and the Americana swing of The Lumineers, there’s little resemblance between the acts.


“I think people listen to a lot of types of music and Spotify has proven that, and iPod has proven that,” Lumineers member Wes Schultz said. “Radio stations don’t prove that. … Every person in that audience tonight, I saw them freaking out about various artists that have no relationship to each other.”


Alabama Shakes drummer Steve Johnson noted the diversity in the category after the show, then made a surprising statement: “If I were on the other side of the fence, I’d vote Frank Ocean personally.”


The members of fun. were “dorking it up” as they learned about their nominations, lead singer Nate Reuss said, and were especially excited to show up in the album of the year category, which also included Ocean’s major label debut, the Keys’ “El Camino,” Mumford’s “Babel” and White’s “Blunderbuss.”


“It’s been an incredible year in music,” guitarist Jack Antonoff said. “It feels like alternative music is back, looking at album of the year, especially those nominations. We couldn’t be more proud to be in there. … I think when we were sitting in our chairs out there, when we saw Jack White up there, that’s when we really pinched ourselves. We felt so honored to be in the same category.”


The 55th annual Grammy Awards will be held Feb. 10 in Los Angeles. Trophies will be handed out in 81 categories.


The 5-year-old nominations show was held outside Los Angeles for the first time and showcased Music City for its growing role in the music industry. The Bridgestone Arena marked the largest venue the show has been held in and it may have been a dress rehearsal for a chance to host the main awards show sometime in the future.


LL Cool J returned as host, sharing duties with Swift, whose hit song “We Are Never Ever Getting Back Together” earned a nod in the jam-packed record of the year category. She was joined by fun., Gotye, Clarkson’s “Stronger (What Doesn’t Kill You),” The Black Keys‘ “Lonely Boy” and Ocean’s “Thinkin Bout You.”


Song of the year nominees were Ed Sheeran’s “The A Team,” Miguel’s “Adorn,” Jepsen’s “Call Me Maybe,” Clarkson’s “Stronger (What Doesn’t Kill You)” and fun.’s “We Are Young.”


Swift and LL Cool J opened the show by putting together a beat-box version of Swift’s hit “Mean.” Hayes displayed his versatility while announcing the best pop vocal album by singing snippets of each star’s hit song. Maroon 5 played headliner, singing three songs mid-show before finishing off the live broadcast. The group stuck around for an hourlong performance afterward for the crowd in attendance.


Assisted by Monae, fun. reimagined “We Are Young” with orchestral strings as the crowd sang along, Ne-Yo, in wine-colored bowler, kicked things up with a cadre of dancers on his new club-infused song “Let Me Love You.” And the show tipped its hat to Nashville with a salute to Johnny Cash by Dierks Bentley and The Band Perry.


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Online:


http://grammy.com


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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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Sign Language Researchers Broaden Science Lexicon





Imagine trying to learn biology without ever using the word “organism.” Or studying to become a botanist when the only way of referring to photosynthesis is to spell the word out, letter by painstaking letter.




For deaf students, this game of scientific Password has long been the daily classroom and laboratory experience. Words like “organism” and “photosynthesis” — to say nothing of more obscure and harder-to-spell terms — have no single widely accepted equivalent in sign language. This means that deaf students and their teachers and interpreters must improvise, making it that much harder for the students to excel in science and pursue careers in it.


“Often times, it would involve a lot of finger-spelling and a lot of improvisation,” said Matthew Schwerin, a physicist with the Food and Drug Administration who is deaf, of his years in school. “For the majority of scientific terms,” Mr. Schwerin and his interpreter for the day would “try to find a correct sign for the term, and if nothing was pre-existing, we would come up with a sign that was agreeable with both parties.”


Now thanks to the Internet — particularly the boom in online video — resources for deaf students seeking science-related signs are easier to find and share. Crowdsourcing projects in both American Sign Language and British Sign Language are under way at several universities, enabling people who are deaf to coalesce around signs for commonly used terms.


This year, one of those resources, the Scottish Sensory Centre’s British Sign Language Glossary Project, added 116 new signs for physics and engineering terms, including signs for “light-year,”  (hold one hand up and spread the fingers downward for “light,” then bring both hands together in front of your chest and slowly move them apart for “year”), “mass” and “X-ray” (form an X with your index fingers, then, with the index finger on the right hand, point outward). 


The signs were developed by a team of researchers at the center, a division of the University of Edinburgh in Scotland that develops learning tools for students with visual and auditory impairments. The researchers spent more than a year soliciting ideas from deaf science workers, circulating lists of potential signs and ultimately gathering for “an intense weekend” of final voting, said Audrey Cameron, science adviser for the project. (Dr. Cameron is also deaf, and like all non-hearing people interviewed for this article, answered questions via e-mail.)


Whether the Scottish Sensory Centre’s signs will take hold among its audience remains to be seen. “Some will be adopted, and some will probably never be accepted,” Dr. Cameron said. “We’ll have to wait and see what happens.”


Ideally, the standardization of signs will make it easier for deaf students to keep pace with their hearing classmates during lectures. “I can only choose to look at one thing at a time,” said Mr. Schwerin of the F.D.A., recalling his science education, “and it often meant choosing between the interpreter, the blackboard/screen/material, or taking notes. It was like, pick one, and lose out on the others.”


The problem doesn’t end at graduation. In fact, it only intensifies as new discoveries add unfamiliar terms to the scientific lexicon. “I’ve had numerous meetings where I couldn’t participate properly because the interpreters were not able to understand the jargon and they did not know any scientific signs,” Dr. Cameron said.


One general complaint about efforts to standardize signs for technical terms is the idea that, much like spoken language, sign language should be allowed to develop organically rather than be dictated from above.


“Signs that are developed naturally — i.e., that are tested and refined in everyday conversation — are more likely to be accepted quickly by the community,” said Derek Braun, director of the molecular genetics laboratory at Gallaudet University in Washington, D.C., which he said was the first biological laboratory designed and administered by deaf scientists.


This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of a correction with this article misstated the name of an institute that works on the ASL-STEM Forum. It is the National Technical Institute for the Deaf at Rochester Institute of Technology not the National Institute for the Deaf. 

This article has been revised to reflect the following correction:

Correction: December 6, 2012

An article on Tuesday about efforts to develop standardized sign language for common scientific terms misidentified the university that started the ASL-STEM Forum, a Web site dedicated to such improvements. It was developed by researchers at the University of Washington, not at Gallaudet University. (Researchers at Gallaudet and the National Technical Institute for the Deaf work with the University of Washington to provide content and help the forum grow.)



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Clock running out for owners of prime parcels near McCormick Place









The development team behind a long-stalled plan to build hotels and restaurants just north of McCormick Place suffered a serious setback in federal bankruptcy court on Wednesday afternoon.

Judge Jack Schmetterer granted a motion by lender CenterPoint Properties Trust to reject the latest development plan of property owner Olde Prairie Block Owner LLC, which is led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk.

Schmetterer said Olde Prairie failed to show its plans were financially plausible, noting its pledges from investors were highly conditional.

"It's a maybe situation," he said. He gave them 10 days to produce a more solid plan.

"I urge them to take their best shot, because it is the last one they will get," he said. The next hearing is Dec. 17.

Gleichman said she is confident she can get more iron-clad commitments from her team's investment partners within that time frame.

If Schmetterer dismisses the bankruptcy case at the next hearing, it would open the door for a foreclosure auction of the property. This would make it possible for the Metropolitan Pier and Exposition Authority, the state-city agency that owns McCormick Place, or other parties, to bid for the properties located on the north side of Cermak Road, across the street from the authority's administrative offices and the West Building of McCormick Place.

McCormick Place officials are aiming to vastly expand the amenities surrounding the convention complex to include more hotels, restaurants, entertainment venues and an arena that could host large-scale corporate assemblies and potentially collegiate sports such as DePaul Blue Demons basketball.

DePaul University, which would like to bring its men's basketball back to the city from its current home at the Allstate Arena in Rosemont, is weighing a number of sites. McCormick Place and United Center officials have acknowledged talks with the university.

Opposition to an arena on the Olde Prairie blocks surfaced this week, with the Prairie District Neighborhood Alliance writing a letter stating an arena would be out of character in the historic residential area and would create traffic problems. Ald. Robert Fioretti, whose 2nd ward includes McCormick Place, has expressed opposition to an arena on that site as well.

kbergen@tribune.com | Twitter @kathy_bergen



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Hamstring strain could sideline Urlacher for season









The Bears have to brace themselves for the possibility of Brian Urlacher missing at least the rest of the regular season.

Multiple sources told the Tribune that Urlacher won't play for the next three games at a minimum after suffering a Grade 2 right hamstring strain during Sunday's 23-17 overtime loss to the Seahawks. An MRI confirmed the severity of Urlacher's injury.

Nick Roach is expected to make his fourth career start at middle linebacker Sunday in place of Urlacher, with Geno Hayes expected to take Roach's usual strong-side linebacker spot.

The Bears (8-4) have four more regular-season games, starting with Sunday's division matchup against the Vikings in Minnesota. Urlacher hopes to recover in time for the playoffs, which start with wild-card weekend games Jan. 5-6.

If the playoffs started today, the Bears would be the fifth seed against the fourth-seeded and NFC East-leading Giants (7-5). To remain in playoff contention, the Bears need to win at least two of their final four games against the Vikings (6-6), Packers (8-4), Cardinals (4-8), and Lions (4-8).

Urlacher's return in a month, however, might be a long shot considering the severity of the injury.

Gus Gialamas, an orthopedic surgeon from Sea View Orthopedic Medical Group in San Clemente, Calif., said a Grade 2 hamstring typically takes four to six weeks of recovery.

"Grade 2 means it's not a complete rupture, but it's a partial rupture,'' Gialamas said. "It takes a while -- maybe a week to 10 days -- for the inflammation to stop. That muscle then has to heal, and then you have a lot of physical therapy for strengthening and stretching. The goal is to avoid as much scar tissue in the hamstring as possible.

"I'm thinking he would be lucky to come back in four weeks, and I wouldn't be surprised if it was longer than that. It's just a tough injury.''

When reached by the Tribune, Urlacher declined to discuss the injury or his playing status. He initially felt a "pop'' while chasing Seahawks quarterback Russell Wilson near the sideline during overtime. Urlacher pulled himself from the game before the final play.

He told WFLD-Ch. 32 this injury isn't as serious as a similar one in preseason of 2004 with which he missed seven games.

"I did that on the first day of training camp and that MRI showed more damaged back then than it did this time," he said.

The eight-time Pro Bowler entered the 2012 season recovering from a serious knee injury. He sprained the medial collateral ligament and partially sprained the posterior cruciate ligament in his left knee during last year's season finale against the Vikings.

Despite sitting out some practices to rest his knee, Urlacher started the first 12 games.

The Bears are 7-15 without Urlacher since he entered the league in 2000.

"He's the leader of our defense,'' defensive tackle Henry Melton said Tuesday. "He's a huge locker room guy. We love having him around. He's what Chicago Bears football is all about.''

Nevertheless, Melton expressed confidence in Roach.

"Nick has been rotating (at middle linebacker in practice) just in case measures called for it,'' Melton said. "It's not going to be the same without Brian, of course. But Nick can get the job done.''

The 34-year-old Urlacher has a base salary of $7.5 million in this, the final year of his contract. He expressed a desire to play at least two more seasons, depending on his health. His says his knee feels better than ever after multiple procedures. Now, it's a matter of how long the hamstring strain lingers.

General manager Phil Emery wouldn't commit to re-signing Urlacher and said any contract offers would be based on performance.

Could Urlacher have played his last game with the Bears?

"I do not think that's going to happen,'' he told Ch. 32. "But, if it does, I have had a really good and long career so I would be sad, but I would not be crushed."

Urlacher has made a statement this season with a team-leading 88 tackles, one interception return for a touchdown, three forced fumbles and two fumble recoveries. He was named the NFC's Defensive Player of the Week following his Week 9 performance against the Titans.

The club re-signed Dom DeCicco to the 53-man roster to add depth at the linebacker position, bringing him back three months after he was released with an injury settlement (groin). He took Patrick Trahan's spot, who was released on Tuesday.

DeCicco was second on the team with 17 special-teams tackles as an undrafted free agent from Pitt a year ago. He did play middle linebacker during training camp when Urlacher was sidelined with his knee issue.

vxmcclure@tribune.com

Twitter @vxmcclure23



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HTC, Apple ordered to show which patents were included in their settlement agreement












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Netflix to get Disney films in TV distribution deal












(Reuters) – Walt Disney gave a much needed boost to Netflix, becoming the first major Hollywood studio to use the video service to bypass premium channels like HBO that traditionally controlled the delivery of movies to TV subscribers.


News of the deal, which enables Netflix to stream Disney‘s first-run movies to its subscribers, boosted Netflix shares by 14 percent.












Liberty Media Corp, whose Starz group now distributes Disney movies on TV, fell almost 5 percent.


Investors saw the Netflix-Disney deal as an important endorsement of the DVD rental and streaming service, which has been struggling with slowing subscriber growth and higher costs for content distribution.


Disney movies will be available for streaming on Netflix starting in 2016, after its current deal with Liberty Media‘s pay-TV channel Starz expires. The deal is for both new Disney movies and library content such as “Dumbo” and “Alice in Wonderland.”


“An exclusive deal with Disney differentiates the Netflix content from Hulu Plus and Amazon Instant Video,” said Anthony DiClemente, an analyst with Barclays Capital.


But some analysts worried that Netflix paid too much to get Disney‘s movies. Tony Wible, an analyst with Janney Montgomery Scott, estimated in a report that Netflix paid more than $ 350 million a year for Disney‘s movies and said “we would not be surprised if (Netflix) would need to raise capital”.


By comparison, HBO agreed to pay an estimated $ 200 million annually in its so-called “output,” or movie licensing deal, with 20th Century Fox earlier this year, according to the Los Angeles Times.


The deal gives Netflix streaming rights to movies from Disney‘s live-action and animation studios, including those from Pixar, Marvel, and the recently acquired Lucasfilm. On October 30, Disney announced a $ 4 billion deal to purchase the famed studio founded by George Lucas, which will now make new episodes in the blockbuster “Star Wars” series.


“This deal brings to our subscribers some of the highest quality, most imaginative family films being made today,” Ted Sarandos, Netflix‘s chief content officer, said in a statement. “It’s a leap forward for Internet television.”


DREAMWORKS EXCLUDED


Movies from Steven Spielberg’s DreamWorks Studios are not included in the deal, as that studio distributes its movies through CBS’s Showtime on TV. Disney recently signed a deal to distribute DreamWorks’ films theatrically after the studio’s deal with Viacom’s Paramount Pictures expired.


The deal allows Netflix to stream Disney movies beginning seven to nine months after they appear in theaters, as Starz does now under Disney‘s prior agreement. The deal does not cover DVD rentals of Disney movies.


Disney said in November that it would shut down its own video streaming service, Disney Movies Online, which had failed to catch on with users. A message on the ‘Disney Movies Online’ website said it would shut down on December 31.


Netflix, which started its streaming business with mostly older films, has been moving to add more original programming and produces TV shows such as “Lilyhammer,” which stars “Sopranos” actor Steven Van Zandt as an American gangster who starts a new life in Norway. The company also struck a high-profile deal with actor Kevin Spacey for “House of Cards.”


The Disney pact follows similar deals Netflix has inked for new films with smaller studios, including Relativity Media, The Weinstein company and DreamWorks Animation.


The agreements have saddled Netflix with nearly $ 5 billion in contractual commitments over the next three years for deals its made for streaming content, the company said in a recent quarterly earnings report.


Netflix‘s struggles over the last year, which have included missed subscriber guidance, an ill-fated attempt to split the DVD and streaming operations, and a swooning stock price, recently attracted the attention of billionaire activist investor Carl Icahn.


Icahn disclosed in regulatory filings on October 31 that he had amassed a nearly 10 percent stake in the video company and suggested it should pursue a sale. Netflix responded by adopting a poison pill defense.


Losing Disney’s movies means Starz is left with only Sony Pictures for film content. The pay-TV channel cast the ending of its agreement with Disney as its decision, saying it preferred to use the money for original programming creation.


Liberty Media‘s shares will “rebound,” said Vijay Jayant, an analyst with International Strategy and Investment Group.


“We believe it was Starz‘ decision to remain prudent and walk away from the bidding for Disney content,” ISI said in a report, estimating that it might have cost Starz $ 400 million to keep the movies.


Without that expense, Starz can step up its production of original series such as “Spartacus” and “Magic City,” which ISI said have become more valuable to cable operators anyway.


Netflix shares jumped $ 10.6491, or 14 percent, to $ 86.6491. Liberty Media shares fell $ 5.49, or almost 5 percent, to $ 105.56.


(Reporting By Ronald Grover; Editing by David Gregorio; Editing by Peter Lauria, Tim Dobbyn, David Gregorio and Jeremy Laurence)


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Generic Drug Makers Facing Squeeze on Revenue


They call it the patent cliff.


Brand-name drug makers have feared it for years. And now the makers of generic drugs fear it, too.


This year, more than 40 brand-name drugs — valued at $35 billion in annual sales — lost their patent protection, meaning that generic companies were permitted to make their own lower-priced versions of well-known drugs like Plavix, Lexapro and Seroquel — and share in the profits that had exclusively belonged to the brands.


Next year, the value of drugs scheduled to lose their patents and be sold as generics is expected to decline by more than half, to about $17 billion, according to an analysis by Crédit Agricole Securities.“The patent cliff is over,” said Kim Vukhac, an analyst for Crédit Agricole. “That’s great for large pharma, but that also means the opportunities theoretically have dried up for generics.”


In response, many generic drug makers are scrambling to redefine themselves, whether by specializing in hard-to-make drugs, selling branded products or making large acquisitions. The large generics company Watson acquired a European competitor, Actavis, in October, vaulting it from the fifth- to the third-largest generic drug maker worldwide.


“They are certainly saying either I need to get bigger, or I need to get ‘specialer,’ ” said Michael Kleinrock, director of research development at the IMS Institute for Healthcare Informatics, a health industry research group. “They all want to be special.”


As one consequence of the approaching cliff, executives for generic drug companies say, they will no longer be able to rely as much on the lucrative six-month exclusivity periods that follow the patent expirations of many drugs. During those periods, companies that are the first to file an application with the Food and Drug Administration, successfully challenge a patent and show they can make the drug win the right to sell their version exclusively or with limited competition.


The exclusivity windows can give a quick jolt to companies. During the first nine months of 2012, sales of generic drugs increased by 19 percent over the same period in 2011, to $39.1 billion from $32.8 billion, according to Michael Faerm, an analyst for Credit Suisse. Sales of branded drugs, by contrast, fell 4 percent during the same period, to $174.2 billion from $181.3 billion.


But those exclusive periods also make generic drug makers vulnerable to the fickle cycle of patent expiration. “The only issue is it’s a bubble, too,” said Mr. Kleinrock. He said next year, the generic industry would enter a drought that was expected to last about two years.  Of the drugs that are becoming generic, fewer have exclusivity periods dedicated to a single drug maker.


In 2013, for example, the antidepressant Cymbalta, sold by Eli Lilly, is scheduled to be available in generic form. But more than five companies are expected to share in sales during the first six months, according to a report by Ms. Vukhac.


Heather Bresch, the chief executive of Mylan, the second-largest generics company in the United States, said Wall Street analysts were obsessed with the issue. “I can’t go anywhere without being asked about the patent cliff, the patent cliff, the patent cliff,” she said. “The patent cliff is one aspect of a complex, multilayered landscape, and I think each company is going to face it differently.”


Jeremy M. Levin, the chief executive of Teva Pharmaceuticals, the largest global maker of generic drugs, agreed. “The concept of exclusivity — where only one generic player could actually make money out of the unique moment — has diminished,” he said. “In the absence of that, many companies have had to really ask the question, ‘How do I really play in the generics world?’ ”


For Teva, Mr. Levin said, he believes the answer will be both its reach  — it sells 1,400 products, and one in six generic prescriptions in the United States is filled with a Teva product  — and what he says is a reputation for making quality products. That focus will be increasingly important, he said, given recent statements by the F.D.A. that it intends to take a closer look at the quality of generic drugs. Mr. Levin also said he planned to cut costs, announcing last week that he intended to trim from $1.5 to $2 billion in expenses over the next five years.


This article has been revised to reflect the following correction:

Correction: December 5, 2012

An article on Tuesday about business strategies of generic drug makers in the face of fewer drug patent expirations misidentified the country in which the pharmaceutical company Endo is based. It is in the United States, not Japan.



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