Amgen pleads guilty, to settle misbranding case for $762 million













Amgen


Drugmaker Amgen Inc. of Thousand Oaks reached a settlement Tuesday in a federal investigation of its sales and marketing practices.
(Paul Sakuma / Associated Press / December 17, 2012)































































Biotech giant Amgen Inc. pleaded guilty to a federal misdemeanor of misbranding its anemia drug Aranesp and has agreed to pay $762 million in fines and penalties.


The Thousand Oaks company said it had reached a preliminary settlement of federal criminal and civil investigations last year and had already set aside about $780 million to resolve several related cases.


A spokesman for the U.S. attorney's office in Brooklyn said a federal judge is scheduled to hold another hearing on the settlement Wednesday.





Amgen said the "plea and sentence remain subject to judicial review and approval" and it expects to resolve the related civil and criminal matters once that process is complete.


Federal prosecutors accused Amgen of promoting Aranesp for uses that weren't approved by the U.S. Food and Drug Administration, a common claim brought by government officials against big pharmaceutical companies.


Amgen's shares were up 7 cents to $89.57 in mid-session trading Tuesday.


Aranesp, which is used primarily to treat anemia in cancer patients, generated sales of $2.3 billion last year. But sales of Amgen's anemia treatments have slumped in recent quarters due partly to safety concerns.


In recent years, federal prosecutors have aggressively pursued whistleblower fraud cases against large drug makers and won major settlements.


In July, GlaxoSmithKline agreed to plead guilty to federal charges and pay $3 billion in the largest healthcare-fraud settlement in U.S. history.


However, some critics say the government's enforcement efforts don't go far enough since the company executives involved usually don't face significant penalties or jail time.


ALSO:


Settlement points out Medicare's vulnerabilities 


Medicare paid $1.5 billion in improper therapy claims in 2009


Blue Shield seeks rates hikes up to 20% amid record-high reserves


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Massachusetts fines Morgan Stanley over Facebook research






BOSTON (Reuters) – Morgan Stanley, the lead underwriter for Facebook Inc’s initial public offering, will pay a $ 5 million fine to Massachusetts to settle charges that its bankers improperly influenced its research analysts when the Internet company went public.


Massachusetts’ top securities regulator, William Galvin, charged that Morgan Stanley improperly helped Facebook disclose sensitive financial information selectively, perpetuating what he calls “an unlevel playing field” between Wall Street and Main Street.






Morgan Stanley has been under criticism since the social media company went public in May for having revealed revised earnings and revenue forecasts to select clients on conference calls before the media company’s $ 16 billion initial public offering. A Morgan Stanley spokeswoman did not immediately return a call seeking comment.


Galvin, who has been aggressive in policing how research is distributed on Wall Street ever since investment banks reached a global settlement in 2003, said the bank violated that settlement. He fined Citigroup $ 2 million over similar charges in late October.


Massachusetts says that a senior Morgan Stanley banker helped a Facebook executive release new information and then guided the executive on how to speak with Wall Street analysts about it. The banker, Galvin’s office said, rehearsed with Facebook’s Treasurer and wrote the bulk of the script Facebook’s Treasurer used when calling the research analysts.


The banker “was not allowed to call research analysts himself, so he did everything he could to ensure research analysts received new revenue numbers which they then provided to institutional investors,” Galvin said in a statement.


Retail investors were not given any similar information, Galvin said, saying this case illustrates how institutional investors often have an edge over retail investors.


(Reporting By Svea Herbst-Bayliss with additional reporting by Suzanne Barlyn in New York; Editing by Theodore d’Afflisio)


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Rep. Tim Scott becomes South Carolina's first black senator









WASHINGTON -- Rep. Tim Scott, a freshman tea party Republican, will become South Carolina's first black senator, Gov. Nikki Haley, announced Monday, appointing the congressman to fill the seat left vacant by Jim DeMint.


"It is a great day for South Carolina," Haley said, speaking at the statehouse in Columbia. "It is a historic day for South Carolina."


Haley was joined by Scott and DeMint, as well as the state's senior senator, Lindsey Graham, and members of its congressional delegation.





Scott, accepting the appointment, heaped praise on his predecessor.


"Sen. Jim DeMint has led in a way that few others have led," Scott said. "There's no way to fill his shoes."


PHOTOS: Notable moments of the 2012 presidential election


DeMint, the conservative firebrand and godfather of the tea party, stunned the political world earlier this month when he announced he would be retiring from his seat midterm to become president of the Heritage Foundation, a conservative think tank in Washington.


DeMint will officially depart from the Senate on Jan. 1.


In the wake of DeMint's resignation, Scott quickly emerged as a favorite among conservatives to fill the seat. At the news conference, DeMint signaled his approval of the governor's pick.


"Governor, thank you for your faithfulness to our cause and your good judgment," DeMint said. "Tim, I could not be happier today."


Conservative advocacy groups, including the Club for Growth and FreedomWorks, expressed similar satisfaction with Scott's promotion.


Jenny Beth Martin, president of the Tea Party Patriots, called it a victory for conservative principles. "Tim Scott has taken our core values seriously in the House, and we have every reason to expect similar principled behavior in the Senate," she said.


PHOTOS: The best shots from the 2012 campaign


Scott will be the only African American in the Senate, which has been without a black member since Roland Burris, the Illinois Democrat who filled President Obama's seat, left the body in 2010. Scott will also the first black GOP senator since Edward W. Brooke III of Massachusetts left the chamber in 1979. There has not been an African American Republican senator from the South since Reconstruction.


Haley herself has a history-making background as the state’s first Indian American and female governor. She said it was "very important” to note that "Congressman Scott earned this seat. He earned this seat for the person he is. He earned this seat for results he has shown."


The Senate seat will be up for a special election in 2014, in which the winner will serve the final two years of DeMint’s term. Another election, in 2016, will determine who will hold the seat for a full six years. Scott’s empty House seat will be filled by a special election in spring 2013.


South Carolina Democrats congratulated Scott on his new job and called on him to fight for education, healthcare and the economic concerns of the middle class. The state Democrats also called on Scott to “follow the President’s lead” in the wake of the school shooting in Newtown, Conn., “in realizing the necessity in developing ways to make sure the mentally ill are able to receive the correct healthcare and firearms don't end up in the hands of dangerous individuals.”


“Senator Scott has a big decision to make,” said Jaime Harrison, vice chairman of the S.C. Democratic Party. “Will he choose to be a statesman, fighting for the best interests of all South Carolinians or will he follow the model of Jim DeMint, allowing political ideology to trump constituent needs?”


Lisa Mascaro contributed to this report.


[For the Record, 11:06 a.m. PST Dec. 17: This post has been updated to include Democratic reaction to Scott's appointment.]


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Panettiere overcomes stage fright with 'Nashville'


NASHVILLE, Tenn. (AP) — While Hayden Panettiere is pretending to be a country music singer on TV, she's learning how to be one in real life.


The 23-year-old actress plays ambitious country star Juliette Barnes on the hit ABC show "Nashville" (Wednesdays, 10 p.m. Eastern). Her character has performed on the Grand Ole Opry, dealt with the demands of a record label executive, written songs and tracked vocals in a recording studio.


"The show, I feel like, is an amazing second step for me because I love music and I've always had such terrible stage fright," said Panettiere, who recently earned a Golden Globe nomination for best performance by a television actress in a supporting role.


"This has been kind of the in between because I get to go out there during scenes with a crowd full of people and pretend like I'm performing onstage, and I'm actually performing a live show," she continued. "It's one thing when you put yourself out there (as a solo artist), it's another thing when you're playing a character. ... Beyonce has her alter ego (Sasha Fierce), and people create these alter egos because it seems like a little bit more protection when you put yourself out there for all to see."


Her confidence as a singer is growing, as is her credibility. She sings all of her own songs in the show, some of which are featured on the "Nashville" soundtrack, released last week. Big Machine Records put out her song "Telescope" as the show's first official single, and it's a Top 40 hit on the Billboard country songs chart.


The former "Heroes" actress has dabbled in music before, performing tracks for various Disney films and releasing the pop single "Wake Up Call" in 2008, which failed to chart. A full album was never released.


She says doing the show is teaching her about the music industry, and that getting a warm response from the Music City community is encouraging.


"There's no cooler feeling than someone coming up to you from Nashville ... and going, 'Thank you for portraying us in such a great light, in such an honest light, because people who are not from the South have this image and this idea,'" she said.


The show boasts Grammy-winning musician and producer T Bone Burnett as its executive music producer and an accomplished cast, including co-star Connie Britton who also earned a Golden Globes nomination for best performance by an actress in a television series drama.


"There are no words to describe this, either I'm going to start tearing up or I'm going to make more grilled cheese," Panettiere said just hours after she found out about the nominations. "It's so amazing, because we had such high hopes and sometimes you feel like things are too good to be true, and I felt like the show was everything that I dreamt of as an actor and as a musician."


Panettiere says hearing her song on the radio for the first time is a moment she'll always remember. She had just hopped into her car on a crisp, fall day with her best friend sitting shotgun. She turned the key, and her name popped up on the dashboard.


"I just bugged out," she said. "I couldn't believe it. I was trying to take pictures at the same time. But it's surreal. ... There are no words to describe how special and exciting that moment is. And nerve-wracking, too, very nerve-wracking."


__


Online: http://www.abc.com/Nashville


__


Follow http://www.twitter.com/AP_Country for the latest country music news from The Associated Press.


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Doctor and Patient: Tackling the Problem of Medical Student Debt

Thursday’s announcement from the University of California, Los Angeles, of a $100 million medical student scholarship fund should inspire all of us to question the fact that medical education in the United States is paid for largely by student debt.

The new merit-based scholarships, established by entertainment executive David Geffen, will cover all educational, living and even some travel expenses for a fifth of next year’s entering medical school class, some 33 students. Mr. Geffen and school officials hope that eventually the school will be able to pay for all medical students and free them from the obligation to take out student loans.

“The cost of a world-class medical education should not deter our future innovators, doctors and scientists from the path they hope to pursue,” Mr. Geffen said in a statement. “I hope in doing this that others will be inspired to do the same.”

The cost Mr. Geffen refers to has skyrocketed over the last 25 years. The median annual tuition, or yearly cost for attending classes, is now more than $32,000 at public medical schools, and more than $50,000 at private institutions. And medical students must also pay for textbooks, equipment, room, board and travel expenses, adding $20,000 to $30,000 to each year’s expenses and pushing the total four-year cost of attending medical school to more than $200,000 at public institutions and close to $300,000 at private schools.

Some medical students commit to military service or to practice in a medically underserved area to reduce costs. But the vast majority end up borrowing money from federal or private loan programs, or from family if they are fortunate enough. The median debt for medical students upon graduation is more than $160,000, with almost a third of students owing more than $200,000. And those figures do not include interest costs over payback periods of 25 to 30 years.

There are several reasons for the runaway costs. One is that the academic medical centers that house medical schools have become increasingly complex and expensive to run, and administrators have relied on tuition hikes to support research and clinical resources that may have only an indirect impact on medical student education.

An equally important contributor to the problem has been our society’s placid acceptance of educational debt as the norm, a prerequisite to becoming a doctor. Obtaining a medical education is like purchasing a house, a car or any other big-ticket item, the thinking goes; going into debt and then paying over time with interest is just the way the world works. And, say many observers, newly minted doctors will earn big salaries, allowing them easily to reimburse their loans.

While it is true that most doctors can pay off their debt over time, those insouciant observers fail to consider how loan burdens can weigh heavily on a young person’s idealism and career decisions.

For example, financial considerations have been shown to be a major deterrent for undergraduate students considering a career in medicine, particularly for students from diverse backgrounds. And even the most committed students who do make it to med school may eschew research or specialties like geriatrics, family medicine and pediatrics in favor of a more lucrative career in dermatology or ophthalmology.

These choices have enormous social repercussions. Despite the well-studied benefits of a diverse physician workforce, more than half of all medical students currently come from families with household incomes in the top quintile of the nation. Even more worrisome, student concerns about debt are exacerbating the nation’s physician shortage. By the end of this decade, we will be short nearly 50,000 primary care physicians and an additional 50,000 doctors of any kind.

Educators and groups like the Association of American Medical Colleges have been trying to address the problem of medical student debt for more than a decade. Some have suggested simply freezing costs or prorating debt according to the earning potential of a student’s chosen area of specialty.

But the most durable solutions thus far seem to be scholarships made possible by philanthropic donations like Mr. Geffen’s. The University of Central Florida’s new medical school, for example, was able to offer its charter class in 2009, consisting of 40 students, a four-year scholarship that covered tuition and living expenses thanks to several gifts. And the Cleveland Clinic Lerner College of Medicine, established with a $100 million gift from philanthropists Al and Norma Lerner, has been able to educate a small cadre of future physician-scientists while granting all of them scholarships to cover tuition costs.

Mr. Geffen’s fund represents the first sustained scholarship to cover all expenses, not just tuition, for a sizable portion of students at a single medical school. Combined with his unrestricted gift of $200 million that led to naming the medical school in his honor a decade ago, Mr. Geffen’s contributions represent the University of California system’s largest donation ever from a single individual.

But the real importance of Mr. Geffen’s donation for the rest of us lies in not its historic largesse, nor its hopeful vision. Rather, it is in the dramatic impact one individual can make when he makes medical education a priority, and the inevitable question such a gesture raises: Why has our society been so slow to do the same?

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Shares of gun maker Smith & Wesson tumble after Connecticut shooting









Stock prices of gun makers have tumbled on Wall Street amid a surge in discussion about gun control in the aftermath of the devastating shooting at a Connecticut elementary school last week.


Shares of Smith & Wesson Holding Corp. fell as much as 5% on Monday after sinking more than 4% on Friday – the day that Adam Lanza opened fire at Sandy Hook Elementary School, in Newtown, Conn., killing 26 people, including 20 children.


Sturm Ruger & Co., another firearm maker, saw its stock price fall nearly 3% on Monday after dropping more than 4% on Friday.





The companies’ websites have stayed mum about the shooting.


Most firearm manufacturers -- such as Browning and Winchester maker Herstal Group, Colt Firearms, Beretta USA and Bushmaster, which produces the AR-15 rifle used by Lanza -- are privately owned.  

Shares of ammunition maker Olin Corp., however, were up Monday.


Since the tragedy, a number of politicians have pledged to push to limit the availability of some weapons. Sen. Dianne Feinstein promised to introduce new gun control legislation. On Monday, New York Mayor Michael Bloomberg called for tighter gun laws.


In a speech in Newtown, President Obama said he would use “whatever power” he has to prevent future massacres.


Smith & Wesson reported this month that its revenue surged 48% in the three months that ended Oct. 31. The company also indicated that retail sales of its weapons were strong on Black Friday.

In the past, the possibility of new gun control measures have actually boosted firearms makers on Wall Street. Stocks in the sector surged after Obama’s reelection as analysts predicted that consumers would stock up on weapons.


Gun sales have seen double-digit growth since 2006 as manufacturers have introduced product innovations, according to Benchmark Research.


ALSO:


Smith & Wesson gun sales boosted by Black Friday, female shooters


Gun sales set to rise, Smith & Wesson stock jumps after Obama win





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Viral Justice: Domestic Abuse Victim Calls Out Attacker on Facebook









Amber Taylor had been living in a Missouri motel with her boyfriend, Austin “Wildboi” McCauley, until this week, when he reportedly beat her unconscious with a baseball bat.


Two days later, the 23-year-old took a picture of herself recovering from her injuries and posted it to McCauley’s public Facebook page, calling him out for his abuse and prompting his arrest.







Since its posting online, the photo has accumulated almost 10,000 “Likes” and close to 1,000 comments. Its caption includes the sentence, “I’m not the only girl he’s done this to but I’m not scared anymore I’m going to speak up.”  


McCauley has since been arrested and charged with second-degree domestic assault.


MORE: Savannah Dietrich Calls Out Her Attackers, Sees Them Punished


In her interview with news station WDAF, Taylor explained she wanted to expose her boyfriend’s true nature to the people who thought they knew him best. “I just wanted his friends to actually see the true him,” she said.


The young mother reports that she’s not only received support from McCauley’s own friends, but also from people across the country. “I’m actually glad that I have people that are writing me and telling me they care. Because being with him, I didn’t get to have any friends.”


This isn’t the first time social media has provided an outlet for a victim in need of support. Earlier this year, 17-year-old Savannah Dietrich violated a court order when she announced the names of her two underage attackers on her public Twitter account. Though the maneuver had her facing contempt charges, Dietrich and her parents reported it was necessary to bring attention to what they characterized as the unfair nature of her trial.


Though public pressure on the court still didn’t result in the attackers receiving jail time, they were sentenced to harsher punishments than were originally conceived before Dietrich went public with their names. And in the melee, the teenager inadvertently rallied a nation’s support, serving as an example of how self-advocacy can facilitate healing.


That may be the take-away for Hillary Adams as well. The disabled daughter of Texas judge, William Adams, Hillary was the subject of her father’s relentless beatings and secretly videotaped one of those incidents. Seven years later, she posted the video online. Though Adams was already grown up and no longer living with her father, she claimed the posting had more to do with holding him personally accountable, even if the law wouldn’t.


Trauma sufferers often report that keeping abuse a secret is a move that backfires, creating a greater sense of personal shame, no matter how blameless they may be. But social media is an accessible avenue they can use to tell their stories, offering survivors the chance to shed their shame and reclaim their dignity.


Do you think social justice can really be achieved with social media? Would you use it to get justice? Let us know what you think in the Comments.


Related Stories on TakePart:


• Anna Breslaw’s 600-Word Sprint: The V-Word Dialogues


• Despite His ‘Legitimate Rape’ Fail, Todd Akin is Still a Senate Contender


• In U.S., a New Definition for Rape



A Bay Area native, Andri Antoniades previously worked as a fashion industry journalist and medical writer.  In addition to reporting the weekend news on TakePart, she volunteers as a webeditor for locally-based nonprofits and works as a freelance feature writer for TimeOutLA.com. Email Andri | @andritweets | TakePart.com


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Speculation over autism, but shooter's 'why' has no easy answer









Among the details to emerge in the aftermath of the Connecticut elementary school massacre was the possibility that the gunman had some form of autism.


Adam Lanza, 20, had a personality disorder or autism, his brother reportedly told police. Former classmates described him as socially awkward, friendless and painfully shy.


While those are all traits of autism, a propensity for premeditated violence is not. Several experts said that at most, autism would have played a tangential role in the mass shooting -- if Lanza had it at all.





FULL COVERAGE: Connecticut school shooting


“Many significant psychiatric disorders involve social isolation,” said Catherine Lord, director of the Center for Autism and the Developing Brain at New York-Presbyterian Hospital.


Autism, she said, has become a catch-all term to describe anybody who is awkward.


Some type of schizophrenia, delusional disorder or psychotic break would more clearly fit the crime, experts said.


The hallmark characteristics of autism are social inability, communication problems and repetitive behaviors or obsessive interests. It emerges in early childhood and exists on a vast spectrum, from those who bang their head against the wall to those who can recite train schedules from memory.


PHOTOS: Connecticut school shooting


The rate of autism has skyrocketed over the last two decades, largely because of an expanded definition of the disorder and increasing awareness. The U.S. Centers for Disease Control and Prevention estimates that 1 in 88 children have it.


Researchers have struggled to draw clear lines between the various forms. As a result, the American Psychiatric Assn. is folding all of its varieties into a single diagnosis next year: autism spectrum disorder.


It will include people with Asperger’s syndrome -- the higher-functioning type that Lanza was most likely to have had.


There is more aggression associated with autism than with other disabilities. But it usually amounts to a tantrum and does not involve planning, weapons or an intention to harm anybody.


People with autism are more likely to be victims of violence than perpetrators. Those who are bright -- as Lanza was by several accounts -- often face bullying.


Some wind up in trouble with the law because they are unaware of social convention, and quirkiness or attempts at being friendly get misinterpreted.


Dr. John Constantino, an autism specialist at Washington University in St. Louis, said the social detachment and withdrawal associated with the disorder can accentuate other psychiatric conditions that are connected to violence.


And the feelings of isolation often intensify after high school, with the loss of a structured environment that allows many people with autism to stay afloat.


“They sort of fall off this cliff when they don’t have a village,” Constantino said.


Lanza finished high school early and was living with his mother. Police said he was disturbed by the divorce of his parents in 2009.


None of that, of course, explains why his killed his mother, 20 elementary school students, six women at the school and then himself.


“The only way somebody could do something like this is if they totally lost touch with reality,” said Dr. Daniel Geschwind, an autism expert at UCLA. “Autistic people are not sociopaths.”


ALSO:


Suspect in massacre tried to buy rifle days before, sources say


In Newtown, death's chill haunts the morning after school shooting


Connecticut shooting: Gunman forced his way into school, police say


alan.zarembo@latimes.com



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'Hobbit' bests 'Rings' with $84.8 million opening


NEW YORK (AP) — Peter Jackson's "The Hobbit" led the box office with a haul of $84.8 million, a record-setting opening better than the three previous "Lord of the Rings" films.


The Warner Bros. Middle Earth epic was the biggest December opening ever, surpassing Will Smith's "I Am Legend," which opened with $77.2 million in 2007, according to studio estimates Sunday. "The Hobbit: An Unexpected Journey" also passed the December opening of "Avatar," which opened with $77 million. Internationally, "The Hobbit" also added $138.2 million, for an impressive debut well north of $200 million.


Despite weak reviews, the 3-D adaptation of J. R. R. Tolkien's first novel in the fantasy series was an even bigger draw than the last "Lord of the Rings" movie, "The Return of the King." That film opened with $72.6 million. "The Hobbit" is the first of another planned trilogy, with two more films to be squeezed out of Tolkien's book.


While Jackson's "Rings" movies drew many accolades — "The Return of the King" won best picture from the Academy Awards — the path for "The Hobbit" has been rockier. It received no Golden Globes nominations on Thursday, though all three "Rings" films were nominated by the Hollywood Foreign Press Association for best picture.


Particularly criticized has been the film's 48-frames-per-second (double the usual rate), a hyper-detailed look that some have found jarring. Most moviegoers didn't see "The Hobbit" in that version, though, as the new technology was rolled out in only 461 of the 4,045 theaters playing the film.


Regardless of any misgivings over "The Hobbit," the film was a hit with audiences. They graded the film with an "A'' CinemaScore.


"What's really important, what makes this special is the CinemaScore," said Dan Fellman, president of domestic distribution for Warner Bros. "All these things point to a great word of mouth. We haven't even made it to the Christmas holidays yet. Kids are still in school this week."


The strong opening culminated a long journey for "The Hobbit," which was initially delayed when a lawsuit dragged on between Jackson and "Rings" producer New Line Cinema over merchandizing revenue. At one point, Guillermo del Toro was to direct the film with Jackson producing. But eventually the filmmaker opted to direct the movie himself, originally envisioning two "Hobbit" films. The production also went through the bankruptcy of distribution partner MGM and a labor dispute in New Zealand, where the film was shot.


The long delay for "The Hobbit," nearly a decade after the last "Lord of the Rings" film, made it "one of those movies that had everyone scratching their heads as to how it would open," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com.


"It's been a decade since the 'Lord of the Rings' trilogy concluded," said Dergarabedian. "There's been so much anticipation for this film and having Peter Jackson back at the helm just made it irresistible both to fans and the non-initiated alike."


"The Hobbit" was far and away the biggest draw in theaters, with no other new wide release. Paramount's "Rise of the Guardians" continued to draw the family crowd, with $7.4 million, bringing its cumulative total to $71.4 millon. The Oscar contender "Lincoln" from Walt Disney crossed the $100 million mark, adding another $7.2 million to bring its six-week total to $107.9 million. And Sony's James Bond film "Skyfall," with another $7 million domestically, drew closer to a global take of $1 billion.


The box office continued to be on the upswing and with anticipated releases like "Les Miserables," ''Django Unchained" and "The Guilt Trip" approaching in the holiday moviegoing season. Dergarabedian expects the year to break the 2009 record of $10.6 billion. With some $10.2 billion in revenue thus far, he said, "We're on track to be in that realm."


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," $84.8 million.


2. "Rise of the Guardians," $7.4 million.


3. "Lincoln," $7.2 million.


4. "Skyfall," $7 million.


5. "Life of Pi," $5.4 million.


6. "The Twilight Saga: Breaking Dawn, Part 2," $5.2 million.


7. "Wreck-It Ralph," $3.3million.


8. "Playing for Keeps," $3.2 million.


9. "Red Dawn," $2.4 million.


10. "Silver Linings Playbook," $2 million.


___


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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Dr. William F. House, Inventor of Cochlear Implant, Dies





Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.




The cause was metastatic melanoma, his daughter, Karen House, said.


Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.


Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.


Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.


Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.


Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.


More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”


One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”


But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.


Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.


But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.


Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”


After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.


He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.


In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”


William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.


Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.


When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.


Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.


She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.


The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.


But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.


Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.


Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”


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