FDA APPROVAL: The U.S. Food and Drug Administration approved Amgen Inc.’s denosumab for use in reducing the chance of fractures in patients with tumors whose cancer has spread to their bones, significantly expanding the market for the new drug. The Thousand Oaks biotech already markets the drug under the brand name Prolia for treating osteoporosis in postmenopausal women. For cancer-related uses, the drug will be called Xgeva. The FDA decision falls short of approving the drug for patients with cancers of the blood. Amgen also is studying its use in preventing the spread of prostate cancer.
TEST DRIVE: Vision Motor Corp. has signed an agreement with the Port of Long Beach to develop a short haul heavy-duty truck and a terminal tractor powered by a combination of batteries and a hydrogen fuel cell. The port’s pact with the El Segundo company is in line with efforts by both the Long Beach and Los Angeles ports to reduce air pollution through their Clean Truck Program, which bans older model diesel trucks. The Vision trucks will be evaluated by California Cartage and TTSI, two trucking companies that operate at the ports. The Long Beach port will contribute $425,000 toward the project.
TAKING STAKE: Billionaire investor Carl Icahn acquired a small stake in El Segundo toymaker Mattel Inc., which announced the same day that it was expanding its share buyback and dividend programs. Icahn Capital LP bought 2.4 million shares of Mattel, giving it less than a 1 percent stake in company, which has an $8.4 billion market cap. Mattel separately announced a $500 million increase in its share repurchase program. It also raised the current year dividend by 10 percent to 83 cents a share, and will switch to quarterly dividends next year.
PLUGGED IN: An electric utility selected AeroVironment Inc. to create a privately funded electric vehicle charging system for the city of Houston. The Monrovia company, which develops unmanned aerial craft and electric vehicle charging technology, will supply, install, and support home and public stations as part of a $10 million initiative by Princeton, N.J.-based NRG Energy to make electric vehicles more practical for drivers in its Houston market. NRG’s Reliant Energy unit serves 1.6 million residential and business customers in Texas.
BIGGER STAKE: American Apparel Inc. Chief Executive Dov Charney has bought shares in the struggling Los Angeles apparel company he founded, increasing his stake to 39.3 million shares, or 53 percent of outstanding shares. In a regulatory filing, Charney said he bought 1.2 million shares at a price range between $1.21 and $1.23, down 68 percent from the stock’s 52-week high in April. American Apparel sales slumped during the recession, and the company faces ongoing debt problems also related to immigration-related layoffs that hurt production. Earlier this month, the company again warned it might breach a covenant required by a key lender next year.
RIGHTS FIGHT: The Hollywood Foreign Press Association, which created and owns rights to the Golden Globe Awards, filed suit in federal court in Los Angeles against its telecast producer Dick Clark Productions. The suit alleges that the TV producer, which is owned by a private equity company, secretly negotiated with NBC and is seeking to steal rights to the awards show. Under the current deal between the association and Dick Clark, the production company gets 50 percent of net profit that the telecast generates. The suit said the producer recently signed a renewal deal with NBC for a price that undervalues the franchise.
DEPARTURE PLANS: NBC Universal Television Entertainment Chairman Jeff Gaspin said he will leave the Universal City company after its merger with Comcast Corp. closes. Former Showtime programming chief Robert Greenblatt is expected to take charge of the broadcast, cable network and show production company. Cable executives Bonnie Hammer and Lauren Zalaznick are expected to have expanded roles running the company. Ted Harbert, chief executive of the Comcast Entertainment Group, is expected to oversee sales, stations and affiliates.
DUTY CALLED: Activision Blizzard said its new video game “Call of Duty: Black Ops,” surpassed $650 million in worldwide retail sales in its first five days, setting a new industry record. The Santa Monica company said that in the first 24 hours of availability, the game brought in a record-breaking $360 million in retail sales in North America and the U.K. The numbers also exceeded Activision’s previous five-day worldwide record of $550 million, set by last year’s “Call of Duty: Modern Warfare 2.”
EARNINGS: Walt Disney Co. reported fourth-quarter net income of $835 million, 7 percent lower than a year earlier. Revenue fell 1 percent to $9.74 billion. … Jacobs Engineering Group Inc. reported fourth quarter net income of $77 million, 3 percent lower than a year earlier. Revenue fell 8 percent to $2.3 billion. …Trio-Tech International reported first quarter net income of $491,000 compared with a loss of $422,000 a year earlier. Revenue rose 84 percent to $13 million. … Warner Music Group Corp. reported a fourth-quarter loss of $46 million, 155 percent larger than a year earlier. Revenue fell 13 percent to $752 million. … California Pizza Kitchen Inc. reported a third quarter net loss of $7.5 million, compared with net income of $5.8 million a year earlier. Revenue fell 0.2 percent to $164.5 million.
CORRECTION The lead item in the law column in the Nov. 15 issue, headlined “Partner, Firm Merge With an Eye Toward M&A,” incorrectly stated how long Eric R. Reimer worked at Goodwin Procter LLP. He was at the firm for three years.
