Author Archives: Scalper1

Google Created Army Of ‘Accidental Pirates,’ Getty Images Says

Alphabet ( GOOGL )-owned Google has created a surge of “accidental pirates” through its image search function, says a complaint filed by photography company Getty Images to the European Union’s antitrust commission, charges adding to Google’s woes in the region. In its complaint, Getty Images accuses Google of copying, or “scraping,” images from third-party websites. That makes images easy to download, Getty said, and in the process, Google has created an army of digital scofflaws who don’t realize they’re infringing copyright protections by downloading and using protected images. In its complaint to the European Union’s antitrust commission, Getty says the Google Images service — which displays full-screen slideshows of high-resolution copyrighted images — has hurt Getty’s licensing business, as well as content creators worldwide, by siphoning traffic and profits from photographers. Google introduced this image feature in January 2013. Previously, the search engine only displayed tiny thumbnails of images that clicked-through to source sites. “Because image consumption is immediate, once an image is displayed in high-resolution, large format, there is little impetus to view the image on the original source site,” Getty Images said  in a statement this week. “These changes have allowed Google to reinforce its role as the Internet’s dominant search engine, maintaining monopoly over site traffic, engagement data and advertising spend. This has also promoted piracy, resulting in widespread copyright infringement, turning users into accidental pirates.” “Getty Images represents over 200,000 photojournalists, content creators and artists around the world who rely on us to protect their ability to be compensated for their work,” Yoko Miyashita, Getty Images’ general counsel, said in the statement. “Google’s behavior is adversely affecting not only our contributors, but the lives and livelihoods of artists around the word, present and future.” Google Has Said Image Search Helps Source Sites Get Clicks Google declined to comment to IBD. In 2013, however, Google did comment on this issue  to website Search Engine Land. At that time, a Google spokesperson said that even with the image search changes, “actual click-through rates to webmaster pages, i.e. real traffic, is up 25%, so real visits are up. As you know, we doubled the way users can reach the host website.” Getty said its complaint Wednesday “follows on from Getty Images’ submission in June 2015, when it joined as an interested third party in support of the European Commission’s existing investigation into Google’s anti-competitive business practices.” The latest legal action heaps new issues onto the search giant’s ongoing legal battles in Europe. Getty’s complaint comes just days after the EU’s antitrust commission charged Google with using unfair practices  to promote its own services on Android devices. The Wall Street Journal quoted  EU competition chief Margrethe Vestager as saying the commission was focused on Google’s demand that smartphone makers and mobile carriers using Android load Google apps on their devices if they offer any of the company’s services — including search — on their phones. Google’s contract requires phone makers to pre-install a folder of 11 apps within one click of the home screen. Vestager expressed concern that Google was shutting out rival app developers with the contracts because they prevent consumers from deciding for themselves which apps to download. Google has said that consumers do have the last word about which apps they want to use on their devices, according to the WSJ. Google has also been accused of distorting search results in favor of its own shopping comparison services. Google Senior Vice President Kent Walker said in a blog post last year that the commission’s conclusions on the shopping allegations were “wrong as a matter of fact, law and economics.” Alphabet stock was down 1% in afternoon trading in the stock market today , near 713. A lower close would mark the stock’s third straight day of decline.

AbbVie To Pay $5.8 Bil And Milestones For Stemcentrx, Diluting EPS

AbbVie ( ABBV ) says that four years will pass before it begins to accrete earnings from its $5.8 billion purchase of Stemcentrx, but AbbVie stock reversed an early loss and was up early Thursday afternoon after the companies announced the acquisition. AbbVie stock fell as much as 5.2% early in the stock market today , but it was up a fraction, near 61, in afternoon trading, 15% off a record high of 71.60 set July 21. South San Francisco, Calif.-based Stemcentrx’s lead late-stage asset is called rovalpituzumab tesirine (Rova-T), and it’s already in registrational trials for small-cell lung cancer (SCLC). AbbVie says that it will pay $2 billion of the $5.8 billion purchase price in cash and the rest in stock. Stemcentrx will also receive up to $4 billion in cash milestone payments. “AbbVie expects this transaction to be approximately (20 cents) dilutive to our ongoing earnings per share in 2016, with accretion beginning in 2020,” the company said in its announcement, lowering its 2016 EPS guidance to $4.62 from $4.82. AbbVie said that it would execute an “accelerated” share repurchase program of up to $4 billion as soon as the completion of the purchase, which is expected this quarter. Meanwhile, AbbVie early Thursday reported Q1 earnings that beat Wall Street estimates while falling a tad short on revenue. AbbVie said that it earned $1.15 per share minus items in Q1, up 22% and two cents better than analysts expected, on $5.958 billion in sales, up 18%. Analysts polled by Thomson Reuters had expected $5.966 billion. Global Humira sales rose 19% excluding foreign exchange impacts, AbbVie said. Humira is AbbVie’s best seller, generating 60% of total revenue. It treats immunological disorders, primarily rheumatoid arthritis and psoriasis. AbbVie Hep C Drug Viekira Disappoints In a Thursday research note to investors, Evercore ISI analyst Mark Schoenebaum cited an approximately 7%, $151 million beat on U.S. Humira sales as “largely offset” by a $111 million miss on global Viekira revenue, “primarily driven by a U.S. miss, possibly due to competition from Merck ( MRK ) as well.” AbbVie put total Humira sales at $3.577 billion for Q1, with U.S. sales up 32% to $2.195 billion. Viekira, which treats hepatitis C, is AbbVie’s No. 2 drug, generating $414 million globally, or about 6.9% of total sales, AbbVie said. AbbVie CEO Richard Gonzalez said the purchase of Stemcentrx is a mark of AbbVie’s “innovation in oncology, a critical component of our long-term growth and an area of significant need to millions of patients worldwide.” Stemcentrx’s trial drug Rova-T, which has been submitted to the FDA for breakthrough therapy designation too, is under investigation as a third-line treatment in SCLC, which has no approved therapy, AbbVie said. “Rova-T is the first predictive, biomarker-based therapy associated with drug efficacy in small-cell lung cancer, and that is a big deal for this difficult disease,” Charles Rudin, chief of thoracic oncology at Memorial Sloan Kettering Cancer Center, said in AbbVie’s announcement. Stemcentrx also has four novel compounds in clinical trials for triple-negative breast cancer, ovarian cancer and non-small-cell lung cancer, other compounds “advancing toward clinical trials in 2016, and a proprietary technology platform that leverages stem cell biology to identify and screen potential targets against live tumor tissue to more predictably advance discovery and development of new assets,” AbbVie said. Brian Slingerland is privately held Stemcentrx’s co-founder and CEO. Scott Dylla is co-founder and chief scientific officer.