January 30, 2004

Switzerland's STMicroelectronics says fourth-quarter fell to $144 million from $161 million year earlier despite 18 percent increase in revenue; chief executive Pasquale Pistorio comments; photo (S)

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Federal Medicare officials are close to deciding whether to refuse for first time to pay for unapproved uses of expensive cancer drugs, decision they say could represent first step in broad overhaul of program's drug reimbursement policies; only four drugs, for non-Hodgkin's lymphoma or colorectal cancer, are part of initial Medicare review, but officials say decision on those drugs could set precedent for payment decisions on other costly medications as government prepares to add far-reaching prescription drug benefit to Medicare program; Federal law allows doctors to prescribe drugs for any purpose once they have been cleared for sale by Food and Drug Administration, and doctors routinely use many cancer drugs for conditions beyond those approved by FDA or recognized by medical texts; Medicare officials believe that reimbursement limits would discourage such use (M)

Bush administration says new Medicare law offering prescription drug benefits and private health plans to elderly would cost at least $530 billion over ten years, third more than computed when Congress passed legislation two months ago; new estimate could strengthen hand of conservative Republicans who oppose any expansion of the benefit and of Democrats who want to save money by controlling drug prices and reducing Medicare payments to private insurers (M)

As India's Economy Rises, So Do Expectatr

Pittsburgh University point guard Carl Krauser helps lead team to 20-1 record; photos (M)

Pixar Animation Studios, in surprise announcement, says it is ending talks on continuing its 12-year partnership with Walt Disney Co and will seek another distributor, beginning in 2006; Disney currently distributes and owns rights to all of Pixar's films, taking 12.5 percent of box office revenues and splitting profits; films have earned more than $2.5 billion in relationship that has produced hits from Toy Story to last summer's popular Finding Nemo; but Pixar chief executive Steven P Jobs and Disney chief executive Michael D Eisner have sparred publicly for years over how much control and money Pixar should be allowed; announcement comes as Eisner is under gun to turn around Disney's fortunes; news of failed talks pushes down share prices of both companies while creating flurry of interest from competitors, including Warner Brothers Studios; photo (M)

A O Scott Critic's Notebook column on what seems to be familiar, even ritualistic, controversy over Mel Gibson's film Passion of the Christ, but says that sides have reversed; notes that conservative Christians who protested movies like Martin Scorsese's Last Temptation of Christ and Kevin Smith's Dogma are now equally vocal in defense of Gibson; recalls that 50 years ago Hollywood served up biblical movies such as The Ten Commandments and Ben-Hur, which were calculated to appeal to widest audiences and were not, therefore, controversial; list; photos (M)

New low-cost air carriers, with WestJet Airlines at fore, are gnawing at Air Canada's business; Air Canada's sahre of domestic seat capacity shrank to less than 60 percent at end of 2003 from as much as 87 percent at beginning of 2000; WestJet's share grew from 5.5 percent to 24.6 percent during same period; other fledgling carriers, like Jetsgo of Montreal and CanJet Airlines of Nova Scotia, together have doubled their share of capacity to 15.5 percent; WestJet chief executive Clive J Beddoe comments; photo (M)

New Census Bureau data show that New York City is in midst of housing boom that unexpectedly includes much of Brooklyn, Queens and the Bronx; number of permits for new housing citywide rose last year to 21,218, highest level since 1973, even as Manhattan development declined slightly and greater metropolitan area experienced stable or slightly falling rates of home construction; developers and planners say burst of new housing in outer boroughs is driven by increased demand, lure of better-kept and more secure neighborhoods, low interest rates and expanded pool of buyers that includes new immigrants; graphs show number of new housing permits in city since 1965 and broken down by boroughs since 1990; photo (M)

Federal Bureau of Indian Affairs recognizes Schaghticoke Tribal Nation, based in Kent (Conn), prompting lawmakers to vow to appeal acknowledgment of fourth tribe in state and local residents to fear tribe will try to open casino; photo (M)

THIS 1958 Lincoln Continental Mark III convertible is more than a well-waxed relic of the days when such gas-guzzling dinosaurs roamed the highways. Bill Bonnell, who keeps one of the 19-foot-long monsters in his Greenwich, Conn. garage, says it is ''a work of art on wheels.'' Page 9.