Push for minimum wage hike intensifies

NEW YORK — Before the recession, Amie Crawford was an interior designer, earning $50,000 a year patterning baths and cabinets for architectural firms.

Now, she's a "team member" at the Protein Bar in Chicago, where she makes $8.50 an hour, slightly more than minimum wage. It was the only job she could find after months of looking. Crawford, now 56, says she needed to take the job to stop the hemorrhaging of her retirement accounts.

In her spare time, Crawford works with a Chicago group called Action Now, which is staging protests to raise the minimum wage in a state where it hasn't been raised since 2006.

"Thousands of workers in Chicago, let alone in the rest of the country, deserve to have a livable wage, and I truly believe that when someone is given a livable wage, that is going to bolster growth in communities," she said.

If it seems that workers such as Crawford are more prevalent these days, protesting outside stores including Wal-Mart, McDonald's and Wendy's to call for higher wages, it may be because there are more workers in these jobs than there were a few years ago.

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Of the 1.9 million jobs created during the recovery, 43% of them have been in the low-wage industries of retail, food services and employment services, whose workforces include temporary employees who often work part time and without benefits or health insurance, according to a study by Annette Bernhardt, policy co-director of the National Employment Law Project in New York.

At the same time, many workers such as Crawford who have been displaced from their jobs are experiencing significant earnings losses after getting a new job. About one-third of the 3 million workers displaced from their jobs from 2009 to 2011 and then reemployed said their earnings had dropped 20% or more, according to the Bureau of Labor Statistics.

"What these protests are signaling are that working families are at breaking point after three decades of rising inequality and stagnant wages," Bernhardt said.

The rise of low-paying jobs in the recovery, experts said, has cut the spending power of workers who once worked in middle-class occupations. Construction workers who made $30 an hour, for example, during the housing boom may now find themselves working on a temporary basis.

"You see workers trading down their living standards," said Joseph Brusuelas, a senior economist for Bloomberg who studies the U.S. economy.

Now, Brusuelas said, there's an oversupply of workers and they're willing to take any job in a sluggish economy, even if they're overqualified. That includes temporary jobs without benefits, and minimum wage positions such as the one Crawford took.

Although the 2012 election might have brought the idea of income inequality to the forefront of voters' minds, efforts to increase wages for these workers are sputtering in an era of austerity when businesses say they are barely hiring, much less paying workers more.

The New Jersey state legislature handed Gov. Chris Christie a bill to raise the state's minimum wage to $8.50 an hour from the federal minimum of $7.25 this month, but he hasn't signed it and has signaled he might not. An earlier effort in New Jersey to tie the minimum wage to the consumer price index was vetoed by the governor.

Democratic lawmakers in Illinois are also trying to push a bill that would increase the minimum wage — an earlier effort this year failed. The Legislature last voted to raise its minimum wage in 2006, before the recession, and the governor agreed.

"A higher minimum wage means a person has to pay more for each worker," said Ted Dabrowski, vice president of policy at the Illinois Policy Institute, which opposes raising the minimum wage. "Companies have a few choices — increase prices, reduce the number of people they hire, cut employee hours or reduce benefits. When employees become too expensive, they have no choice but to reduce the number of workers."

The Center for Economic and Policy Research in Washington, D.C., however, says there is little indication from economic research that increases in the minimum wage lead to lower employment, and, because higher wages mean workers have more money to spend, employment can actually increase.

A bill to raise the federal minimum wage was introduced to the U.S. Senate by Tom Harkin (D-Iowa) in July and referred to committee, where it has sat ever since.

"Business lobbyists are aware of the campaign and are aggressively working to stop it," said Madeline Talbott, the former lead organizer of Chicago's Action Now. "We've had a hard time getting our legislature to approve it."

But Talbott and other advocates say that the protests that have spread throughout Illinois and the country in recent weeks might force the issue to its head.

"You saw it happening 18 months ago when Occupy started — workers are now realizing that they have rights too in the workplace," said Camille Rivera, executive director of United NY, one of the groups working to raise the minimum wage in New York. "It's a good time for us to be fighting these issues, when companies are making millions of dollars in profits."

The protests are bringing out people who might not usually participate, including Marcus Rose, 33. Rose, who has worked the grill at a Wendy's for 21/2 months, was marching outside that Wendy's in Brooklyn recently on a day of protests, responding as organizers shouted lines such as "Wendy's, Wendy's, can't you see, $7.25 is not for me."

"If you don't stand up for nothing, you can't fall for anything," he said.

Talbott, the Action Now organizer, says that people such as Rose may make a difference in whether lawmakers at the state and national level will listen to the protests. The Obama victory energized the working class to believe that they could fight against big-money interests and win, she said.

"It comes down to the traditional situation — whether the power is in the hands of organized money or of organized people," she said. "The organized money side tends to win, but it doesn't have to win. The more people you are, the more chance you have against money."

alana.semuels@latimes.com

ricardo.lopez2@latimes.com

Semuels reported from New York and Lopez from Los Angeles

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Dearborn a test track for Loop's first protected bike lanes

Chicago opens protected bike lanes on Dearborn Street, the city's first two-way bike route with dedicated bicycle traffic signals. (Antonio Perez, Chicago Tribune)

Chicago's campaign to broker an orderly coexistence, if not complete harmony, among motorists, bicyclists and pedestrians will begin to face its biggest test so far Friday.

That's when two-way protected bike lanes — outfitted with traffic signals for bike riders to obey — will open in the heart of the central business district, on Dearborn Street between Kinzie and Polk streets, the Chicago Department of Transportation said.

The $450,000 project covering about 12 blocks is a high-profile component of Mayor Rahm Emanuel's plan to make Chicago one of the most bicycle-friendly cities in the world and to socially re-engineer how city dwellers choose to commute to work or just get around in a heavily congested urban area.

The mayor has vowed to install 100 miles of protected bike lanes in neighborhoods across the city by May 2015. The Chicago Streets for Cycling Plan 2020 calls for completion of a 645-mile network of bike lanes in eight years.

Only time, and warmer weather come spring when more people are bicycling, will tell how well the experiment works on Dearborn. The street remains one-way northbound for vehicles, but on Friday it will also have a northbound bike lane and a southbound bike contra-flow lane, both on the west side of the street.

During the busy noon hour Thursday as cars and trucks rolled by on Dearborn, passers-by on foot stopped to look at fresh pavement markings; newly unwrapped bike signals displaying the international symbol for cyclists in red, yellow and green lights; and metal signs posted above sidewalks instructing pedestrians to "look both ways" for bicyclists coming from the north and south before stepping off the curb.

"I predict this is going to be like a particle collider," Lane Scott, a 37-year-old clothing salesman, said as he stood in the closed bike lanes on Dearborn near Monroe Street waiting his turn to buy lunch at a food truck. The city's new food truck ordinance prohibits food trucks from parking next to protected bike lanes, officials said.

"I don't know who to feel sorry for — turning cars or pedestrians or bikers bumping into each other," Scott said as crews nearby conducted final tests on control devices that synchronize vehicle traffic signals with bicycle traffic signals and pedestrian walk signs.

From 2006 to 2010 there were 986 reported crashes on this part of Dearborn, city records show. Pedestrians and bicyclists accounted for 57 percent of accidents that involved injuries.

Tony Romano, a deliveryman, said he is resigned to bike lanes in the city and bicyclists "blowing lights left and right," but he would object if truck loading zones were removed.

"We need to get in, get out," Romano said. "I wish I had time to pedal around, but I have kids at home to feed."

Along the Dearborn stretch, CDOT has installed 38 bike traffic signals and 18 new left-turn arrow signals for vehicles, department spokesman Pete Scales said.

Detectors also were installed in left-turn lanes to sense when a vehicle is present. Signals are programmed to give bicyclists approaching intersections a red light and pedestrians a "don't walk" signal when vehicles are turning left, he said.

Asked whether bicyclists will be held to the same standard as drivers in terms of obeying the new traffic lights, city transportation Commissioner Gabe Klein wouldn't say exactly.

"It will be real clear what behavior should be for cars, pedestrians and cyclists," Klein said. "Having said that, there always is a learning curve. As more people are out there (bicycling on Dearborn), the more you are going to have peer pressure to obey the laws."

Cyclists who are caught running the bike signals, much like normal traffic lights, could receive tickets, Chicago police Sgt. David Villalobos said. He said he was unsure whether traffic police or local beat cops would enforce the new lights.

"I'll be the first to admit that I don't stop at every stoplight or stop sign," said Greg Heck, general manager at Trek Bicycles on Michigan Avenue. He said bike stoplights would make cyclists "obey the rules of the road a little bit better" and benefit motorists and cyclists by better integrating bikes into the regular traffic flow.

Under the new design, the section of Dearborn is separated into six sections, as opposed to the current three.

The 18-foot-wide northbound vehicle and parking lanes closest to the curb on the east side of Dearborn and the 10-foot-wide northbound vehicle lane will remain the same.

But the 20-foot-wide northbound shared vehicle-parking lane on the west side of Dearborn has been sliced up, creating next to the curb a 5-foot-wide southbound bike lane; a 4-foot-wide northbound bike lane; a 3-foot-wide buffer protected by plastic posts; and an 8-foot-wide parking lane.

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Facebook, Google tell the government to stop granting patents for abstract ideas

Facebook (FB), Google (GOOG) and six other tech companies have petitioned the courts to begin rejecting lawsuits that are based on patents for vague concepts rather than specific applications, TechCrunch reported. The agreement, which was cosigned by Zynga (ZNGA), Dell (DELL), Intuit (INTU), Homeaway (AWAY), Rackspace (RAX), and Red Hat (RHT), notes the only thing these abstract patents do is increase legal fees and slow innovation in the industry. The companies claim that “abstract patents are a plague in the high tech sector” and force innovators into litigation that results in huge settlements or steep licensing fees for technology they have already developed on their own, which then leads to higher prices for consumers.

“Many computer-related patent claims just describe an abstract idea at a high level of generality and say to perform it on a computer or over the Internet,” the briefing reads. “Such barebones claims grant exclusive rights over the abstract idea itself, with no limit on how the idea is implemented. Granting patent protection for such claims would impair, not promote, innovation by conferring exclusive rights on those who have not meaningfully innovated, and thereby penalizing those that do later innovate by blocking or taxing their applications of the abstract idea.”

The companies conclude, “It is easy to think of abstract ideas about what a computer or website should do, but the difficult, valuable, and often groundbreaking part of online innovation comes next: designing, analyzing, building, and deploying the interface, software, and hardware to implement that idea in a way that is useful in daily life. Simply put, ideas are much easier to come by than working implementations.”

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One Direction named MTV’s 2012 Artist of the Year

NEW YORK (AP) — They’re platinum. They’re fascinating. And now One Direction is MTV‘s 2012 Artist of the Year.

MTV says the fivesome is “the clear choice for the top spot” after a year that included two No. 1 albums, hits such as “What Makes You Beautiful” and a sold-out world tour.

One Direction’s Louis (LOO’-ee) Tomlinson calls Thursday’s honor “the icing on the cake.”

MTV’s team of music staffers chose Carly Rae Jepsen‘s “Call Me Maybe” as song as the year.

One Direction placed third on the U.K. version of “The X Factor” in 2010 and made their U.S. debut in March with the No. 1 album “Up All Night.” Their sophomore album, “Take Me Home,” was the year’s third-highest debut.

The group also made Barbara Walters’ most fascinating people of 2012 list.

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Life Expectancy Rises Around World, Study Finds

A sharp decline in deaths from malnutrition and infectious diseases like measles and tuberculosis has caused a shift in global mortality patterns over the past 20 years, according to a report published on Thursday, with far more of the world’s population now living into old age and dying from diseases mostly associated with rich countries, like cancer and heart disease.

Tony Karumba/Agence France-Presse — Getty Images

Children in Nairobi, Kenya. Sub-Saharan Africa lagged in mortality gains, compared with Latin America, Asia and North Africa.

The shift reflects improvements in sanitation, medical services and access to food throughout the developing world, as well as the success of broad public health efforts like vaccine programs. The results are striking: infant mortality declined by more than half from 1990 to 2010, and malnutrition, the No. 1 risk factor for death and years of life lost in 1990, has fallen to No. 8.

At the same time, chronic diseases like cancer now account for about two out of every three deaths worldwide, up from just over half in 1990. Eight million people died of cancer in 2010, 38 percent more than in 1990. Diabetes claimed 1.3 million lives in 2010, double the number in 1990.

“The growth of these rich-country diseases, like heart disease, stroke, cancer and diabetes, is in a strange way good news,” said Ezekiel Emanuel, chairman of the department of medical ethics and health policy at the University of Pennsylvania. “It shows that many parts of the globe have largely overcome infectious and communicable diseases as a pervasive threat, and that people on average are living longer.”

In 2010, 43 percent of deaths in the world occurred at age 70 and older, compared with 33 percent of deaths in 1990, the report said. And fewer child deaths have brought up the mean age of death, which in Brazil and Paraguay jumped to 63 in 2010, up from 30 in 1970, the report said. The measure, an average of all deaths in a given year, is different from life expectancy, and is lower when large numbers of children die.

But while developing countries made big strides the United States stagnated. American women registered the smallest gains in life expectancy of all high-income countries’ female populations between 1990 and 2010. American women gained just under two years of life, compared with women in Cyprus, who lived 2.3 years longer and Canadian women who gained 2.4 years. The slow increase caused American women to fall to 36th place in the report’s global ranking of life expectancy, down from 22nd in 1990. Life expectancy for American women was 80.5 in 2010, up from 78.6 in 1990.

“It’s alarming just how little progress there has been for women in the United States,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation, a health research organization financed by the Bill and Melinda Gates Foundation at the University of Washington that coordinated the report. Rising rates of obesity among American women and the legacy of smoking, a habit women formed later than men, are among the factors contributing to the stagnation, he said. American men gained in life expectancy, to 75.9 years from 71.7 in 1990.

Health experts from more than 300 institutions contributed to the report, which provided estimates of disease and mortality for populations in more than 180 countries. It was published in The Lancet, a British medical journal.

The World Health Organization issued a statement on Thursday saying that some of the estimates in the report differed substantially from those done by United Nations agencies, though others were similar. All comprehensive estimates of global mortality rely heavily on statistical modeling because only 34 countries — representing about 15 percent of the world’s population — produce quality cause-of-death data.

Sub-Saharan Africa was an exception to the trend. Infectious diseases, childhood illnesses and maternity-related causes of death still account for about 70 percent of the region’s disease burden, a measure of years of life lost due to premature death and to time lived in less than full health. In contrast, they account for just one-third in South Asia, and less than a fifth in all other regions. Sub-Saharan Africa also lagged in mortality gains, with the average age of death rising by fewer than 10 years from 1970 to 2010, compared with a more than 25-year increase in Latin America, Asia and North Africa.

Globally, AIDS was an exception to the shift of deaths from infectious to noncommunicable diseases. The epidemic is believed to have peaked, but still results in 1.5 million deaths each year.

Over all, the change means people are living longer, but it also raises troubling questions. Behavior affects people’s risks of developing cancer, heart disease and diabetes, and public health experts say it is far harder to get people to change their ways than to administer a vaccine that protects children from an infectious disease like measles.

“Adult mortality is a much harder task for the public health systems in the world,” said Colin Mathers, a senior scientist at the World Health Organization.

Tobacco use is a rising threat, especially in developing countries, and is responsible for almost six million deaths a year globally. Illnesses like diabetes are also spreading fast.

Donald G. McNeil Jr. contributed reporting.

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Illinois foreclosures up for 11th month

Foreclosure activity in Illinois posted the 11th straight year-over-year increase in November, but compared with a month earlier, filings are trending in the right direction, according to new data released Thursday.

RealtyTrac said the 13,520 properties within the state that received a foreclosure notice last month was a decrease of 9 percent from October but up 9 percent from November 2011. last month's activity, which equated to one out of every 392 homes in the state receiving a notice, gave Illinois the nation's third-highest state foreclosure rate, surpassed by only Florida and Nevada.

In the Chicago-area counties of Cook, DuPage, Kane, Kendall, Lake and Will, almost 11,000 homes received a foreclosure notice in November, a decrease of 10.5 percent from October's level of activity but up 1.6 percent from November 2011

Most of that activity was in Cook County, where about 2,299 homes received initial notices of default, another 2,651 homes were scheduled for court-ordered sales and 2,086 homes were repossessed by lenders.

Among the nation's metropolitan areas, Rockford and Chicago ranked 11th and 13th, respectively, in terms of their foreclosure rates.

Nationally, the number of homes that were repossessed by lenders and became bank-owned rose on a year-over-year basis for the first time  since October 2010, the company said. In November, more than 59,000 homes across the country were repossessed, an increase of 11 percent from October and 5 percent from November 2011.

"The drop in overall foreclosure activity in November was caused largely by a 71-month low in foreclosure starts for the month, more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago," said Daren Blomquist, a company vice president. "But foreclosures are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago, and much longer in some cases."

mepodmolik@tribune.com | Twitter @mepodmolik

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Quinn, Emanuel assail court's concealed carry decision

Gov. Pat Quinn on Wednesday indicated he would like to see assault weapons banned in Illinois as lawmakers this spring revise state law to allow some form of concealed carry to comply with a court ruling that tossed aside a long-standing ban on allowing people to carry weapons.

Meanwhile, at City Hall, Mayor Rahm Emanuel blasted Tuesday's federal appellate court decision as "wrongheaded" as he offered legal help to Illinois Attorney General Lisa Madigan as she weighs an appeal.

Judges gave the General Assembly six months to make changes, and the Democratic governor suggested the new rules will have to restrict who can get a permit to carry a gun.

"We have to have reasonable limitations so people who have clear situations where they should not be carrying a gun, for example, those with mental health challenges, those who have records of domestic violence, we cannot have those sorts of people eligible to carry weapons, loaded weapons, on their person in public places" Quinn said.

National Rifle Association lobbyist Todd Vandermyde said the governor is "being very pragmatic in his approach" on concealed carry. Though Vandermyde expected gun rights groups to hold firm on a variety of points, he said his group wanted to "work for a reasonable solution and policy on right to carry."

Quinn also pressed for an assault weapons ban, saying Illinois residents "overwhelmingly support that."

"I want to say today, and I'll say every day, we need to ban assault weapons in our state of Illinois. We aren't going to have people marching along Michigan Avenue, or any other avenue in the state of Illinois, with military-style assault weapons, weapons that are designed to kill people."

An assault weapons ban has been elusive in Springfield because of geographical differences of opinion. Opponents point to the fact that Chicago had a gun ban for decades, even as criminals obtained guns and shot people.

For his part, Emanuel noted his efforts while working for former President Bill Clinton to require background checks for gun buyers and ban semi-automatic assault weapons.

"We fought against the National Rifle Association. They had not been beaten in 30 years in the United States Congress, and we beat 'em," Emanuel said.

"I think this opinion by the 7th Circuit Court is also wrongheaded," he added.

Emanuel said he has offered to make city Law and Police department resources available to the Illinois attorney general. Meanwhile, the city is reviewing its gun registration ordinance to see if it needs modification in light of the court ruling.

Tribune reporter Ray Long contributed.

mcgarcia@tribune.com

hdardick@tribune.com

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New Flickr iPhone app to compete with Instagram and Twitter with 16 filters

Hot on the heels of its email redesign, Yahoo (YHOO) announced on Wednesday that it has completely redesigned the Flickr iPhone app. The new app borrows heavily from Instagram and focuses on what makes Flickr special: photos and communities. Yahoo’s new Flickr app also includes 16 filters with their own fancy names to go head-on with Instagram and Twitter’s recently updated app that added eight filters. Users can now access the Flickr app with numerous accounts including Facebook (FB) and Google (GOOG) and photos can be shared to Facebook, Twitter, Tumblr or via email. The new Flickr app is available for free on iPhone but to our disappointment, there isn’t an iPad-optimized version.

Ellis Hamburger from The Verge penned an interesting editorial on how Twitter misses the mark by simply adding filters to its app without having the close community that makes Instagram so addictive. Led by CEO Marissa Mayer, Yahoo seems aware that mobile apps thrive on the communities that sprout up. The new Flickr app’s emphasis on how the images are displayed and shared in visually appealing and digestible thumbnails suggests Yahoo finally understands mobile.

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Music, comedy strike defiant tone at Sandy concert

NEW YORK (AP) — Music and comedy royalty struck a defiant tone in a benefit concert for Superstorm Sandy victims on Wednesday, asking for help to rebuild a New York metropolitan area most of them know well.

The sold-out Madison Square Garden show was televised, streamed online and aired on radio all over the world. Producers said up to 2 billion people could experience the concert live.

“When are you going to learn,” comic and New Jersey native Jon Stewart said. “You can throw anything at us — terrorists, hurricanes. You can take away our giant sodas. It doesn’t matter. We’re coming back stronger every time.”

Jersey shore hero Bruce Springsteen set a roaring tone, opening the concert with “Land of Hope and Dreams” and “Wrecking Ball.” He addressed the rebuilding process in introducing his song “My City of Ruins,” noting it was written about the decline of Asbury Park, N.J. before that city’s renaissance over the past decade. What made the Jersey shore special was its inclusiveness, a place where people of all incomes and backgrounds could find a place, he said.

“I pray that that characteristic remains along the Jersey shore because that’s what makes it special,” Springsteen said.

He mixed a verse of Tom Waits’ “Jersey Girl” into the song before calling New Jersey neighbor Jon Bon Jovi to join him in a rousing “Born to Run.” Springsteen later returned the favor by joining Bon Jovi on “Who Says You Can’t Go Home.”

Adam Sandler hearkened back to his “Saturday Night Live” days with a ribald rewrite of the oft-sung “Hallelujah” that composer Leonard Cohen never would have dreamed. The rewritten chorus says, “Sandy, screw ya, we’ll get through ya, because we’re New Yawkers.

Sandler wore a New York Jets T-shirt and mined Donald Trump, Michael Bloomberg, the New York Knicks, Times Square porn and Jets quarterback Mark Sanchez for laugh lines.

The music lineup was heavily weighted toward classic rock, which has the type of fans able to afford a show for which ticket prices ranged from $ 150 to $ 2,500. Even with those prices, people with tickets have been offering them for more on broker sites such as StubHub, an attempt at profiteering that producers fumed was “despicable.”

“This has got to be the largest collection of old English musicians ever assembled in Madison Square Garden,” Rolling Stones rocker Mick Jagger said. “If it rains in London, you’ve got to come and help us.”

In fighting trim for a series of 50th anniversary concerts in the New York area, the Stones ripped through “You’ve Got Me Rockin’” and “Jumping Jack Flash.

Jagger wasn’t in New York City for Sandy, but he said in an interview before the concert that his apartment was flooded with 2 feet of water.

Eric Clapton switched from acoustic to electric guitar and sang “Nobody Knows You When You’re Down and Out” and “Crossroads.” New York was a backdrop for Clapton’s personal tragedy, when his young son died after falling out of a window.

Roger Waters played a set of Pink Floyd’s spacey rock, joined by Eddie Vedder for “Comfortably Numb.” Waters stuck to the music and left the fundraising to others.

“Can’t chat,” he said, “because we only have 30 minutes.”

The sold-out “12-12-12″ concert was being shown on 37 television stations in the United States and more than 200 others worldwide. It was to be streamed on 30 websites, including YouTube and Yahoo, and played on radio stations. Theaters, including 27 in the New York region and dozens more elsewhere, were showing it live.

Proceeds from the show will be distributed through the Robin Hood Foundation. More than $ 30 million was raised through ticket sales alone.

The powerful storm left parts of New York City underwater and left millions of people in several states without heat or electricity for weeks. It’s blamed for at least 125 deaths, including 104 in New York and New Jersey, and it destroyed or damaged 305,000 housing units in New York alone.

Other concert performers were to include Long Islander Billy Joel (“New York State of Mind”) and New Yorker Alicia Keys (“Empire State of Mind”). Even Liverpool’s Paul McCartney has a New York office, Hamptons home and a wife, Nancy Shevell, who spent a decade on the board of the agency that runs New York‘s public transit system.

E Street Band guitarist Steve Van Zandt said backstage that musicians are often quick to help when they can.

“Yes, it’s more personal because literally the Jersey shore is where we grew up,” he said. “But we’d be here anyway.”

The concert came a day after the death of sitar master Ravi Shankar, a performer at the 1971 “Concert for Bangladesh” considered the grandfather of music benefits. That concert also was in Madison Square Garden.

___

AP Music Writer Mesfin Fekadu in New York contributed to this report.

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Eli Lilly to Conduct Additional Study of Alzheimer’s Drug

The drug maker Eli Lilly & Company said on Wednesday that it planned an additional study of an experimental Alzheimer’s drug that failed to improve the condition of people with the disease, saying that it remained hopeful about the drug’s prospects.

The newest study is expected to get under way in the third quarter of 2013 and will focus on patients with mild Alzheimer’s disease. Lilly released results of two clinical trials in August that showed the drug, called solanezumab, did not significantly improve either the cognition or the daily functioning of people with mild and moderate forms of the disease. But despite that failure, the results also gave some reason for hope: when patients with mild Alzheimer’s were separated out, the drug was shown to significantly slow their decline in cognition.

In a statement on Wednesday, the company said it decided not to pursue approval of the drug based on existing study results after it met with officials from the Food and Drug Administration. A Lilly executive said, however, that the company was still optimistic.

“We remain encouraged and excited by the solanezumab data,” David Ricks, a senior vice president at Lilly and president of Lilly Bio-Medicines, said in the statement. “We are committed to working with the F.D.A. and other regulatory authorities to bring solanezumab to the millions of patients and caregivers suffering from this devastating disease who urgently need this potential treatment.”

The Lilly drug is the second Alzheimer’s treatment to fail in clinical trials this year. Pfizer and Johnson & Johnson stopped development of a similar treatment, bapineuzumab, after it, too, was not shown to work. Both drugs target beta amyloid, a protein in the brain that is found in people with Alzheimer’s disease.

Lilly shares closed at $49, down 3.2 percent.

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