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☆ Purdue mess pits drug victims against due process
▼ + stars: | 2023-12-05 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

That’s the dilemma currently facing the parties involved in the case regarding Purdue Pharma, including states, individuals, and the company’s founding Sackler family. According to the lawsuit, the family withdrew $11 billion from Purdue, but only contributed $6 billion to the settlement. Side with the DOJ, and the Supreme Court could clean up the bankruptcy process that often shields individuals and companies. For now, though, either the victims of the opioid epidemic will have to wait, or those wanting to end bankruptcy shields will. Follow @rob_cyran on XCONTEXT NEWSThe Supreme Court heard arguments on Dec. 4 over whether to approve the Purdue Pharmaceuticals bankruptcy agreement.

Persons: Sackler, Elena Kagan, Neil Gorsuch, Kagan, Gorsuch, Brett Kavanaugh, They’ve, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, U.S, Supreme, Purdue Pharma, U.S . Department of Justice, Purdue, Liberal, DOJ, Purdue Pharmaceuticals, Thomson

☆ Saks and Neiman Marcus are better together
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +2 min

The signage outside the Neiman Marcus store is seen during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 19, 2020. REUTERS/Jeenah Moon Acquire Licensing RightsNEW YORK, Dec 1 (Reuters Breakingviews) - Saks Fifth Avenue and Neiman Marcus might be headed down the aisle. The two luxury retailers are in talks to merge, according to the Wall Street Journal on Friday. By joining forces, Saks and Neiman would have more power negotiating with vendors and ability to control costs. Saks and Neiman are destined to match up.

Persons: Marcus, Neiman Marcus, Neiman, Jennifer Saba, Robert Cyran, Aditya Sriwatsav Organizations: REUTERS, Reuters, Saks Fifth, Wall, Saks, HBC, Dallas, Ares Management, Plan Investment Board, Bain, Neiman, X, Barclays, Thomson Locations: New York City, U.S, Canada

☆ Competition will make obesity drugs successful
▼ + stars: | 2023-12-01 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

In an interview with the Financial Times, he proposed spreading reimbursements over time if the medication proves to be successful. There’s some practical grounding in that solution, but the path of other similar drugs suggests that a competitive market is a better way to make it successful. Snag is, the drugs cost several thousand dollars per patient annually, even after discounts. Medicare, which covers 66 million seniors, can’t pay for weight loss drugs under current law. While it makes more sense for insurers or governments to pay over time if the drugs benefits last, schemes like the one that Jørgensen suggests can only do so much.

Persons: Lars Fruergaard Jørgensen, Jørgensen, “, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Novo Nordisk, Financial Times, Centers for Disease Control, Prevention, North Carolina, The New England, of Medicine, Employers, Thomson Locations: U.S, The, United States, Danish

☆ Amazon’s space dreams deserve to be grounded
▼ + stars: | 2023-12-01 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

Founder, Chairman, CEO and President of Amazon Jeff Bezos unveils his space company Blue Origin's space exploration lunar lander rocket called Blue Moon during an unveiling event in Washington, U.S., May 9, 2019. REUTERS/Clodagh Kilcoyne - RC153E11B8F0 Acquire Licensing RightsNEW YORK, Oct 16 (Reuters Breakingviews) - Amazon.com’s (AMZN.O) Project Kuiper is a misguided technological marvel. A recent U.S. government report warned that space junk from currently planned networks could start regularly falling back to Earth by 2035. Facing an uncertain payoff and the possibility that its efforts will burn up on reentry, Amazon’s best move is bowing out of a futile space race. The $1.3 trillion technology company plans to eventually launch over 3,200 satellites into low-earth orbit to provide high-speed internet globally.

Persons: Amazon Jeff Bezos, Clodagh, Jeff Bezos, SpaceX’s, Andy Jassy, Bill Gates, SpaceX honcho Elon Musk, OneWeb, Jonathan Guilford, Sharon Lam, Aditya Sriwatsav Organizations: Amazon, REUTERS, Reuters, SpaceX, Reuters Graphics Reuters, Kuiper, Eutelsat Communications, Origin, Thomson Locations: Washington , U.S, Bezos, China

As technology titans jockey to back hot new startups, they are extracting explicit or implicit promises of revenue in return. loadingMicrosoft’s injection of $10 billion into OpenAI in January helped kick off the craze. As part of their deal, the ChatGPT operator agreed to exclusively use its new investor’s cloud computing services. Much of the invested capital should be returned relatively quickly as AI firms buy back-end services. Nvidia (NVDA.O) has at least 80% and as much as 95% of the AI market, according to estimates by analysts.

Persons: Sam Altman, Satya Nadella, OpenAI, Optimists, cynics, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav, Streisand Neto Organizations: Reuters, Microsoft, Financial Times, Apple, Nasdaq, Big Tech, OpenAI, Wall Street, Google, Reuters Graphics Reuters, Cisco Systems, Lucent Technologies, Nortel Technologies, Company, Global, Telecom, Nortel, Network, Nvidia, Thomson Locations: OpenAI, Silicon Valley

☆ Amazon’s shipping splurge delivers payoff
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +2 min

A worker sorts products during Cyber Monday operations at the Amazon's fulfillment center in Robbinsville, New Jersey, U.S., November 27, 2023. In 2016, before its in-house logistics initiative took off, global shipping costs tallied about $16 billion, with customers covering about half. Last year, the total expense was about five times higher. Moreover, higher turnover means higher profit, especially from ancillary services such as advertising. And that’s before the generally lucrative holiday season, which should bring Amazon shareholders some more upbeat shipping news.

Persons: Robert Cyran, Julius Baer’s, Warren Buffett, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, UPS, FedEx, Wall Street Journal, Services, Shipping, Amazon, X, Thomson Locations: Robbinsville , New Jersey, U.S, America, China

NEW YORK, Nov 20 (Reuters Breakingviews) - Microsoft (MSFT.O) boss Satya Nadella’s stressful weekend is probably only the beginning. A lack of corporate governance protections left Nadella with few options to salvage his company’s $13 billion investment in OpenAI. As a 49% owner of OpenAI, Microsoft could have hedged itself by getting more directly involved in oversight. Recruiting Altman is at least a better outcome for Microsoft than standing by and watching him go to Google, a rival startup or opening his own AI shop. Money and salesmanship are two essential elements of developing AI, but so are the proper controls, risk management and strategic clarity.

Persons: Satya Nadella’s, OpenAI, Sam Altman, Altman, Reid Hoffman, Elon Musk’s, Satya Nadella, Greg Brockman, OpenAI’s, Brockman, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, Microsoft, Google, Altman, Thomson Locations: OpenAI

☆ Google antitrust trial crystallizes Apple’s risk
▼ + stars: | 2023-11-15 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsNEW YORK, Nov 15 (Reuters Breakingviews) - The antitrust case against Google is spelling out some serious problems. The U.S. Department of Justice claims that Alphabet maintains its market dominance by striking deals to make Google the default search engine on other companies’ devices and browsers. One expert witness for Google said Apple receives 36% of the ad revenue Google makes from searches on Apple’s Safari browser. Kevin Murphy, an economics professor at the University of Chicago, and an expert witness for Google, made the remark, Bloomberg reported. The two companies have had a partnership since 2002, where Google shares advertising revenue generated from users of Apple devices, and Google is the default search engine for these devices.

Persons: Dado Ruvic, Tim Cook, Bernstein, Kevin Murphy, Alphabet’s Google, Lauren Silva Laughlin, Sharon Lam Organizations: Apple, REUTERS, Reuters, Google, U.S . Department of Justice, Microsoft, U.S . Department, University of Chicago, Bloomberg, Alphabet’s, Thomson

☆ Palantir’s mythology is far too precious
▼ + stars: | 2023-11-13 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

Yet Palantir’s top line is only expected to grow 16% this year, according to forecasts gathered by LSEG. There’s also a risk that Palantir’s ability to secure government contracts, which account for more than half its top line, will be restrained by its politics. For example, Palantir bought about $50 million of gold bars in 2021 to prepare for unpredictable “black swan” events. Also sitting on Palantir’s balance sheet are stakes in targets of special purpose acquisition companies, which it bought in exchange for purchase orders. It doesn’t take a wizard to see that in the eyes of investors Palantir is far too precious.

Persons: Peter Thiel, Alex Karp, “ Palantir, Palantir, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Reuters, Palantir Technologies, LSEG, Microsoft, Rubicon Technologies, Technologies, Thomson Locations: Snowflake, Israel, Health

☆ Amazon’s health push is a too-costly prescription
▼ + stars: | 2023-11-08 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

Snag is, primary care tends to be a recipe for burning cash. Drugstore chains have been buying up primary care companies in the hope of steering patients to their stores. Prime members can add up to five additional memberships to the same plan at $6 a person. The primary care provider had 836,000 members at the end of last year, with practices in two dozen metropolitan areas. It had over 200 million members worldwide as of April 2021.

Persons: Dado Ruvic, Jonathan Guilford, Sharon Lam, Aditya Sriwatsav Organizations: REUTERS, Reuters, Amazon, Amazon Web Services, Walgreens Boots Alliance, Telecom, AT, Time Warner, Thomson

☆ Pfizer can recover from its post-Covid fatigue
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

Pfizer reported plummeting demand for its Covid vaccines and treatments, with an overall revenue decline of over 40% compared to last year, and a $2.4 billion loss that included a $5.6 billion charge for Covid inventory write-offs. Pfizer now thinks 2023 revenue from shots and pills for the disease will total about $12.5 billion, over a 75% decrease from last year. Peers trade at around 5 times sales, and if Pfizer did too its enterprise value would be about $235 billion. Instead it’s almost 20% less, and the stock is worth one-fifth less than it was at the end of 2019. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Ivan Alvarado, It’s, Peers, it’s, What’s, Robert Cyran, John Foley, Aditya Sriwatsav Organizations: Pfizer, REUTERS, Reuters, Covid, X, Vodafone, Thomson Locations: Santiago , Chile, Spain

☆ Oil giants’ wavering discipline
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

Oil, miniatures of oil barrels and U.S. dollar banknote are seen in this illustration taken, June 6, 2023. The two companies reported somewhat similar results on Friday, with the $420 billion Exxon earning $9.1 billion, and the $279 billion Chevron making $6.5 billion. With more than $110 billion in acquisitions between the two of them, investors might wonder where they will slot in. Exxon returned over $8 billion to investors and Chevron $6 billion, and right now that’s not at the expense of their balance sheets. Over the past decade both stocks have sharply underperformed the S&P 500 Index (.SPX) as they’ve grown their positions dramatically.

Persons: Dado Ruvic, Hess, Robert Cyran, Lauren Silva Laughlin, Sharon Lam Organizations: REUTERS, Reuters, Exxon Mobil, Chevron, Exxon, Pioneer Natural Resources, X, Investors, Unilever, Thomson

☆ Chevron’s $53 billion deal is risky Exxon copycat
▼ + stars: | 2023-10-23 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

The $318 billion oil giant said Monday it would buy New York-based Hess (HES.N) for $53 billion in an all-stock deal. The main appeal for Chevron is Hess’s 30% stake in a consortium producing oil offshore in Guyana. Importantly, Chevron is catching up to Exxon, which runs and owns 45% of the same Guyana consortium. Higher production in Guyana after 2024 will increase Chevron’s returns, assuming the price of oil remains favorable. Hess owns a 30% share in a consortium in Guyana alongside Exxon, which owns a 45% interest, and Chinese oil company CNOOC, which owns the remaining 25%.

Persons: Hess, It’s, Mike Wirth, Scott Sheffield, John Hess, Hess’s, Lauren Silva Laughlin, Aditya Sriwatsav Organizations: Reuters, Chevron, Exxon Mobil, New York Stock Exchange, Natural Resources, drillers, Brent, Exxon, Pioneer, Exxon Mobil’s, Thomson Locations: New York, Texas, Guyana, Gulf of Mexico

☆ Merck’s cancer rush may spawn lower returns
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +2 min

The American drug company said on Thursday it signed a giant deal with Daiichi Sankyo (4568.T) for the rights to sell three potential drugs outside Japan. Merck will pay $4 billion upfront, up to another $1.5 billion over the next two years, and as much as $16.5 billion if the drugs pass certain sales milestones. Merck’s Keytruda accounts for about 40% of the company’s revenue, and that cancer drug might face cut-price competition before the end of the decade. The potential is giant, as these targeted therapies might eventually account for a quarter of the current oncology market. With over 100 of these drugs in clinical trials, the stampede might lead to lower-than-expected returns.

Persons: Jeff Zelevansky, Robert Cyran, Jean, Pierre Mustier, Atos, Jennifer Saba, Aditya Sriwatsav Organizations: Merck & Co, REUTERS, Reuters, Merck, Pfizer, X, News Corp, Thomson Locations: Linden , New Jersey, American, Japan

☆ Covid exits corporate earnings with a bump
▼ + stars: | 2023-10-12 | by ( ) www.reuters.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. Revenue at the pizza delivery company was down about 4% from the same period last year, as restaurants in the U.S. sold less. Walgreens, meanwhile, lost $180 million in the quarter, while citing significantly lower revenue from Covid tests and vaccines. Meanwhile, Delta delivered record revenue for the quarter, with 30% earnings growth year-on-year, and is quickly repaying debt it took on during the chaos of 2020. While there’s no room for complacency about future shocks, third-quarter earnings might provide a bookend to a strange, turbulent time.

Persons: Brendan McDermid, Delta, Robert Cyran, John Foley, Sharon Lam, Aditya Sriwatsav Organizations: New York Stock Exchange, REUTERS, Reuters, Walgreens Boots Alliance, Delta Air Lines, Revenue, Walgreens, Air, X, Ericsson, Qantas, Thomson Locations: New York City, U.S, Domino’s

☆ Covid-induced Nobel Prize is on brand
▼ + stars: | 2023-10-02 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

They realized that modifying lab-made mRNA, a molecule used for protein production, nearly stopped the body from mounting an inflammatory response. It takes, on average, about 25 years between publishing work and receiving the Noble Prize in medicine. There are exceptions: insulin was created in 1921, administered to children in 1922, and the inventors were given the prize in 1923. Contrast that to Ralph Steinman, awarded the prize in Medicine in 2011 for work done in 1973. Follow @rob_cyran on XCONTEXT NEWSKatalin Kariko and Drew Weissman were awarded the Nobel Prize in Medicine on Oct. 2 for their work in a paper published in 2005 in the journal Immunity on mRNA molecule modifications.

Persons: Kariko, Drew Weissman, Ralph Steinman, Germany’s, Weissman, Lauren Silva Laughlin, Aditya Sriwatsav Organizations: Reuters, University of Pennsylvania, Medicine, U.S . Defense Department, Pfizer, Moderna, Thomson Locations: Covid

☆ Fixing Intel ends with taking it apart
▼ + stars: | 2023-09-29 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

A man walks past an Intel wall at the 2009 Computex trade show in Taipei June 3, 2009. REUTERS/Pichi Chuang Acquire Licensing RightsNEW YORK, Sept 29 (Reuters Breakingviews) - Intel (INTC.O) will have to get out of its own way. But now that its manufacturing technology has fallen behind, it’s dragging down both sides of the business. Snag is, Intel’s manufacturing arm will always have a reason to prioritize its own chips to support its design business. CONTEXT NEWSIntel announced on Sept. 29 the start of high volume manufacturing using its Intel 4 process technology at a plant in Leixlip, Ireland.

Persons: Pichi Chuang, Boss Pat Gelsinger, Intel’s, Gelsinger, Jonathan Guilford, Sharon Lam Organizations: Intel, Electronics, Reuters, Thomson Locations: Taipei, Taiwan, Arizona, Leixlip, Ireland

New anti-obesity drugs have the potential to transform public health, while obliterating demand for products and services from the medical, food and fitness industries. Drugs developed by Novo Nordisk (NOVOb.CO) and Eli Lilly (LLY.N) appear to be the first truly effective diet treatments. In one clinical trial, patients taking Eli Lilly’s soon-to-be-launched weight-loss drug lost about 50 pounds (23 kg). Only about a third of those who started taking the drugs for obesity were still doing so a year later, according to one analysis. Yet even as Novo, Lilly and others see their addressable markets expand, some companies will see theirs shrink.

Persons: Lilly, George Frey, Eli Lilly, Eli Lilly’s, Novo, Wegovy, Kraft Heinz, Burger, LSEG, Michael Farrell, Zimmer Biomet, Smith, Peter Thal Larsen, Sharon Lam, Oliver Taslic Organizations: Novo Nordisk, Pharmacy, REUTERS, Reuters, TAM, Drugs, Alpha, Reuters Graphics Reuters, Cadbury, Mondelez, Fortune Business, Burger King, KFC, Yum Brands, Centers for Disease Control, Milken Institute, BMJ, Novo, Inspire Medical Systems, Novo Nordisk’s, WW International, Fashion, Thomson Locations: Provo , Utah, U.S, New, United States, Lilly, England

☆ Big oil lawsuits are riskier than quitting tobacco
▼ + stars: | 2023-09-18 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

Active pumpjacks from oil wells are pictured at the Inglewood Oil Field, the largest urban oil field in the United States, from the Baldwin Hills Scenic Overlook in Culver City, California, U.S., March 10, 2022. REUTERS/Bing Guan Acquire Licensing RightsNEW YORK, Sept 18 (Reuters Breakingviews) - California has been a guidepost to America’s future, and the United States is litigious. Oil companies have thus far stalled litigation by seeking to move cases to federal courts, where national regulations on emissions provide some cover. In April, however, the Supreme Court turned down five appeals by oil companies and others to move cases out of the states. That’s too simple given climate’s differing hit to regions, but it indicates the magnitude of the potential problem in the United States alone.

Persons: Bing Guan, Jonathan Guilford, Sharon Lam Organizations: Inglewood Oil Field, Baldwin, REUTERS, Reuters, Exxon Mobil, Chevron, State, Shell, BP, ConocoPhillips, American Petroleum Institute, Thomson Locations: Inglewood, United States, Culver City , California, U.S, California, Saudi Arabia, San Francisco

☆ Unity discovers how real the revenue struggle is
▼ + stars: | 2023-09-13 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Edgar Su Acquire Licensing RightsNEW YORK, Sept 13 (Reuters Breakingviews) - Unity Software (U.N) is finding out just how hard the revenue game will be. The $14 billion company’s new plan to climb out of an unprofitable hole makes sense, but also faces considerable pushback. The strategy seeks to impose fees on video-game developers after certain revenue and install thresholds are met, eliciting a harsh response on social media on Tuesday. Unity may retain its customers, as switching suppliers can be a pain, but deeper-pocketed rivals such as Epic Games may see an opportunity to pounce. Silicon Valley’s revenue struggle is real.

Persons: Edgar Su, Robert Cyran, BoE, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav Organizations: REUTERS, Reuters, Unity Software, Apple, Unity, X, Treasury, UBS, Thomson Locations: Pico, Singapore, Asia

China accounts for 19% of Apple’s revenue, and less than 1% of the population works in the government. At 28 times forward earnings, Apple's current multiple, about $8 billion of value goes away. That’s 0.2% of Apple’s market capitalization. On Apple’s multiple, that’s $188 billion, or 7% of the company’s current market capitalization. The biggest problem, however, is Apple’s current valuation.

Persons: Aly, iPhones, Xi Jinping, Robert Cyran, Yawen Chen, Lauren Silva Laughlin, Sharon Lam Organizations: Apple, REUTERS, Reuters, China Mobile, HK, U.S, Congress, Huawei, China, Wall Street, Bloomberg, Thomson Locations: Shanghai, China, Republic, New York, London

☆ Burning Man’s libertarian dream gets reality check
▼ + stars: | 2023-09-05 | by ( ) www.reuters.com time to read: +2 min

Vehicles are seen departing the Burning Man festival in Black Rock City, Nevada, U.S., September 4, 2023. REUTERS/Matt Mills McKnight Acquire Licensing RightsNEW YORK, Sept 5 (Reuters Breakingviews) - “Exodus Operations have officially begun” is the self-important way organizers described allowing over 60,000 mud-bound attendees to leave Burning Man on Monday. The anarcho-arts festival’s rain-soaked disaster highlights the tension between its founding libertarian ethos and smoothly running operations of this size. Burning Man is the latest, after freak rainstorms turned its usually arid desert venue into a mud-pit on Saturday, necessitating a shelter-in-place order. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Matt Mills McKnight, ”, rainstorms, Elon Musk, Ray Dalio, Grover Norquist, Robert Cyran, Hong Kong, Jonathan Guliford, Sharon Lam Organizations: REUTERS, Reuters, Operations, X, Intel’s, Hong, Thomson Locations: Rock City , Nevada, U.S, Woodstock

☆ Climate change turns US utilities grimly exciting
▼ + stars: | 2023-08-31 | by ( Robert Cyran | ) www.reuters.com time to read: +6 min

A hotter and stormier world is making life unpleasantly exciting for shareholders, as Hawaiian Electric Industries (HE.N) shows. Yet while European firms have buried power lines underground to avoid damage from storm and fires, American utilities have generally balked. The firm said a second fire began in the same area several hours later, after the utility had turned off local power lines. Separately, Hawaiian Electric Industries, the parent company of Hawaiian Electric, said on Aug. 24 it had suspended its dividend. The company said HEI had withdrawn $170 million and Hawaiian Electric had withdrawn $200 million from their existing revolving unsecured credit facilities to strengthen their balance sheets.

Persons: Joe Biden, Jill Biden, Josh Green, Jaime Green ,, Lady of, Kevin Lamarque, HEI, Fitch, Lawrence, Peter Thal Larsen, Sharon Lam, Aditya Sriwatsav Organizations: Hawaii, REUTERS, Reuters, Hawaiian Electric Industries, United, Utilities, Hurricanes, Lawrence Berkeley National, Edison International, Consolidated Edison, Dow, Maui, Hawaiian Electric, Electric, Thomson Locations: Lady of Hawaii, Lahaina, Maui, Hawaii, U.S, United States, Americas, Europe, Alaska, California, New York, Arkansas , Louisiana, Texas

☆ Microsoft swerves to avoid EU speeding ticket
▼ + stars: | 2023-08-31 | by ( ) www.reuters.com time to read: +2 min

Microsoft Teams app is seen on the smartphone placed on the keyboard in this illustration taken, July 26, 2021. Yet Microsoft has arguably created a lot more value using its market clout. Back in 2016, Slack was the hottest new product for helping office workers communicate with over 4 million users. Combining Teams with its Office 365 and Microsoft 365 software bundles gave the messaging and collaboration app a big leg up. Microsoft said on a call in April that Teams had over 300 million monthly users.

Persons: Slack, Robert Cyran, Pernod Ricard, Mukesh Ambani’s, Peter Thal Larsen, Sharon Lam Organizations: Microsoft, Reuters, Big Tech, European Union, Apps, X, Thomson Locations: Europe

☆ White House inflicts Big Pharma ills
▼ + stars: | 2023-08-28 | by ( ) www.reuters.com time to read: +2 min

If just one or two big medications were going to be renegotiated, the industry could shoulder the change. The IRA, signed into law last year, allows Medicare to negotiate prices for some of its most costly drugs. Though specificities are unclear, a quick look at one of the biggest sellers under the program, blood thinner Eliquis, suggests Big Pharma could shoulder a discount. At 11 times earnings over the next 12 months, that’s less than 10% of the firm’s $205 billion market capitalization. Put this on the same multiple of 11 times, and it would be a $275 billion hit to the industry.

Persons: George Frey, Biden, Robert Cyran, Xpeng’s Didi, Lauren Silva Laughlin, Sharon Lam Organizations: Pfizer Pharmaceuticals, REUTERS, Reuters, Big, Medicare, Pfizer, Bristol, Myers Squibb, Congressional, Office, X, Thomson Locations: Provo , Utah, U.S

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