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The market for obesity and diabetes treatments remains scorching hot, funneling billions in sales to Eli Lilly and fueling a bidding war over another drugmaker. Lilly said Thursday that its top-selling drugs, Mounjaro and Zepbound, brought in more than $10 billion combined during the recently completed third quarter. That made up over half of the drugmakers $17.6 billion in total sales. Separately, Danish drugmaker Novo Nordisk announced plans to buy Metsera Inc. in a deal that could be worth up to $9 billion. That came more than a month after U.S. drugmaker Pfizer Inc. made a nearly $5 billion bid for Metsera, which has no drugs on the market but is developing several potential oral and injectable treatments. Popular treatments labeled GLP-1 receptor agonists are fueling the soaring sales and deal interest. They work by mimicking hormones in the gut and the brain to regulate appetite and feelings of fullness. But they dont work for everyone and can produce side effects that include nausea and stomach pain. Supplies of the drugs have improved this year, and some insurance coverage is growing. That helps improve access to drugs that can cost around $500 a month without coverage. That can put them out of reach for many patients. The treatments are injectable drugs, but Novo and Lilly also are developing easier-to-take pill versions. U.S. sales of Lillys weight-loss treatment Zepbound nearly tripled to $3.57 billion in the third quarter. Meanwhile, revenue from the diabetes drug Mounjaro, which has been on the market longer, doubled to $6.52 billion thanks to growth outside the U.S. Combined, the drugs have brought in nearly $25 billion in sales so far this year for Indianapolis-based Lilly. That surpasses the entire companys revenue total from 2020. The drugs helped Eli Lilly and Co. record a $5.58 billion profit in the third quarter and deliver a better performance than Wall Street expected. Novo Nordisk said it will pay $56.50 in cash for each Metsera share and could pay an extra $21.25 if the company meets some drug development milestones. The drugmaker already has the obesity and diabetes treatments Wegovy and Ozempic on the market. That combined total of $77.75 more than doubles the closing price of Metsera shares on Sept. 19, the last trading day before Pfizer made its offer. Metsera said Thursday that its board has determined that the new, unsolicited offer from Novo was superior, and Pfizer has four business days to negotiate adjustments to its offer. Pfizer called Novos offer reckless and unprecedented and an attempt by a drugmaker with a dominant market position to suppress competition in violation of law by taking over an emerging American challenger. Pfizer Inc. is known for the COVID-19 vaccine Comirnaty and the treatment Paxlovid, among other drugs. But the New York drugmaker decided to take another stab at obesity treatments months after ending development of its own drug. Tom Murphy, AP health writer AP Health Writer JoNel Aleccia contributed to this report.
Category:
E-Commerce
Two prominent Republicans on Capitol Hill want the Supreme Court to allow a lawsuit to proceed against tech giant Cisco over allegations that the companys technology was used to persecute members of the Falun Gong religious sect in China. In a Wednesday letter to the Trump administrations top Supreme Court litigator, D. John Sauer, Reps. Chris Smith of New Jersey and John Moolenaar of Michigan urged the administration to side with the Falun Gong plaintiffs and press the court to allow the lawsuit to go to trial. Smith co-chairs the Congressional-Executive Commission on China, while Moolenaar is the chairman of a special China committee set up in the House of Representatives and both are prominent critics of Beijing’s human rights record. The letter cited an AP investigation last month that showed American tech companies to a large degree designed and built Chinas surveillance state, saying it underscore(s) the need to deter American firms from supplying technology to facilitate the CCPs human rights abuses. The decision ultimately rests with the Supreme Court whether to hear the challenge brought by Cisco arguing that U.S. law does not permit such a suit. But as part of considering the case the court sought the views of the solicitor general, who represents the U.S. government’s position in oral arguments and proceedings. The Trump administration’s view on the case will also be of interest to the court because Cisco has argued that the case involves U.S. foreign relations and should be dismissed on those grounds. The solicitor general is expected to file a brief later this year or early next year. The allegation that an American tech company custom-designed a tool to facilitate the violent persecution of a religious minority by the Chinese Communist Party (CCP) is a serious one, the two lawmakers wrote in a letter to Sauer. We believe the Plaintiffs deserve the chance to prove their claims. We have a longstanding commitment to uphold and respect human rights for all people and if the 2023 ruling of the Ninth Circuit Court stands, it opens the floodgates for suits against U.S. corporations merely for legal exports of off-the-shelf goods and services, said a spokesperson for Cisco. The case has a long and winding history dating back more than a decade. In 2008, documents leaked to the press showed Cisco saw the Golden Shield as a sales opportunity, quoting a Chinese official calling the Falun Gong an evil cult. A Cisco presentation reviewed by AP from the same year said its products could identify over 90% of Falun Gong material on the web. Other presentations reviewed by AP show that Cisco represented Falun Gong material as a threat and built out a national information system to track Falun Gong believers. In 2011, Falun Gong members sued Cisco, alleging the company tailored technology for Beijing that they knew would be used to track, detain and torture believers. The issue before the Supreme Court is whether an American company can be held liable under two separate laws for aiding and abetting human rights violations. Cisco argues it isnt liable under those laws, the Alien Tort Statute (ATS) or the Torture Victim Protection Act (TVPA), but a federal appeals court rejected the company’s arguments in 2023, allowing the case to continue. Now Cisco is asking the Supreme Court to throw out that ruling and stop the lawsuit. In recent years, the Supreme Court and presidential administrations of both parties have been skeptical of lawsuits seeking to use U.S. courts as a venue to seek justice over the acts of foreign governments, especially those that took place abroad. In the case of Cisco, the Falun Gong members have argued that a substantial portion of Ciscos activities involving China took place in the United States. An AP investigation this week found that the U.S. government across five Republican and Democratic administrations repeatedly allowed and even actively helped American firms to sell technology to Chinese police and surveillance companies, even as activists warned such tools were being used to quash dissent, persecute religious sects and target minorities. Going into the long-heralded meeting Thursday between leaders Donald Trump and Xi Jinping, the sale of U.S. technology to China has been among the thorniest issues the U.S. faces, with billions of dollars and the future of tech dominance at stake. Trump said after the meeting that China will speak with Silicon Valley chipmaker Nvidia about purchasing their computer chips. Debate over the sale of technology to China has grown heated, with some arguing for a harder stance. American companies have pushed back against restrictions, arguing it will push China to develop its own domestic supply and strengthen its position in the global race for leadership in artificial intelligence. But many national security experts say selling such technology could assist Chinas military and intelligence services. The plaintiffs lawyers make a similar case, citing Cisco marketing materials in China that promoted routers for use in tanks. If the Cisco suit is successful, it would signal that American companies can be held liable in some circumstances for abuse of their technologies overseas. Dake Kang and Byron Tau, Associated Press AP writer Mark Sherman contributed to this report from Washington.
Category:
E-Commerce
Stablecoins might not send your digital wallet to the moon, but the less speculative side of cryptocurrency is definitely enjoying its moment in the sun. According to a new report from Fortune, credit card stalwart Mastercard wants to make a massive bet on infrastructure that links digital currencies to the normal financial world. Mastercard is in advanced talks to buy the stablecoin startup Zerohash for between $1.5 and $2 billion, Fortune reports. Zerohash, founded in 2017, provides banking companies a toolkit for providing their own cryptocurrency and stablecoin products. If the deal goes through, it would represent a major investment in cryptocurrency infrastructure from a traditional banking company. When reached by Fast Company, Mastercard and Zerohash declined to comment. The report comes weeks after Mastercard was reportedly competing to buy BVNK, a startup that helps businesses integrate transactions using stablecoins, which are digital currencies pegged to the value of traditional currencies. According to the same report by Fortune, Coinbase made it further in those acquisition talks, hence Mastercard turning to Zerohash for a parallel deal. BVNK didnt immediately respond to Fast Companys request for comment. Cryptos unsexy side Stablecoins serve as a bridge between the volatile world of cryptocurrencies, where massive price swings are the norm, and stable national currencies like the U.S. dollar. Because they arent really used for speculation or investment, stablecoins provide many of the perks promised by the crypto revolution like instant transactions and a digital ledger without the downside of assets that tend to spike and plunge. The less flashy side of crypto has come into the spotlight lately. Circles flashy IPO in June saw the stablecoin companys share price almost triple overnight. Earlier this year, fintech giant Stripe bought the crypto payments platform Bridge, paying $1.1 billion to build out its own stablecoin infrastructure. Chase also recently announced its own stablecoin play, connecting its credit card rewards program with the stablecoin USDC through Coinbase. Mastercard has signaled its interest in crypto, and specifically stablecoins, previously. Over the summer, it joined the Global Dollar Network, a consortium of companies boosting stablecoin adoption, alongside Robinhood and other companies from the crypto side of things. In 2021, Mastercard acquired the crypto analytics company CipherTrace, though it later shuttered most of the products it obtained through the deal. Traditional financial giants arent the only ones getting in on the stablecoin frenzy. Walmart and Amazon are both exploring the possibility of issuing or otherwise leaning on stablecoins, according to a report from The Wall Street Journal. Enabling payments through stable cryptocurrencies could allow retail giants to duck the billions they pay in transaction fees an existential threat to banks and credit card companies that make a sliver of every sale. Era of deregulation The explosion of stablecoin deals and soaring crypto values arent happening in a vacuum. Trumps second term has ushered in an era of dramatic deregulation in the U.S., and buzzy crypto startups and normie finance giants alike are racing to cash in. The president himself is pouring gasoline on the crypto wildfire, as his media company bets big on Bitcoin and his policies boost the Trump familys latest crypto venture strokes of self dealing that would have been a historic scandal in any other presidency. If 2025s spate of deals connecting the traditional finance world and stablecoin startups pans out, the least sexy side of cryptocurrency might have the most staying power and an actual everyday use case beyond sending your bank account to the moon.
Category:
E-Commerce
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