Episode 130: Today, Ann digs into the Novo Nordisk vs Eli Lilly vs Pfizer news roundabout: with Novo’s share price dropping, now too are the list price of its popular obesity drugs - does that leave the entire sector vulnerable to… loss? Then we look at earnings from Constellation Energy, the largest operator of nuclear power plants in the U.S. - regulatory scrutiny builds as the sector grows in the AI age and residential customers see higher bills. Finally, we shine a light on Henry Schein and Factset and hit Parmount’s new salvo in the battle for Warner Brothers. www.brewmarkets.com Subscribe to the Brew Markets newsletter: https://www.morningbrew.com/brew-mark... Follow Brew Markets on social: Instagram: instagram.com/brewmarkets TikTok: tiktok.com/@brewmarkets X: x.com/brewmarkets Follow Ann Berry on social: Instagram: instagram.com/annberry_nyc X: x.com/AnnBerry_NYC Listen to Brew Markets Here: swap.fm/l/9Qk4z73Z2nEwFiCB4qee Watch Brew Markets Here:⁠ https://www.youtube.com/@BrewMarkets 00:00 Welcome to Brew Markets Daily 00:30 Inside The GLP-1 Wars 04:30 Earnings: Constellation Energy 15:00 Market Close Learn more about GDX at vaneck.com/BrewGDX Investing involves substantial risk and high volatility, including possible loss of principal. Visit vaneck.com or call 1-800-826-2333 to read and consider the prospectus, containing the investment objective, risks, and fees of the fund, carefully before investing. © Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation. The content shared on this podcast is for informational and entertainment purposes only and should not be considered financial, legal, or investment advice. Brew Markets, Morning Brew and their hosts are not licensed financial advisors. Listeners should conduct their own research and consult with qualified professionals before making any financial decisions or investments. The views expressed are those of the hosts and guests and do not necessarily reflect the views of Morning Brew or its affiliates. This podcast may include paid endorsements or sponsorships Learn more about your ad choices. Visit megaphone.fm/adchoices

GLP-1 War Heats Up as Prices Slim Down & Powering the AI Age

Brew Markets

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**Podcast:** Brew Markets

## Transcript

Tonight, State of the Union address will likely shine a light on nuclear power. So we take a look at one-star stock in alternative energy, the latest at Constellation. Henry Schein, FactSet, AMD and Warner Brothers, our sprint through the earnings, deals and merger drama all moving the market today. And barely perceptible product differences, sprints for distribution, headline domination and now aggressive price cuts.

No, not the news cycle for the major LLMs, but the latest in the eerily similar war of the GLP-1s. We break it all down. For Tuesday, February 24th, it's Brew Markets Daily and I'm Ann Berry. More market details to come, but first. A major player drops a product and all its investors cheer. Then a competitor goes incrementally better and panic sets in.

Then major player one drops an even better update and investors take a victory lap. And then a competitor pops up, ups the ante and the roller coaster starts all over again. So is this OpenAI versus Google's Gemini versus Anthropic? Well, on any given day, it could be. But today, it's the latest in the GLP-1 wars and they're not too dissimilar with the Novo Nordisk versus Eli Lilly versus Pfizer news roundabout.

Well, just yesterday, Novo's share price dropped 15% to a four-year low. And that was in reaction to disappointing phase three trial results for its next generation obesity drug, Cagri-Sema, to get all these syllables out. Well, investors were underwhelmed by the drug, which showed 20% weight loss results, just below Eli Lilly's Zetbound at 23.6%. So these are not vast, vast differences.

Well, today, Novo announced plans to slash the monthly list prices of its popular obesity and diabetes drugs in the United States by up to 50% starting next year. The obesity injection, Wegovi, and its new pill counterpart, plus Novo's diabetes treatments, the Azempic shot and the oral drug Rebelsis, will have the new lower list price of $675 per month starting on January 1, 2027.

Well, that's a significant drop from the $1,027 to $13.50 per month the drugs are currently listed for. The price cuts target insured patients whose out-of-pocket costs are linked to list prices. So that would include folks with high deductible health plans or coinsurance benefit designs. And its timing coincides with new lower Medicare prices going into effect for Novo's obesity and diabetes drugs next year under the Inflation Reduction Act.

Well, the move could help Novo compete better with Eli Lilly, which has now outrun Novo to hold the majority share of the blockbuster GLP-1 market. Despite Novo's first mover status, Lilly's more effective drugs and earlier push into the direct-to-consumer space for distribution have allowed it to take the lead, and all without significantly lowering the U.S. list prices of its medicines. So this is just my one person's view.

If, as a company, you've exhausted the ways to compete outside of price, you've exhaust...

GLP-1 War Heats Up as Prices Slim Down & Powering the AI Age

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

GLP-1 War Heats Up as Prices Slim Down & Powering the AI Age

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.