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President Donald Trump unveiled a deal Thursday with drugmakers Eli Lilly and Novo Nordisk to expand coverage and reduce prices for their popular obesity treatments Zepbound and Wegovy. The drugs are part of a new generation of obesity medications known as GLP-1 receptor agonists that have soared in popularity in recent years. But access to the drugs has been a consistent problem for patients because of their cost around $500 a month for higher doses and insurance coverage has been spotty. Coverage of the drugs for obesity will expand to Medicare patients starting next year, according to the administration, which said some lower prices also will be phased in for patients without coverage. Starting doses of new, pill versions of the treatments also will cost $150 a month if they are approved. (It) will save lives, improve the health of millions and millions of Americans, said Trump, in an Oval Office announcement in which he referred to GLP-1 as a fat drug.” Thursday’s announcement is the latest attempt by the Trump administration to rein in soaring drug prices in its efforts to address cost-of-living concerns among voters. Drugmakers Pfizer and AstraZeneca recently agreed to lower the cost of prescription drugs for Medicaid after an executive order in May set a deadline for drugmakers to electively lower prices or face new limits on what the government will pay. As with the other deals, its not clear how much the price drop will be felt by consumers. Drug prices can vary based on the competition for treatments and insurance coverage. Obesity drugs have become increasingly popular, but are costly The obesity drugs work by targeting hormones in the gut and brain that affect appetite and feelings of fullness. In clinical trials, they helped people shed between 15% and 22% of their body weight — up to 50 pounds or more in many cases. Patients taking these drugs usually start on smaller doses and then work up to larger amounts, depending on their needs. Because of obesity being considered a chronic disease, they need to take the treatment indefinitely or risk regaining weight, experts say. The fast-growing treatments have proven especially lucrative for drugmakers Eli Lilly and Co. and Novo Nordisk. Lilly said recently that sales of Zepbound have tripled so far this year to more than $9 billion. But for many Americans, their cost has made them out of reach. Medicare, the federally funded coverage program mainly for people ages 65 and over, hasn’t covered the treatments for obesity. President Donald Trumps predecessor, Joe Biden, proposed a rule last November that would have changed that. But the Trump administration nixed it last spring. Few state and federally funded Medicaid programs, for people with low incomes, offer coverage. And employers and insurers that provide commercial coverage are wary of paying for these drugs in part because of the large number of patients that might use them. The $500 monthly price for higher doses of the treatments also makes them unaffordable for those without insurance, doctors say. Medicare now covers the cost of the drugs for conditions such as type 2 diabetes and cardiovascular disease, but not for weight loss alone. Trump showing he is in touch with cost-of-living concerns The effort to lower costs barriers to popular GLP-1 drugs comes as the White House is looking to demonstrate that Trump is in touch with Americans frustrations with rising costs for food, housing, health care and other necessities. Republican gubernatorial candidates in New Jersey and Virginia faced a drubbing in Tuesdays election in which dour voter outlook about the economy appeared to an animating factor in the races. Roughly half of Virginia voters said the economy was the top issue, and about 6 in 10 of these voters picked Democrat Abigail Spanberger for governor, powering her to a decisive win, according to an AP voter poll. In New Jersey, Democrat Mikie Sherrill won about two-thirds of voters who called the economy the top issue facing the state, the poll found. She defeated a Trump-endorsed Republican candidate Jack Ciattarelli. More than half of New York City voters said the cost of living was the top issue facing the city. The Democratic mayor-elect Zohran Mamdani won about two-thirds of this group. The White House sought to diminish the effort by the previous Democratic administration as a gift to the pharmaceutical industry because the proposal did not include adequate price concessions from the drug makers. Trump, instead, consummated a belt and suspenders deal that ensures that Americans arent unfairly financing the pharmaceutical industrys innovation, claimed a senior administration official, who briefed reporters ahead of Thursdays Oval Office announcement by Trump. Another senior administration official said coverage of the drugs will expand to Medicare patients starting next year. Those who qualify will pay $50 copays for the medicine. Lower prices also will be phased in for people without coverage through the administrations TrumpRx program, which will allow people to buy drugs directly from manufacturers. starting in January. The officials said lower prices also will be provided for state and federally funded Medicaid programs. And starting doses of new, pill versions of the obesity treatments will cost $149 a month if they are approved. The officials briefed reporters on the condition of anonymity under ground rules set by the White House. Doctors applaud the price drop Dr. Leslie Golden says she has roughly 600 patients taking one of these treatments, and 75% or more struggle to afford them. Even with coverage, some face $150 copayments for refills. Every visit its, How long can we continue to do this? Whats the plan if I cant continue?, said Golden, an obesity medicin specialist in Watertown, Wisconsin. Some of them are working additional jobs or delaying retirement so they can continue to pay for it. Both Lilly and Novo have already cut prices on their drugs. Lilly said earlier this year it would reduce the cost of initial doses of Zepbound to $349. Dr. Angela Fitch, who also treats patients with obesity, said she hoped a deal between the White House and drugmakers could be the first step in making the treatments more affordable. We need a hero in obesity care today, said Fitch, founder and chief medical officer of knownwell, a weight-loss and medical care company. The community has faced relentless barriers to accessing GLP-1 medications, which has ultimately come down to the price, despite the data we have supporting their effectiveness. Tom Murphy, Aaamer Madhani, and Jonel Aleccia, Associated Press
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E-Commerce
The term brand entertainment is tough to define. For many people, its an oxymoron and these two words should never be in the same room as one another. For many others, though, its simply when brands make stuff we actually want to pay attention to. It could be a short ad, or a feature-length film, or a live event. What it isnt is an annoying waste of time interrupting our attention from actual entertainment like TV, sports, music, and movies. Ive spent a lot of time on the Brand New World podcast looking at different ways different brands are doing this right. From WhatsApp creating a Netflix doc about the Mercedes F1 team, to Dicks Sporting Goods formally establishing an internal entertainment studio that has already been winning Emmys. But in September, an unprecedented deal was struck between one of the worlds biggest advertisers and arguably the globes biggest streaming platform. AB InBevthe parent to beer brands like Budweiser, Bud Light, Michelob Ultra, and Coronasigned a wide-ranging partnership deal with Netflix. This will not only get these major beer brands front and center in Netflix’s push into live sports, but also get them early access to placement and integration into other Netflix programming like shows and movies. This kind of thing will have marketers drooling, but everyone else skeptically side-eyeing the idea of a bigger brand presence in entertainment, and its potential effect on the quality of our favorite movies and TV shows. So, this episode Im talking to Jae Goodman, cofounder and CEO of Superconnector Studios, who not only helped broker the NetflixAB InBev deal, but has also helped giants like Nike and LVMH set up their own entertainment strategies. Here he breaks down this new deal, what it means, and how it may be setting the stage for the future of brands in Hollywood. Goodman says the key to the deal is that each company respects the goals and ideals of the other, which is the lens through which any brand integration is considered: Netflix and AB InBev have each become acutely aware of each other’s priorities. And so Netflix is great about sharing their priority projects with AB InBev, and AB InBev has been very clear about the brand ethos. Netflix is extremely aware when they read a script for a new show or when they see the next season come in for an already hit show, they already know, That’s a Stella show. That’s a Corona show, that’s a Budweiser show, because they’re aware of the brand alignment. Why brands should avoid Hollywoods independent financing model: There is a very small subset of producers who believes that brands are the answer to independently financing projects that aren’t selling on spec. And so there are some producers out there whose pitch (to brands) is essentially, You give me millions of dollars, I will go make this show or this movie, and it will totally sell. We’re gonna get it into Sundance, and then there’s gonna be a bidding war. Independent financing of film and television is rare, and in television it’s extremely rare and it’s risky. There are professionals who put their money at risk for independent financing, it’s a whole business and it’s a challenging business, and it’s more challenged by the fact that there are fewer buyers now. So, I’m just going to say it very clearly: It is bad for both industries to have brands fully financing entertainment as a business model. There are instances where it makes sense, but it needs to be in the context of not being the primary model. It is just not a good reason to do it. There’s so much money. Maybe there’s going to be less spending on content year over year, I haven’t seen the number. But I do know Netflix is going to spend $19 billion on content this year. So when they’re going to spend $19 billion on content, tell me why every brand in town needs to go to an independent producer and fully finance a movie that’s ‘totally gonna sell to Netflix.’ Go to Netflix first and see if they’re interested.
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E-Commerce
The average rate on a 30-year U.S. mortgage ticked up for the first time in five weeks after falling to its lowest level in more than a year last week. The average long-term mortgage rate moved up to 6.22% from 6.17% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.79%. Last weeks average rate was the lowest since Oct. 3, 2024, when it was 6.12%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. The average rate rose to 5.5% from 5.41% last week. A year ago, it was 6%, Freddie Mac said. Mortgage rates are influenced by several factors, from the Federal Reserves interest rate policy decisions to bond market investors expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The 10-year yield was at 4.09% at midday Thursday, down from 4.16% Wednesday. Lower mortgage rates boost homebuyers purchasing power and benefit homeowners eager to refinance their current home loan to a lower rate. The average rate on a 30-year mortgage has been stuck above 6% since September 2022, the year mortgage rates began climbing from historic lows. The housing market has been in a slump ever since. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly three decades. Sales have been sluggish this year, but accelerated in September to their fastest pace since February as mortgage rates eased. Mortgage rates began declining in July in the lead-up to the Federal Reserves decision in September to cut its main interest rate for the first time in a year amid growing concern over the U.S. labor market. The Fed lowered its key interest rate again last week in a bid to help boost the wobbling job market. However, Fed Chair Jerome Powell warned that there is no guarantee the U.S. central bank will cut again at its final meeting of 2025 in December. The Fed could also pump the brakes on more rate cuts if inflation climbs further amid the Trump administrations expanding use of tariffs, because lower rates can worsen inflation. Bond investors demand higher returns as long as inflation remains elevated, so if inflation ticks upward that could translate into higher yields on the 10-year Treasury note, pushing up mortgage rates. The central bank doesnt set mortgage rates, and even when it cuts its short-term rates that doesnt necessarily mean rates on home loans will necessarily decline. Last fall after the Fed cut its rate for the first time in more than four years, mortgage rates marched higher, eventually reaching just above 7% in January this year. At that time, the 10-year Treasury yield was climbing toward 5%. The broader pullback in rates has helped spur homeowners who bought in recent years after rates climbed above 6% to refinance their home loan to a lower rate. Mortgage rates would have to drop below 6% to make refinancing an attractive option for many homeowners. Thats because about 80% of U.S. homes with a mortgage have a rate below 6% and 53% have a rate below 4%, according to Realtor.com. Matt Ott, AP business writer
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E-Commerce
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