WEBVTT - Tesla Signals More Price Cuts Ahead 0:00:01.360 --> 0:00:05.680 This is Bloomberg Business Wait inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business finance and tech news the Bloomberg Business Week 0:00:13.720 --> 0:00:19.000 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.760 --> 0:00:23.079 Tesla's going to keep cutting prices to stoke demand, even 0:00:23.120 --> 0:00:26.680 after markdowns early this year took a significant toll of profitability. 0:00:26.880 --> 0:00:29.200 We'll get into their operating margin. You know you've been 0:00:29.560 --> 0:00:31.880 hearing about that a lot. That news was last night 0:00:31.880 --> 0:00:34.800 and then this morning, SpaceX attempting to send its starship 0:00:34.800 --> 0:00:36.960 system into space and then it exploded. 0:00:37.000 --> 0:00:37.360 We have some. 0:00:37.360 --> 0:00:39.720 Details on that, so let's get into it with our 0:00:39.760 --> 0:00:43.640 Bloomberg News EV reporter Sean o'caine with us on zoom 0:00:43.680 --> 0:00:45.920 into Austin, Texas. And then also with us is Bloomberg 0:00:46.000 --> 0:00:48.839 News Space reporter Lauren Greshe's on site in Texas near 0:00:48.840 --> 0:00:51.680 where the rocket exploded earlier today. So our thanks to 0:00:51.800 --> 0:00:52.400 both of you. 0:00:52.880 --> 0:00:54.080 Sean. I do want to start with. 0:00:54.040 --> 0:00:56.520 You, though, because the news out of Tesla last night, 0:00:56.680 --> 0:00:58.279 what we got in the earnings release and then what 0:00:58.560 --> 0:01:01.160 Elon had to say on the call with analysts, definitely 0:01:01.200 --> 0:01:03.760 move the stock price. What do you think here we 0:01:03.800 --> 0:01:06.119 are what twenty four hours in? Really is the key 0:01:06.160 --> 0:01:08.080 takeaway from what Tesla had to say. 0:01:09.560 --> 0:01:12.960 Well, I mean, the bottom line is that the automotive 0:01:12.959 --> 0:01:15.759 gross margins when you pull out leases and you pull 0:01:15.760 --> 0:01:20.120 out regulatory credits, were under the target that Tesla's CFO 0:01:20.280 --> 0:01:24.760 Zach Kirkhorn, had forecasted on the last call back in January. 0:01:24.760 --> 0:01:27.160 He basically said, hey, you know, because that was right 0:01:27.160 --> 0:01:29.280 around they had started making the really drastic cuts. They 0:01:29.280 --> 0:01:31.720 had already implemented price cuts at the end of last 0:01:31.760 --> 0:01:35.880 year in anticipation of, you know, all the questions about 0:01:35.880 --> 0:01:39.000 who was going to qualify for IRA credits and whatnot, 0:01:39.440 --> 0:01:41.320 and so he had said, hey, you know, we have 0:01:41.400 --> 0:01:44.480 industry leading margins. We're going to be able to take 0:01:44.480 --> 0:01:47.000 a bite out of those with some of these cuts 0:01:47.040 --> 0:01:50.480 to keep demand up, and we don't think it's going 0:01:50.520 --> 0:01:52.960 to go under twenty percent. But after they released the 0:01:53.040 --> 0:01:55.520 numbers last night, it seems like most analysts were able 0:01:55.560 --> 0:01:59.000 to work out that automotive gross margin margins excluding those 0:01:59.040 --> 0:02:02.000 items were closer to eighteen percent. So even he was 0:02:02.040 --> 0:02:05.400 willing to admit on the call that that was lower 0:02:05.440 --> 0:02:07.800 than they expected. And that was the result of continuing 0:02:07.800 --> 0:02:09.919 to make cuts from the time of the last call 0:02:09.960 --> 0:02:12.800 to now, and also some other issues like some changes 0:02:12.840 --> 0:02:15.520 to the warranty on older vehicles and things like that. 0:02:15.880 --> 0:02:17.679 So I think that's the biggest thing. I think the 0:02:17.720 --> 0:02:19.680 other biggest thing is that it doesn't sound like they're done. 0:02:19.720 --> 0:02:22.720 Elon Musk seems like he's eager to take advantage of 0:02:22.760 --> 0:02:24.639 the fact that they still have more margin to go 0:02:25.800 --> 0:02:27.920 that they could eat into if they wanted to continue 0:02:27.919 --> 0:02:28.960 to drop prices. 0:02:29.639 --> 0:02:32.160 So, Sean, can you talk to me about that automotive 0:02:32.160 --> 0:02:35.320 gross margin number because it typically is just included in 0:02:35.360 --> 0:02:37.720 the earnings report, but analysts had to crunch the numbers 0:02:37.720 --> 0:02:39.760 this time around. Was that notable to you? 0:02:41.080 --> 0:02:42.480 Yeah, that was the first thing that jumped out of 0:02:42.520 --> 0:02:44.079 me because it was the first thing I was looking for, 0:02:44.120 --> 0:02:44.760 like many other. 0:02:44.600 --> 0:02:47.840 People searching for it, right Yeah. 0:02:47.960 --> 0:02:50.160 Yeah, it's usually right up top and that first entry 0:02:50.200 --> 0:02:53.160 of the earnings report, and so it was very obvious 0:02:53.240 --> 0:02:54.640 right away that it wasn't going to be there and 0:02:54.639 --> 0:02:56.080 that it was going to take a little bit of math. 0:02:56.320 --> 0:02:58.480 I'm not terribly surprised at that. I mean, one of 0:02:58.560 --> 0:03:01.800 the things that Tesla's c said last quarter was that. 0:03:02.320 --> 0:03:04.639 You know, he gave those predictions about a twenty percent 0:03:04.720 --> 0:03:08.640 automotive gross margin and a forty seven thousand average selling 0:03:08.639 --> 0:03:10.800 price across all their models, and he was sort of 0:03:10.800 --> 0:03:13.000 forecasting that. But he also said right after that, Hey, 0:03:13.880 --> 0:03:16.359 just so you know, we care more internally about the 0:03:16.400 --> 0:03:19.440 operating margin. We hope that's something that you'll consider as 0:03:19.480 --> 0:03:23.440 you go forward. So that they deemphasized automotive gross margin, 0:03:23.480 --> 0:03:25.720 I guess, to put it nicely, didn't really come as 0:03:25.760 --> 0:03:29.519 a surprise, although his favorite metric, operating gross margin was 0:03:29.520 --> 0:03:32.560 down pretty pretty severely, down to eleven point four percent, 0:03:33.360 --> 0:03:35.440 when a year ago it was in the nineteen So 0:03:35.560 --> 0:03:38.280 they call that a manageable decline. I think a lot 0:03:38.280 --> 0:03:40.680 of other people were sort of trying to factor that 0:03:40.760 --> 0:03:42.960 in today as we saw the stock drop. 0:03:42.720 --> 0:03:43.160 A little bit. 0:03:43.240 --> 0:03:46.080 Yeah absolutely, I mean still up thirty two percent this year, 0:03:46.120 --> 0:03:49.080 but definitely a big haircut. Hey, Lauren, come on in 0:03:49.120 --> 0:03:53.440 on the story of all things elon Starlink. 0:03:53.520 --> 0:03:54.960 What exactly happened? 0:03:56.120 --> 0:03:59.800 Right? So it's the starship spacecraft. 0:03:59.280 --> 0:03:59.880 The starships. 0:04:00.080 --> 0:04:03.200 It's sorry, yeah, yeah, no, no, it's it's actually quite 0:04:03.240 --> 0:04:06.040 confusing because they put the word star in front of everything, 0:04:06.080 --> 0:04:09.520 I think. But yes, it's Starship and it's their deep 0:04:09.600 --> 0:04:12.680 based rocket that they're hoping to use to send humans 0:04:12.720 --> 0:04:16.000 to deep space like the Moon in Mars, and they 0:04:16.080 --> 0:04:19.320 are They tried to launch it on its first test 0:04:19.400 --> 0:04:24.080 launch today. Unfortunately, you know, it did it did achieve 0:04:24.200 --> 0:04:28.960 some air but ultimately, uh had it did explode at 0:04:29.240 --> 0:04:32.160 about four minutes into the flight. So you know, they 0:04:32.200 --> 0:04:35.120 definitely got a lot of data from it, but you know, 0:04:35.320 --> 0:04:36.560 didn't in the way they. 0:04:36.440 --> 0:04:38.960 Expected exploded or they exploded it. 0:04:39.680 --> 0:04:42.360 So they exploded it. So we just learned recently. We 0:04:42.360 --> 0:04:44.880 were we were questioning for a minute whether or not 0:04:45.120 --> 0:04:48.080 it exploded on its own, maybe from aerodynamics, you know, 0:04:48.160 --> 0:04:51.440 pressures or forces on the vehicle. But it turns out 0:04:51.440 --> 0:04:54.839 that once the Starship rocket was going off course, it 0:04:54.960 --> 0:04:57.840 was if you looked on the live stream, you could 0:04:57.839 --> 0:05:02.200 see that it was kind of twirling off for tumbling 0:05:02.279 --> 0:05:06.320 wildly in the sky. And then eventually SpaceX revealed that 0:05:06.400 --> 0:05:10.320 they activated the flight termination system, which is used to 0:05:10.440 --> 0:05:14.200 blow up the rocket so that it doesn't it ensures 0:05:14.240 --> 0:05:17.280 that it does not harm any uninvolved public or property. 0:05:18.000 --> 0:05:19.960 Well, Lauren, I want to stick on some of the 0:05:20.160 --> 0:05:23.720 good news that we got for SpaceX today, and you 0:05:23.720 --> 0:05:26.159 have an amazing piece on this Everyone should go read it. 0:05:26.200 --> 0:05:28.000 I was blown away that you were able to change 0:05:28.080 --> 0:05:30.160 the intro so quickly based on the news because it's 0:05:30.160 --> 0:05:33.400 such a great piece on the terminal and online. Talk 0:05:33.440 --> 0:05:35.520 to me about the winds for SpaceX today. 0:05:35.680 --> 0:05:39.480 Absolutely, and you know what that is just what space entails, right, 0:05:39.520 --> 0:05:42.839 there's always winds that you have to always be flexible 0:05:42.920 --> 0:05:44.760 because you never know how these things are going to 0:05:44.760 --> 0:05:48.400 turn out. But yes, some great wins today. I mean, 0:05:48.440 --> 0:05:51.719 this was the first test flight of the fully stacked 0:05:51.839 --> 0:05:55.320 Starship rocket. So Starship consists of two main parts of 0:05:55.480 --> 0:05:59.400 the Starship vehicle which carries the cargo, the satellite, the people. 0:05:59.520 --> 0:06:01.600 That's the top of the rocket, and then the bottom 0:06:01.640 --> 0:06:03.760 of the rocket is the super heavy booster and that's 0:06:03.760 --> 0:06:06.680 what's needed. It has thirty three raptor engines on a 0:06:06.760 --> 0:06:09.760 space and it's used to break free of Earth's gravity 0:06:09.760 --> 0:06:12.679 and propel Starship to space. And this was the first 0:06:12.680 --> 0:06:15.880 time both of those pieces flew together, stacked on top 0:06:15.880 --> 0:06:17.880 of each other, on top of each other, so that 0:06:18.040 --> 0:06:20.039 is a major win for SpaceX. They were able to 0:06:20.040 --> 0:06:23.360 actually clear the launch pad, achieve the highest helt seat 0:06:23.400 --> 0:06:26.440 I think they've ever done with this vehicle, and they 0:06:26.440 --> 0:06:28.880 were actually able to show that super heavy can fly. 0:06:29.120 --> 0:06:32.279 So unfortunately they had some engine out issues. You know, 0:06:32.520 --> 0:06:35.599 not all thirty three engines actually ignited, and some of 0:06:35.600 --> 0:06:38.560 them flamed out during the flight. And then obviously there 0:06:38.560 --> 0:06:41.960 are some cold control issues in the sky. But definitely 0:06:42.000 --> 0:06:44.600 a major win and SpaceX is thinking it a major win. 0:06:44.640 --> 0:06:46.440 I don't know if you can hear behind me, but 0:06:46.560 --> 0:06:49.120 I'm out at a party where everyone is celebrating right 0:06:49.160 --> 0:06:52.040 now because they are so happy that this thing actually 0:06:52.160 --> 0:06:55.839 left the launch pad. So it's actually SpaceX is definitely 0:06:55.920 --> 0:06:57.800 seeing it as a win. For sure. They can use 0:06:57.839 --> 0:07:00.719 the data to incorporate it into future flight for sure. 0:07:01.240 --> 0:07:03.040 All I could think of is like, what did that cost? 0:07:03.720 --> 0:07:05.440 I'm going to go back to the business side of 0:07:05.480 --> 0:07:08.880 the story, Sean, come on back in here. What other 0:07:08.920 --> 0:07:10.560 color can you give us in terms of what we 0:07:10.600 --> 0:07:12.240 heard and what kind of elon we got on the 0:07:12.240 --> 0:07:14.800 analyst call? 0:07:15.000 --> 0:07:15.120 Uh? 0:07:15.240 --> 0:07:16.080 Well, you know it was. 0:07:16.400 --> 0:07:16.520 Uh. 0:07:17.360 --> 0:07:19.520 I think it's funny that we get him every time now, 0:07:20.400 --> 0:07:22.560 despite him saying a couple a couple of years ago 0:07:22.560 --> 0:07:25.120 that he was going to stop doing these things, But 0:07:25.200 --> 0:07:28.600 you know, he still seems pretty obviously involved in the 0:07:28.680 --> 0:07:31.240 day to there, day to day there, despite having a 0:07:31.240 --> 0:07:34.560 lot on his plate this week, whether that's the business 0:07:34.640 --> 0:07:37.280 of Twitter and trying to keep that afloat, and also 0:07:37.560 --> 0:07:41.080 launching a piece of technology into this guy that had 0:07:41.160 --> 0:07:44.720 never launched before in the super Heavy Booster. So you know, 0:07:44.760 --> 0:07:46.560 it was it was interesting to hear him talk. I 0:07:46.600 --> 0:07:48.080 think the thing that really stuck out to me the 0:07:48.120 --> 0:07:50.720 most on the call and from Elon himself, was that 0:07:51.120 --> 0:07:54.120 in talking about the ability to eat into those margins 0:07:54.120 --> 0:07:58.600 as far as keeping competitive pressure up, he's talking about 0:07:59.440 --> 0:08:02.240 he thinks Too could actually go to zero profit on 0:08:02.320 --> 0:08:05.120 its cars, which is an outrageous thing to say because 0:08:05.600 --> 0:08:09.239 he so fully believes in the ability of his company 0:08:09.280 --> 0:08:11.280 to deliver on this promise that they've been promising for 0:08:11.400 --> 0:08:14.520 years of being able to make its cars fully autonomous, 0:08:14.560 --> 0:08:16.920 that he thinks they could actually sell these things at 0:08:16.960 --> 0:08:20.160 a wash in the near term and recoup any of 0:08:20.200 --> 0:08:22.600 that lost profit down the road if they were able 0:08:22.600 --> 0:08:24.880 to roll out full self driving as an actual feature 0:08:24.880 --> 0:08:27.680 that people want to pay for and that is so revolutionary. 0:08:27.080 --> 0:08:28.880 That it would see self driving. 0:08:30.760 --> 0:08:32.000 Like, come on, I. 0:08:31.880 --> 0:08:34.120 Mean a lot of people. A lot of people take 0:08:34.160 --> 0:08:35.880 that same approach. You know, I think we want to 0:08:35.920 --> 0:08:38.880 know for sure that it's possible. And he even explained 0:08:38.920 --> 0:08:40.960 last night he used it as a two step forward, 0:08:41.000 --> 0:08:43.680 one step back. Problems at the state we got to run. 0:08:43.720 --> 0:08:46.560 Sean and Lauren, thank you so much. This is Bloomberg Radio. 0:08:46.960 --> 0:08:50.520 You're listening to the Bloomberg Business Week podcast. Catch us 0:08:50.559 --> 0:08:53.920 live weekday afternoons from three to six Eastern Listen on 0:08:53.960 --> 0:08:58.000 Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, 0:08:58.280 --> 0:09:00.000 or watch us live on YouTube. 0:09:00.960 --> 0:09:03.880 So another decision coming tomorrow on abortion pill limits as 0:09:03.880 --> 0:09:07.600 the Supreme Court extended a temporary hold on new restrictions 0:09:07.600 --> 0:09:11.320 on those pills, those restrictions imposed by a federal judge 0:09:11.360 --> 0:09:12.559 in Texas. 0:09:12.120 --> 0:09:15.200 And now justices have until tomorrow to decide what to 0:09:15.280 --> 0:09:17.920 do with this case. This comes after the Biden administration 0:09:18.000 --> 0:09:20.439 and dan Co Laboratories, which is the maker of the drug, 0:09:20.840 --> 0:09:24.360 requested that any restrictions get put on hold. While this 0:09:24.520 --> 0:09:27.320 legal battle continues a lot of moving parts. So here 0:09:27.360 --> 0:09:30.760 to discuss the impact of that battle is doctor Suzanne Bell, 0:09:30.840 --> 0:09:34.920 Assistant professor in Population, Family and Reproductive Health at Johns 0:09:34.920 --> 0:09:38.280 Hopkins Bloomberg School of Public Health, which I should mention 0:09:38.360 --> 0:09:40.840 as supported by Michael R. Bloomberg, founder of Bloomberg LP 0:09:41.080 --> 0:09:44.880 and Bloomberg Philanthropies. She's on zoom with us from Baltimore. 0:09:44.960 --> 0:09:45.439 Doctor Bell. 0:09:45.480 --> 0:09:47.320 Great to speak with you, and thanks for being here. 0:09:47.640 --> 0:09:49.559 I know we've been back and forth on this case 0:09:49.679 --> 0:09:51.560 for a couple of weeks, but what do we know 0:09:52.120 --> 0:09:55.240 right now about the impact that it's already had in 0:09:55.320 --> 0:09:57.240 terms of access to this pill? 0:09:58.640 --> 0:10:00.480 Yeah, so right now, I'm just introduce using a lot 0:10:00.480 --> 0:10:03.200 of uncertainty in the states where abortion is still legal 0:10:03.280 --> 0:10:06.679 and providers are of just in an awaiting game right 0:10:06.720 --> 0:10:08.960 now for this decision, with a lot of potential clinical 0:10:09.000 --> 0:10:13.760 implications around the provision of medication abortion, which is currently 0:10:13.800 --> 0:10:17.280 more than half of abortions in the US, What does. 0:10:17.160 --> 0:10:21.120 It mean if women don't have access to this pill 0:10:21.280 --> 0:10:21.960 going forward? 0:10:22.040 --> 0:10:22.559 Ultimately? 0:10:24.160 --> 0:10:27.800 Yeah, I mean, I think, much to the chagrin of 0:10:27.880 --> 0:10:30.280 the people who brought this cases, will not stop medication 0:10:30.360 --> 0:10:34.079 abortions from occurring. It is just really another attempt to 0:10:34.080 --> 0:10:36.840 interfere with the delivery of evidence based health care and 0:10:36.880 --> 0:10:40.360 control pregnant people's bodies. Providers will instead be forced to 0:10:40.800 --> 0:10:44.160 use a misoprostal only regimen instead of the more effective 0:10:44.200 --> 0:10:47.280 combined regimen with me for pristone, which simply means that 0:10:47.320 --> 0:10:50.440 pregnant people are going to be exposed to more uncomfortable 0:10:50.559 --> 0:10:57.359 and potentially severe side effects that are very uncomfortable. But ultimately, 0:10:57.480 --> 0:11:00.640 this is an incredibly safe and effective regimen. It's really 0:11:00.840 --> 0:11:04.559 just a matter of interfering with the science when in fact, 0:11:04.600 --> 0:11:07.320 we have evidence for more than one hundred peer reviewed, 0:11:07.400 --> 0:11:11.640 rigorous studies showing that this medicine in combination with me 0:11:11.720 --> 0:11:14.680 so prostal is highly effective and safe for terminating pregnancies. 0:11:14.880 --> 0:11:17.160 Okay, talk to me about the evidence here. I'm so 0:11:17.200 --> 0:11:20.160 glad you bring this up because one of the nuances 0:11:20.200 --> 0:11:21.640 of this case for those of us who are not 0:11:21.800 --> 0:11:25.720 doctors is this question about FDA approval that the judge 0:11:25.760 --> 0:11:28.400 in Texas brought up. Can you explain that to me? 0:11:28.520 --> 0:11:31.199 Is there any reason from your perspective to be concerned 0:11:31.240 --> 0:11:33.400 about the FDA approval of the abortion pill? 0:11:34.520 --> 0:11:35.240 Absolutely not. 0:11:35.400 --> 0:11:38.800 You know, the FDA is a very conservative, independent agency 0:11:39.000 --> 0:11:42.079 full of scientists that know how to evaluate the science, 0:11:42.480 --> 0:11:48.640 and we already had almost two about fifteen fourteen years 0:11:48.760 --> 0:11:52.680 of approval in France, where the medicine was developed before 0:11:52.720 --> 0:11:56.240 the FDA even approved it in two thousand and Since then, 0:11:56.520 --> 0:11:59.719 we have approximately eighty countries around the world who have. 0:11:59.679 --> 0:12:01.120 Also approve this medicine. 0:12:01.120 --> 0:12:05.200 We have decades of safety and effectiveness evidence from around 0:12:05.200 --> 0:12:09.000 the globe indicating that this is an appropriate approval that 0:12:09.040 --> 0:12:12.480 the FDA provided more than twenty years ago. And you know, 0:12:12.559 --> 0:12:15.720 in the intervening years in the US, hundreds of thousands, 0:12:15.760 --> 0:12:19.040 if not millions, have used this drug as part of 0:12:18.600 --> 0:12:23.520 their termination of a pregnancy. And so there's really no 0:12:24.960 --> 0:12:28.640 legitimate claim here around safety and a lack of evidence 0:12:28.720 --> 0:12:29.720 around me for pristom. 0:12:30.080 --> 0:12:32.000 So what are the conversations you guys have been having 0:12:32.040 --> 0:12:33.320 at Johns Hopkins around this. 0:12:35.480 --> 0:12:37.040 I mean, I think it's really frustrating. 0:12:37.080 --> 0:12:40.840 There's a lot of frustration among clinicians, among social scientists 0:12:40.960 --> 0:12:43.720 doing work in this area because it's going to it's 0:12:43.760 --> 0:12:47.880 really just another way in which there are increasing barriers 0:12:47.960 --> 0:12:52.920 to the ability for people to self determine and you know, 0:12:53.080 --> 0:12:56.080 actualize their reproductive goals. This is just going to be 0:12:56.120 --> 0:12:59.640 another impediment, and people will work tirelessly to reduce the 0:12:59.679 --> 0:13:02.440 impact act of those barriers. But really, what we know 0:13:02.480 --> 0:13:04.920 from the evidence is that, you know, the more barriers 0:13:04.960 --> 0:13:08.559 you put in place, the more disadvantaged populations in particular 0:13:08.600 --> 0:13:11.520 are negatively impacted by them, and that is going to 0:13:11.600 --> 0:13:16.360 have you know, significant long term health, social, financial implications 0:13:16.360 --> 0:13:19.040 for the people who ultimately aren't able to obtain a 0:13:19.080 --> 0:13:22.199 wanted abortion, whether it be medication or procedural. 0:13:22.480 --> 0:13:24.120 In light of the fact that this is happening in 0:13:24.160 --> 0:13:24.959 the backdrop of. 0:13:25.000 --> 0:13:28.440 Dobs and you know, twenty six states banning or severely 0:13:28.480 --> 0:13:31.920 restricting abortion in those parts of the country. 0:13:32.000 --> 0:13:33.520 So Zan, let me just jump in and you say 0:13:33.559 --> 0:13:35.840 that it'll it'll you know, for those who might it 0:13:35.880 --> 0:13:39.240 might be difficult for them to obtain an abortion or 0:13:39.920 --> 0:13:41.839 I'm just curious, though, if the one pill is still 0:13:41.880 --> 0:13:47.199 available to everyone, how does that then maybe appease some of. 0:13:47.160 --> 0:13:48.440 The impact on those numbers. 0:13:49.600 --> 0:13:53.160 It will definitely reduce the likelihood that this is going 0:13:53.200 --> 0:13:57.120 to negate one of the options for people that are 0:13:57.520 --> 0:14:00.920 seeking abortion. I think it's just to situate this in 0:14:00.960 --> 0:14:03.839 the context of the much broader abortion landscape that we're 0:14:03.840 --> 0:14:06.680 sitting in right now in the US. This is just 0:14:06.800 --> 0:14:10.520 a way in which you will further you know, eroade 0:14:10.760 --> 0:14:15.679 access to safe, effective medication abortion. Meso prostal is the 0:14:16.040 --> 0:14:19.360 mesa prosta only regimen, like I mentioned, is still incredibly safe, 0:14:19.560 --> 0:14:23.600 slightly less effective, so you will expose people to slightly 0:14:23.640 --> 0:14:28.200 more you know, potential for an incomplete abortion, and so 0:14:28.240 --> 0:14:31.800 it's you know, I think the claim in the lawsuit 0:14:31.880 --> 0:14:34.600 brought is really a farce because they claim to be 0:14:34.640 --> 0:14:40.520 concerned about the discomfort of you know, medication abortion and 0:14:40.560 --> 0:14:43.400 the risks associated with medication abortion and not wanting to 0:14:43.400 --> 0:14:46.280 treat people in an emergency room that are suffering from 0:14:46.600 --> 0:14:49.760 medication abortion complications when in fact, less than half of 0:14:49.760 --> 0:14:53.640 a percent of all medication abortions result in a complication 0:14:53.840 --> 0:14:56.440 requiring you know, hospital based care. 0:14:56.480 --> 0:14:59.440 It's incredibly safe. And in addition to that, I think. 0:14:59.280 --> 0:15:02.720 It completely negates the fact that pregnancy is incredibly risky. 0:15:03.240 --> 0:15:06.160 The risk of maternal death for a person that whose 0:15:06.200 --> 0:15:08.720 pregnancy and then alive birth is fifteen times greater than 0:15:08.720 --> 0:15:09.600 that of safe abortion. 0:15:10.600 --> 0:15:14.040 Wow, it's such an important data point. And I also 0:15:14.120 --> 0:15:16.440 heard you mentioned earlier which I hadn't heard before, that 0:15:17.160 --> 0:15:19.880 doubling up the second dose mesa prostal We know that 0:15:19.880 --> 0:15:22.920 that's a backup plan if this does go through, But 0:15:23.600 --> 0:15:27.160 is it more painful for the patient. Does it cause 0:15:27.200 --> 0:15:31.160 other potential difficulties beyond potentially not being as effective. Does 0:15:31.200 --> 0:15:34.960 it also cause potentially more discomfort than the current regimen. 0:15:35.920 --> 0:15:37.920 Yeah, that's exactly the case. 0:15:38.200 --> 0:15:41.280 It's really that, you know, the MESA prosta only regimen 0:15:41.400 --> 0:15:43.400 is used actually in many parts of the world where 0:15:43.480 --> 0:15:46.640 mey for pristone is not registered and is still effective 0:15:46.680 --> 0:15:51.120 and safe. It is a who recommended means of safely 0:15:51.200 --> 0:15:56.200 terminating a pregnancy, but it causes more uncomfortable side effects nausea, vomiting, 0:15:56.320 --> 0:16:00.280 more severe cramping. So it's really just unnecessarily exposing ignant 0:16:00.320 --> 0:16:05.120 people to more discomfort and more severe side effects diarrhea, chills, 0:16:05.160 --> 0:16:08.880 and intense nausea that could be avoided if first taking 0:16:09.000 --> 0:16:13.120 the mefa pristone tablet followed by a lower dose of missoprostle. 0:16:13.160 --> 0:16:15.120 I'm going to steal a question that Maddie actually had 0:16:15.160 --> 0:16:17.360 in our notes, and this is if you could testify, 0:16:17.520 --> 0:16:19.800 what would you want to tell Scotus about the impact 0:16:19.880 --> 0:16:21.920 of a move to ban something like the abortion pill, 0:16:21.920 --> 0:16:24.520 Because I think it's just a smart, super smart question. 0:16:25.640 --> 0:16:26.040 Yeah. 0:16:26.120 --> 0:16:29.200 Yeah, well, thankfully I am not on the spot there 0:16:29.200 --> 0:16:31.280 in krond of Scotis, but you know, I think as 0:16:31.320 --> 0:16:33.600 a as a researcher, as a scientist, I think it's 0:16:33.640 --> 0:16:38.520 really important to respect and acknowledge the science. And right 0:16:38.560 --> 0:16:41.400 now the evidence is unambiguous. We have more than one 0:16:41.480 --> 0:16:45.400 hundred rigorously conducted scientific studies from countries all over the 0:16:45.400 --> 0:16:48.720 world over the past three decades plus demonstrating the safety 0:16:48.720 --> 0:16:51.880 and effectiveness of mefa priystone for medication abortion. So this 0:16:52.400 --> 0:16:58.280 decision from Casmark in Texas was clearly ideological, ideologically motivated, 0:16:58.840 --> 0:17:01.960 and there's, like I said, rely no ambiguity around this. 0:17:02.800 --> 0:17:05.560 I think it would be a real travesty to have the. 0:17:05.440 --> 0:17:10.399 Courts intervene with this independent agency's ability to approve and 0:17:10.480 --> 0:17:13.399 regulate medicines from the perspective of the science here in 0:17:13.440 --> 0:17:14.800 the US and. 0:17:14.720 --> 0:17:17.360 In like thirty seconds here, Are you concerned at all 0:17:17.400 --> 0:17:20.639 about the implications this case could have for the FDA 0:17:21.320 --> 0:17:23.640 moving forward at all? 0:17:23.760 --> 0:17:26.080 I mean, yes, I think this is a really dangerous 0:17:26.119 --> 0:17:31.600 precedent to establish that a court and any entity could 0:17:31.600 --> 0:17:36.680 bring a case against a drug maker against a specific 0:17:36.760 --> 0:17:40.080 medicine that has gone through the rigorous vetting. 0:17:39.800 --> 0:17:41.720 Process that the FDA already has, that. 0:17:42.200 --> 0:17:46.560 Is genuinely effective and conservative and especially with a drug 0:17:46.640 --> 0:17:48.800 like NIFA pristone that actually has a higher standard of 0:17:48.800 --> 0:17:51.000 safety and efficacy. So I think it would be really 0:17:51.080 --> 0:17:53.440 dangerous for the courts to move in that direction. 0:17:53.880 --> 0:17:56.399 Well, so appreciate getting some time with you and just 0:17:56.480 --> 0:18:00.080 laying it out from a scientific and medical perspective and 0:18:00.119 --> 0:18:03.080 understanding potentially the impact on Suzanne. Thank you so much, 0:18:03.080 --> 0:18:06.920 doctor Suzanne Bell. She's assistant professor in Population, Family and 0:18:07.040 --> 0:18:10.879 Reproductive Health at Johns Hopkins Bloomberg School of Public Health. 0:18:11.000 --> 0:18:13.040 As you know, supported by Michael R. Bloomberg, founder of 0:18:13.080 --> 0:18:16.919 Bloomberg LP and Bloomberg Philanthropies. Doctor Bell joining us via 0:18:17.000 --> 0:18:17.880 zoom from Baltimore. 0:18:18.920 --> 0:18:22.479 You're listening to the Bloomberg Business Week Podcast. Catch us 0:18:22.520 --> 0:18:26.640 live weekday afternoons from three to six Easter on Bloomberg Radio, 0:18:26.720 --> 0:18:30.000 the Bloomberg Business App, and YouTube. You can also listen 0:18:30.119 --> 0:18:33.200 live on Amazon Alexa from our flagship New York station 0:18:33.680 --> 0:18:36.440 Just Say Alexa playing Bloomberg eleven thirty. 0:18:38.520 --> 0:18:40.800 Remember when every day it felt like we were talking about 0:18:40.800 --> 0:18:42.359 another slew of companies going in public. 0:18:42.359 --> 0:18:43.760 I mean it's a really different environment. 0:18:44.000 --> 0:18:47.679 Yeah, it feels like those days are feeling foggier and foggier, 0:18:47.720 --> 0:18:50.560 both on the IPO side and the SPACs side. 0:18:50.680 --> 0:18:53.159 Yeah, absolutely right, and a lot of it is to 0:18:53.200 --> 0:18:55.359 do with, you know, what's gone on in rates and 0:18:55.520 --> 0:18:57.840 just a market that's a little bit more nervous. So 0:18:58.320 --> 0:19:00.720 let's get to it. And I was looking at actually 0:19:00.720 --> 0:19:03.639 the Renaissance IPO Index. It's up about fourteen percent year 0:19:03.680 --> 0:19:05.919 to date, so that was kind of interesting despite some 0:19:05.960 --> 0:19:06.720 of the hesitation. 0:19:06.920 --> 0:19:08.760 So you want to get to the IPO market, let's 0:19:08.760 --> 0:19:09.320 get to it. 0:19:09.359 --> 0:19:13.840 We've got Rachel Garing Ey, America's IPO leader, joining us 0:19:13.840 --> 0:19:16.840 on Zoom from Nashville, Tennessee. Rachel, thank you so much 0:19:16.840 --> 0:19:19.840 for joining us. I know that EY recently released it's 0:19:19.960 --> 0:19:22.960 Global IPO Trends Report for the first quarter of twenty 0:19:23.000 --> 0:19:26.719 twenty three. Broad Picture here. What's the headline from the report? 0:19:27.880 --> 0:19:29.919 Well, you know, happy to be here and thank you 0:19:29.960 --> 0:19:32.240 for having me. And just as the two of you 0:19:32.320 --> 0:19:37.040 are commenting a moment ago, definitely it's subdued out there, 0:19:37.520 --> 0:19:41.320 to say the least. We ended the quarter with thirty 0:19:41.359 --> 0:19:45.119 three IPOs in the US, raising roughly two and a 0:19:45.160 --> 0:19:49.200 half billion in proceeds. Another eleven companies have since come 0:19:49.200 --> 0:19:52.640 to market since the end of the quarter. So generally 0:19:52.640 --> 0:19:55.840 we're in line with this time last year, but well 0:19:55.880 --> 0:19:59.720 below levels we've seen in comparable periods over the past decade. 0:20:00.000 --> 0:20:01.600 I feel like there's a lot of enthusiasm. 0:20:01.720 --> 0:20:03.600 I feel like there I haven't I can't remember the 0:20:03.680 --> 0:20:05.600 last time there was anything in a conversation about, oh, 0:20:05.640 --> 0:20:08.679 we're looking forward to these companies going public. What's the 0:20:08.800 --> 0:20:11.160