WEBVTT - Ad Budgets Shift from Social Media To Connected TV: Steelhouse 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 0:00:08.760 --> 0:00:11.440 Along with my co host Lisa A. Bramowitz. Each day 0:00:11.480 --> 0:00:15.000 we bring you the most important, noteworthy, and useful interviews 0:00:15.040 --> 0:00:17.520 for you and your money, whether you're at the grocery 0:00:17.560 --> 0:00:20.560 store or the trading floor. Find the Bloomberg p m 0:00:20.680 --> 0:00:32.400 L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. 0:00:32.440 --> 0:00:36.240 We've talked a lot about Mark Zuckerberg in his presentations 0:00:36.280 --> 0:00:39.640 in front of Congress. One thing we've heard less about 0:00:40.000 --> 0:00:42.479 is what's been going on in the minds of big 0:00:42.520 --> 0:00:46.280 advertisers and how they're going to be using Facebook going forward. 0:00:46.280 --> 0:00:47.680 Here to talk a little bit about it from that 0:00:47.720 --> 0:00:52.040 angle is Mark Douglas, chief executive officer of Steelhouse, which 0:00:52.240 --> 0:00:56.000 works with advertisers of all sizes and tries to give 0:00:56.040 --> 0:00:58.280 them some context from a data perspective of how to 0:00:58.320 --> 0:01:01.000 go about doing so, and his bay in Los Angeles. Mark, 0:01:01.040 --> 0:01:03.639 thank you so much for being with us. UM, So 0:01:04.000 --> 0:01:07.680 just let's start with how much advertisers have actually pulled 0:01:07.760 --> 0:01:12.080 back in the wake of the Facebook reach, if at all. UM, 0:01:12.120 --> 0:01:15.280 we haven't seen any advertisers pulled back, and we have 0:01:15.760 --> 0:01:20.280 UM close to a thousand pretty sizable advertisers that use 0:01:20.319 --> 0:01:23.600 our software. Um, what we've seen is actually a lot 0:01:23.640 --> 0:01:27.360 more concern about GDPR, which is a whole another topic. 0:01:27.480 --> 0:01:31.920 Basically there being yet global basically is a global UM 0:01:32.040 --> 0:01:35.520 protect a privacy protection law that's coming out of the EU, 0:01:35.840 --> 0:01:38.039 and so I think there's and that has that has 0:01:38.080 --> 0:01:40.760 some stiff penalties. If you violate it, you can be 0:01:40.760 --> 0:01:43.839 penalized four percent of your revenue. What's the concern on 0:01:44.000 --> 0:01:48.080 behalf of advertisers. Well, because the virtually every company in 0:01:48.080 --> 0:01:51.520 Europe has to conform with it, and it's brand new, 0:01:51.600 --> 0:01:56.160 it goes in effect on MA and UM. Europe has 0:01:56.200 --> 0:01:59.640 more consumers than actually the US does. So in other words, 0:01:59.640 --> 0:02:02.680 the idea here is advertisers wouldn't be able to access 0:02:03.040 --> 0:02:07.080 the information of European users. Therefore they couldn't target the 0:02:07.080 --> 0:02:09.480 odds as well as the idea they have to dislose. 0:02:09.600 --> 0:02:13.280 But what the information that they're collecting is being used for. 0:02:13.360 --> 0:02:17.760 So Apple actually this past weekend released OS updates for 0:02:17.919 --> 0:02:23.160 every every Apple OS, iOS, Apple TV, Mac os and 0:02:23.280 --> 0:02:25.880 now when you open their operating systems or any of 0:02:25.880 --> 0:02:28.840 the apps, they just slose to you that they value 0:02:28.840 --> 0:02:32.320 your privacy. They dislose what data are collecting, how long 0:02:32.320 --> 0:02:35.240 they're retaining it for. That's going to happen in Europe 0:02:35.680 --> 0:02:39.680 for essentially every company in Europe and every app in Europe. 0:02:39.880 --> 0:02:41.920 And Apple did it worldwide. I don't know if they 0:02:41.960 --> 0:02:44.200 did in China, but they did it certainly in the 0:02:44.320 --> 0:02:47.880 US and Europe. And that that happened for Apple this weekend. 0:02:47.919 --> 0:02:51.519 It has to happen for all companies that operate in Europe. 0:02:51.520 --> 0:02:54.280 So if someone, if you're a US company, soone gets 0:02:54.280 --> 0:02:57.120 on an airplane, when they get off the airplane and 0:02:57.160 --> 0:03:00.680 they read and they use your app, you now subject 0:03:00.760 --> 0:03:05.120 to that law as a company. And that's coming on. Mark. 0:03:05.360 --> 0:03:07.280 I want to give you about the thirty seconds or 0:03:07.360 --> 0:03:10.639 maybe even forty five seconds, give us the short version 0:03:10.680 --> 0:03:13.280 of of Mark Douglas. Because you're born in the Bronx 0:03:13.320 --> 0:03:18.839 Aviation High School, you learned to code in Seattle Oracle 0:03:19.200 --> 0:03:21.520 Center of you E Harmony. These are all part of 0:03:21.520 --> 0:03:25.560 your biography. Yeah, so um, yeah, I'm a Bronx kid 0:03:25.840 --> 0:03:29.760 and UM dropped out of college about one semester and 0:03:29.800 --> 0:03:33.239 then UM taught myself to program, bought a book and 0:03:33.360 --> 0:03:36.320 borrow a computer, taught myself to program and then UM 0:03:36.560 --> 0:03:40.120 just kind of found kept connecting with the right technologies. 0:03:40.400 --> 0:03:42.400 I learned how to program on Windows, which is now 0:03:42.440 --> 0:03:45.600 way back from the developers at Microsoft that wrote it, 0:03:46.200 --> 0:03:49.360 and then eventually met Larry Ellison and then that you know, 0:03:49.480 --> 0:03:52.560 was in Silicon Valley, and now um, I'm in Los 0:03:52.600 --> 0:03:55.200 Angeles kind of enjoying the l A lifestyle, but I 0:03:55.240 --> 0:03:58.120 think working harder than most people. And you know, I 0:03:58.160 --> 0:04:00.600 bring some New York five to l A, so working 0:04:00.600 --> 0:04:03.560 a little harder than most people in l A. The 0:04:03.800 --> 0:04:06.880 reason I wanted to introduce your background here is because 0:04:06.880 --> 0:04:09.120 I want to get to this idea of how you 0:04:09.160 --> 0:04:13.600 reinvent yourself and specifically the reinvention of video and video 0:04:13.640 --> 0:04:16.200 on demand. Tell us what's going on with things like 0:04:16.320 --> 0:04:22.360 video advertising, Direct TV now, Hulu Live, Fox Now, and 0:04:22.720 --> 0:04:26.440 the way that marketing and advertising is going to be 0:04:26.560 --> 0:04:30.760 working with video in the future. So, you know, one 0:04:30.800 --> 0:04:34.040 thing that's really interesting. If you ask UM, if anyone 0:04:34.160 --> 0:04:37.800 in the industry, what's whether to where the biggest um 0:04:37.920 --> 0:04:40.560 at tech companies, the first name they'll say is Google 0:04:41.040 --> 0:04:44.719 and the second name they'll say is Facebook. Well, actually 0:04:44.760 --> 0:04:48.640 that's not right. Fox is actually bigger than Facebook. And 0:04:48.680 --> 0:04:51.360 if Fox and Disney combined, they might be bigger than Google. 0:04:52.400 --> 0:04:56.599 So and that's all television ad revenue. All that ad 0:04:56.600 --> 0:05:00.520 revenue is going online and so connected to TV. More 0:05:00.520 --> 0:05:03.960 than six percent of Americans now watch a majority of 0:05:04.000 --> 0:05:08.560 their television on demands, so use it. It's started with Netflix, 0:05:08.960 --> 0:05:12.279 but now it's basically every channel. And so when you 0:05:12.320 --> 0:05:15.359 watch television is broadcasts we might I say broadcast, I 0:05:15.400 --> 0:05:19.200 mean just cable. Um, those ads are just broadcast based 0:05:19.240 --> 0:05:22.400 on time slots. Like the people watch the show have 0:05:22.520 --> 0:05:25.000 these qualities and we want to, you know, kind of 0:05:25.000 --> 0:05:27.080 put our message in front of them. But you watch 0:05:27.160 --> 0:05:31.280 the same exact show on connected TV, um, you can 0:05:31.480 --> 0:05:35.000 you Basically the targeting on those ads is now much 0:05:35.040 --> 0:05:38.400 more personalized in the way that Mark Zuckerberg talked about 0:05:38.960 --> 0:05:42.880 basically gave a tutorial on Internet advertising this week and 0:05:43.080 --> 0:05:46.520 for a lot of centators even just the Internet, and um, 0:05:46.520 --> 0:05:48.839 so you get kind of the same kind of targeting 0:05:48.880 --> 0:05:52.520 now for television. It's a huge transition. Okay, So given 0:05:52.560 --> 0:05:56.240 that that is a huge transition, are you seeing that 0:05:56.400 --> 0:06:00.200 Facebook and frankly Google are losing some of the lure 0:06:00.279 --> 0:06:04.719 that they once had because these targeted ads are perhaps 0:06:04.720 --> 0:06:07.640 even more effective given the fact that they are more 0:06:07.680 --> 0:06:10.559 notable as the only advertisement and they're on a specific show, 0:06:10.960 --> 0:06:14.840 and they're also not skippable. The ad completion rates broadcast 0:06:14.880 --> 0:06:19.520 television or fourteen percent, so because most people DV are 0:06:19.520 --> 0:06:22.800 the ads. The ad completion rates for connected television on 0:06:22.839 --> 0:06:26.880 demand television are nine percent because they're completely unskippable. And 0:06:26.920 --> 0:06:30.480 you're right the the earl. We can now measure this 0:06:30.839 --> 0:06:33.880 at sealhouse. We can now measure this. And the TV 0:06:34.040 --> 0:06:36.320 is a powerful medium and it's showing up on connected 0:06:36.360 --> 0:06:40.920 TV also, so we're seeing already some budgets. That's where 0:06:40.920 --> 0:06:44.880 we're seeing some budgets move where the early adopters have 0:06:44.960 --> 0:06:47.760 connected to the advertisers who are early adopters are starting 0:06:47.800 --> 0:06:52.440 to move some budget from UM social media, from other 0:06:52.520 --> 0:06:58.640 digital channels like mobile advertising, display advertising to television and UM. 0:06:58.880 --> 0:07:02.360 We're seeing response rates for the consumer that are just, 0:07:02.600 --> 0:07:05.239 you know, kind of really really strong. Approaching paid search 0:07:05.279 --> 0:07:08.360 in terms of effectiveness. If you're in the marketing or 0:07:08.440 --> 0:07:13.480 advertising world and you're listening to Mark Douglas, what are 0:07:13.560 --> 0:07:15.520 some of them I'm going to use the term buzz words, 0:07:15.560 --> 0:07:18.080 but what are those key things that you want to 0:07:18.120 --> 0:07:20.960 be spending your weekend learning about so that when you 0:07:21.000 --> 0:07:24.000 go into the office on Monday, you can have a 0:07:24.080 --> 0:07:27.760 constructive conversation about how your business is going to operate 0:07:27.760 --> 0:07:34.160 in the future. The that's an interesting question. I think, um, 0:07:35.320 --> 0:07:37.560 you know, the topics we touched on are really the 0:07:37.600 --> 0:07:41.440 ones I'm putting most of my energy into, and it's there. 0:07:41.560 --> 0:07:44.360 There's basically another way to think about it is that 0:07:44.560 --> 0:07:49.640 traditional media is making a comeback. It's kind of been predicted, 0:07:49.720 --> 0:07:53.800 you know, like Google dominates and Facebook dominates, and Display dominates, 0:07:54.160 --> 0:07:57.400 and essentially traditional media because it's not just connected television, 0:07:57.480 --> 0:08:01.760 digital radio is like with and or with Spotify, who 0:08:01.800 --> 0:08:03.560 I think just went public or is about to go 0:08:03.640 --> 0:08:06.280 put don't know they went public, got it, and so 0:08:06.360 --> 0:08:09.600 that is making a big comeback, and I think that's 0:08:09.680 --> 0:08:12.040 where we're putting a lot of attention. I think any 0:08:12.080 --> 0:08:17.559 advertiser should, especially traditional media advertiser, should be thinking, how 0:08:17.600 --> 0:08:19.600 can you know? How do I how do I now 0:08:19.680 --> 0:08:23.200 target traditional media? Thanks very much for being here, Mark Douglas, 0:08:23.240 --> 0:08:41.960 Chief executive Steelhouse. You're listening to Bloomberg. It's been one 0:08:41.960 --> 0:08:44.760 of the biggest secrets in the global oil business for 0:08:45.000 --> 0:08:49.440 more than forty years. These are the financials of Saudi Aramco. 0:08:49.600 --> 0:08:53.160 Well secret no longer here to tell us more. Will Kennedy, 0:08:53.280 --> 0:08:57.800 Managing editor for Europe, Middle East and Africa, Energy and 0:08:57.880 --> 0:09:01.600 Commodities for Bloomberkey, joins us for London. Well Kennedy, thank 0:09:01.640 --> 0:09:03.760 you very much for being with us. Just to give 0:09:03.760 --> 0:09:06.440 people a little bit of a sort of description as 0:09:06.480 --> 0:09:09.679 to why this is so relevant and interesting, not only 0:09:09.720 --> 0:09:11.559 if you're an investor, but just if you want to 0:09:11.640 --> 0:09:15.839 understand how the oil business works. There were two things 0:09:16.160 --> 0:09:20.360 to say I think him One, Saudi Arabia has suggested 0:09:20.400 --> 0:09:22.160 that it might like to I p O this company, 0:09:22.160 --> 0:09:24.880 and it would, given its scale, be the probably the 0:09:24.960 --> 0:09:28.400 largest sequity deal ever. So that's made it hugely interesting 0:09:28.480 --> 0:09:32.079 to investors and everyone around the world. And secondly, this 0:09:33.160 --> 0:09:36.679 soil at Aramco pumps underpins the whole Saudi economy. This 0:09:36.720 --> 0:09:39.560 is the income stream that pays for social spending in 0:09:39.559 --> 0:09:44.480 the kingdom. It's increasingly assertive military and uh the royal family. 0:09:45.679 --> 0:09:48.160 So I want to just get your sense. Do you 0:09:48.200 --> 0:09:51.839 think the potential investors looking at the numbers reviewed by 0:09:51.840 --> 0:09:55.800 Bloomberg would feel more positively towards the company considering the 0:09:55.840 --> 0:09:59.400 fact that it's the world's most profitable one, or take 0:09:59.480 --> 0:10:01.480 a take a little bit more of a placious stance. 0:10:02.400 --> 0:10:05.640 There were there's a mixture of things here in Lisa. 0:10:05.720 --> 0:10:09.280 I mean there were some extremely good positives. Clearly, even 0:10:09.360 --> 0:10:12.120 last year when our prices were below where they are now, 0:10:12.360 --> 0:10:14.640 this was a company that was making considerably more than 0:10:14.920 --> 0:10:17.199 any other company in the world. Um, and it will 0:10:17.240 --> 0:10:19.120 be making even more money this year as all that 0:10:19.240 --> 0:10:23.360 vallees to seventy dollars and beyond. Do you see a 0:10:23.400 --> 0:10:26.480 balance sheet that's pretty much pristine, no debt at all. 0:10:26.760 --> 0:10:31.240 You see oil production costs which by our estimates perhaps 0:10:31.280 --> 0:10:33.600 a quarter of ex On and Shell, the two biggest 0:10:33.600 --> 0:10:37.000 publicly traded companies oil companies in the world. But there 0:10:37.040 --> 0:10:40.680 are probably negatives for investors, and the one that probably 0:10:40.679 --> 0:10:43.439 needs highlighting more than any other is is the tax regime. 0:10:44.000 --> 0:10:46.600 What we discovered is that saudio Abia has imposed a 0:10:46.640 --> 0:10:50.040 new tax regime, a royalty regime, which takes a share 0:10:50.080 --> 0:10:54.199 of every single dollar the company owns earns sorry um, 0:10:54.240 --> 0:10:57.800 and that that take rises of oil prices. So it 0:10:57.920 --> 0:10:59.880 goes up once I'll get to seventy, it goes up 0:10:59.880 --> 0:11:03.240 a and to once ago to a hundred to investors 0:11:03.240 --> 0:11:05.680 may feel that really limits for them the upside of 0:11:05.679 --> 0:11:08.320 any rallying oil prices if they were to invest in 0:11:08.320 --> 0:11:10.920 a company like this when it went public. Now, what 0:11:10.960 --> 0:11:13.520 are we talking about in terms of actual profits? I 0:11:13.559 --> 0:11:16.360 believe what do they say about the almost thirty four 0:11:16.400 --> 0:11:19.520 billion dollars in income for the first six months. That's 0:11:19.559 --> 0:11:23.120 according to what Blimberg News has seen. Yeah, that's right, 0:11:23.160 --> 0:11:26.439 and that was in seventeen when prices were a lot lower. 0:11:26.440 --> 0:11:28.960 And to put that in perspective, I mean they produced 0:11:28.960 --> 0:11:32.880 ten million miles a day. Excellent Shell between them probably 0:11:32.880 --> 0:11:36.680 produced somewhere about seven million miles a day, but those 0:11:36.720 --> 0:11:40.440 two companies made just seven point four billion each. So 0:11:40.559 --> 0:11:43.360 you can really see that the low costs that Aramco 0:11:43.480 --> 0:11:46.160 have to pump their ta million miles a day from 0:11:46.200 --> 0:11:49.480 these giant fields under the Society desert mean that it's 0:11:49.559 --> 0:11:52.760 far more profitable than its nearest piers in among the 0:11:52.760 --> 0:11:56.760 western all major's. Excellent Shell. Now, the Saudi crown Prince 0:11:56.840 --> 0:12:00.760 Mohammed been a salmon who has justly been visiting the 0:12:00.880 --> 0:12:03.240 United States in the last couple of weeks. What is 0:12:03.280 --> 0:12:09.920 he said about about Saudi ARAMCA I mean, he he 0:12:10.040 --> 0:12:14.400 has while he was in America all along his our 0:12:14.400 --> 0:12:17.440 start again him and forgive me he made He made 0:12:17.480 --> 0:12:21.120 selling Saudi Aramco doing an I p O a centerpiece 0:12:21.240 --> 0:12:24.040 of his reform for the kingdom, and he said that 0:12:24.080 --> 0:12:26.280 it might be worth as much as two trillion dollars 0:12:26.320 --> 0:12:29.880 and it would be key to key to change in 0:12:29.920 --> 0:12:31.520 the economy of the kingdom of preparing it for the 0:12:31.520 --> 0:12:33.520 oil age. I mean, he's still stuck by that. What 0:12:33.640 --> 0:12:35.439 has changed that he says they'll only sell it when 0:12:35.440 --> 0:12:39.400 the time is right, when oil prices right. One thing 0:12:39.400 --> 0:12:42.800 that I'm struck by is how much flexibility does the 0:12:42.920 --> 0:12:46.920 Saudi Arabian government have to love the additional taxes or 0:12:47.000 --> 0:12:51.000 take additional profits from the company. It has all the 0:12:51.000 --> 0:12:52.800 scope that it wants. I mean, it can change the 0:12:52.880 --> 0:12:55.360 tax regime whenever it wants. And I think you're rightly 0:12:55.400 --> 0:12:58.400 st highlight that that's probably going to be a key 0:12:58.480 --> 0:13:01.240 concern for investors if they look at this company. Clearly, 0:13:01.520 --> 0:13:04.120 the primary role of Saudi Aramco is to support the 0:13:04.120 --> 0:13:08.520 fiscal uh power of Saudi Arabia, and if they need to, 0:13:09.160 --> 0:13:14.040 that's going to take presidents over looking after minority investors, 0:13:14.040 --> 0:13:16.680 and that you know that maybe we'll be enough money 0:13:16.720 --> 0:13:19.360 for everyone, but that's going to be something for investors 0:13:19.400 --> 0:13:22.480 to think about as they assessed the risk of this investment. Well, Kennedy, 0:13:22.559 --> 0:13:25.480 thank you so much for joining us, and congratulations, really 0:13:25.559 --> 0:13:29.400 really fascinating story at William Kennedy, Managing editor for the 0:13:29.400 --> 0:13:33.000 E M e A Energy and Commodities Team, UH for Bloomberg. 0:13:49.000 --> 0:13:52.400 We are joined now by Bob mulroy, chief executive officer 0:13:52.480 --> 0:13:56.080 of Partner Therapeutics, also former founder and chief executive of 0:13:56.320 --> 0:14:00.920 Merrimac based in Boston. Bob, thank you so much for 0:14:01.000 --> 0:14:04.280 being with us in congratulations. Your first drug, lu Keen, 0:14:04.440 --> 0:14:06.720 I hope I'm pronouncing that correctly, was just approved by 0:14:06.760 --> 0:14:10.800 the FDA to treat acute radiation sickness. I am a 0:14:10.800 --> 0:14:13.640 little concerned, however, about the sort of fact that this 0:14:13.720 --> 0:14:15.680 drug exists and the fact that the U. S. Department 0:14:15.679 --> 0:14:20.000 of Health and Human Services office actually began stockpiling this 0:14:20.240 --> 0:14:24.160 drug in case of a nuclear attack. Is that the 0:14:24.200 --> 0:14:27.800 main purpose of this drug, so lucine isn't actually an 0:14:27.840 --> 0:14:31.360 older drug, and its purposes really to help restore your 0:14:31.480 --> 0:14:34.840 entire immune system and so in diseases where you might 0:14:34.840 --> 0:14:37.440 have in affections, it's very important. Um. And in the 0:14:37.440 --> 0:14:40.200 case of a radiation sickness, which you could occur from 0:14:40.440 --> 0:14:42.480 a nuclear accident, but that could be a leak at 0:14:42.480 --> 0:14:45.120 a power plant, it could be from a radioactive mind 0:14:45.200 --> 0:14:47.160 that's deep in the ground. So there are many different 0:14:47.200 --> 0:14:51.480 possible sources of radiation sickness. But but the US government 0:14:51.480 --> 0:14:54.480 did after nine eleven make a decision to stockpile drugs 0:14:54.480 --> 0:14:57.040 that could help in a public emergency, and lucine is 0:14:57.080 --> 0:14:59.120 one of those drugs. So how many people do they 0:14:59.160 --> 0:15:03.040 have doses for? So I'm not sure that that's public information. 0:15:03.120 --> 0:15:06.200 I know that they are targeting, uh, you know, covering 0:15:06.240 --> 0:15:08.680 hundreds of thousands of patients with the stockpile over time, 0:15:08.680 --> 0:15:10.680 and what they've done today, I'm not sure that's public. 0:15:10.720 --> 0:15:13.720 But um, you know, we're excited that this new approval 0:15:14.000 --> 0:15:15.800 and the new data that's been shown with luke. I'm 0:15:15.800 --> 0:15:18.440 where it's the first drug to be shown effective at 0:15:18.440 --> 0:15:20.760 treating patients who have been exposed to radiation forty eight 0:15:20.800 --> 0:15:24.960 hours after an incident. Is really important because in an emergency, 0:15:25.000 --> 0:15:27.200 you can necessarily dose everybody right away. You've got to 0:15:27.200 --> 0:15:29.680 get the drug and the medical treatment to the potential 0:15:29.720 --> 0:15:32.960 patients who have been exposed. Um so luka I really 0:15:33.040 --> 0:15:36.320 is a is a breakthrough in that area. Just tell 0:15:36.360 --> 0:15:38.960 people a little bit about your background, because you're the 0:15:39.000 --> 0:15:43.800 former chief executive of Merrimack that ran into some issues 0:15:43.920 --> 0:15:46.280 that caused you to leave and you had to cut 0:15:46.280 --> 0:15:49.280 the workforce there. Tell us about why you decided to 0:15:49.360 --> 0:15:54.840 put together Partner Therapeutics and the strategy behind Partner. Well, 0:15:55.320 --> 0:15:57.280 I've been in the industry for twenty five years and 0:15:57.560 --> 0:16:01.680 I love drug development. And after leaving Merrimack, I partnered 0:16:01.720 --> 0:16:04.960 with a gentleman named Debashi's Road Chattery who ran oncology 0:16:04.960 --> 0:16:08.920 at exactly at Sergeon, Well he was chief medical officer there, 0:16:08.920 --> 0:16:11.280 but he ran oncology at Sinofie and Glaxo and and 0:16:11.440 --> 0:16:14.000 we've been good friends for years. And what we saw 0:16:14.120 --> 0:16:17.000 was a trend in the industry where um, the larger 0:16:17.000 --> 0:16:19.880 companies were focusing on fewer and fewer targets, particularly in 0:16:19.920 --> 0:16:22.560 the immunotherapy space. But there weren't a lot of companies 0:16:22.600 --> 0:16:25.560 thinking about what would you need to make those immunotherapies work. 0:16:26.160 --> 0:16:27.920 And so we said, well, let's try and work on 0:16:27.960 --> 0:16:30.920 the elements of the components you need to get immunotherapy work, 0:16:31.120 --> 0:16:33.640 and so one of the key components is stimulating the 0:16:33.680 --> 0:16:37.360 immune cells that immune therapies can trigger. And Luken we 0:16:37.400 --> 0:16:39.680 saw it was a key ingredient to that. And if 0:16:39.680 --> 0:16:42.000 you think about luke on, it's only one of two 0:16:42.120 --> 0:16:44.400 drugs and combinations with immunotherapy that have been shown to 0:16:44.480 --> 0:16:47.600 work in cancer. Now, if you happen to be a 0:16:47.640 --> 0:16:53.400 patient who is undergoing or undergone chemotherapy or bone marrow transplant, 0:16:53.760 --> 0:16:59.080 how would Lukin figure into your life. So today Lukens 0:16:59.120 --> 0:17:01.520 approved to treat patients with with a m al acute 0:17:01.520 --> 0:17:06.080 Milo leukemia or under a bone mile transplortation transplantation. And 0:17:06.440 --> 0:17:09.000 what happens in those cases is you need to uh 0:17:09.240 --> 0:17:11.639 in amail for instance, the cancer is against the immune 0:17:11.640 --> 0:17:16.159 system and destroying immune cells. So UH Luken can help 0:17:16.240 --> 0:17:20.000 reconstitute and rebuild your immune system. UH when you're getting 0:17:20.080 --> 0:17:22.720 chemotherapy for treatment, so you don't have an infection, so 0:17:22.760 --> 0:17:25.280 effectively replace the cells that are cancers that are geting 0:17:25.320 --> 0:17:27.560 killed by the chemotherapy. The same is true with bone 0:17:27.560 --> 0:17:30.439 mile transplantation, where you have to regrow or restimulate or 0:17:30.440 --> 0:17:33.199 replace that immune system. Because many of those patients they 0:17:33.200 --> 0:17:35.560 don't die of the cancer, they'll die of infections as 0:17:35.560 --> 0:17:39.199 a result of the cancer reducing their immune systems effectiveness. 0:17:39.359 --> 0:17:41.959 Lukin restores the immune systems so that they don't they 0:17:42.000 --> 0:17:44.080 don't suffer those effects. I want to talk about the 0:17:44.080 --> 0:17:46.800 process of getting the drug approved by the FDA, because 0:17:46.800 --> 0:17:49.199 there's been talk that the FDA is trying to expedite 0:17:49.359 --> 0:17:53.960 approvals in response to the to the cries for cheaper medications. 0:17:54.119 --> 0:17:56.280 Did you find that it was a faster process than 0:17:56.320 --> 0:17:59.480 you've heard and experience than in the past. It was 0:17:59.480 --> 0:18:01.840 a very fat process for us, but but not one 0:18:01.880 --> 0:18:04.719 that's a typical today. We applied for something called priority review, 0:18:04.960 --> 0:18:07.560 which is available to any drug that is deemed to 0:18:07.560 --> 0:18:10.760 be important to the public health, to a particular treatment 0:18:10.760 --> 0:18:14.000 of a condition where you really have a breakthrough therapy opportunity, 0:18:14.160 --> 0:18:16.520 and so we applied for a priority review in the 0:18:16.560 --> 0:18:19.960 f d A granted that priority review and review the 0:18:20.000 --> 0:18:22.719 drug in essentially a six month time frame as opposed 0:18:22.760 --> 0:18:25.639 to uh, you know, typical twelve or fourteen months. What 0:18:25.680 --> 0:18:28.280 are you working on now? What's in the pipeline? Well, 0:18:28.320 --> 0:18:30.760 for luke On what's exciting about it is that uh 0:18:31.320 --> 0:18:35.040 uh emunotherapy, which is the latest wave in cancer is 0:18:35.040 --> 0:18:37.520 is a really important growing area and lucan is in 0:18:37.600 --> 0:18:39.800 a whole number of trials, including a big Phase three 0:18:39.800 --> 0:18:42.919 in frontline melanoma today as well as in trials with 0:18:42.920 --> 0:18:46.520 cancer vaccines. And in the second area, uh, lucan has 0:18:46.520 --> 0:18:49.080 plays in a very important role in the immune system, 0:18:49.080 --> 0:18:51.439 where we're finding out that our diseases like Alzheimer's and 0:18:51.440 --> 0:18:54.600 Parkinson's that have a big immune system component and potentially 0:18:54.600 --> 0:18:56.639 in those indications that there have been early dated in 0:18:56.640 --> 0:18:59.080 Phase two showing if you can restore the immune system 0:18:59.119 --> 0:19:02.120 you can benefit those diseases as well. Just real quick, 0:19:02.200 --> 0:19:05.119 any any wish for an initial public offering anytime in 0:19:05.119 --> 0:19:07.200 the near future. Well, right now, we're going to focus 0:19:07.200 --> 0:19:09.840 on on on growing lukine of the business and working 0:19:09.880 --> 0:19:13.960 on building our pipeline of other drugs um but uh, 0:19:14.000 --> 0:19:18.000 we'll see how things go. And just to offer the opportunity, 0:19:18.040 --> 0:19:20.679 you did pick up a manufacturing plan from Santa Few, right, 0:19:20.880 --> 0:19:24.560 That's right, that's right. So we did acquire a biological 0:19:24.600 --> 0:19:28.200 manufacturing facility outside of Seattle, Washington, which helps make lucine. 0:19:28.440 --> 0:19:30.320 But we're hopeful other products that we're bringing into the 0:19:30.359 --> 0:19:33.080 pipeline they can make for us as well, and so 0:19:33.160 --> 0:19:36.000 we'll have. An important capacity in today's world is the 0:19:36.040 --> 0:19:39.639 ability to supply product reliably to patients and too physicians. 0:19:40.080 --> 0:19:43.200 Uh and and that's a critical thing as as capacity 0:19:43.200 --> 0:19:46.199 industry gets constrained with all the development. Thanks very much 0:19:46.240 --> 0:19:48.480 for being with us. Bob mulroy is the chief executive 0:19:48.640 --> 0:19:51.639 partner Therapeutics. They are based in Boston, home to a 0:19:51.680 --> 0:19:54.679 Bloomberg one of six one Boston New Report int thirty 0:19:54.720 --> 0:20:11.400 in MetroWest and the South Shore. There seems to be 0:20:11.720 --> 0:20:16.200 escalating fissure between the left and the right in the 0:20:16.280 --> 0:20:20.240 United States? Is it the same among chief executive officers 0:20:20.400 --> 0:20:22.760 of American companies? Here to talk about that and the 0:20:22.800 --> 0:20:27.280 consequences of these fissures is Joe Minerrek, Senior vice president 0:20:27.280 --> 0:20:30.760 and director of Research at the Committee for Economic Development, 0:20:31.080 --> 0:20:34.000 also a former chief Economists at the Office of Management 0:20:34.040 --> 0:20:38.680 and Budget during all eight years of the Clinton administration. Joe, 0:20:38.680 --> 0:20:41.359 thank you so much for being with us. You co 0:20:41.520 --> 0:20:45.600 authored a book last year, Sustaining Capitalism, Bipartisan Solutions to 0:20:45.640 --> 0:20:51.639 Restore Trust and Prosperity. In your conversations with executives, do 0:20:51.680 --> 0:20:54.280 you get the sense that they are trying to foster 0:20:54.520 --> 0:20:58.440 more bipart partisanship, or if you've seen the partisanship sort 0:20:58.440 --> 0:21:03.639 of spread to the c suite. We have something of 0:21:03.680 --> 0:21:06.920 a self selected audience. I don't want to overstate this, 0:21:07.160 --> 0:21:10.919 but uh, the folks who engage with us at the 0:21:10.960 --> 0:21:16.119 Committee for Economic Development believe in bipartisan solutions to the 0:21:16.240 --> 0:21:19.080 nation's problems. I think that that. However, I think I 0:21:19.080 --> 0:21:22.840 can assert that that is fairly representative of the business community. 0:21:23.440 --> 0:21:27.399 When you have problems in business, Uh, they're not republican 0:21:27.520 --> 0:21:31.600 or democratic problems. There are not republican or democratic facts. 0:21:32.080 --> 0:21:36.080 They are not republican or democratic solutions. Business leaders tend 0:21:36.160 --> 0:21:41.960 to be focused at solving problems, facing facts, and uh, 0:21:42.040 --> 0:21:46.480 coming out at the end with success and our perception, 0:21:46.640 --> 0:21:50.320 my perception is that the folks I talked to are 0:21:50.440 --> 0:21:54.400 trying to find a way to solve the nation's problems. Well, 0:21:54.480 --> 0:21:58.919 Joe interact, I beg your pardon is is there a 0:21:58.960 --> 0:22:03.120 development of a parallel economy or a parallel government? Because 0:22:03.119 --> 0:22:06.800 in your book you talk about how that that lawmaking 0:22:07.200 --> 0:22:12.240 is polluted by special interest lobbying, re election fundraising demands, 0:22:12.240 --> 0:22:17.080 and revolving door job appointments. That seems to be pretty 0:22:17.080 --> 0:22:22.800 contradictory to what you're describing when you talk about business leaders. Well, 0:22:22.840 --> 0:22:26.159 I'm talking to business leaders who want to try to 0:22:26.240 --> 0:22:30.800 find solutions. And I find that many business leaders, even 0:22:30.800 --> 0:22:34.520 those who don't engage with us directly, do have a 0:22:34.600 --> 0:22:37.720 sense of the need to face facts when they are 0:22:37.800 --> 0:22:41.480 dealing with issues with respect to their own businesses. So 0:22:41.680 --> 0:22:46.600 we do have, I believe, an opportunity to work with business, 0:22:46.640 --> 0:22:51.040 to have business cooperate with government to try to find 0:22:51.119 --> 0:22:54.840 ways to solve the problems that we face today. I 0:22:54.920 --> 0:22:58.280 know there will be differences with respect to particular issues. 0:22:58.960 --> 0:23:03.080 It of course gets very tricky when you have business 0:23:03.200 --> 0:23:08.040 leaders from different parts of a particular industry where there 0:23:08.080 --> 0:23:15.439 are issues of regulation or issues of alternative technologies, where 0:23:16.119 --> 0:23:18.359 you have the potential to have one side win and 0:23:18.400 --> 0:23:23.200 the other side lose. But the business community, by and large, 0:23:23.240 --> 0:23:27.240 in my experience and the people with my work, try 0:23:27.280 --> 0:23:30.960 to find a way to solve problems. And right now 0:23:31.000 --> 0:23:33.600 we have some very big issues that we need to address, 0:23:33.640 --> 0:23:36.040 and folks I talked to are willing to do that. 0:23:36.320 --> 0:23:38.239 So let's talk about some of the big issues and 0:23:38.280 --> 0:23:40.880 just wearing your hat as the head of the committee 0:23:40.880 --> 0:23:43.280 for Economic Development, but also as the as the senior 0:23:43.359 --> 0:23:46.879