WEBVTT - End of an Era for Blackberry 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.480 --> 0:00:07.320 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.640 plus technology, politics, economics, all parnessing the power of Business 0:00:13.680 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:19.640 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.239 download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.200 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.920 --> 0:00:32.760 YouTube search Bloomberg Clovel News. Dr Michael Blavi's chief medical 0:00:32.800 --> 0:00:35.400 officer at Anna Vasi Diagnostics, joining us once to count 0:00:35.400 --> 0:00:37.640 on the phone from Atlanta. Doctor, thanks for sticking around 0:00:37.640 --> 0:00:39.519 with us as we we heard from the president. Uh. 0:00:39.720 --> 0:00:42.400 Your immediate immediate reaction to to what we heard from 0:00:42.400 --> 0:00:45.159 the president. It wasn't necessarily a different message than we've 0:00:45.159 --> 0:00:49.720 been hearing from him for months. Oh, it's a consistent message. Uh. 0:00:49.920 --> 0:00:52.920 The theme is everybody has to pitch in to try 0:00:52.960 --> 0:00:56.920 to control the pandemic spread. And now more of a 0:00:56.960 --> 0:01:01.800 focus on the fact that booster shots immunization will protect 0:01:01.880 --> 0:01:03.920 you from getting very sick going to that I see 0:01:03.960 --> 0:01:09.240 you possibly dying, uh, But infection probably has to occur still, 0:01:09.319 --> 0:01:11.840 and the only way we can control it is isolating 0:01:11.840 --> 0:01:15.959 ourselves when are positive. So the theme of testing right right, 0:01:15.959 --> 0:01:18.080 and this is something you guys. You are developing your 0:01:18.080 --> 0:01:22.560 own um at home test and I know that is 0:01:22.560 --> 0:01:25.400 still working its way through in terms of towards an 0:01:25.400 --> 0:01:28.679 emergency use act and stuff. How how do you see 0:01:29.120 --> 0:01:31.880 kind of the testing situation as we speak And I'm 0:01:32.000 --> 0:01:35.560 I'm guessing these kinds of tests will be with us 0:01:35.560 --> 0:01:39.680 for a long time. Yes, the tests that will keep evolving. 0:01:39.880 --> 0:01:43.520 Others will put the high accuracy tests on the market 0:01:43.920 --> 0:01:47.360 in miniature form like we're doing. But it's interesting a 0:01:47.360 --> 0:01:49.320 lot of tests are out of stock when you go 0:01:49.400 --> 0:01:52.240 to your grocery store pharmacy, the home kits are out 0:01:52.240 --> 0:01:54.120 of stock, and I are not in big time for 0:01:54.200 --> 0:01:59.200 those radio acquire my friends. Absolutely. And then also at 0:01:59.200 --> 0:02:01.840 the same time that DA has started to make a 0:02:01.920 --> 0:02:04.440 list of tests that may not be so accurate for 0:02:04.560 --> 0:02:06.880 el macron and we're likely to see that in the 0:02:06.920 --> 0:02:11.480 future even more with additional mutations because tests uh main 0:02:11.600 --> 0:02:14.880 target the wrong area in a macron now an area 0:02:14.919 --> 0:02:17.840 that is mutated from delta. So more and more concerned 0:02:17.880 --> 0:02:21.320 about that. Wait wait what yeah? Can those tests like Okay, 0:02:21.320 --> 0:02:24.600 so let's say you know some tests that are common 0:02:24.760 --> 0:02:27.079 by nax now, for example, from Abbot Labs. Could it 0:02:27.160 --> 0:02:31.400 tests like that be altered? Do Look? Could it tests 0:02:31.400 --> 0:02:34.600 like that be altered by Abbott to pick up different 0:02:35.000 --> 0:02:39.160 variants in a better way? And how quickly? Absolutely? Absolutely? Uh, 0:02:39.200 --> 0:02:42.320 you know, someone like Abbott could work that out very quickly, 0:02:42.639 --> 0:02:44.720 But then they'll have to go through the emergency Youths 0:02:44.840 --> 0:02:49.359 authorization procedure again. So realistically you're talking about several months 0:02:49.360 --> 0:02:52.200 in most cases, which is light speed compared two years ago. 0:02:52.680 --> 0:02:56.120 But absolutely Abbott could make that adjustment, so could others, 0:02:56.440 --> 0:03:02.480 and others probably will have to do that in the future. Um, 0:03:02.520 --> 0:03:04.519 it's an interesting world. Tim and I were also talking 0:03:04.520 --> 0:03:06.360 about the cost of tests. I mean, they're not an 0:03:06.360 --> 0:03:08.480 expensive certainly they at home test and I do let's 0:03:08.480 --> 0:03:10.639 just be honest. You texted me, Carroll texted me last 0:03:10.720 --> 0:03:15.080 night at PM's what I bought mine? And she said, 0:03:15.200 --> 0:03:18.880 I found some tests at this drug store near the office. 0:03:18.960 --> 0:03:20.760 I went this morning and I picked up for we 0:03:20.840 --> 0:03:24.000 have like an and thank you Creedy because she's the 0:03:24.000 --> 0:03:25.760 one who's like, hey, you gotta check out this pharmacy. 0:03:25.840 --> 0:03:27.919 So it's been like a little network inside of our 0:03:27.960 --> 0:03:31.200 our offices. Um, so we do find it, but I 0:03:31.240 --> 0:03:34.480 do worry about people who need to work can't afford 0:03:34.520 --> 0:03:38.320 these tests. Maybe your vaccinated fingers crossed they are. I mean, 0:03:38.800 --> 0:03:40.760 we need to just get test house. I think over 0:03:40.760 --> 0:03:42.840 in the UK, one of our colleagues said, at the 0:03:42.920 --> 0:03:47.760 National Health Services, you know, just supplies them. Yeah, and 0:03:47.840 --> 0:03:50.000 the same the same thing was done in Switzerland where 0:03:50.200 --> 0:03:54.640 every family was given five tests per family member for 0:03:54.720 --> 0:03:58.000 each month they could test regularly. And as a physician, 0:03:58.360 --> 0:04:01.640 one of the greatest challenge just we had an emergency department. 0:04:02.080 --> 0:04:05.440 Are low income folks that are working, they can't afford 0:04:05.440 --> 0:04:08.440 the tests, and they also can't afford to stop working 0:04:08.440 --> 0:04:10.880 when they're sick or feeling sick. That means they in 0:04:10.920 --> 0:04:14.360 fact others. It's a really difficult position to deal with. 0:04:15.240 --> 0:04:18.320 So how how does this how does this pandemic end? 0:04:18.360 --> 0:04:21.240 We're entering year three of it, doctor, and I'm I'm 0:04:21.279 --> 0:04:23.600 just you know, this is a pretty exasperating time. I 0:04:23.600 --> 0:04:25.200 think for a lot of people especially those with young 0:04:25.279 --> 0:04:27.440 kids who are not in school as a result of 0:04:27.440 --> 0:04:30.240 this and are concern because those kids can't be vaccinated yet. 0:04:30.360 --> 0:04:34.880 I'm speaking about myself. How does this end sure? I 0:04:34.920 --> 0:04:37.839 think probably we learn to live with the virus and 0:04:37.839 --> 0:04:41.680 it's different, different mutations. Hopefully we get more mutations like O. 0:04:41.800 --> 0:04:46.000 Macron that don't make people quite as sick. Overall, the 0:04:46.040 --> 0:04:49.040 immunization or immunity and the air in the community and 0:04:49.080 --> 0:04:52.560 the society goes up and we have more very highly 0:04:52.560 --> 0:04:56.120 effective medications, so that one day in the future O. 0:04:56.240 --> 0:04:58.640 Macron is a little bit more like the flu. There 0:04:58.680 --> 0:05:01.960 are susceptible people, they get extra immunizations if you get 0:05:02.000 --> 0:05:06.160 the flu. We actually may have more effective medications against 0:05:06.200 --> 0:05:08.800 a macron than the flu, and I think that will 0:05:08.920 --> 0:05:11.400 absolutely be the case in the near future. Dr Blavis 0:05:11.400 --> 0:05:13.200 just got about a minute or under a minute left here. 0:05:13.200 --> 0:05:15.640 What's the outlook in terms of UM I know you 0:05:15.640 --> 0:05:20.800 guys are working on submitting your COVID test for FDA 0:05:20.880 --> 0:05:25.560 authorization under the Emergency Use Act. Any update on that. Yes, 0:05:25.600 --> 0:05:28.800 we just started in rolling patients. We're hoping to be 0:05:28.880 --> 0:05:31.640 done in rolling patients by the middle of this month, 0:05:31.760 --> 0:05:35.719 maybe the third week and then if all goes as planned, 0:05:36.040 --> 0:05:38.480 we'll get the emergency use authorization by the FDA to 0:05:38.520 --> 0:05:41.800 start selling on approximately March one. All right, well, good 0:05:41.800 --> 0:05:44.440 to know, and we wish you good luck with it. Certainly, 0:05:44.760 --> 0:05:46.599 it seems like the world is just appreciative of the 0:05:46.600 --> 0:05:49.839 more tools that we have to deal with this. Dr 0:05:49.880 --> 0:05:53.280 Michael Blavis, he's chief medical officer at Anna Vass Diagnostics, 0:05:53.360 --> 0:05:55.960 joining us once again on the phone from Atlanta. This 0:05:56.320 --> 0:05:59.960 is Bloomberg Business Week with Carol Masser and Bloomberg Quick 0:06:00.080 --> 0:06:05.080 Takes Tim Stinovic on Bloomberg Radio. Carol, you had a BlackBerry. 0:06:05.200 --> 0:06:06.960 I did. I loved it. How many years do you 0:06:06.960 --> 0:06:09.760 think you had at my crackberry? Yeah? A few years 0:06:10.960 --> 0:06:13.720 to remember, and I did quite get it until I 0:06:13.760 --> 0:06:15.920 got one, and then I was like addicted. And then 0:06:15.960 --> 0:06:18.560 as soon as the iPhone came along. What happened? First 0:06:18.600 --> 0:06:20.520 I didn't love it? Yeah, and then you wanted that 0:06:20.520 --> 0:06:23.080 old keyboard back right? You wanted that physical keyboard? Did you? 0:06:23.360 --> 0:06:26.000 Did you have one? I did have a BlackBerry, but uh, 0:06:26.160 --> 0:06:27.480 yeah it was fine. I mean, but I went to 0:06:27.560 --> 0:06:29.440 iPhone pretty quickly, and you can do them out so 0:06:29.520 --> 0:06:31.720 much more with a smartphone. Yeah, you really can. It's 0:06:31.760 --> 0:06:33.359 a lot different, but it's certainly fair to say that 0:06:33.400 --> 0:06:35.440 it ushered in a new era when it came to 0:06:35.760 --> 0:06:38.520 smartphones and personal technology. Well, it's the end of the 0:06:38.640 --> 0:06:42.360 road for BlackBerry. Piece. It's the BlackBerry operating system. We 0:06:42.360 --> 0:06:44.080 should know the point. We should note that you can 0:06:44.080 --> 0:06:46.760 still get Blackberries that are powered by Android. Joining us 0:06:46.760 --> 0:06:48.440 now to talk all about it is John Butler, senior 0:06:48.480 --> 0:06:52.200 Telecom Services and Equipment analyst for Bloomberg Intelligence. He joins 0:06:52.240 --> 0:06:54.320 us on the phone from New Jersey. John, how how 0:06:54.320 --> 0:06:57.680 many people are is this going to affect? Blackberries? Are like, 0:06:57.720 --> 0:06:59.680 they're like unicorns, right? You see him in the wild 0:06:59.760 --> 0:07:03.720 and you're wow, BlackBerry. I don't you know. I was 0:07:04.000 --> 0:07:06.920 listening to you guys talk. I had a BlackBerry as well. 0:07:07.760 --> 0:07:10.160 I don't see a lot out in the wild anymore. 0:07:10.200 --> 0:07:12.720 I'm not sure it's really going to affect many people 0:07:13.400 --> 0:07:17.880 and BlackBerry years ago. Our name is Carol, and I 0:07:17.920 --> 0:07:19.440 have a BlackBerry. It's like, you know what I mean, 0:07:19.560 --> 0:07:24.280 what if people hide it? Right, John, there's a few 0:07:24.320 --> 0:07:27.360 of us out there. But I I switched to the 0:07:27.360 --> 0:07:30.960 iPhone pretty quickly too. But um, you know, it was 0:07:31.080 --> 0:07:35.600 one of those corporate libel phones, like companies paid for 0:07:35.840 --> 0:07:38.640 your cell phone and gave you. In my case, I 0:07:38.680 --> 0:07:40.760 had a rim page or if you remember the old 0:07:40.840 --> 0:07:47.360 name research in Motion, and you know, you eventually moved 0:07:47.360 --> 0:07:50.680 to two phones. And people love BlackBerry so much that 0:07:50.800 --> 0:07:53.760 they ended up hanging onto the Blackberries for a long time. 0:07:53.800 --> 0:07:57.640 And honestly, three or four years ago, I used to 0:07:57.680 --> 0:08:00.200 see a lot of Blackberries out in the y else 0:08:00.200 --> 0:08:04.040 so to speak, and I'm just not seeing them anymore. So, Carol, 0:08:04.120 --> 0:08:06.840 to answer your question, I don't think there's a lot 0:08:06.920 --> 0:08:10.040 of users at this point that are still hanging on. 0:08:10.240 --> 0:08:14.880 But you know, from a corporate standpoint, it's something that BlackBerry, 0:08:14.920 --> 0:08:18.160 BlackBerry needed to move on from that. They really are 0:08:18.200 --> 0:08:23.000 a software maker right now. Um, they've moved into mobile 0:08:23.040 --> 0:08:26.400 software and security software and they sold off that handset 0:08:26.480 --> 0:08:30.320 business years ago. So it's a good point, right They've 0:08:30.320 --> 0:08:33.000 been going through changes, John, So what I don't know 0:08:33.040 --> 0:08:35.080 what how do you see the outlook of the future 0:08:35.080 --> 0:08:40.479 of BlackBerry. So they are still a company and transition, 0:08:40.559 --> 0:08:42.560 and I think a lot of people would have thought 0:08:42.600 --> 0:08:45.400 at this point they would be out of the transition 0:08:46.440 --> 0:08:50.120 and growing better, and they still have to make some move. So, 0:08:51.040 --> 0:08:55.679 speaking of handsets, they had this huge portfolio of intellectual 0:08:55.760 --> 0:08:59.800 property for wireless and they're trying to sell that right 0:09:00.000 --> 0:09:01.920 out a fund R and D to get a bunch 0:09:01.960 --> 0:09:06.679 of new products over the finish line. And we're almost there. 0:09:06.800 --> 0:09:09.199 You know. It's one of those stories. You can see 0:09:09.200 --> 0:09:13.079 it beginning to come together. But they need more funding, uh, 0:09:13.080 --> 0:09:16.960 and they need a little bit more focus, and um, 0:09:17.000 --> 0:09:19.400 you know, my sense with them is I think they'll 0:09:19.400 --> 0:09:23.240 get there. Um, it's hardly a given, but I think 0:09:23.440 --> 0:09:26.840 I think they're on their way. Um. I think it 0:09:26.920 --> 0:09:30.320 was high time they that they finally kind of let 0:09:30.360 --> 0:09:33.600 go of that wireless business. Even a couple of quarters ago, 0:09:34.640 --> 0:09:38.640 they were still reporting what they called service access fees, 0:09:38.720 --> 0:09:42.160 So people who had a BlackBerry would pay a fee 0:09:42.200 --> 0:09:47.000 to get access to their proprietary network for email and 0:09:48.240 --> 0:09:51.800 file transfer and that kind of stuff. And so that'll 0:09:52.080 --> 0:09:55.520 that'll go and it'll free up some cost. Hey, John, 0:09:55.559 --> 0:09:59.000 I wonder if there's any sort of lesson in here 0:09:59.040 --> 0:10:02.560 about business icicles and companies and companies staying on top 0:10:02.600 --> 0:10:04.480 of things that we can learn from the rise and 0:10:04.840 --> 0:10:07.720 fall of BlackBerry, especially the day that after Apple hits 0:10:07.720 --> 0:10:10.280 three trillion dollars in market cap, because if we think 0:10:10.280 --> 0:10:12.199 back to two thousand seven, when Steve Jobs stood on 0:10:12.240 --> 0:10:14.240 that stage and introduced the iPhone, there were a lot 0:10:14.280 --> 0:10:16.440 of people out there who said, there is no future 0:10:16.440 --> 0:10:20.199 for this thing. BlackBerry dominates when it comes to smartphones, 0:10:22.600 --> 0:10:25.480 you know that. I think the lesson learned is, particularly 0:10:25.480 --> 0:10:29.800 in the tech industry, some of these gigantic companies can 0:10:29.840 --> 0:10:35.040 literally disappear and um or they can disappear from a 0:10:35.120 --> 0:10:39.079 given business, as was the case with BlackBerry, but they 0:10:39.120 --> 0:10:42.560 really are a shadow of their former self, if you will. 0:10:43.400 --> 0:10:46.760 But LG just left the smartphone business and they were 0:10:46.800 --> 0:10:50.920 a pretty big player for many years, and so to me, 0:10:51.240 --> 0:10:55.079 I always use BlackBerry as an example of how these 0:10:55.160 --> 0:11:01.280 tech behemoths can really fall from grace and ultimately disappear 0:11:01.920 --> 0:11:06.160 over time. And I think the other lesson, and I've 0:11:06.240 --> 0:11:09.920 learned this over the years as an analyst, is that 0:11:10.080 --> 0:11:13.000 it's important to have the right CEO in place at 0:11:13.040 --> 0:11:17.360 the right time in a company's life cycle. And I 0:11:17.400 --> 0:11:20.440 think Apple is a great example of that. I think 0:11:21.080 --> 0:11:24.840 Tim Cook came in right at a time when Apple 0:11:24.880 --> 0:11:28.960 had reinvented, their product line was set, but they needed 0:11:28.960 --> 0:11:31.680 a logistics guy to really grow it where it is 0:11:31.760 --> 0:11:35.280 today exactly, Tim Cook, I think was the right guy 0:11:35.320 --> 0:11:37.400 to do that. All right, John, Hey, we gotta run. 0:11:37.480 --> 0:11:39.720 Thank you so much. Always appreciate your insight. John Butler, 0:11:39.800 --> 0:11:43.480 Senior Telecom Service and Equipment analyst a Bloomberg Intelligence. You're 0:11:43.520 --> 0:11:47.520 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:11:47.559 --> 0:11:52.560 Quick Takes. Tim Stinovic on Bloomberg Radio. Obesity is a disease, 0:11:52.679 --> 0:11:55.640 and there are ways to fight it, including prescription drugs 0:11:55.640 --> 0:11:59.000 that work. The problem is most doctors are not prescribing them, 0:11:59.000 --> 0:12:01.080 and insurers won't come for them. Let's get to the 0:12:01.120 --> 0:12:03.560 reasons why. Well. I'm a cord As healthcare reporter for 0:12:03.600 --> 0:12:05.640 Bloomberg News. She joins us on the phone from New 0:12:05.720 --> 0:12:07.880 York City. Her story is going to be featured in 0:12:07.880 --> 0:12:10.160 the upcoming issue of Bloomberg Business Week magazine. You can 0:12:10.200 --> 0:12:12.720 read it now though on the Bloomberg Terminal, also online 0:12:12.720 --> 0:12:15.679 at Bloomberg dot com slash business Week. Joel Weber is 0:12:15.800 --> 0:12:17.760 editor at Bloomberg Business Week. He joins us now on 0:12:17.760 --> 0:12:21.440 the access line from Brooklyn. Joel Carroll mentioned this group 0:12:21.480 --> 0:12:23.920 of drugs. These This group is known as g LP 0:12:24.280 --> 0:12:28.360 one receptor agonists or GLP ones. What do they do? 0:12:28.480 --> 0:12:31.439 It's very catchy, right, yeah, it is for the pharmacyical 0:12:31.480 --> 0:12:35.319 industry really has a way with naming things, right, yeah, exactly. 0:12:35.360 --> 0:12:39.079 But you know, regardless of name, Uh, the science behind 0:12:39.080 --> 0:12:43.520 these shows promise and uh, as Emma goes into in 0:12:43.559 --> 0:12:47.080 the story, um the drugs, and this class of drugs 0:12:47.160 --> 0:12:51.079 is really geared. Maybe not um just you know those 0:12:51.080 --> 0:12:53.199 stubborn five pounds that we'd all like to get off, 0:12:53.280 --> 0:12:56.040 but a whole category of people who really haven't had 0:12:56.040 --> 0:12:59.600 that many many drugs for them before, which is obese 0:13:00.040 --> 0:13:04.240 obset people, and obesity being such an epidemic in the country. Um, 0:13:04.400 --> 0:13:07.559 numbers that are stubborn and and really don't go up 0:13:08.120 --> 0:13:12.120 go down. And yet you know, doctors have the stigma 0:13:12.200 --> 0:13:15.320 around it. It's like it's still in their mind. Can 0:13:15.440 --> 0:13:20.720 be a behavioral problem that science can't necessarily solve. Insurance 0:13:20.760 --> 0:13:22.679 on top of that, looks at this new class of 0:13:22.760 --> 0:13:27.400 drug and they're not necessarily thrown money at it all 0:13:27.440 --> 0:13:31.160 of which you know kind of leaves this solution to 0:13:31.240 --> 0:13:34.600 a big problem someone on the shelf. But but now 0:13:34.640 --> 0:13:36.040 I'm talking on the turn. I don't want to hear 0:13:36.080 --> 0:13:39.120 more from ms Emma, Uh what what what? How did 0:13:39.120 --> 0:13:41.760 this story coming to being and and how what kind 0:13:41.800 --> 0:13:46.760 of potential does this class of drugs really really have? Hi, UM, well, 0:13:46.760 --> 0:13:50.680 thanks so much for having me on and um, I 0:13:50.720 --> 0:13:52.640 hope everyone who listen to me has a chance to 0:13:52.720 --> 0:13:56.679 check out the story. The piece started, there were a 0:13:56.720 --> 0:13:59.880 couple of early threads, but I started hearing about so 0:14:00.200 --> 0:14:04.520 startups that we're trying to treat obesity and help people 0:14:04.559 --> 0:14:07.680 with weight loss using medication and telemedicine, so these like 0:14:07.760 --> 0:14:10.360 virtual doctors visits, and I thought it was sort of 0:14:10.400 --> 0:14:13.080 an interesting approach, and at the same time with hearing 0:14:13.080 --> 0:14:19.160 about pharmaceutical companies trying to develop better obesity drugs and um, 0:14:19.200 --> 0:14:20.800 you know, as I learned more about the space, I 0:14:20.880 --> 0:14:23.320 just kept coming back to this point of like, you know, 0:14:23.360 --> 0:14:26.800 even previous to these GLP one drugs that are starting 0:14:26.840 --> 0:14:31.000 to be developed for weight loss and obesity specifically, they 0:14:31.040 --> 0:14:34.400 would previously been used in diabetes. You know, there have 0:14:34.480 --> 0:14:38.960 been prescription drugs that can help people lose weight that 0:14:39.000 --> 0:14:41.600 are rarely used. Um. You know, and this is going 0:14:41.600 --> 0:14:45.000 back several years, and there's a lot of different complicated 0:14:45.040 --> 0:14:47.760 reasons for that, but I kept kind of just being 0:14:47.760 --> 0:14:51.240 struck by the discrepancy between the fact that you know, 0:14:51.320 --> 0:14:55.200 many people are are obese or overweight UM in the US, 0:14:55.280 --> 0:14:58.440 you know, hundreds of millions of people, UM. And yet 0:14:58.480 --> 0:15:02.240 people are consistently being told to diet to exercise, and 0:15:02.240 --> 0:15:05.640 they're not being told about the other option that's available 0:15:05.680 --> 0:15:08.560 for them. All right, Emma. The thing I find like crazy, 0:15:08.840 --> 0:15:10.720 like blows my mind a little bit is, and you 0:15:10.760 --> 0:15:12.960 write this, the biggest constraint on weight lost drugs remains 0:15:13.000 --> 0:15:16.040 buy in from the broader medical industry. How can doctors 0:15:16.400 --> 0:15:19.200 who potentially see this as something that could really like 0:15:19.240 --> 0:15:22.440 prescribing one of these drugs help one of their obese patients. 0:15:22.440 --> 0:15:27.360 How how are they allowed, you know, as a doctor, 0:15:27.520 --> 0:15:32.960 not to prescribe it. That's a really good question, Carol. 0:15:33.040 --> 0:15:35.000 And I think you know, I quote a doctor and 0:15:35.080 --> 0:15:37.840 obesity doctor and the story who says sort of, you know, 0:15:37.880 --> 0:15:42.160 if you treated diabetes or hypertension in this way, like 0:15:42.200 --> 0:15:45.080 you know, a doctor would lose their their medical license. 0:15:45.120 --> 0:15:48.400 I mean, it's kind of remarkable that, you know, we're 0:15:48.520 --> 0:15:51.360 very comfortable prescribing and by way, I mean doctor is 0:15:51.400 --> 0:15:55.720 prescribing medications for so many different kinds of medical conditions. 0:15:55.720 --> 0:15:57.360 And I think a lot of this helps to do 0:15:57.400 --> 0:16:00.280 with the way OBEs to previously been seen. Right, people 0:16:00.440 --> 0:16:03.920 think of obesity or or being overweight as really being 0:16:03.960 --> 0:16:06.640 a something that you kind of did yourself, right, and 0:16:06.720 --> 0:16:08.480 we kind of get into this more of the piece. 0:16:08.520 --> 0:16:11.480 But you didn't work hard enough to lose weight, right, 0:16:11.480 --> 0:16:15.480 this is your fault, um and UM. As a result, 0:16:15.560 --> 0:16:18.360 this is treated as as a lifestyle condition. If you're 0:16:18.440 --> 0:16:22.280 eating too much, you're not active enough, um. And there's 0:16:22.320 --> 0:16:25.760 some more complicated science that's come out in the last 0:16:25.760 --> 0:16:29.160 several decades that shows that our bodies really do have 0:16:29.280 --> 0:16:31.880 a big influence over how we you know, when we 0:16:31.960 --> 0:16:35.000 stop eating, you know when we're hungry, when we feel 0:16:35.000 --> 0:16:38.560 satisfied after we eat, and and that there's more biologically 0:16:38.640 --> 0:16:42.000 going on than merely sort of you know, refraining from 0:16:42.040 --> 0:16:44.400 getting on the treadmill every day, which is what I 0:16:44.400 --> 0:16:46.880 think a lot of people unfortunately still think, and even 0:16:47.040 --> 0:16:50.680 even doctors and certainly people who struggle with their weight themselves. Well, 0:16:50.720 --> 0:16:52.160 I'm just gonna make one comment because I know Tim 0:16:52.160 --> 0:16:53.600 has a question, but I'm just gonna I wrote a 0:16:53.640 --> 0:16:57.760 note being OBEs is big business, and it supports a 0:16:57.840 --> 0:16:59.920 lot that's out there anyway, that's my that's my pa 0:17:00.040 --> 0:17:01.600 in peace. It doesn't. It's a good I mean, it's 0:17:01.600 --> 0:17:03.120 a good thing for us to be thinking about on 0:17:03.880 --> 0:17:05.280 in the new year, when a lot of people have 0:17:05.800 --> 0:17:08.520 different fitness goals and weight loss goals that are associated 0:17:08.720 --> 0:17:10.040 with the new year. I want to talk a little 0:17:10.040 --> 0:17:12.720 bit more about that m and and obesity because I 0:17:12.760 --> 0:17:14.960 was I was I'm always shocked to see these statistics 0:17:15.000 --> 0:17:19.320 about you know, how many Americans are are obese or 0:17:19.359 --> 0:17:23.440 overweight three and four and estimated two million people. Can 0:17:23.480 --> 0:17:25.560 you talk a little bit though about comorbidities here in 0:17:25.600 --> 0:17:27.760 the dangers of being overweight. They've come to the to 0:17:27.880 --> 0:17:30.879 the to the surface a lot when in discussions of COVID. 0:17:30.920 --> 0:17:36.720 But but beyond that, yeah, yeah, so, um, the big 0:17:36.800 --> 0:17:40.520 kind of concern about having excess weight as obviously that's 0:17:40.560 --> 0:17:44.760 defined by the body mass index UH standard. Right, So 0:17:45.080 --> 0:17:49.760 people who are um obese are at higher risk of 0:17:49.840 --> 0:17:58.000 developing various um medical conditions, including um diabetes. Another respects 0:17:58.040 --> 0:18:01.720 tied to obese is actually all call mortality, so literally 0:18:02.040 --> 0:18:05.399 death by any cause. Um. So we know from some 0:18:05.560 --> 0:18:08.760 of these statistical analogies that you know, when you are 0:18:09.800 --> 0:18:12.280 you carry around extra weight, you are more likely to 0:18:12.359 --> 0:18:15.239 develop some of these other medical problems. And you know, 0:18:15.280 --> 0:18:18.240 it does raise a lot of concerns for doctors and 0:18:18.320 --> 0:18:21.240 medical providers about your health, right are you as healthy 0:18:21.280 --> 0:18:23.760 as you could be? Um? And as a result, it's 0:18:23.840 --> 0:18:26.280 led to a lot of interest in finding rains to 0:18:26.480 --> 0:18:29.760 keep pounds off obviously not just for you know, reasons 0:18:29.760 --> 0:18:34.000 of appearance, but also really health health reasons. So to 0:18:34.160 --> 0:18:37.880 wrap her, Emma, let's talk briefly about the science. How 0:18:37.920 --> 0:18:42.320 does this this class of drugs that we're talking about here, um, 0:18:43.000 --> 0:18:45.600 the gop ones, how how does it? How do they work? 0:18:45.960 --> 0:18:49.800 And Imma just got about thirty seconds. So they do 0:18:49.880 --> 0:18:52.800 a couple of different things. Especially when you're talking about diabetes, 0:18:52.840 --> 0:18:56.479 they actually help pincreas, get the pincreas to produce insulin 0:18:56.560 --> 0:18:58.719 to bring your blood sugar levels down. But when you're 0:18:58.720 --> 0:19:01.720 talking about weight loss specific atale, what's really interesting about 0:19:01.720 --> 0:19:05.960 these drugs is they mimic a hormone called g lp one. Right, 0:19:06.040 --> 0:19:08.840 these drugs are named after the hormone and it actually, 0:19:09.119 --> 0:19:12.400 uh kind of helps tell your brain like you're satisfied, 0:19:12.560 --> 0:19:15.800 you don't have to eat anymore. Um, and that's kind 0:19:15.800 --> 0:19:18.040 of the key to it. It's funny people might think 0:19:18.040 --> 0:19:20.240 of that, you know, they've got hormones, but they actually 0:19:20.560 --> 0:19:23.159 work most potently, it seems, in the brain, which is 0:19:23.240 --> 0:19:25.560 kind of a fascinating thing to think about, this being 0:19:25.880 --> 0:19:29.520 really neuroscience. At the end of the day, all right, 0:19:29.520 --> 0:19:31.360 we're gonna leave it on that note. Listen, guys, thank 0:19:31.400 --> 0:19:33.920 you so much. It's a really wonderful story, I mean, 0:19:34.080 --> 0:19:36.359 troubling story, but you should definitely check it out with 0:19:36.400 --> 0:19:38.600 all its uh details. You can find it at Bloomberg 0:19:38.640 --> 0:19:41.160 dot com and the court there and Chill Weber. This 0:19:41.440 --> 0:19:45.200 is Bloomberg Business Week with Carol Masser and Bloomberg Quick 0:19:45.240 --> 0:19:49.160 Takes Tim Stinovic on Bloomberg Radio. Later this month, We're 0:19:49.160 --> 0:19:51.200 gonna get update on Netflix when it reports it's latest 0:19:51.280 --> 0:19:54.880 quarterly results. This is the company's edging closer to investment 0:19:54.880 --> 0:19:57.679 grade status. It's what you call a rising star, at 0:19:57.720 --> 0:20:00.680 least according to our Bloomberg Intelligent Seen that is about 0:20:00.680 --> 0:20:03.960 the upgrade to their investment grade status. Let's get into 0:20:04.000 --> 0:20:06.680 it with Olivia Raymond, a credit markets and high yield 0:20:06.720 --> 0:20:08.919 bond reporter for Bloomberg new She joins us on the 0:20:08.920 --> 0:20:11.639 phone from here in New York City, Olivia. Great to 0:20:12.000 --> 0:20:14.560 have you with us. UM can help us make the 0:20:14.560 --> 0:20:18.600 connection here between what exactly is going on with with 0:20:19.160 --> 0:20:24.399 Netflix right now on the credit side, and you know 0:20:25.000 --> 0:20:27.440 what we've seen with with Netflix is stock in recent 0:20:27.520 --> 0:20:31.439 years as it's continued to just fly higher. Yeah, so 0:20:31.560 --> 0:20:35.080 thank you so much for having me on. So Netflix 0:20:35.200 --> 0:20:39.600 is poised to become a so called rising star at 0:20:39.680 --> 0:20:43.200 some point this year. And what that means for listeners 0:20:43.320 --> 0:20:46.280 who aren't aware, aren't aware of that phrase, that just 0:20:46.359 --> 0:20:50.320 simply means that a junk graded company is moved into 0:20:50.520 --> 0:20:53.399 investment grade status and all of its debt gets moved 0:20:53.400 --> 0:20:59.400 into investment grade UH indices. So Netflix already has one 0:20:59.520 --> 0:21:04.680 high grade rating from SMP. They upgraded Netflix last October, 0:21:05.160 --> 0:21:08.879 so all it needs is a second rating from a 0:21:08.920 --> 0:21:11.280 second high grade rating from one of the major rading 0:21:11.600 --> 0:21:14.720 rating agencies for it to bump up to that rising 0:21:14.720 --> 0:21:17.240 star status. So tell us about what that means, because 0:21:17.280 --> 0:21:22.960 that means basically what servicing your debt costs less. Yeah, exactly. So, 0:21:22.960 --> 0:21:27.440 So when companies leave junk status and become investment grade UM, 0:21:27.520 --> 0:21:30.760 they can get financed from a deeper pool of borrowers 0:21:30.800 --> 0:21:32.960 at lower rates. So what are the changes that the 0:21:33.000 --> 0:21:35.280 company has made in order to boosts credit rating? How 0:21:35.320 --> 0:21:39.240 has this happened? Yes, so that their credit metrics have 0:21:40.119 --> 0:21:45.040 performed um and have been improving. They have raise an 0:21:45.080 --> 0:21:48.919 ample amount of liquidity, and they've also signaled that they 0:21:48.920 --> 0:21:52.040 are not going to need to take out much more 0:21:52.119 --> 0:21:55.159 debt in the future due to the recent successes that 0:21:55.240 --> 0:21:59.240 they've had, especially over the pandemic. When everyone lives stuck 0:21:59.280 --> 0:22:01.879 at home, watch movies and shows on the streaming circuit 0:22:02.080 --> 0:22:06.880 streaming service excuse me, and m boost its h boosts viewers. 0:22:07.000 --> 0:22:11.240 So so that's helped it UM shore up some money 0:22:11.320 --> 0:22:13.760