WEBVTT - Vaccine Could Reduce Stress for Parents, Children 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovik. 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 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors not to mention our journalists and 0:00:17.120 --> 0:00:20.000 analysts in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 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 --> 0:00:27.760 pm Eastern Time on the Bloomberg Radio or watch us 0:00:27.760 --> 0:00:31.400 on YouTube. Searched Bloomberg clovel News, Tim Stuck and Katie 0:00:31.400 --> 0:00:35.280 Graydfeld live in the Bloomberg Interactive Brokers studio in New York. Katie, 0:00:35.280 --> 0:00:36.840 you and I were talking just a few minutes ago 0:00:36.880 --> 0:00:40.839 about this one incentive that Mary Bill de Blasio is 0:00:40.960 --> 0:00:43.840 offering parents of students, I should say, five to eleven 0:00:43.880 --> 0:00:45.879 year olds Thursday at city run sites where kids are 0:00:45.920 --> 0:00:49.240 eligible to get their shots. Yeah, it's interesting that they're 0:00:49.479 --> 0:00:53.040 moving forward with in incentive. You know, there's a lot 0:00:53.040 --> 0:00:55.600 of opinions on both sides about whether to vaccinate children, 0:00:55.640 --> 0:00:58.160 and it's interesting to take see them taking the carrot approach. 0:00:58.280 --> 0:01:01.440 What about the incentive about mental health, because that's something 0:01:01.440 --> 0:01:03.640 that our next guest has a lot to talk about. 0:01:03.760 --> 0:01:06.839 Dr Tamar Mendelssohn as director of the Center for Adolescent 0:01:06.840 --> 0:01:09.880 Health at Johns Hopkins Bloomberg School of Public Health. The 0:01:09.959 --> 0:01:12.080 Johns Hopkins Bloomberg School of Public Health is supported by 0:01:12.120 --> 0:01:15.880 Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. 0:01:16.000 --> 0:01:18.720 Dr Mendelssohn, it's great to have you on the program. 0:01:18.800 --> 0:01:21.200 Can you talk a little bit about the connection between 0:01:21.760 --> 0:01:25.720 mental health and where we are in the pandemic, especially 0:01:25.760 --> 0:01:29.320 among the youngest and I would say argue among the 0:01:29.360 --> 0:01:34.520 most vulnerable people in our society. Yeah, well, hello, and 0:01:34.640 --> 0:01:37.840 thank you for having me. So clearly the pandemic has 0:01:37.880 --> 0:01:40.840 been a time of incredible stress for families, and that 0:01:40.920 --> 0:01:44.360 includes young people. We've seen the data that rates of 0:01:44.400 --> 0:01:49.280 depression and anxiety and suicide increased for young people during 0:01:49.320 --> 0:01:53.120 the COVID pandemic. So this is terrific news that we 0:01:53.240 --> 0:01:56.680 have this vaccine that's now going to be available for 0:01:56.960 --> 0:02:00.320 kids between the ages of five and eleven. Enough, around 0:02:00.360 --> 0:02:04.240 twenty eight million American children, So The hope now is 0:02:04.280 --> 0:02:07.440 that this vaccine can help us with more of a 0:02:07.480 --> 0:02:12.359 return to normalcy, can help reduce parents stress, and allow 0:02:12.480 --> 0:02:15.680 young people to have more in person interactions with family 0:02:15.680 --> 0:02:18.680 and friends, and hopefully that will help everybody's mental health. 0:02:19.680 --> 0:02:22.400 And I'm curious, you know, where do you think this 0:02:22.440 --> 0:02:24.320 has to come from? Because obviously Tim and I have 0:02:24.400 --> 0:02:26.880 been talking about the fact that New York City is 0:02:26.919 --> 0:02:32.960 offering one hundred dollar incentive to get kids vaccinated. I mean, 0:02:33.000 --> 0:02:36.679 would you expect to see more of those types of 0:02:37.360 --> 0:02:41.440 bonuses or incentives rolled out across the country. A is uh, 0:02:41.480 --> 0:02:45.080 you know, we try to improve vaccination rates among younger people. 0:02:46.240 --> 0:02:51.680 I think working to improve vaccine uptake for parents, um, 0:02:51.760 --> 0:02:55.519 and you know, sort of getting parents confident and comfortable 0:02:56.320 --> 0:02:59.800 vaccinating their children is a really really important thing. And 0:02:59.840 --> 0:03:03.520 I think a lot of us have been bombarded on 0:03:03.639 --> 0:03:07.760 social media was all kinds of misinformation, so people are confused, 0:03:08.200 --> 0:03:10.040 they're not may be sure that they have all the 0:03:10.120 --> 0:03:12.880 right information, and so I think it's really important for 0:03:13.000 --> 0:03:16.360 us to do the outreach, to do the work to 0:03:16.480 --> 0:03:20.000 answer questions and bust myths so that you know, parents 0:03:20.040 --> 0:03:22.480 feel confident. What's the right way to do that because 0:03:22.480 --> 0:03:24.520 I I shared this story last week, but I'll share 0:03:24.520 --> 0:03:26.520 it again for those who weren't listening. I was at 0:03:26.520 --> 0:03:30.399 the doctor speaking to a healthcare provider last week and 0:03:30.440 --> 0:03:32.600 we were just making small talk because I was about 0:03:32.600 --> 0:03:34.280 to get my blood drawn, which is something I just 0:03:34.320 --> 0:03:37.680 cannot stand to happen. And she was saying that she 0:03:37.760 --> 0:03:40.120 has kids who are between the ages of five and eleven. 0:03:40.120 --> 0:03:42.000 I said, Oh, you're so lucky, because they'll be able 0:03:42.000 --> 0:03:44.000 to get vaccinated soon. And she told me, and this 0:03:44.040 --> 0:03:46.040 is someone who works at a hospital, Oh, I'm not 0:03:46.080 --> 0:03:48.760 going to do it. I'm gonna wait, what would you 0:03:48.800 --> 0:03:53.560 say to her? So obviously it's a parent's personal decision. 0:03:54.160 --> 0:03:58.720 But all the data and all the infectious disease experts 0:03:59.280 --> 0:04:03.360 UM that I've interacted with have really highlighted the incredible 0:04:03.400 --> 0:04:07.119 benefits that the vaccine has to offer. And really, I'd 0:04:07.160 --> 0:04:09.720 be much more nervous as a parent not getting my 0:04:09.840 --> 0:04:14.400 child vaccinated. And so Dr Mendelssohn, I want to talk 0:04:14.440 --> 0:04:18.120 more about UM the mental health aspect of this, and 0:04:18.440 --> 0:04:22.280 child and adolescent mental health in terms of you know 0:04:22.400 --> 0:04:25.320 how obviously the pandemic has taken a toll on all 0:04:25.360 --> 0:04:27.880 of us mental health wise, but you know, particularly those 0:04:27.920 --> 0:04:30.040 young people, and I'm curious you know to your point 0:04:30.120 --> 0:04:34.640 that getting vaccinated the return to normal that could improve 0:04:35.040 --> 0:04:38.479 mental health. Um, I mean walk us through that link. 0:04:38.520 --> 0:04:40.359 Is that just because you know we'll be able to 0:04:40.400 --> 0:04:44.600 go out and socialize more. I think it can really 0:04:44.640 --> 0:04:48.680 reduce some of the stress that is affecting families because 0:04:48.800 --> 0:04:52.240 parents may be vaccinated while children below the age of 0:04:52.279 --> 0:04:56.160 twelve are not vaccinated, and this can create the anxiety 0:04:56.320 --> 0:05:00.000 around what kind of family gatherings can we have holidays? 0:05:00.040 --> 0:05:03.479 You know, how can I protect my children while still 0:05:04.440 --> 0:05:07.919 living life and trying to return to normal in some way. 0:05:08.279 --> 0:05:11.719 So I definitely think the vaccination can help families have 0:05:11.880 --> 0:05:15.479 that extra confidence. I also think that the more we 0:05:15.600 --> 0:05:19.840 can return to a semblance of normalcy across the board 0:05:19.920 --> 0:05:23.240 at schools and so forth, the more that children and 0:05:23.320 --> 0:05:26.400 teenagers can kind of get back to the business of 0:05:26.480 --> 0:05:31.560 their development and focus on, you know, socializing and growing 0:05:31.560 --> 0:05:34.440 emotionally and the things that really they need to do 0:05:34.480 --> 0:05:37.280 at this stage. Dr Mendelson My son was fourteen months 0:05:37.279 --> 0:05:40.440 when the pandemic hit. He's almost three now. He thinks 0:05:40.440 --> 0:05:42.840 everything is hand sanitizer and he knows how to put 0:05:42.880 --> 0:05:45.160 on a mask, and I just think to myself, this 0:05:45.200 --> 0:05:47.359 is like a pandemic baby. This is going these are 0:05:47.400 --> 0:05:49.960 going to be his earliest memories. What are long term 0:05:50.040 --> 0:05:51.880 thoughts on that? And just in the last thirty seconds 0:05:51.920 --> 0:05:55.400 that we have. Absolutely there's going to be a lot 0:05:55.440 --> 0:05:59.240 of shared generational experience with this pandemic. I do think 0:05:59.279 --> 0:06:02.600 young people are incredible and resilient, and you know they 0:06:02.640 --> 0:06:05.000 are going to be fine, but many young people have 0:06:05.120 --> 0:06:08.880 coped with serious trauma like losing a parent. So for 0:06:08.920 --> 0:06:11.080 those young people, we really do need to make sure 0:06:11.120 --> 0:06:14.279 that they have the mental health and emotional supports that 0:06:14.360 --> 0:06:18.440 they need to thrive. Dr Tamar Mendelssohn, director of the 0:06:18.560 --> 0:06:22.039 Center for Adolescent Health at the Johns Hopkins Bloomberg School 0:06:22.080 --> 0:06:24.960 of Health, joining us on the phone from Baltimore. The 0:06:25.120 --> 0:06:27.640 Johns Hopkins Bloomberg School of Public Health. It is supported 0:06:27.920 --> 0:06:31.320 by Michael R. Bloomberg, the founder of Bloomberg LP and 0:06:31.440 --> 0:06:33.880 Bloomberg philanthropist. Katie's something I've been thinking about a lot, 0:06:34.480 --> 0:06:36.560 just what it looks like on the other side of this, 0:06:37.720 --> 0:06:39.360 or if this is something we're just gonna continually be 0:06:39.400 --> 0:06:42.560 dealing with. Absolutely almost feels like we're in purgatory. Yeah, 0:06:42.640 --> 0:06:44.479 that's the way a lot of people think about it. 0:06:44.480 --> 0:06:47.240 I think this is Bloomberg Radio, and this is Bloomberg. 0:06:47.640 --> 0:06:51.680 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:06:51.760 --> 0:06:55.960 Quick Takes Tim Stinovic on Bloomberg Radio. Well, it's Bloomberg's 0:06:56.000 --> 0:06:58.600 Big Take today, the very best of Bloomberg's in depth 0:06:58.640 --> 0:07:02.280 original reporting from around the globe. It's written by Jillian Tan, 0:07:02.400 --> 0:07:05.680 scenior reporter at Bloomberg News. She joins us here in 0:07:05.839 --> 0:07:08.880 the New York City Bureau. It's all about soft Bank's 0:07:08.960 --> 0:07:12.360 Masioshi's son. He cannot pay enough talent enough to keep 0:07:12.440 --> 0:07:16.239 Vision Fund talent so happy. As the Japanese company prepares 0:07:16.320 --> 0:07:19.239 to distribute profits in December, some of its key startup 0:07:19.240 --> 0:07:22.440 investors have headed for the door. Jillian joins us. Now, Jillian, 0:07:22.600 --> 0:07:25.720 before we get into what exactly is happening at SoftBank's 0:07:25.840 --> 0:07:28.400 Vision Fund, can you give us an idea of how 0:07:28.560 --> 0:07:33.440 venture capital venture capitalist partners are traditionally compensated. Yeah, so, 0:07:33.680 --> 0:07:36.040 just um also to just jump in, I worked on 0:07:36.080 --> 0:07:38.440 this with colleagues in Japan and on London. I don't 0:07:38.440 --> 0:07:40.320 want to take it away from them. I wasn't the 0:07:40.320 --> 0:07:47.400 only author, but capital partners are traditionally compensated with up carry, 0:07:47.440 --> 0:07:51.160 which is essentially a distribution of profits. So for example, 0:07:51.280 --> 0:07:53.520 let's say, way way back in the day, if you 0:07:53.680 --> 0:07:56.520 were to invest in the company let's say Facebook, UM, 0:07:56.560 --> 0:07:58.800 and it went public and your fun were to make 0:07:59.040 --> 0:08:03.240 X amounts, you would be entitled to roughly of those profits. 0:08:03.880 --> 0:08:06.960 And so what's different at soft bank and how they 0:08:07.240 --> 0:08:11.160 actually compensate their employees and why is that leading to 0:08:11.360 --> 0:08:15.040 these defections? Yes, so we have reported that since I 0:08:15.040 --> 0:08:18.200 think last March, there have been seven managing partner exits 0:08:18.560 --> 0:08:21.960 and the firm sole senior managing partner UM is set 0:08:21.960 --> 0:08:24.760 to exit by the end of this year. UM. One 0:08:24.760 --> 0:08:27.679 of the key reasons is they have an eccentric approach 0:08:27.720 --> 0:08:30.720 to pay and carry. And what we've reported in terms 0:08:30.720 --> 0:08:34.440 of the December distribution, that's the first carry payment that 0:08:34.520 --> 0:08:36.720 any of these folks or the folks who are left 0:08:36.800 --> 0:08:38.960 should I say, they're going to be receiving from the 0:08:39.160 --> 0:08:43.000 hundred billion Vision Fund vehicle. And if you think about it, 0:08:43.000 --> 0:08:46.760 these are names companies that have invested in include like Door, 0:08:46.840 --> 0:08:50.679 Dash Cooper, which is a big Korean company, h uber 0:08:51.360 --> 0:08:55.680 A Garden Health, which is a healthcare company that found public. 0:08:55.960 --> 0:08:58.680 Just you know, dozens and dozens of companies that have 0:08:58.760 --> 0:09:01.640 now gone public that these guys haven't seen, guys and 0:09:01.679 --> 0:09:04.240 girls haven't seen any profits from. And there have been 0:09:04.240 --> 0:09:06.880 some mrs too, though most notably we work, Yeah, we 0:09:06.960 --> 0:09:10.040 work and a little company called Greensill, which is a 0:09:10.080 --> 0:09:13.040 little bit of a disaster that obviously, you know, I 0:09:13.080 --> 0:09:16.280 think it's very clear and soft Bok reports this um 0:09:16.320 --> 0:09:18.880 the Vision Fund is in the green um. It just 0:09:18.920 --> 0:09:22.400 hasn't been really compensating. It's senior investment staff. Well, that's 0:09:22.400 --> 0:09:25.520 what I'm curious about. Whether this his you know, slowed 0:09:25.600 --> 0:09:28.439 soft bank down at all, because you know, I was 0:09:28.440 --> 0:09:31.040 saying to him, it feels like they have a footprint 0:09:31.160 --> 0:09:33.240 in everything. It still feels like every other week I 0:09:33.280 --> 0:09:36.560 see a headline about a new investment that they're making. Yeah, 0:09:36.640 --> 0:09:40.640 almost daily now sometimes it feels like honestly, um, but no, 0:09:41.040 --> 0:09:43.160 it hasn't slowed them down. They're now investing out of 0:09:43.240 --> 0:09:46.800 Vision Fund to which actually has no outside investors. One 0:09:46.880 --> 0:09:50.960 key seeing Vision Fund one was backed by sovereign wealth 0:09:50.960 --> 0:09:53.840 funds out of Saudi Arabia and Abu Dhabi. Or el 0:09:54.000 --> 0:09:56.440 Vision Fund, who was purely soft Bank capital, and then 0:09:56.480 --> 0:10:00.600 also Martha's Sons Capital, which is which is one of 0:10:00.600 --> 0:10:03.480 the reasons he justifies taking a large portion of returns 0:10:03.480 --> 0:10:07.520 from that right exactly, which is also why he you know, 0:10:07.640 --> 0:10:10.960 doesn't want to pay out out of self banks profits 0:10:11.000 --> 0:10:14.280 to staff is he obviously wants to retain that himself 0:10:14.400 --> 0:10:17.960 and also shareholders in the public company that is Self Bank. Okay, 0:10:17.960 --> 0:10:20.880 so what do compensation experts tell you about what's happening 0:10:20.920 --> 0:10:24.600 here and also where are these defectors going? Yes, so 0:10:25.040 --> 0:10:27.640 we spoke to a bunch of effects. That's obviously it's 0:10:27.800 --> 0:10:30.000 pretty clear if you don't pay enough, people aren't going 0:10:30.040 --> 0:10:33.680 to stick around. UM people going to various places. One 0:10:33.840 --> 0:10:37.920 managing Partners starting his own new firm. Another two went 0:10:38.000 --> 0:10:42.720 to Gore's Group where they invest in companies and they're 0:10:42.800 --> 0:10:47.520 sort of leading a spack effort across there. Another has left, 0:10:47.559 --> 0:10:49.800 I think to write a book and it's just you know, 0:10:49.880 --> 0:10:52.760 hasn't exactly said what they're up to next. And another 0:10:52.800 --> 0:10:57.240 one joined a company called Naspers, which is um a 0:10:57.280 --> 0:11:02.280 big South African based UM giant. And just finally in 0:11:02.320 --> 0:11:04.120 the last twenty seconds that we have with you, Jilian. 0:11:04.120 --> 0:11:06.000 It's not like they're not getting paid much if they're 0:11:06.000 --> 0:11:08.680 staying there, because junior and senior level salaries are high. 0:11:08.679 --> 0:11:11.240 They're five seven hundred thousand dollars. Yeah, I know, it's 0:11:11.280 --> 0:11:15.080 a regular table, like regular amrians, just like regular people 0:11:15.080 --> 0:11:18.760 around anywhere. Um, these aren't small salaries. Cash salaries obviously 0:11:18.840 --> 0:11:20.880 very high. It's just to carry you know, they would 0:11:20.880 --> 0:11:23.240 be expecting tens of millions that they're just really not 0:11:23.280 --> 0:11:25.520 getting at this point. Well, it's a great story. Jillian 0:11:25.559 --> 0:11:27.559 Tan co wrote it with two of our colleagues around 0:11:27.600 --> 0:11:29.679 the world. It's stays Bloomberg Big Take. Check it out 0:11:29.679 --> 0:11:32.680 on the Bloomberg terminal and of course at Bloomberg dot com. 0:11:32.760 --> 0:11:37.120 Jillian tan Senior reporter for Bloomberg News. You're listening to 0:11:37.240 --> 0:11:41.199 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:11:41.320 --> 0:11:45.240 Tim Stinovic on Bloomberg Radio. Well, it's the cover of 0:11:45.280 --> 0:11:48.800 the brand new edition of Bloomberg Business Week. It's available 0:11:49.200 --> 0:11:51.720 now on news stands and at Bloomberg dot com Slash 0:11:51.760 --> 0:11:54.360 business Week. The cover, jol is all about twenty three 0:11:54.360 --> 0:11:57.040 and me. It wants to use its customers genetic data 0:11:57.280 --> 0:12:00.319 to beat cancer. This story is by Well. This story 0:12:00.559 --> 0:12:03.080 is by Kristin Brown. And joining us now is Joel Webber, 0:12:03.200 --> 0:12:05.079 editor at Bloomberg Business with He's with us in the 0:12:05.080 --> 0:12:07.640 Bloomberg Interactive Broker studio. Tim and Nette one of the 0:12:07.720 --> 0:12:09.720 editors on the piece. He's on the US Healthcare team 0:12:09.720 --> 0:12:12.360 and he's US Healthcare Team leader for Bloomberg News. Joining 0:12:12.400 --> 0:12:14.400 us on the phone from New York City, Joel twenty 0:12:14.480 --> 0:12:17.760 three and me. A lot of people recognized the company 0:12:17.840 --> 0:12:22.599 found founded uh by headed by in Wachitzki as the 0:12:22.640 --> 0:12:25.319 company that you spit into a tube, you send it 0:12:25.400 --> 0:12:28.480 off and you understand more about your own ancestry, your 0:12:28.480 --> 0:12:31.240 own your own family history. Have you done it? I 0:12:31.320 --> 0:12:34.560 have not? And that was all, you know. The genius 0:12:34.600 --> 0:12:37.520 part of this business is, I think Kristen's story goes 0:12:37.520 --> 0:12:40.120 into is that a lot of people did, like millions 0:12:40.160 --> 0:12:44.760 of them. And when that project started ten plus years ago, 0:12:45.320 --> 0:12:47.440 it was just about like, hey, where did you come from? 0:12:47.440 --> 0:12:50.000 What's your what's in your d na um? And it 0:12:50.080 --> 0:12:52.920 seemed really you know, innoculus, But there was a master 0:12:53.080 --> 0:12:56.480 plan all along. What was that master planned? Tim? That 0:12:56.760 --> 0:12:59.840 was go ahead? Tim Andette? Yeah, sure, So the master 0:13:00.040 --> 0:13:04.760 plan was to become a pharmaceutical company. Right. Um, as 0:13:04.800 --> 0:13:07.440 we say in the story, UH and with just has 0:13:07.480 --> 0:13:09.320 sort of had this vision from the very beginning. She 0:13:09.360 --> 0:13:12.679 even wrote it down and one of her investors had 0:13:12.679 --> 0:13:16.120 it framed and they gave it to her later on. 0:13:16.280 --> 0:13:20.680 It's it's um you know, remarkable story of consistency in 0:13:20.679 --> 0:13:22.520 a lot of ways. You know, they sort of stuck 0:13:22.559 --> 0:13:25.680 to what their vision was. And now they are sort 0:13:25.679 --> 0:13:27.800 of in a position now that they have all of 0:13:27.840 --> 0:13:29.760 this data from all of those people who have been 0:13:29.760 --> 0:13:33.280 into those tubes to move forward with it. And so 0:13:33.320 --> 0:13:36.679 how does twenty three and me actually execute that vision? 0:13:36.720 --> 0:13:38.600 How do they go from you know, sort of a 0:13:38.600 --> 0:13:40.600 fun service you spent the two of you pay and 0:13:40.679 --> 0:13:44.280 you analyze your ancestry to you know, a full blown 0:13:44.480 --> 0:13:49.360 pharmaceutical company. Well, so it's a lot of science, right, 0:13:49.440 --> 0:13:51.640 just like any drug company, They're going to have to 0:13:51.720 --> 0:13:53.840 go into the laboratory and they're going to have to 0:13:53.880 --> 0:13:56.520 try a lot of things out. And as we know 0:13:56.760 --> 0:14:00.520 from UH pharmaceutical history, a lot of things that you've 0:14:00.520 --> 0:14:03.160 take into the lab don't work out. It's a little 0:14:03.200 --> 0:14:05.360 better than one in ten chance that any drug is 0:14:05.400 --> 0:14:09.040 going to get to the market from its initial conception. 0:14:09.280 --> 0:14:12.040 So twenty three and me is betting that they have 0:14:12.120 --> 0:14:15.480 all this this genetic data, and genetic data is very 0:14:15.559 --> 0:14:18.400 valuable because it can allow you to sort of take 0:14:18.480 --> 0:14:21.440 some shortcuts in that development process. You've got a lot 0:14:21.440 --> 0:14:24.640 of numbers you can crunch to try to find both 0:14:24.960 --> 0:14:27.800 things that you could possibly drug right, things that are 0:14:27.840 --> 0:14:32.600 you know, ailments or um defects that drugs could target, 0:14:32.800 --> 0:14:35.920 or you could find ways to use old drugs for 0:14:36.120 --> 0:14:39.640 new things. I don't think Tim that people who did 0:14:39.680 --> 0:14:43.120 this originally over the last decade realized that what they 0:14:43.120 --> 0:14:46.440 were doing was potentially contributing to a different vision of 0:14:46.480 --> 0:14:48.960 the company. And I'm wondering what the company says about 0:14:49.000 --> 0:14:53.400 that and how they reconcile that. Well. I think, you know, 0:14:53.480 --> 0:14:56.200 the thing that they say to people is that, you know, 0:14:56.320 --> 0:15:00.160 we're a healthcare company and we want to help you 0:15:00.320 --> 0:15:03.840 use the information that can be found in your genetic code, 0:15:04.520 --> 0:15:08.960 uh to make you well, to make you better, and uh, 0:15:09.120 --> 0:15:11.680 you know the I think the the other side of 0:15:11.720 --> 0:15:15.120 this is that, you know, thousands of people participate in 0:15:15.120 --> 0:15:18.480 clinical trials and everything. There are different um sort of 0:15:18.840 --> 0:15:23.360 you know, levels of consent with these things, um. But 0:15:23.360 --> 0:15:25.560 but you know, they they make the argument that we 0:15:25.600 --> 0:15:27.280 have this data and we can act on it, and 0:15:27.320 --> 0:15:29.680 we can get things to you faster than others might 0:15:29.720 --> 0:15:32.840 be able to. So this, this idea of using genetics 0:15:32.880 --> 0:15:36.160 to actually make drugs is basically untested. That they're the 0:15:36.160 --> 0:15:38.720 first company that will be kind of doing this. And 0:15:39.000 --> 0:15:42.400 what's their pipeline look like, Tim, Well, they've got up 0:15:42.440 --> 0:15:46.640 pretty pretty good pipeline for a company that's been you know, 0:15:46.760 --> 0:15:49.000 sort of not doing this for a terribly long time. 0:15:49.080 --> 0:15:52.040 Over the past year, they were able to sort of 0:15:52.080 --> 0:15:54.760 double the number of candidates they're working on. They've got 0:15:54.800 --> 0:15:57.760 about eighteen now. And bear mindus is at a time 0:15:57.800 --> 0:16:00.560 when you know, a lot of people were are not 0:16:00.760 --> 0:16:02.760 working in an office. You know, there are people were 0:16:02.800 --> 0:16:05.640 all spread out like many companies. And at the same time, 0:16:05.680 --> 0:16:08.280 a lot of drug companies were having trouble recruiting for 0:16:08.360 --> 0:16:10.680 clinical trials and stuff. So they've been able to sort 0:16:10.680 --> 0:16:13.240 of do a lot of this data work over the 0:16:13.240 --> 0:16:19.640 past year, even when other sciences slowed down. It seems like, 0:16:19.680 --> 0:16:21.600 I mean, you guys write about this in this story 0:16:21.680 --> 0:16:24.920 right the valley of death between the idea of getting 0:16:24.960 --> 0:16:28.240 something approved versus actually developing the drug. It seems like 0:16:28.240 --> 0:16:30.800 another avenue that could happen is twenty three and Me 0:16:30.880 --> 0:16:33.520 gets bought by a bigger pharmaceutical company, and then that 0:16:33.560 --> 0:16:36.960 bigger farma company can then use that data explain partnerships, 0:16:36.960 --> 0:16:39.760 how that's working, and how potentially some of the companies 0:16:39.760 --> 0:16:43.520 that it's partnering with could end up being competitors. Sure, 0:16:43.600 --> 0:16:45.760 so they have a notably, they have a partnership with 0:16:45.920 --> 0:16:49.840 Glacksow Smith Klein Um. That is, um, you know, these 0:16:49.840 --> 0:16:53.200 companies are working very closely together on treatments. But you know, 0:16:53.240 --> 0:16:56.040 in the competitive landscape of farma, as we all know, 0:16:56.160 --> 0:16:59.040 there are lots and lots of deals that happened, um 0:16:59.120 --> 0:17:03.960 you know, companies buying other companies, but also there's licensing deals, 0:17:04.160 --> 0:17:07.159 there are partnerships. There are many companies out there that 0:17:07.560 --> 0:17:12.000 remains freestanding companies but partner with rival companies on what 0:17:12.040 --> 0:17:15.959 are oftentimes their biggest selling drugs. Right, So, the commercial 0:17:16.040 --> 0:17:19.080 flavors of this to go in a lot of different directions. 0:17:19.080 --> 0:17:20.800 For twenty three and Me, I mean, twenty three and 0:17:20.840 --> 0:17:23.720 Me is still a relatively small company in the forming universe, 0:17:23.800 --> 0:17:26.200 right there, like a five billion dollar company right now. 0:17:26.720 --> 0:17:28.240 You know, a lot of the biggest companies in the 0:17:28.480 --> 0:17:30.720 in the space are you know, hundred billion plus in 0:17:30.800 --> 0:17:34.119 market cap. So UM, you know, they're a mino for sure, 0:17:34.160 --> 0:17:36.679 and they're gonna need help, but they're getting it from 0:17:36.720 --> 0:17:39.159 companies like black So that do have mass and do 0:17:39.320 --> 0:17:42.919 have commercial know how and and production know how and 0:17:42.960 --> 0:17:45.639 all of those things that you know, younger drunk companies 0:17:45.760 --> 0:17:48.840 really need when they're when they're starting and so still 0:17:49.040 --> 0:17:51.640 a small fish twenty three and me. But I'm curious, 0:17:51.640 --> 0:17:54.560 I mean, are there any other companies trying to do 0:17:54.680 --> 0:17:56.280 what they're trying to do and do they have the 0:17:56.359 --> 0:18:01.639 same huge database THEE and ME has. I mean, I 0:18:01.720 --> 0:18:05.840 did the company that has the most similar databases Ancestry 0:18:05.920 --> 0:18:09.720 right that they're not really doing this, um. There are 0:18:09.800 --> 0:18:12.960 lots of other companies out there that are using genetic 0:18:13.440 --> 0:18:18.280 therapies for different um therapeutic purposes, right Like You've got 0:18:18.359 --> 0:18:22.560 Maderna for example, that it's RNA technology is behind the 0:18:22.600 --> 0:18:25.960 COVID nineteen vaccine. UM. There are also companies out there 0:18:25.960 --> 0:18:30.320 doing things with gene editing with crisper Um. There's a 0:18:30.359 --> 0:18:34.040 really interesting technology called RNA interference that a company called 0:18:34.080 --> 0:18:36.040 al Nylum is a very big and so there are 0:18:36.119 --> 0:18:39.600 a lot of different kinds of sort of genetic technologies 0:18:39.640 --> 0:18:43.080 out there that companies are trying out. So, by the way, 0:18:43.359 --> 0:18:45.960 this Minno was a startup, a spit tube startup. Now 0:18:46.000 --> 0:18:48.480 it's a publicly traded company and went public via spack 0:18:48.520 --> 0:18:51.000 earlier this year. What do the market think about this? 0:18:51.320 --> 0:18:53.320 This company and Tim, we only have about thirty seconds. 0:18:54.680 --> 0:18:56.520 I mean they've been pretty well so far. Right, They've 0:18:56.520 --> 0:18:59.280 grown since they did the spac deel and and they're 0:18:59.280 --> 0:19:02.560 probably the shoot yeah, yeah, they're is more profitable. I 0:19:02.600 --> 0:19:04.640 mean they have a big commercial business, right that has 0:19:04.680 --> 0:19:07.200 like Super Bowl ads and stuff. So um, that's the 0:19:07.359 --> 0:19:09.879 thing a lot of drug companies don't have, is just 0:19:10.000 --> 0:19:13.480 some recognition. Well, it's a great story. It's written by 0:19:13.560 --> 0:19:16.320 Kristin V. Brown. It's the cover of the new issue 0:19:16.320 --> 0:19:19.600 of Bloomberg Business Week magazine. It's available now on newsstands 0:19:19.680 --> 0:19:22.200 and at Bloomberg dot com Slash business Week. A big 0:19:22.200 --> 0:19:25.600 thank you to Timinette, us healthcare team leader for Bloomberg News. 0:19:25.600 --> 0:19:27.120 He joined us on the phone from New York City. 0:19:27.359 --> 0:19:30.159 Also joining us in the flesh here, Innie Bloomberg and 0:19:30.200 --> 0:19:34.080 actor Broker Studios, Joe Webbert, editor at Bloomberg Business Week, 0:19:34.160 --> 0:19:38.520 you're listen to Bloomberg Radio and this is Bloomberg. This 0:19:38.840 --> 0:19:42.560 is Bloomberg Business Week with Carol Messer and Bloomberg Quick 0:19:42.640 --> 0:19:47.040 Takes Tim Stinovic from Bloomberg Radio. So on Tuesday, Zillo 0:19:47.160 --> 0:19:49.760 Stuck tumbled after It's stunned the real estate industry when 0:19:49.760 --> 0:19:51.879 it said it was shutting down its home flipping business 0:19:52.040 --> 0:19:55.240 after racking up losses. Katie had me thinking a lot 0:19:55.240 --> 0:19:58.040 about what that says about Zillo's model, Also if it 0:19:58.119 --> 0:20:01.120 says anything about what's happening with the residential real estate 0:20:01.480 --> 0:20:03.280 around the country. So a great time for us to 0:20:03.359 --> 0:20:06.680 check in with somebody who probably knows more about residential 0:20:06.720 --> 0:20:09.600 real estate than almost anyone. We talked to Dallas Tanner, 0:20:09.640 --> 0:20:13.400 the president and CEO of Invitation Homes. It has more 0:20:13.440 --> 0:20:16.320 than eighty thou homes. It's the largest owner of single 0:20:16.359 --> 0:20:20.000 family rental homes in the US. Right now, Dallas joins 0:20:20.119 --> 0:20:23.879 us on the phone from Dallas, Texas. Dallas, how are you. 0:20:24.760 --> 0:20:27.000 I'm doing great, Thanks for having me today. Yeah, thanks 0:20:27.040 --> 0:20:29.760 so much for joining us. Well, let's start with what 0:20:29.880 --> 0:20:33.200 happened with Zillo and perhaps how the invitation homes model 0:20:34.000 --> 0:20:36.440 is different. But what was your reaction when you saw 0:20:36.440 --> 0:20:40.000 that news from Zillo earlier this week? You know, candidly, 0:20:40.080 --> 0:20:43.440 I was surprised, um, given the fact that the I 0:20:43.560 --> 0:20:46.200 buyer space has continued to get more and more robust 0:20:46.240 --> 0:20:49.600 over time. Uh, you know some other competitors. I think 0:20:49.600 --> 0:20:53.880 you've done a really nice job managing inventory. And like, now, 0:20:54.080 --> 0:20:56.920 with that being said, I couldn't tell you. We don't 0:20:56.920 --> 0:20:59.280 know all the details as to what happened. And Zella 0:20:59.359 --> 0:21:01.919 has a pretty deeps business right in terms of some 0:21:01.960 --> 0:21:03.879 of the other services that they offer. So my guess 0:21:03.920 --> 0:21:07.080 is strategically internally, they're probably looking at, you know, where 0:21:07.080 --> 0:21:09.400 their strengths and weaknesses were and ultimately made the call 0:21:09.480 --> 0:21:12.240 that they did. But with that being said, the housing market, 0:21:12.280 --> 0:21:15.840 it's fundamentals, uh, you know the supply chain right now 0:21:16.040 --> 0:21:18.200 that the balance of supply that we have quite frankly 0:21:18.240 --> 0:21:21.520 relative to demand are all lending itself to you know, 0:21:22.440 --> 0:21:24.600 a market that feels really strong. And I think they 0:21:24.640 --> 0:21:26.760 said as much even in their in their earnings called. 0:21:26.840 --> 0:21:29.719 So you didn't see the Zillo news and you're, according 0:21:29.760 --> 0:21:32.080