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One day after WeightWatchers said that it would file for bankruptcy, weight-loss drug giant Novo Nordisks outlook is brightening. Novo Nordisk, the Danish company that produces the semaglutide drugs Ozempic and Wegovy, saw its shares rise more than 7% Wednesday, in spite of recent headwinds from widely available copycat versions of its signature weight-loss drugs. Following its quarterly earnings report, shares of the company rose to $71.53 before leveling off and settling around $67.70, in spite of lowered expectations for the year. Novo Nordisk lowered its sales growth forecast for 2025, now expecting growth between 13% and 21%, down from the 16% to 24% it projected back in February. The company blamed the dip on slower-than-expected uptake of its branded glucagon-like peptide-1 (GLP-1) drugs, largely due to competition from compounding pharmacies, which had been filling the gap as demand for weight-loss meds like Wegovy outpaced supply. FDA crackdown signals end of GLP-1 copycats But that pressure is expected to ease. The Food and Drug Administration recently declared the shortage over and has officially banned large-scale compounding of GLP-1 drugs like semaglutide. With those off-brand versions now illegal in the U.S., Novo Nordisk and its investors are optimistic sales will rebound in the coming months. The agency has given large compounding pharmacies in the U.S. until May 22 to wind down production of those drugs or face potential enforcement actions. Late last month, a U.S. judge rejected a legal challenge from an industry group representing compounding pharmacies that could have allowed continued production of GLP-1 copycat drugs to continue. While their products can be cheaper for consumers, drugs produced in compounding pharmacies face less regulatory scrutiny than their name-brand counterparts. The FDA acknowledges that while compounded drugs are a lawful option that alleviates supply problems, they may not meet the same quality and safety standards. WeightWatchers collapses under pressure The future is decidedly less sunny for longtime weight-loss industry stalwart WeightWatchers, which announced that it would pursue Chapter 11 bankruptcy protection on Tuesday. The company has struggled to reinvent itself in the era of widely available weight-loss drugs, even as it embraced their rise by pivoting to sell compounded semaglutide through its own online pharmacy. WeightWatchers may be down, but the company insists that it isnt out. WeightWatchers insists that it will continue to operate normally in spite of its bankruptcy plans, which it described as transformational in a press release. There will be no impact to members or the plans they rely on to support their weight management goals, the company said. After the process is complete, a new investor group will wield 91% of the company and the remaining chunk of stock will be held by existing shareholders. The decisive actions were taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape, WeightWatchers CEO Tara Comonte said. As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutionsgrounded in community support and lasting resultshas never been stronger, or more important, she added. A new generation of GLP-1 drugs promising fast results continues to rock the weight-loss industry, which has emphasized dieting and other slow behavioral changes for decades. Whether WeightWatchers can weather the storm remains to be seen, but complete transformation might be the only option if the 60-year-old company plans to make it in the Wegovy era.
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E-Commerce
Apple is considering reworking its Safari web browser across its devices to place a greater emphasis on AI-powered search engines, Bloomberg reported Wednesday. The disclosure came from Eddy Cue, Apples senior vice president of services, during his testimony Wednesday in the Department of Justices lawsuit against Alphabet. Cue was speaking about the two companies $20 billion-a-year deal that makes Google the default search engine on Apples browsers. The Apple executive said he expects AI search providerslike OpenAI, Anthropic, and Perplexityto eventually replace standard sources like Google. Apple has already seen a decline in Safari searches for the first time last month, which Cue attributed to the growing use of AI. Still, he added, its too early for these platforms to become the default. Currently, Apple and Alphabet have a lucrative agreement that allows Apple usersacross more than 2 billion active devicesto perform searches through Google. Initially, Apple agreed to use Google in its Safari browser for free. Eventually, the two companies agreed to share revenue generated from search advertising. A shift away from Google and the entry of multiple competitors into the space could jeopardize that profitable arrangement, which contributes significantly to Apples revenue. Theres enough money now, enough large players, that I dont see how it doesnt happen, Cue said about the switch from standard internet search to AI, according to Bloomberg.
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E-Commerce
The Walt Disney Company’s stock price soared on Wednesday, up by 10% at the time of publishing, as the company surpassed earnings expectations and unveiled its first new theme park development in 15 years. Following Disney’s second quarter earnings report, the entertainment giant announced an agreement to build a new resort and theme park in Yas Island, United Arab Emirates. “As our seventh theme park destination, it will rise from this land in spectacular fashion, blending contemporary architecture with cutting edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways,” Disney CEO Bob Iger said in a statement. While no opening date or project timeline has been released yet, the Abu Dhabibased experiences company Miral Group is set to develop and build the new shoreline resort, with Disney imagineers leading operational oversight and creative design. Our resort in Abu Dhabi will be the most advanced and interactive destination in our portfolio,” said chairman of Disney Experiences Josh DAmaro. Prior to the theme park announcement, Disney also released its favorable second quarter earning report, recognizing “that uncertainty remains regarding the operating environment for the balance of the fiscal year,” the company said in the report. Disney reported a 7% increase in revenues this quarter in comparison to the same period last year, increasing to $23.6 billion. Notably, Disney’s entertainment saw significant growth, with a 2.5 million subscription growth for Disney+ and Hulu from this years first fiscal quarter. “We have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPNs new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment,” Iger said in the report. “We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
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E-Commerce
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