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| Happy Monday, Insiders! Today's newsletter covers: - A Wall Street Journal investigation found that major insurance companies are inflating the costs of generic drugs
- The Justice Department's antitrust lawsuit against Google, which is set to go to trial this week
- The resignation of Spanish soccer federation leader Luis Rubiales, who kissed footballer Jenni Hermoso without her consent
And much more! If you find this newsletter useful, please share it with your friends and colleagues. Thank you! Your faithful IDB writer, Daniel
p/Dan-Smith | |
| 1 | | A Wall Street Journal (WSJ) investigation found that insurance companies and pharmacies are inflating the prices of generic drugs. The report highlights the deep-seated problems of a U.S. healthcare system in which pharmacies and insurers, which set prices, are often owned by the same companies. More: - Cigna, CVS Health, and UnitedHealth own the three biggest pharmacy-benefit managers (PBMs) in the U.S.
- The WSJ compared the average prices charged by the three PBMs for 20 generic drugs to those offered by Mark Cuban's Cost Plus Drug Company, which sells generic drugs at a flat 15% markup.
- The analysis found that Cigna's prices were 27.4x higher than Cost Plus's for the 20 drugs.
- CVS's prices were 24.2x higher for the 17 drugs where price data was available, and UnitedHealth's prices were 3.5x higher across 19 drugs.
- Gleevec, a cancer drug that went generic in 2016, costs as little as $55 a month but CVS and Cigna are charging up to $6,600 a month for the drug, the investigation found.
Zoom Out: - Shannon Ambrose of healthcare company Archimedes said that "the incentive is there for PBMs and the specialty pharmacies to keep prices as high as possible."
- Stacie Dusetzina, a professor at Vanderbilt's medical school said that "someone in the middle of that transaction is making a lot of money, and they're doing it at the detriment of the consumers."
Q: Do you think that the federal government should intervene in the market to ensure that consumers are not over-charged for generic drugs? Join the conversation here. |     | |
| 2 | | Smucker's stock lost nearly 6% after the food company said it plans to buy Hostess Brands for $5.6B. 
What the numbers say: Hostess, which is best known as the maker of Twinkies and other sugary snacks, saw its stock price surge by nearly 20% to $33.54 on the news. Smucker, which agreed to pay $34.25 per share, will also take on Hostess's ~$900M debt. The deal is expected to close in January 2024. Relevance: Other major U.S. food companies have recently spent big on acquisitions. Last month, Campell's Soup acquired Sovos Brands, the maker of Rao's pasta sauces, for $2.7B. Mars agreed to buy Kevin's Natural Foods in July, and Unilever acquired frozen yogurt maker Yasso in the month prior. | | | |
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| 3 | | An antitrust lawsuit against Google is set to go to trial in a Washington court on Tuesday. The Justice Department, which filed the suit in 2020, alleges that Google has illegally monopolized the internet search industry, hurting competitors and consumers alike. More: - The trial, which is expected to last ten weeks, will focus on claims that Google's exclusive contracts with phone makers hurt its rivals.
- The Justice Department claims that some of these deals "specifically prohibit[ed] Google's counterparties from dealing with Google's competitors."
- It is expected to be the biggest anti-trust trial involving a major U.S. technology company since the Microsoft trial of the late 1990s.
- There is a separate case against Google that was brought by the attorneys general of 38 U.S. states and territories over the technology company's alleged advertising monopoly.
Zoom Out: - Google's lawyers submitted a motion requesting that some parts of the trial not be featured in a public audio livestream.
- Several non-profits filed a transparency motion, arguing that it's in the public interest for the proceedings to be available to the public, but the presiding judge ultimately rejected the petition.
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| 4 | | GOOD NEWS: An outdoor pool in the British city of Bath that was closed four decades ago reopened to the public thanks to help from the local community. Demand for the first free swim was so high that the ticketing website crashed. More: - Built in 1815, the Cleveland Pools are the U.K.'s oldest lido, a British term for public pools.
- The pools were closed in 1984. Since then, volunteers sought to support the renovation and reopening of the historic pool.
- Hundreds of children from across Bath's various swimming clubs helped raise £12,500 (~$15,670) for the restoration effort.
- Sally Helvey, head of talks and tours at Cleveland Pools, said that the last time she swam in the pool was 57 years ago:
- "There are so many former swimmers who can now come back like me and swim with their grandchildren."
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| 5 | | Police in the Netherlands detained thousands of climate protestors who blocked a highway over the weekend. The Extinction Rebellion (XR) group, which organized the two-day blockade, said that protests will continue until the Dutch government stops subsidizing the fossil fuel industry. More: - An estimated 10,000 activists blocked the highway leading to The Hague on Saturday and roughly 2,400 people were arrested.
- The demonstration was authorized to take place near a train station, but the protest spread to the highway.
- On Sunday, some protestors returned to block the highway again, and police arrested ~500 people.
- According to a recent report, the Dutch government provides fossil fuel companies with subsidies worth €37.5B ($40.2B) annually.
Zoom Out: | | | |
| 6 | | Luis Rubiales, who kissed Spanish soccer star Jenni Rubiales without her consent last month, resigned as the president of the Spanish soccer federation on Sunday. Rubiales, who grabbed and kissed Hermoso after the Spanish women's football team won the World Cup final in Australia, is under criminal investigation for sexual aggression. More: - Rubiales claimed the kiss was consensual but Hermoso said she was "the victim of aggression" and later filed a criminal complaint.
- FIFA opened an investigation into the alleged assault in late August and suspended Rubiales for 90 days.
- Members of the women's national team said they would not play again unless Rubiales was removed from the post.
Zoom Out: - Head coach Jorge Vilda, an ally of Rubiales whom members of the women's team had previously criticized, was fired on September 5.
- He was replaced by Montse Tomé, a former player who will be the first woman to coach the Spanish women's football team.
- Rubiales also left his position as vice president of the Union of European Football Associations (UEFA).
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- Novak Djokovic beat Daniil Medvedev to win the U.S. Open in New York's Arthur Ashe Stadium on Sunday. The Serbian has now won 24 Grand Slam singles titles.
- Family members of 9/11 victims gathered at the World Trade Center in New York to commemorate the 22nd anniversary of the 9/11 attacks on the World Trade Center's twin towers and the Pentagon.
- More than 150 people in eastern Libya died in recent days after a major storm caused flooding, leading government officials to declare a state of extreme emergency.
- North Korean leader Kim Jong Un is due to visit Russia this week to meet with President Vladimir Putin. The meeting is expected to take place in the south-eastern Russian city of Vladivostok.
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Term of the Day 51% attack: A 51% attack occurs when an entity takes control of more than 50% of a blockchain network's hash rate. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
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INSIDE DAILY BRIEF LEADERBOARD (7 DAYS) |
 | Writer | | Dr. Daniel Smith is an Inside writer with a Ph.D. in Political Science from the University of Cambridge. Follow him on Twitter @DJS12321 or email him at Daniel@inside.com. | | This newsletter was edited by Eduardo Garcia | |
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