00:00 Speaker A
We’re looking at Eli Lilly, Nova Nordisk and Kindrill. First up was pharmaceutical giant Eli Lilly, which acquired biotech company Orna Therapeutics for $2.4 billion in cash.
00:09 Speaker A
The Lilly Orna deal will also include an upfront payment, as well as subsequent payments based on reaching certain milestones.
00:15 Speaker A
Orna is developing treatments for certain autoimmune diseases, including rheumatoid arthritis and multiple sclerosis.
00:21 Speaker A
The move expands Lily’s footprint beyond the obesity market, where, of course, the company currently markets its weight-loss drug Zepbound.
00:27 Speaker A
Next up, Nova Nordisk shares rose after Hims and Hers pulled copycat versions of new Wagobi diet pills.
00:32 Speaker A
Himes’ decision follows legal action by Novo and government threats to crack down on counterfeit goods.
00:37 Speaker A
Novo Nordisk said it was suing Sims and her company for producing counterfeit products of its obesity drug.
00:41 Speaker A
Novo said Hims infringed its U.S. patent on semigluide.
00:45 Speaker A
The lawsuit signals a more aggressive approach by Novo under its new CEO.
00:48 Speaker A
So far, the drugmaker’s legal strategy has focused largely on the way companies like Hims market their products.
00:53 Speaker A
As a reminder, just last year a partnership between the two companies was canceled over concerns about deceptive marketing.
00:59 Speaker A
Also, by the way, we’re coming to the end of Nord Nordisk’s big Super Bowl commercial.
01:03 Speaker A
Finally, shares of information technology services infrastructure provider Kindrill are plunging.
01:08 Speaker A
Remember, I was just talking with Adam Turnquist not too long ago about the once unusually large swings in individual stocks and earnings.
01:16 Speaker A
I thought about one of the reasons Kindral stock fell 53% after the company’s third-quarter results missed expectations.
01:25 Speaker A
It also lowered its full-year forecast for adjusted EDA margin and adjusted pretax profit.
01:29 Speaker A
Meanwhile, Kindral’s chief financial officer is leaving the company amid an SEC review of its accounting practices.
01:34 Speaker A
The decline may also have something to do with it. Kindral said that while the review is not expected to have a restatement or other impact on these financial statements, it will delay the filing of quarterly reports with the SEC.
01:45 Speaker A
The company expects to report material weaknesses in its internal control over financial reporting for fiscal 2025 and the first three quarters of fiscal 2026.