America’s Next Epidemic 💉

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America’s Next Epidemic 💉

Walmart, Elon Musk, Hollywood, TikTok, data…what do they all have in common? You guessed it, the weight-loss drug Ozempic known for its appetite suppression. Let me break it down for you.

Ozempic was originally created to regulate blood sugar levels in patients with type 2 diabetes. However, the drug has made its money in an unexpected way, as a fast acting weigh-loss solution. The drug went viral on TikTok with close to a billion views on the hashtag. It quickly then became Hollywood’s “worst kept secret”.

Ozempic #’s:

• Over 9 million prescriptions written in the last 3 months of 2022

• The drug accounted for over 65% of all prescriptions in 2022

• Prescriptions are up 300% quarterly between 2020 and 2022

Even Elon Musk is on it.

Interestingly enough, this has pitted type 2 diabetics and obese people against one another. With the drug catching mainstream attention, there have been shortages, even one that is expected to last months in Australia.

Courtesy of a report from Walmart, weight-loss injections like Ozempic are making people buy less food. First off, how do they know that?

Walmart “can look at the purchasing changes among people taking the drug and can also compare those habits to similar people who aren’t taking the shots.”

We’re all just walking pieces of data, aren’t we?

Barring no major side effects, people will continue to use Ozempic. But, are these numbers sustainable? People have to eat and food companies are willing to adopt to whatever changes this drug makes on the industry. Whether it’s smaller portions or healthier options, it may not even matter as customers tend to spend more even without food on the bill.

It’s worth noting that Ozempic increased year-over-year revenue by 32%, or $3.2 billion. Another win for Big Pharma.

Quick Hits 🥊

Build That Wall

Elon Musk made headlines this week when he live-streamed from the southern border. He speaks with Texas sheriffs who explain that millions of illegal immigrants are crossing into the United States. Now days later, the Biden administration is bypassing 26 federal laws to allow work to resume on building the wall.

$9B in student debt wiped out

U.S. Department of Education and the White House announced that the administration approved $9 billion in student debt relief for 125,000 Americans.

• $5.2 billion in student debt for 53,000 borrowers through Public Service Loan Forgiveness (PSLF) programs

• $2.8 billion in student debt for 51,000 borrowers through fixes to income-driven repayment plans

• $1.2 billion in student debt for 22,000 borrowers who were identified for relief because they have a total or permanent disability.

Which States benefit?

1. California: 60,680 borrowers, $4.45 billion

2. New York: 56,540 borrowers, $3.84 billion

3. Texas: 45,600 borrowers, $3.21 billion

Check out the full breakdown by state here.

Apple and Google’s $19B Search Deal

Google agreed to pay Apple $19B to remain the default search engine on the iOS operating system. A trial is underway to investigate Google’s dominance in search. Apple was considering the alternative Duck Duck Go but was ultimately denied due to privacy concerns. This is alarming since Duck Duck Go claims to be the more private alternative to Google.

Chicken Prices Skyrocket 🐔

If you thought chicken prices at U.S. grocery stores had gotten higher, you aren’t going crazy. Prices have hit record highs. Unfortunately, prices should stay elevated as Tyson Foods and other companies dial back poultry production to boost margins. And it’s not just Chicken factored into the rising CPI.

Quote of the Day 💭

Larry Hite - Hedge fund manager and forefather of systematic trading