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    Tariffs or not, a Chinese baby products company is ramping up its U.S. expansion

    Shanghai-based Bc Babycare says it expects its supply chain diversification and the U.S. market potential to more than offset the impact of ongoing U.S.-China trade tensions.
    Baby gear is particularly sensitive to tariffs since the majority of those sold in the U.S. are made in China, said U.S.-based Newell Brands, which owns stroller company Graco.
    Bc Babycare’s U.S. market ambitions reflect how large U.S. and European multinationals not only face growing competition in China, but also in their home markets.

    U.S. births rose by 1% in 2024, with 3.6 million births recorded for the year, according to the CDC’s National Center for Health Statistics.
    SAN DIEGO, CALIFORNIA – OCTOBER 26: A woman pushes a stroller while walking along the La Jolla coastline at sunset on October, 2024 in San Diego, California. (Photo by Kevin Carter/Getty Images)Kevin Carter | Getty Images News | Getty Images

    BEIJING — One Chinese baby products company announced Tuesday it is officially entering the United States, the world’s largest consumer market — regardless of the trade war.
    Shanghai-based Bc Babycare expects its supply chain diversification and the U.S. market potential to more than offset the impact of ongoing U.S.-China trade tensions, according to Chi Yang, the company’s vice president of Europe and the Americas.

    “Even [if] the political things are not steady … I’m very confident about our product for the moment,” he told CNBC, adding he anticipates “very fast” growth in the U.S. in coming years. That includes his bold predictions that Bc Babycare’s flagship baby carrier can become the best-seller on Amazon.com in half a year, and that U.S. sales can grow by 10-fold in a year.
    The $159.99 carrier, eligible for a $40 discount, already has 4.7 stars on Amazon.com across more than 30 reviews. The device claims to reduce pressure on the parent’s body by up to 33%. A far cheaper version of the baby carrier is a top seller among travel products for pregnancy and childbirth on JD.com in China.
    Bc Babycare already has the carrier stocked in its U.S. warehouses, and has a network of factories and raw materials suppliers in the Americas, Europe and Asia, Yang said. “The global supply chain is one of the things we keep on building in the past couple years.”

    The Trump administration has sought to reduce U.S. reliance on China-made goods and to encourage the return of manufacturing jobs to the U.S. In a rapid escalation of tensions last month, the U.S. and China had added tariffs of more than 100% on each other’s goods. Last week, the two sides agreed to a 90-day pause for most of the new duties in order to discuss a trade deal.
    Baby gear is particularly sensitive to tariffs since the majority of those sold in the U.S. are made in China, said U.S.-based Newell Brands, which owns stroller company Graco, on an April 30 earnings call. That’s according to a FactSet transcript.

    The company said it raised baby gear prices by about 20% in the last few weeks, but had not incorporated the additional 125% tariffs announced in mid-April. Newell said on the call it had about three to four months of inventory in the U.S., and had paused additional orders from China.
    The company did not respond to a request for comment about whether it had resumed orders from China and whether it planned more price increases.

    U.S. office plans

    Bc Babycare declined to share how much it planned to invest in the U.S. But Yang said the company plans to open an office in the country and hire about five to 10 locals.
    The company initially plans to sell online, spend on marketing and eventually work with major retailers for offline store sales. Its partners for raw materials and research include three U.S. companies: Lyra, Dow and Eastman.
    The Chinese company, which entered the baby products segment in 2014, in 2021 claimed a 700 million yuan ($97.09 million) funding round from investors including Sequoia Capital China.
    Yang said the company scrutinizes the comments section on Chinese and U.S. e-commerce websites to improve its products. As a result, the U.S. version of the baby carrier is softer and larger than the Chinese version, he said.

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    Bc Babycare’s U.S. market ambitions reflect how large U.S. and European multinationals not only face growing competition in China, but also in their home markets.
    “After experiencing substantial growth due to the premiumization of consumption in the Chinese market, multinational brands are now entering a challenging second phase where they compete fiercely for market share,” Dave Xie, retail and consumer goods partner in Shanghai at consultancy Oliver Wyman, said in a statement last week.
    Oliver Wyman said in a report last month that the Chinese market has become the incubator for premium product innovations that are being exported. The authors noted, for example, that Tineco floor scrubbers have become Amazon best-sellers. More

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    JPMorgan CEO Jamie Dimon says markets are too complacent on tariffs, expects S&P 500 earnings growth to collapse

    JPMorgan Chase CEO Jamie Dimon warned Monday about the risks of record U.S. deficits, tariffs and international tensions.
    Dimon, the chairman of the biggest U.S. bank by assets, said stock markets aren’t properly representing the possibility of higher inflation and even stagflation.
    Dimon also discussed his timeline to hand over the CEO reins to one of his deputies.

    Jamie Dimon, CEO of JPMorgan Chase, leaves the U.S. Capitol after a meeting with Republican members of the Senate Banking, Housing and Urban Affairs Committee on the issue of de-banking on Feb. 13, 2025.
    Tom Williams | Cq-roll Call, Inc. | Getty Images

    JPMorgan Chase CEO Jamie Dimon said Monday that markets and central bankers underappreciate the risks created by record U.S. deficits, tariffs and international tensions.
    Dimon, the veteran CEO and chairman of the biggest U.S. bank by assets, explained his worldview during his bank’s annual investor day meeting in New York. He said he believes the risks of higher inflation and even stagflation aren’t properly represented by stock market values, which have staged a comeback from lows in April.

    “We have huge deficits; we have what I consider almost complacent central banks,” Dimon said. “You all think they can manage all this. I don’t think they can,” he said.
    “My own view is people feel pretty good because you haven’t seen effective tariffs,” Dimon said. “The market came down 10%, [it’s] back up 10%. That’s an extraordinary amount of complacency.”
    Dimon’s comments follow Moody’s rating agency downgrading the U.S. credit rating on Friday over concerns about the government’s growing debt burden. Markets have been whipsawed over the past few months over worries that President Donald Trump’s trade policies will raise inflation and slow the world’s largest economy.
    Dimon said Monday that he believed Wall Street earnings estimates for S&P 500 companies, which have already declined in the first weeks of Trump’s trade policies, will fall further as companies pull or lower guidance amid the uncertainty.
    In six months, those projections will fall to 0% earnings growth after starting the year at around 12%, Dimon said. If that were to happen, stocks prices will likely fall.

    “I think earnings estimates will come down, which means PE will come down,” Dimon said, referring to the price to earnings ratio tracked closely by stock market analysts.
    The odds of stagflation, “which is basically a recession with inflation,” are roughly double what the market thinks, Dimon added.
    Separately, one of Dimon’s top deputies said corporate clients are still in “wait-and-see” mode when it comes to acquisitions and other deals.
    Investment banking revenue is headed for a “mid-teens” percentage decline in the second quarter compared with the year-earlier period, while trading revenue was trending higher by a “mid-to-high” single-digit percentage, said Troy Rohrbaugh, a co-head of the firm’s commercial and investment bank.
    On the ever-present question of Dimon’s timeline to hand over the CEO reins to one of his deputies, Dimon said nothing has changed from his guidance last year, when he said he would likely remain for less than five more years.
    “If I’m here for four more years, and maybe two more” as executive chairman, Dimon said, “that’s a long time.”
    Of all the executive presentations given Monday, consumer banking chief Marianne Lake had the longest speaking time at a full hour. She is considered a top successor candidate, especially after Chief Operating Officer Jennifer Piepszak said she would not be seeking the top job.

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    Paramount ousts CBS News CEO Wendy McMahon amid divide with leadership

    CBS News Chief Executive Officer Wendy McMahon announced she is stepping down.
    It’s the latest twist in a growing battle of wills between the company’s news division and Paramount Global controlling shareholder Shari Redstone.
    There have been several points of tension between McMahon and Redstone in recent months, including CBS’ coverage of the Israeli-Palestinian conflict and a potential “60 Minutes” settlement with the Trump administration.

    Wendy McMahon, president and co-head of CBS News and Stations.
    Michele Crowe | CBS | Getty Images

    CBS News Chief Executive Officer Wendy McMahon announced Monday she is stepping down, the latest twist in a growing battle of wills between the company’s news division and Paramount Global controlling shareholder Shari Redstone.
    Paramount Global co-CEO George Cheeks talked with McMahon on Saturday and asked for her resignation, according to people familiar with the matter. McMahon agreed to step down, and the Paramount Global board held a meeting Sunday at which members were made aware of the decision, according to those people, who spoke on the condition of anonymity to discuss internal matters.

    Spokespeople for McMahon, Paramount Global and CBS News declined to comment.
    “The past few months have been challenging,” McMahon wrote in her resignation letter to employees. “It’s become clear that the company and I do not agree on the path forward. It’s time for me to move on and for this organization to move forward with new leadership.”
    In recent weeks, Paramount Global’s board had put increasing pressure on Cheeks and McMahon to know specific details about “60 Minutes” programming ahead of its air date, in a divergence from how the show operated in the past, according to people familiar with the matter. Veteran “60 Minutes” executive producer Bill Owens resigned in April, saying Paramount Global’s increased scrutiny of his editorial decisions infringed on his journalistic independence.
    “Our parent company Paramount is trying to complete a merger,” Scott Pelley, a “60 Minutes” correspondent, said on air at the end of an episode April 27, after Owens resigned. “The Trump administration must approve it. Paramount began to supervise our content in new ways. None of our stories has been blocked, but Bill felt he had lost the independence that honest journalism requires.”
    “60 Minutes” aired its final episode of the season Sunday. It won’t have new episodes again until September. McMahon felt she had to fight to even get “60 Minutes” to air at all in recent weeks, given the board’s preference that certain stories not run, according to people familiar with her thinking.

    McMahon was appointed CEO in August 2023.
    There have also been several points of tension between McMahon and Redstone in recent months, including CBS’ coverage of the Israeli-Palestinian conflict and a potential “60 Minutes” settlement with the Trump administration over the editing of an October interview with then-presidential candidate and former U.S. Vice President Kamala Harris. Privately, Redstone has criticized McMahon over “fairness and balance” issues, according to people familiar with Redstone’s thinking.
    Redstone has also been unhappy with McMahon’s leadership and the performance of CBS News from a business perspective, according to people familiar with Redstone’s thinking.

    Merging with Skydance

    Paramount Global is trying to get government approval to merge with Skydance Media, run by David Ellison. The deal would pay Redstone more than $1.5 billion for her controlling share in the company. She would not have a role at the merged entity going forward.
    That merger is being held up by the Federal Communications Commission as negotiations between Paramount Global and the government continue over the “60 Minutes” interview.
    Another point of contention between the federal agency and the company is corporate diversity initiatives, The Wall Street Journal reported in April. FCC Chairman Brendan Carr has publicly urged media companies to curb diversity, equity and inclusion programs.
    In February, Paramount said it would end its DEI policies, citing an executive order by President Donald Trump banning the practice in the federal government and demanding that agencies investigate private companies over their DEI programs.
    In October, Redstone publicly criticized McMahon’s decision to reprimand CBS News morning anchor Tony Dokoupil over an interview with author Ta-Nehisi Coates. CBS News said Dokoupil had violated editorial standards when the host pushed Coates on why he didn’t include more of Israel’s perspective on the war in Gaza during the interview. Redstone said CBS News made a “bad mistake.”
    “I think Tony did a great job with that interview,” Redstone said in October during a panel at Advertising Week New York. More

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    USTA to invest $800 million in US Open facilities in New York

    The USTA is making its largest ever investment in the U.S. Open.
    The tennis organization will invest $800 million to modernize and upgrade Arthur Ashe Stadium in Flushing, New York.
    The project is scheduled to be complete by the 2027 U.S. Open.

    The USTA unveils the largest single investment in U.S. Open history.

    The  United States Tennis Association announced on Monday it will make an $800 million investment to transform and modernize tennis facilities for the U.S. Open.
    The project marks the largest single investment in U.S. Open history and will feature a top-to-bottom renovation of Arthur Ashe Stadium in Flushing, New York, as well as a new $250 million player performance center.

    The USTA said the project will be self-funded and will not rely on public funding or taxpayer dollars.
    “This project enables us to maintain the greatest stage in tennis — Arthur Ashe Stadium — which was constructed more than 25 years ago, and modernize it in a way that will set it up for the next 25 years,” said Lew Sherr, CEO and executive director of the USTA.

    A reimagined Arthur Ashe Stadium modernized and enhanced at all levels.

    Arthur Ashe Stadium, the main stage of the U.S. Open tournament, will see the most significant changes, including a new grand entrance, modernized concourses and restrooms, two new dedicated luxury suite levels and new club and restaurant areas.
    The renovation will also add 2,000 seats in the courtside-level bowl.

    State-of-the-art, $250 million player performance center.

    The USTA says close to 2,800 players and members of their teams attend the U.S. Open each year.

    The new performance center will include redesigned locker rooms and lounges, as well as provide players a “spa-like experience.” It will also include new player dining, a player courtyard and new entranceway.
    The lead architect of the project is Matt Rossetti, whose firm built the original Arthur Ashe Stadium and led the upgrades completed in 2018.
    The three weeks of the U.S. Open each fall are a big economic driver for the state of New York, contributing $1.2 billion in annual economic impact according to the USTA.
    The project is expected to be completed by the 2027 U.S. Open. The USTA says play and fan access will not be affected for the 2026-27 events. More

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    Wynn Resorts drops bid for NYC casino license

    Wynn Resorts has dropped its bid for a gaming license in New York City.
    Wynn had partnered with Related Companies to develop an integrated casino resort in Manhattan.
    Las Vegas Sands also recently announced it is relinquishing its pursuit of a casino license.

    Wynn Resorts is dropping its bid to land a casino license in New York.
    The company said Monday it has become clear through the rezoning process that there are better uses for its capital. Wynn had partnered with Related Companies to develop an integrated casino resort in the posh Hudson Yards neighborhood of Manhattan, where high-end shops and restaurants already draw crowds.

    Wynn Resorts has surrendered to the inevitability of “years of persistent opposition,” according to a company news release.
    It is the second casino giant this spring to throw in the towel on a New York gaming license.
    Las Vegas Sands announced alongside its first-quarter earnings in April that it would no longer pursue a license for the site it had been working to develop at the Nassau Coliseum on Long Island. It blamed the specter of competition from iGaming, or online casino games, should the state legalize such offerings.
    Sands is working to find a third party to “transact the opportunity to bid for a casino license,” widely interpreted to mean another company that would pay to take over a project that has cost the company years of effort and tens of millions of dollars.
    But privately, casino executives from more than half a dozen companies have complained that the process of winning a casino license in New York state has little to do with the merits of the proposals, but instead is highly politicized and expensive — and keeps getting delayed.

    MGM Resorts and Resorts World, owned by Genting Group, have been presumed front-runners for winning two of the three licenses to be awarded because they already operate gaming operations with slots only — no live table games.
    Steve Cohen, owner of Major League Baseball’s New York Mets, has partnered with Hard Rock International, owned by the Seminole Tribe in Florida, to develop an area near Citi Field for a casino.
    Caesars has partnered with SL Green and Roc Nation for a gambling palace in Times Square.
    But Wynn says “any casino operator” will face stiff opposition for years to come. The company said it will instead spend its capital on stock buybacks and existing and upcoming developments. It is building the first casino resort in the Middle East in the United Arab Emirates.

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    Mortgage rates cross back over 7% after U.S. credit downgrade

    The rate on the 30-year fixed mortgage crossed 7%, hitting its highest level since April 11.
    Homebuilder sentiment is now at the lowest level since the end of 2023.

    After several weeks of sitting stagnant, mortgage rates surged higher Monday following Moody’s decision to downgrade the U.S. credit rating.
    Bond yields rose after the late Friday announcement, and mortgage rates loosely follow the yield on the 10-year Treasury.

    The average rate on the popular 30-year fixed loan hit 7.04% on Monday, according to Mortgage News Daily. That is the highest level since April 11.
    “The average mortgage lender had to account not only for the market movement in Friday’s closing minutes, but also to the additional weakness seen this morning. That makes for a fairly big jump, day-over-day, but it does very little to change the bigger picture,” said Matthew Graham, chief operating officer at Mortgage News Daily.
    The April surge in mortgage rates did have a direct effect on the housing market, causing it to pull back right in the heart of the usually busy spring season. Pending sales of existing homes in April, counted by signed contracts, dropped 3.2% compared with April of last year, according to Realtor.com.
    Homebuilders also noted a steep drop in demand in April. Homebuilder sentiment is now at the lowest level since the end of 2023, according to the National Association of Home Builders’ monthly index.
    There was a bit of a comeback in mortgage demand from homebuyers in the first two weeks of May, according to a weekly index from the Mortgage Bankers Association, but that was when rates were just sitting right around 6.9%. There has been a marked slowdown among buyers recently, whenever the rate goes over that 7% threshold. In addition, any rate increase will knock some people out of even qualifying for a mortgage.

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    Novo Nordisk is betting on a CEO shake-up to regain its weight loss drug edge over Eli Lilly

    Novo Nordisk is banking on fresh leadership to help it reclaim the crown in the booming weight loss drug market.
    The Danish drugmaker last week abruptly announced that longtime CEO Lars Fruergaard Jørgensen is stepping down, as its obesity injection Wegovy loses ground to Eli Lilly’s rival treatment, Zepbound.
    Novo Nordisk’s new top executive will need to help the company close the gap with Eli Lilly, fend off emerging rivals and navigate other challenges

    A view of the logo of Novo Nordisk at the company’s office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, March 8, 2024. 
    Tom Little | Reuters

    Novo Nordisk is banking on fresh leadership to help it reclaim the crown in the booming weight loss drug market.
    The Danish drugmaker on Friday abruptly announced that longtime CEO Lars Fruergaard Jørgensen is stepping down, as its obesity injection Wegovy loses ground to Eli Lilly’s rival treatment, Zepbound. While Eli Lilly entered the market later, it is emerging as the front-runner in a space that some analysts believe could be worth more than $150 billion by the early 2030s. 

    Novo Nordisk’s new top executive will need to help the company close the gap with Eli Lilly, fend off emerging rivals and navigate other challenges. The next CEO will have to spearhead the company’s plans to launch a new slate of weight loss drugs before key patents for Wegovy expire, and manage the impact of Medicare drug price negotiations and President Donald Trump’s planned tariffs on pharmaceuticals. 
    It’s unclear who will take Jørgensen’s place, but the company said it is considering both internal and external candidates. 
    “While Novo [Nordisk] took a commanding early lead in the obesity duopoly, they have ceded ground at a critical moment when more competitors are quickly approaching,” BMO Capital Markets analyst Evan Seigerman said in a note Friday, referring to other drugmakers racing to market their own obesity treatments. 
    Novo Nordisk once held the title of Europe’s most valuable company – worth $615 billion at its peak – driven by skyrocketing demand for Wegovy and its diabetes counterpart, Ozempic.

    Stock chart icon

    Novo Nordisk shares have plunged in the last year as Eli Lilly gains ground on its rival.

    But investor enthusiasm has faded after Eli Lilly gained a bigger share of the market and clinical trial data on Novo Nordisk’s next wave of obesity drugs underwhelmed investors. Shares of Novo Nordisk have plunged more than 50% over the past year, wiping out more than $300 billion in market value.

    Novo Nordisk’s stock is still up more than 250% since Jørgensen took over as CEO in January 2017. But shares of Eli Lilly have gained about 800% since that same month, when CEO Dave Ricks took over the company. 
    Mounting pressure also came from the powerful Novo Nordisk Foundation, the controlling shareholder of the Danish drugmaker. The foundation recently urged Novo Nordisk’s leadership to consider an “accelerated CEO succession” and pushed for greater board representation, according to a statement on Friday.
    Novo Nordisk on Friday said it jointly concluded with Jørgensen that it was time to find a new CEO following the foundation’s request, recent market challenges and the steep decline in the company’s share price. Jørgensen said he did not see his ouster coming and was only informed of it recently, according to several reports on Friday. 
    Days before the announcement, Novo Nordisk slashed its sales and profit forecast for the first time since the launch of Wegovy four years ago. 
    Seigerman said it’s still unclear whether a new top executive will be able to address the company’s challenges.
    “Although it might satisfy some for investors to drive a CEO transition, without meaningful change in near-term strategy, we continue to see a more difficult path forward,” he said. 

    Competition rises ahead of drug launches

    Novo Nordisk has been ceding market share to Eli Lilly, even though Zepbound’s dollar sales still trail Wegovy’s. 
    Zepbound and Eli Lilly’s diabetes drug Mounjaro now make up over half of U.S. prescriptions for so-called GLP-1s, which mimic hormones to tamp down appetite and regulate blood sugar, according to a separate note from Seigerman earlier this month. 
    That outpaces the combined 46% share of Novo Nordisk’s Wegovy and Ozempic. 

    A combination image shows an injection pen of Zepbound, Eli Lilly’s weight loss drug, and boxes of Wegovy, made by Novo Nordisk.
    Hollie Adams | Reuters

    New U.S. prescriptions of Zepbound surpassed those for Wegovy for the first time in early March 2024, just months after the launch of Eli Lilly’s drug, Reuters reported at the time. By August, some analysts were estimating that Zepbound had captured 40% of the U.S. weight loss drug market, hot on Wegovy’s heels.
    That “market-share traction clearly demonstrates that physicians and patients prefer Zepbound” over Wegovy, Bernstein analyst Courtney Breen wrote in a note in early May. Real-world data and a head-to-head clinical trial have shown that Zepbound leads to more weight loss than Wegovy. 
    Novo Nordisk has also struggled to convince Wall Street that its pipeline of next-generation weight loss drugs can help it maintain its position in the market, especially after Wegovy loses exclusivity and drugmakers can sell cheaper generic alternatives. 
    For example, Novo Nordisk repeatedly told investors its CagriSema shot, expected to be launched in 2026, would help people lose 25% or more of their body weight. But the once-weekly drug failed to live up to that forecast in December 2024, sending shares of the company plunging. 
    The company in April said it has filed for U.S. approval of an oral version of semaglutide, the active ingredient in Wegovy and Ozempic. It comes as drugmakers rush to develop more convenient weight loss pills, which could account for $50 billion of the market in the coming years, according to some analyst estimates. 
    But Seigerman, in a separate note in April, said Novo Nordisk has no clear strategy for its oral obesity drug portfolio. He said that is “likely to challenge growth in the end of the decade,” especially as Eli Lilly’s own obesity pill impresses investors and inches closer to entering the market. 
    Unlike oral semaglutide, Eli Lilly’s pill is a small-molecule drug and not a peptide medication. That means Eli Lilly’s drug is absorbed more easily in the body and doesn’t require dietary restrictions like oral semaglutide does, which may be a notable advantage for the company. 
    Seigerman acknowledged that Novo Nordisk’s experimental small-molecule pill, amycretin, could be competitive long term. But he said that won’t happen soon, as the drug is not expected to launch for several years. 
    Outside of pipeline issues, Novo Nordisk and the rest of the pharmaceutical industry are grappling with the Trump administration’s ambitions to lower drug prices and bring manufacturing to the U.S. Trump has said he plans to impose tariffs on pharmaceuticals imported into the U.S. and signed an executive order that aims to cut drug prices by tying them to the lowest prices abroad. 

    Signs of a changing strategy

    Novo Nordisk made it clear that its strategy remains unchanged despite Jørgensen’s abrupt exit. 
    “We have a strong product portfolio with lots of potential,” Novo Nordisk board Chairman Helge Lund said on a call with analysts Friday. “We have an experienced executive team to continue to evolve and drive the company forward with a long-term perspective.”
    But Seigerman said the decision to swap CEOs seems to “draw attention to pivots in this strategy that may be necessary.” 

    More CNBC health coverage

    Investors have already been seeing potential signs of that shift, according to Seigerman.
    Novo Nordisk has long prioritized peptide-based therapeutics. But the company’s recent deal-making indicates that it is leaning “heavier on oral small molecule solutions for the obesity market,” Seigerman said. 
    The company last week announced a licensing deal with the U.S. biotech company Septerna for experimental small-molecule pills for obesity and other cardiometabolic diseases. 
    But those pills are in early development and those products are years from entering the market, meaning the agreement is still risky. 
    The same can be said of several of Novo Nordisk’s other recent tie-ups.
    For example, Novo Nordisk in March said it had agreed to pay up to $2 billion for the rights to an early experimental drug from the Chinese pharmaceutical company United Laboratories International. 
    The newly acquired drug is a clear potential competitor to Eli Lilly’s so-called Triple G obesity drug retatrutide because they both use a three-pronged approach to promoting weight loss and regulating blood sugar. But retatrutide is in late-stage clinical trials, which means it could enter the market years before Novo Nordisk’s drug does. 

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    Netflix to stream ‘Sesame Street’ episodes beginning later this year

    Netflix will have exclusive worldwide premiere rights to the next three seasons of “Sesame Street,” as well as 90 hours of past episodes.
    The long-standing children’s program also signed a separate deal with PBS, securing the public broadcaster as the traditional TV home of new “Sesame Street” episodes.
    Warner Bros. Discovery opted not to renew its streaming agreement with “Sesame Street” on its platform HBO Max.

    The Netflix logo and Bert and Ernie from Sesame Street.
    Sam Wasson | Getty Images

    “Sesame Street” has a new streaming home.
    Netflix will stream the next three seasons of “Sesame Street,” as well as a library of past episodes, securing the future of the longtime children’s program known for characters such as Elmo and Cookie Monster.

    The deal with Netflix was announced Monday alongside another agreement with PBS, the longtime traditional TV home of “Sesame Street.”
    Netflix will have the exclusive global premiere streaming rights to new episodes of seasons 56 through 58, according to a Netflix spokesperson. New episodes will also be available on free, publicly funded PBS TV stations in the U.S., and on PBS Kids’ digital platforms, including its YouTube channel.
    Under the terms of the deal, Netflix will also gain rights to 90 hours of past episodes, and will be able to develop video games for both “Sesame Street” and its spinoff series “Sesame Street: Mecha Builders.”
    The deal comes after Warner Bros. Discovery opted not to renew its five-year streaming agreement in December with “Sesame Street” on its platform Max — now, again, called HBO Max — prompting a search for the iconic kids show’s next distribution partner. Under the previous deal, episodes debuted on PBS months after they were released on WBD’s streaming service, which also has an extensive library of past seasons.
    WBD has been cutting back on children’s content as Netflix builds out its portfolio of the programming. Earlier this year, episodes of YouTube children’s content creator Ms. Rachel were added to Netflix.

    Kid and family programming represents 15% of Netflix’s total viewing, the company said in Monday’s release.
    WBD reportedly paid $30 million to $35 million per year for new episodes of “Sesame Street.” Terms of the deal with Netflix were not disclosed.
    Monday’s announcement puts the future of “Sesame Street” on steadier ground after it has reportedly been in the middle of a financial crisis, while also facing pressure from the government. President Donald Trump signed an executive order earlier this month to end public funding of PBS and National Public Radio, claiming the organizations are “biased and partisan.”
    “Public media is essential,” said Sara DeWitt, PBS KIDS senior vice president and general manager. “And we know from years of research that providing new, high-quality content to children across the country for free helps prepare them for success in school and life.”
    “This unique public-private partnership ensures children in communities across the U.S. continue to have free access on PBS KIDS to the Sesame Street they love,” said Sesame Workshop CEO Sherrie Westin in a press release.
    The new season will be “reimagined” to include new segments and format changes, according to the release. The episodes will feature one 11-minute story, to “tell stories with even more character-driven humor and heart.” 
    Season 56 will be released in three batches starting later this year.

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