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The U.S. Food and Drug Administration’s Covid strain selection for the next round of shots is a decisive win for Pfizer, Moderna and Novavax.
The FDA advised the three pharmaceutical companies to manufacture single-strain jabs targeting the omicron subvariant XBB.1.5.
The agency’s decision puts the vaccine makers on track to deliver updated coronavirus jabs in time for the fall and winter.
The timely delivery of new vaccines will position each pharmaceutical company to compete in the commercial market. 

A pharmacist prepares to administer COVID-19 vaccine booster shots during an event hosted by the Chicago Department of Public Health at the Southwest Senior Center on September 09, 2022 in Chicago, Illinois.
Scott Olson | Getty Images

The U.S. Food and Drug Administration’s Covid strain selection for the next round of shots puts Pfizer, Moderna and Novavax on track to deliver new jabs in time for the fall – a decisive win for the vaccine makers as they gear up to compete against one another.  
The FDA on Friday advised the three companies to manufacture single-strain jabs targeting the omicron subvariant XBB.1.5, one of the most immune-evasive Covid variants to date. 

That strain accounted for nearly 40% of all Covid cases in the U.S. in early June, but that proportion is slowly declining, according to data from the Centers for Disease Control and Prevention. 
But facing pressure to deliver new shots by the fall, Pfizer, Moderna and Novavax began development on versions of their vaccines targeting XBB.1.5 months before the FDA’s decision. Preliminary data those companies presented last week indicates that their jabs produce strong immune responses against all XBB variants. 
The FDA’s strain selection means that the companies won’t have to scramble to manufacture shots targeting an entirely different strain, which would delay the timing of delivery. 
Pfizer said on Thursday it will be able to deliver a shot targeting XBB.1.5 by July. Moderna and Novavax did not provide specific timelines for their versions.
Still, the FDA’s decision means that all three companies will likely deliver their updated jabs on time.

Shots targeting XBB.1.5 seem “the most feasible to get across the finish line early without resulting in delays in availability,” Dr. Melinda Wharton, a senior official at the National Center for Immunization and Respiratory Diseases, said at an FDA advisory committee meeting on Thursday. 
The U.S. is expected to shift Covid vaccine distribution to the private sector as soon as the fall, when the federal government’s supply of free shots is expected to run out. Manufacturers will sell their updated jabs directly to health-care providers rather than to the government.
That doesn’t include Johnson & Johnson, a once-leading Covid vaccine developer. The company’s shots are no longer available in the U.S. after reports of rare but serious blood-clotting side effects.
For Pfizer and Moderna, the commercial market is an opportunity to tap into more distribution channels than they did under government contracts.
But both companies still expect Covid-related sales to decline this year as the world emerges from the pandemic and fewer people rely on vaccines and treatments. Pfizer expects Covid shot revenue to fall to $13.5 billion this year from $37.8 billion in 2022.
Moderna expects a minimum of $5 billion in revenue from its Covid vaccine, its only available product. The jab generated $18.4 billion in revenue last year.
For Novavax, the commercial market is crucial to its survival through 2023 and beyond. The cash-strapped company won U.S. approval for its Covid vaccine under emergency use just last year due to regulatory and manufacturing delays. 
Now, one of Novavax’s top priorities is to capture commercial market share after lagging behind Pfizer and Moderna. The FDA’s strain selection positions Novavax as a viable competitor against those household names.
The company hopes to rake in $1.06 billion to $1.24 billion in sales of its Covid vaccine this year. That’s slightly lower than the $1.5 billion Novavax’s shot generated last year.
But the three companies still face the same hurdle: It’s unclear how many Americans will roll up their sleeves to take updated vaccines later this year, even if those shots are delivered on time. 
Only around 17% of the U.S. population — around 56 million people — have received Pfizer and Moderna’s latest boosters since they were approved in September, according to the CDC.  More

Eli Lilly struck a $2.4 billion deal to acquire Dice Therapeutics in a bid to bulk up its treatment portfolio for immune-related diseases.
Eli Lilly will pay $48 per share in cash to buy Dice, representing around a 40% premium to where the San Francisco-based company’s shares closed on Friday.
Dice is a biopharmaceutical company that uses a proprietary technology platform to develop new oral therapeutic drugs for autoimmune diseases.

David Ricks, CEO, Eli Lilly
Scott Mlyn | CNBC

Eli Lilly on Tuesday said it struck a $2.4 billion deal to acquire Dice Therapeutics in a bid to bulk up its treatment portfolio for immune-related diseases.
Eli Lilly will pay $48 per share in cash to buy Dice, representing around a 40% premium to where the San Francisco-based company’s shares closed on Friday. The transaction is expected to close in the third quarter of this year.

“In combination with its novel technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases,” said Patrik Jonsson, Eli Lilly executive vice president, in a press release. 
Dice is a biopharmaceutical company that uses a proprietary technology platform to develop new oral therapeutic drugs for autoimmune diseases, in which the body’s immune system mistakenly attacks a person’s own cells instead of protecting them.
Auto-immune diseases can causes pain, fatigue, dizziness, depression and rashes, among other symptoms.
There are more than 100 known autoimmune diseases, including lupus, rheumatoid arthritis, Crohn’s disease and ulcerative colitis.
Dice’s lead drug is in a mid-stage trial for an immune-related skin condition called psoriasis. 
Eli Lilly’s immunology portfolio includes drugs like Taltz, which treats plaque psoriasis, and Olumiant, a treatment for rheumatoid arthritis. Last year, Taltz raked in $2.48 billion, while Olumiant generated $830.5 million in sales. More

Merck, the U.S. Chamber of Commerce and Bristol Myers Squibb have sued the Biden administration over Medicare’s new drug-price negotiations.
The lawsuits are the opening salvo in a historic and potentially decisive battle over the federal government’s efforts to bring rising drug prices under control.
Legal experts say the pharmaceutical industry will likely file many more lawsuits this fall, as big drugmakers are ultimately aiming to take their battle to the Supreme Court and strike down the law.

Chief Executive Officers of pharmaceutical companies testify before the Senate Finance Committee on “Drug Pricing in America: A Prescription for Change, Part II” February 26, 2019 in Washington, DC. From left to right are Richard A. Gonzalez, chairman and CEO of AbbVie Inc; Pascal Soriot, executive director and CEO of AstraZeneca; Giovanni Caforio, chairman of the board and CEO of Bristol-Myers Squibb Co.; Jennifer Taubert, executive vice president and worldwide chairman of Janssen Pharmaceuticals, Johnson & Johnson; Kenneth C. Frazier, chairman and CEO of Merck & Co. Inc.; Albert Bourla, CEO of Pfizer and Olivier Brandicourt, CEO of Sanofi.
Win Mcnamee | Getty Images News | Getty Images

The pharmaceutical industry is aiming to strike down Medicare’s historic new powers to slash drug prices for seniors through a Supreme Court ruling, legal experts say.
Drugmaker Merck, the U.S. Chamber of Commerce and Bristol Myers Squibb filed separate lawsuits within days of each other this month asking federal courts in Washington, D.C., the Southern District of Ohio, and New Jersey to declare the price negotiations unconstitutional under the First and Fifth amendments.

The lawsuits are the opening salvo in what will go down as a historic and potentially decisive battle over the federal government’s efforts to control rising drug prices.
The Inflation Reduction Act, passed in a narrow party-line vote last year, gave Medicare the power to negotiate prices for the first time in the program’s nearly 60-year history — a watershed moment that the Democratic Party had long fought for.
The pharmaceutical industry views the program as posing a major threat to revenue growth and profits. The companies claim the program will stifle future drug development in the U.S.
Merck fears its blockbuster cancer therapy Keytruda, which generated 35% of the company’s $59 billion in revenue for 2022, will be targeted by the program in the future. The company also worries the federal government will select its Type 2 diabetes drug Januvia, which generated $2.8 billion in revenue in 2022, for negotiations this year.
Drugmaker Abbvie, a member of the Chamber of Commerce’s Dayton, Ohio, chapter, is defending its blood cancer drug Imbruvica, which generated $4.6 billion in revenue last year, or about 8% of its total sales.

And Bristol Myers Squibb is trying protect its blood thinner Eliquis, which brought in $11.8 billion in sales last year, or about 25% of the company’s $46 billion total revenue for 2022.
These are the first lawsuits challenging Medicare’s new powers, but they are unlikely to be the last.
The big drugmakers’ lobby group, the Pharmaceutical Research and Manufacturers of America, told CNBC in a statement that it supports the claims made in the lawsuits.
A spokesperson for PhRMA said the organization is also considering litigation against Medicare. PhRMA’s members include other big drugmakers like Eli Lilly, Pfizer and Johnson & Johnson.
Legal experts and financial analysts who cover the pharmaceutical industry said Merck, the chamber and Bristol Myers Squibb will try to litigate their claims all the way to the high court.
“These lawsuits were written with the Supreme Court in mind,” said Robin Feldman, an expert on intellectual property and health law at the University of California College of the Law in San Francisco.
Nicholas Bagley, a former Justice Department attorney, said the high court is the “big fish.” Any decision striking down the Medicare price negotiations would ultimately have to be made by the justices, said Bagley, former chief legal counsel to Michigan Gov. Gretchen Whitmer.
Chris Meekins, an analyst with Raymond James, noted that the all four attorneys representing Merck previously served as clerks to conservative Supreme Court justices: They clerked for Antonin Scalia, Brett Kavanaugh and Neil Gorsuch.
“That is noteworthy in that it is clear to us that Merck is ready and willing to take this all the way to the Supreme Court if needed,” Meekins wrote in analyst note.

Long legal battle ahead

Merck, the chamber and Bristol Myers Squibb filed their lawsuits ahead of two key deadlines.
Health and Human Services Secretary Xavier Becerra will publish a list by Sept. 1 of the 10 drugs that Medicare has selected for the negotiations. The drugmakers then have to agree to participate and file manufacturing data to the Centers for Medicare and Medicaid Services the following month.
The actual price reductions that come out of the negotiations, which conclude in August 2024, won’t take effect until January 2026.
The companies face severe financial penalties that are several times higher than their drug’s daily revenues if they do not enter the negotiations and comply with the program’s conditions. Drugmakers can avoid the taxes only if they pull their drugs out of Medicare and Medicaid rebate programs.

Meekins said in his analyst note earlier this month that Merck might try to get the federal courts to block the law before the deadlines.
But Bagley noted that Merck and the chamber did not file motions for preliminary injunctions to immediately block the law’s implementation. Bristol Myers Squibb did not either. He said the plaintiffs can’t plausibly claim an immediate injury now because the price cuts wouldn’t go into effect until 2026.
Bagley said the parties could ask for an injunction that is tied to the October deadlines when they sign agreements to participate in the negotiations and start submitting data.
The odds are that the lawsuits will be a long slog, Bagley said. “Any fight over the proper remedy will come at the end of the case, once the legal merits are finally resolved,” he said.
The judge assigned to Merck’s case is Randolph Daniel Moss, who was appointed by former President Barack Obama. The chamber’s case is assigned to Judge Thomas M. Rose, who was appointed by former President George W. Bush.
Bagley said both judges would probably be skeptical of a motion for preliminary injunction tied to the October deadlines, though Rose could perhaps be persuaded to allow it.

Expect more lawsuits this fall

Kelly Bagby, vice president of litigation at the AARP Foundation, said more lawsuits will almost certainly come when HHS publishes the list of 10 drugs in September.
AARP is the influential lobby group that represents people older than age 50. The organization has strongly advocated in favor of Medicare’s new negotiation powers.
Bagby said pharmaceutical companies whose drugs are selected for negotiation will likely ask federal courts for preliminary injunctions to block the law’s implementation when the list publishes in September.
The list of drugs subject to negotiation could include Pfizer’s Ibrance, Johnson & Johnson’s Xarelto, Eli Lilly’s Jardiance, Amgen’s Enbrel and AstraZeneca’s Symbicort, among others, according to a March analysis published in the Journal of Managed Care and Specialty Pharmacy.
Pfizer CEO Albert Bourla told Reuters in May that he expects legal action to be taken against Medicare over the negotiations, though he said it is unclear if the drugmakers will be able to stop the law’s implementation before the 2026 cuts go into effect.

Eli Lilly, in a statement to CNBC, said the company shares the companies’ concerns and will evaluate the negotiations implementation to “determine any possible actions.”
Bagby also believes the issue is heading for the Supreme Court. She said the companies will probably scatter their cases around the country — like Merck, the chamber and Bristol Myers Squibb did — in an attempt to get federal appellate courts to issue competing decisions.
The Merck case in Washington, D.C., district court would move on appeal to the D.C. Circuit Court of Appeals, which has a majority of judges appointed by Democratic presidents.
The chamber’s case would be appealed to the U.S. Sixth Circuit Court of Appeals, which has a majority of judges appointed by Republican presidents, particularly Donald Trump.
And Bristol Myers Squibb’s case would head to the U.S. Third Circuit Court of Appeals, which also has a slight majority of judges appointed by Republicans.
If circuit court decisions on the matter contradict one another, the Supreme Court would step in to decide the issue, Bagby said.
White House press secretary Karine Jean-Pierre said the Biden administration is confident it will succeed in the courts.
“There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices,” Jean-Pierre said in a statement.
And Beccera added that “we’ll vigorously defend the President’s drug price negotiation law, which is already lowering health care costs for seniors and people with disabilities.”
“The law is on our side,” Becerra said in a statement.

Patents at the center of the fight

Feldman, the intellectual property and health law expert, said the success or failure of the pharmaceutical industry’s attempt to take down Medicare’s new powers will hinge to a large degree on whether the courts consider patents a form of private property.
Merck claims in its complaint that the negotiations violate the Fifth Amendment, which prohibits the government from taking private property for public use without just compensation. Bristol Myers Squibb made an identical argument in its complaint.
Merck and Bristol Myers Squibb argue that Medicare is taking pharmaceutical companies’ private property — patented drug products — and coercing them to accept a price that is much lower the market value of the medications. The chamber made broader due process claims under the Fifth.

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Feldman said the Fifth was written with property such as land in mind. Patents differ substantially from land because they are issued by the federal government, she said. And, she noted, drug prices are driven to a significant degree by the value derived from government-issued patents.
The Supreme Court has not ruled that patents are private property under the Fifth’s “takings clause,” Feldman said, pointing to the 2018 case Oil States Energy Services v. Greene’s Energy Group.
Justice Clarence Thomas said in his majority opinion in the case that the high court has long recognized patents as a matter involving “public rights,” but the court hasn’t definitively explained the difference between these government-derived public rights and private rights.
“Applying the takings clause to patents would be like the shot heard round the world — it would be an extraordinary shift and the companies will have a heavy lift to convince the courts that those words apply to patents,” Feldman said. More

Warner Bros.’ “The Flash” hauled in an estimated $55 million during its first three-day weekend, a far cry from the $75 million to $85 million industry experts had expected.
Disney’s animation rut continued with the release of “Elemental,” which is expected to have the second-lowest opening of any wide-released Pixar film in the studio’s history.
Sony’s “Spider-Man: Across the Spider-Verse” continued to draw in audiences.

Ezra Miller stars as Barry Allen in Warner Bros.’ “The Flash.”
Warner Bros. Discovery

Moviegoers spread the wealth over Father’s Day weekend across a diverse slate of new releases and lingering favorites.
The mixed results saw disappointing debuts from “The Flash” and “Elemental,” while “Spider-Man: Across the Spider-Verse” continued to attract ticket buyers.

Warner Bros.’ latest superhero film hauled in just $55 million during its first three-day weekend, a far cry from the $75 million to $85 million industry experts had expected. It also fell short of the $67 million debut of fellow DC film “Black Adam” last October.
“‘The Flash’ is a victim of numerous factors that stalled buzz for the once highly anticipated film,” said Shawn Robbins, chief analyst at BoxOffice.com.
Robbins pointed to the ongoing controversy surrounding star Ezra Miller, a lack of consistency in the DC film franchise and a too-narrowly focused marketing campaign that only targeted die-hard fans for the lower-than-expected box office opening.
“Audiences have shown in recent months and post-‘Endgame’ years that they are being more selective about which comic book films are going to earn their box office dollars,” he said.
It wasn’t the only film to see a poor audience response over the weekend. Disney’s animation rut continued with the release of “Elemental,” which is expected to have the second-lowest opening of any wide-released Pixar film in the studio’s history. Estimates peg the film’s debut at $29.5 million, just higher than the $29.1 million “Toy Story,” Pixar’s first-ever theatrical release, which opened in 1995.

“[‘Elemental’s’] middling debut is less surprising,” Robbins said, noting that Pixar is in the middle of rebranding itself following a slew of pandemic-era streaming releases.
Pixar is also facing steep competition from rival animation studios. Universal’s Illumination and DreamWorks animation arms have dominated the box office with hits like “The Super Mario Bros. Movie,” “Puss in Boots: The Last Wish” and “Minions: The Rise of Gru.”
And then there is Sony’s “Spider-Man: Across the Spider-Verse,” which has continued to attract audiences since its June 2 debut. The film generated an estimated $27.8 million over the three-day spread and has tallied $489.3 million globally since its June 2 release.
“Though there were no massive overperformances by the wide-release newcomers, this weekend was distinguished by the sheer number of movies and the wide variety of audience demographics drawn to the multiplex,” said Paul Dergarabedian, senior media analyst at Comscore.
Paramount’s “Transformers: Rise of the Beasts” added another $20 million domestically, Disney’s “The Little Mermaid” secured another $11.6 million in ticket sales and Marvel’s “Guardians of the Galaxy: Vol. 3” took in another $5 million.
Across Friday, Saturday and Sunday of the Father’s Day weekend, the domestic box office is expected to tally just under $175 million in receipts. That’s 5% higher than the haul over the same period in 2022 and 28% higher than 2019, according to data from Comscore.
“Father’s Day weekend, while not boasting a record-smashing breakout hit, was a great one for movie theaters that saw their fortunes rise by virtue of an appealing assortment of films that powered a fantastic overall weekend,” said Dergarabedian.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

The Paris Air Show returns Monday after a four-year hiatus during the pandemic.
An aviation analytics firm expects there could be 2,100 aircraft orders during the show.
Meanwhile, Boeing and Airbus are racing to increase production to meet strong demand.

An employee works at the Airbus A350 assembly site, in Colomiers near Toulouse, south-western France, on December 9, 2022.
Valentine Chapuis | AFP | Getty Images

A lot has changed in the four years since one of the aviation industry’s biggest air shows was held in person.
The Covid-19 pandemic devastated travel demand, the aviation industry shed thousands of experienced workers and roller coaster appetites for new jets wreaked havoc on production rates of new planes.

After all that, the Paris Air Show — a trade event where companies get a chance to showcase new technology, commercial and military aircraft, and strike deals — returns on Monday during a surge in air travel demand, with airlines starving for jets to feed it. The question is whether Boeing, Airbus and their numerous suppliers can catch up.
“That’s creating pressure on the order books — it’s creating upward momentum on used aircraft lease rates and forcing airlines to make compromises,” said Andy Cronin, CEO of aircraft-leasing firm Avolon.
Aviation analytics firm IBA estimated last week that there could be orders for about 2,100 planes during the show as airlines replace older aircraft and prepare for future growth in air travel.
Over the past year, Boeing has logged large orders or preliminary agreements from customers including United Airlines, Saudia and new Saudi carrier Riyadh Air. Air India’s massive order earlier this year included both Boeing and Airbus jets.
Turkish Airlines’ chairman told reporters last month that the carrier is planning to order around 600 aircraft, both wide-body and narrow-body planes. The order would be the largest ever for a single airline, though it isn’t clear whether that would come together in time for the show.

IBA’s chief economist, Stuart Hatcher, wrote in a June 15 forecast that Delta Air Lines, Malaysia Airlines and Air France-KLM could be buyers, but the timing isn’t yet certain. Air Baltic could also look to expand its Airbus A220 fleet, he said.
“It might still be too early to call any Chinese expansion yet given the political climate, but I wouldn’t be surprised to see top-up orders coming through,” Hatcher wrote.

Arrows pointing outwards

The major challenge for manufacturers now is increasing production. Slots for narrow-body jets, such as Boeing 737s and Airbus A320s, are sold out for years. Now that long-haul travel is returning, some airlines could also be looking to expand their fleets of larger, long-range jets.
But customers around the world have been forced to wait longer than expected for new planes as Boeing, Airbus and a web of suppliers around the world try to ramp up output. That has limited airline capacity, keeping airfares high.
Qantas CEO Alan Joyce told CNBC last week that he expects supply chain issues to last into 2025.
Boeing and Airbus are scrambling to raise production rates for the coming years to meet that demand.
The production delays have also driven up rates to lease both new and older planes as airlines search for other opportunities to boost flights.
New Boeing 737 Max 8 planes are leasing for about $350,000 a month in July, up from $305,000 in January 2020 as the pandemic was beginning, IBA estimates. New Airbus 320s are going for $355,000, up from $325,000 over that period. Older versions are close to pre-pandemic levels.
“People just want their jets,” said Richard Aboulafia managing director of AeroDynamic Advisory. More

Restaurant brands are starting to pilot artificial intelligence to streamline food service.
Analysts say a key benefit is the potential to ease workforce challenges in an ongoing tight hiring market.
A wave of pilot programs has already begun.

From drive-thru to back-of-house operations to predictive ordering for consumers, restaurant brands are starting to pilot artificial intelligence to streamline food service.
The technology has yet to reach critical mass at major chains but has the potential to automate more tasks and give restaurant workers the opportunity to have a more meaningful experience with guests.

Analysts say a key benefit is the potential to ease workforce challenges in an ongoing tight hiring market. The National Restaurant Association predicts the industry will add 500,000 jobs by the end of 2023, but notes there’s currently just one job seeker for every two open positions.
What’s more, TD Cowen estimates voice-enabled AI can drive sales as much as 15% through suggestive selling as well as speed up service times by 10 seconds.
The industry shift is reminiscent of the emergence of third-party delivery services five years ago, before it was ubiquitous at nearly every major restaurant operator, according to Andrew Charles, managing director of consumer and restaurants at TD Cowen.
“Some were trying it, others we’re contemplating it, most were piloting it,” he said of third-party apps for delivery services. “I think there’s a clear analogue to today where it’s very similar and as we continue to see further adoption of this, you will see a domino effect here.”
But there are still hurdles to broad adoption, according to Charles. Many of these large restaurant chains need to get franchisees on board. Language barriers and menu nuances can add complexity to the ordering process that AI may not be able to navigate.

Meanwhile, the wave of pilot programs has already begun.
Last month, Carl’s Jr. and Hardee’s parent company CKE announced it was aiming to launch AI integrations nationwide via partnerships with Presto and OpenCity AI.
Yum! Brands in recent years has been a leader in leveraging AI to enhance operations, including its 2021 acquisition of Dragontail aimed at streamlining food prep and delivery. The tech, which automates kitchen flow, driver dispatch and customer order tracking, is used in 1,000 Pizza Hut locations in the U.S., and nearly 3,000 more globally. The company also relies on AI for its recommended ordering module that informs managers of how much product to order weekly.
McDonald’s, for its part, sold McD Tech Labs to IBM in 2021, entering a strategic partnership to help bring AI technology to drive-thru lanes. McD Tech Labs, which was formerly known as Apprente before McDonald’s acquired it, used AI to understand drive-thru orders. So far, McDonald’s has tested the technology at certain locations.
Del Taco is also using voice-activated AI for orders at its drive-thru, as is Wingstop for orders placed by phone.
Panera Bread has likewise invested in the technology in both front- and back-of-house operations. It’s working with OpenCity AI on drive-thru voice ordering and with Miso Robotics to sure up coffee quality and temperature control to boost product consistency.
For Panera, it’s a question of, “How do we redeploy our people to higher value, higher quality guest experiences,” said Chief Digital Officer George Hanson. “Whether they’re spending more time on the food preparation and the quality control, or in person interaction,” Hanson told CNBC in an interview.”It might be just swinging around into the dining room and asking them how their meal is or if they can bus their table — just having those warm interactions. We view that as higher value.”

Chipotle is testing out an autonomous kitchen assistant, Chippy, which offers a robotic solution for making chips in restaurants.
Courtesy: Chipotle

Chipotle, a tech leader in the restaurant space, has also partnered with Miso Robotics, introducing Chippy, its robotic chipmaker, which is currently installed and cooking chips in a restaurant location in Fountain Valley, California. Using AI, Chippy has been trained to recreate the brand’s exact chip recipe with salt and fresh lime juice. The next iteration of Chippy will determine the amount of chips that need to be made, too.
The company has also implemented AI on its app to deploy suggestive ordering and uses camera systems at its Cultivate Center test kitchen to provide real-time data on the amount of product needed based on customer volume to be more predictive and less reactive.
Chief Customer and Technology Officer Curt Garner told CNBC the hope is for AI and robotics to amplify and improve human experiences at the company’s restaurants.
“[It’s] helping the crew members, managers, the team to adapt to their current environment as a tool, but not taking them out of the equation of serving our guests and running the ship,” he said. More

Bristol Myers Squibb has sued the Biden administration over Medicare’s new powers to negotiate drug prices under the Inflation Reduction Act.
The drugmaker said its blood thinner Eliquis will be subject to the negotiations later this year.
Bristol Myer Squibb’s complaint mirrors the arguments made last week by Merck, the first company to sue over the law.
The U.S. Chamber of Commerce also sued the Biden administration last week.

Dado Ruvic | Reuters

Bristol Myers Squibb on Friday sued the Biden administration over Medicare’s new powers to slash drug prices, the third such lawsuit to be filed against the program in a matter of days.
The lawsuit filed in federal district court in New Jersey argues the Medicare negotiations violate the First and Fifth Amendments of the U.S. Constitution.

Bristol Myers Squibb has asked the court to declare the program unconstitutional and prevent the Health and Human Services Department from forcing the company to enter negotiations.
Bristol Myers Squibb’s arguments mirror those lodged last week by Merck, the first company to sue the federal government over the drug negotiations. The U.S. Chamber of Commerce has also sued HHS over the program with similar arguments.
The Inflation Reduction Act, passed in 2022 in a narrow party-line vote, empowered Medicare to negotiate drug prices for the first time in the program’s six-decade history. The law is the central pillar in the Biden administration’s efforts to control rising drug prices and was a major victory for the Democratic Party.
Bristol Myers Squibb said its blood thinner Eliquis, used to treat clots and strokes, will be subject to the negotiations this year. The company generated $11.8 billion in revenue from Eliquis last year, about 25% of the company’s $46 billion in total revenue for 2022.

The drugmaker also said Opdivo, used to treat several types of cancer, will be subject to the Medicare negotiations in the future. Opdivo generated $8.2 billion in sales for the company in 2022, which made up about 18% of the drugmaker’s total revenue for that year.

Bristol Myers Squibb argued the federal government is forcing the company to enter negotiations and eventually agree to a heavily discounted price. The company claims this violates Fifth Amendment protections against the government seizing private property without just compensation.
The drugmaker also claimed HHS is forcing the company to publicly present the program as a negotiation over a fair price. The company called the negotiations a sham and claimed the federal government is forcing the drugmaker to “parrot its preferred political messaging” in violation of the First Amendment.
HHS Secretary Xavier Becerra, in a statement after Merck’s lawsuit last week, vowed to vigorously defend the Inflation Reduction Act in court, saying, “The law is on our side.”
White House Press Secretary Karine Jean-Pierre, also in a statement after Merck’s suit, said the Biden administration is confident it will win in court.
“There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices,” Jean-Pierre said. More

Toyota stock sealed its best week since 2009, as the automaker laid out a robust plan for future EVs and company scion Akio Toyoda became leader of the company’s board.
Such a rally is not typical for the stock. It’s only the third double-digit weekly gain in more than two decades of the relatively well-performing but mundane stock.
The automaker this week outlined plans for a new generation of EVs to rival industry leaders Tesla and China-based BYD.

Akio Toyoda, president and CEO of Toyota Motor Corp.
Kiyoshi Ota | Bloomberg | Getty Images

DETROIT – Toyota Motor stock sealed its best week since 2009 on Friday, as the automaker laid out a robust plan for future all-electric vehicles and company scion Akio Toyoda became leader of the Japanese company’s board.
Shares of Toyota on the New York Stock Exchange closed Friday at $164.35 per share, down 2.3% for the day but still up 10.6% on the week. That 5-day gain is the stock’s best week since April 2009 when shares increased 14.5%.

Such a rally is not typical for the stock. It’s only the third double-digit weekly gain in more than two decades for the relatively well-performing but mundane stock. Shares of the company are up 20% so far in 2023.
The positive uptick this year comes as recent supply chain problems ease for the automotive industry, including Toyota, and after Toyoda, grandson of the company’s founder, announced plans to transition from CEO to chairman after more than 13 years leading the automaker.
Toyoda, who left his post as chief executive on April 1 and was succeeded by Koji Sato, had faced criticism from some environmental groups and investors for not going all-in on EVs and continuing production of hybrids and plug-in hybrids such as the Prius and Prius Prime.

Stock chart icon

Toyota’s stock in 2023.

Toyota executives, while increasing investments in EVs, have argued such cars and trucks are one solution, not the solution, to meet tightening global emissions standards and achieve carbon neutrality.
To address skeptics of its strategy, the automaker this week in Japan offered a rare peek behind the curtain into its future plans.

“Management has only rarely announced the details of technology under development in the past, and we sensed commitment to ensuring competitive strength via electrification and intellectualization under the new management team,” JPMorgan analyst Akira Kishimoto said in an investor note this week.
Ahead of its annual meeting Wednesday, Toyota outlined plans for a new generation of EVs to rival industry leaders Tesla and China-based BYD. The company said it plans to launch its next-generation EVs starting in 2026, including vehicles with highly touted “solid-state batteries” by 2027 or 2028.

Solid-state batteries can be lighter, with greater energy density and provide more range at a lower cost than today’s EVs that run on lithium-ion batteries.
Takero Kato, president of Toyota’s battery electric vehicle factory, said that Toyota is targeting a driving range of 1,000 kilometers, or 620 miles, for its EVs. The facility aims to produce about 1.7 million vehicles by 2030, he said.
“A strategic focus on differentiation (in terms of technologies and business model) rather than scale in 2025-30 and the company’s strong ability to develop technologies toward this end are longer-term positives, in our view,” UBS analyst Kohei Takahashi said Tuesday in an investor note.
Following the announcements, Toyota shareholders on Wednesday approval the company’s new leadership and rejected a shareholder proposal requiring Toyota to review its climate-related lobbying activities — voting in alignment with company recommendations.
— CNBC’s Michael Bloom and Lim Hui Jie contributed to this report. More