Market Movers: Cheesecake Factory, Eli Lilly, and Biden-Harris Administration Make Headlines
Cheesecake Factory Gets a Boost from Activist Investor
The Cheesecake Factory is seeing a significant surge in its stock price, up nearly 5% premarket, following reports that an activist investor has taken a stake in the company. JCP Investment Management, a firm focused on the restaurant space, has accumulated a 2% stake in Cheesecake Factory and is pushing for the company to spin off three of its smaller brands into a separate entity. JCP believes that North Italia, Flower Child, and Culinary Dropout would be better off as a standalone company and is willing to invest in the spun-off entity to support its growth.
Eli Lilly Takes Action Against Companies Selling Compounded Versions of its Medications
Eli Lilly has filed lawsuits against three companies for continuing to sell compounded versions of tirzepatide, the active ingredient in its weight loss and type 2 diabetes medications Zepbound and Mounjaro. The companies, Pivotal Peptides, MangoRx, and Genesis Lifestyle Medicine of Nevada, are accused of making false claims about the products’ efficacy and safety. Lilly notes that both of its tirzepatide treatments were taken off the U.S. FDA drug shortage list earlier in October, rendering the compounded versions unnecessary.
Biden-Harris Administration Proposes Expanded Contraceptive Coverage
The Biden-Harris administration has unveiled a proposal to expand the Affordable Care Act’s coverage of contraceptives to include over-the-counter contraception with no cost sharing. The proposed rule would require health plans to cover every FDA-approved contraceptive drug or drug-led combination product without cost sharing, except for plans that also cover a therapeutic equivalent without cost sharing. This move is expected to impact major players in the branded oral contraceptive space, including Teva Pharmaceutical Industries and Bayer.
Other Market News
- Dow, S&P, and Nasdaq futures are in the red ahead of the opening bell.
- Crude oil is up 0.6% at $70/barrel.
- Bitcoin is down 2% at $66,000.
- The FTSE 100 is down 0.6%, and the DAX is down 0.2%.
- DMC Global shares plummeted 17% after lowering Q3 sales guidance.
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