Clear Law Weekly Roundup: Your Commercial Edge in Focus

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Today's Top 5 Headlines You Can't Miss!

Stay ahead of the game with the hottest stories shaping the business and legal world. 🚀 Here’s your fast track to this week’s must-know news:

1. Technology Regulation: Apple and Google investigated by UK regulator over mobile platforms

2. Retail: Puma shares plunge after sportswear group misses profit target

3. Pharmaceutical industry: Investors lose their appetite for the obesity trade

4. Big Tech: Open AI spars with Elon Must over $500bn Stargate project

5. BioTech: Sam Altman-backed Retro Biosciences to raise $1bn for project to extend human life

Which headline sparks your curiosity? Dive in and stay commercially sharp!

Today's Detailed Report: Dive into the Key Insights 📊 

Apple and Google investigated by UK regulator over mobile platforms

The UK’s competition watchdog launched an investigation into Apple and Google’s mobile platforms just days after the government forced out its chair as part of a push to cut the regulatory burden on business. The reason for ousting Marcus Bokkerink was that the regulator was not focused on the growth.

The Competition and Markets Authority (CMA) said it would examine whether the creators of the iPhone and Android smartphone operating systems should be subjected to extra scrutiny over how they run their mobile platforms. This is the second investigation under the new digital markets regime.

The move led to speculation that the antitrust regulator would treat the Big Four more leniently. The government has appointed Doug Gurr as interim CMA chair. He previously ran Amazon’s UK business.

There are three things that CMA would examine: How Apple and Google competed with each other, whether they favoured their apps and services, and whether developers were treated fairly.

As part of the UK’s Digital Markets, Competition and Consumers Act 2024, the CMA can designate a small group of companies as having “strategic market status”, imposing conduct requirements, similar to the EU’s Digital Markets Act.

Some views on this move: 

• “More competitive mobile ecosystems could foster innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems” - Sarah Cardell, chief executive of CMA.

• “better competition could also boost the growth here in the UK, with businesses able to offer new innovative types of products and services on Apple’s and Google’s platforms”. she added

Previously….

The UK’s competition watchdog has opened an investigation into Google to determine if its position in search services should warrant a special status for the UK technology giant, which could see it bound by tougher conduct rules.

Puma Shares Drop After Missing Profit Target

Puma’s shares took a big hit on Thursday dropping by 20% after the company reported lower-than-expected profits for 2024. While sales grew by 4.4% to €8.8bn, net income fell to €282mn from €305mn in the previous year. The company blames this on higher interest expenses and lower profits from a US joint venture.

CEO Arne Freundt acknowledged the sales growth but admitted the company was “not satisfied with profitability. Puma plans to cut costs and reallocate staff to key areas like marketing, though overall employee numbers will remain stable. Freundt expects stronger growth in 2025, with a focus on turning higher revenues into better profits.

Addidas Outperforms Puma

While Puma struggles, its rival Adidas is doing well. The brand recently reported strong sales, especially for its classic sneakers like Samba and Gazelle, helping boost profits in the final quarter of 2024. Addidas shares have surged by more than 50% over the past year, while Puma’s shares have remained flat until this sudden drop.

Interestingly, Adidas is now run by Puma’s former CEO, Bjorn Gulden. Despite its success, Adidas is also planning cost-cutting measures, with reports suggesting up to 500 job cuts at its German headquarters. The company says these changes will simplify operations and give more power to regional managers.

Both brands are making big moves to stay competitive in the ever-changing sportswear industry. Will Puma bounce back in 2025? Time will tell!

Investors Reasses Obesity Drug Market

Recent developments have led investors to reconsider the potential of the obesity drug market. Novo Nordisk and Eli Lilly, leaders in this field, have experienced significant share decline due to setbacks. Novo Nordisk’s new drug didn’t meet weight loss targets, and Eli Lilly reported lower-than-expected sales for two consecutive quarters.

Analysts had projected the market could exceed $100 billion by the end of the decade, but some investors are now sceptical. Sachin Jain from Bank of America highlighted uncertainties about the market’s growth potential, questioning whether it would reach $80 billion or possibly more.

The introduction of GLP-1 drugs in 2021 sparked interest, but manufacturing constraints have limited supply, making it challenging to gauge the market’s true size. Despite this, numerous biotech companies are entering the arena, aiming to develop treatments that are easier to produce and administer, with fewer side effects. Notably, Verdiva Bio and Kailera Therapeutics each secured over $400 million in funding, while Metsera raised $215 million in November.

However, most of these new treatments are years away from reaching consumers. In the meantime, investors are cautious due to the high valuations of Novo Nordisk and Eli Lilly. Eli Lilly’s shares dropped 7% in one day after missing sales forecasts, and Novo Nordisk’s shares fell over 21% following trial results.

Additionally, both companies face potential pricing pressures. Novo Nordisk’s Wegovy and Ozempic were recently added to the Medicare negotiation list, which could lead to significant price reductions in the US starting in 2027.

In summary, while the obesity drug market holds promise, recent challenges have prompted investors to adopt a more cautious outlook.

Open AI spars with Elon Must over $500bn Stargate project

OpenAI hit back at Elon Musk’s criticism of Stargate, the new $500bn artificial intelligence infrastructure project hailed by Donald Trump as a “resounding declaration of confidence in America’s potential under a new president”.

Musk wrote: “They don’t actually have the money”,

OpenAI’s chief executive Sam Altman responded that Musk’s claim was “wrong, as you surely know”.

While Stargate’s founding investors—Softbank, OpenAI, Oracle and MGX, the Abu State AI fund—will put some of their capital to work in the company, a large portion of the initial $100bn was expected to come from new investors who had not been identified.

Musk, who co-chairs the newly formed Department of Government Efficiency, has been in a long-running feud with OpenAI, Altman and the start-up’s biggest backer Microsoft. Musk was a co-founder of OpenAI but left the board in 2019 after clashing with Altman.

Trump unveiled Stargate, flanked by Altman, SoftBank chair Masayoshi Son and Oracle co-founder Larry Ellison.

• The president suggested that Stargate would create 100,000 jobs and represented a victory against China, helping to keep the future of technology in the US.

• Microsoft is committed to supporting the Stargate project

• Shares in Japan’s SoftBank jumped more than 10% after Trump unveiled the joint venture, which plans to spend $100bn on tech infrastructure, rising to $500bn over the next four years.

Sam Altman’s Retro Biosciences Aims to Extend Human Life with $1bn Funding

A biotech company backed by OpenAI’s CEO, Sam Altman, is working on a bold mission—to extend human lifespan by up to ten years. Retro Biosciences, a San Francisco-based start-up, is raising $1 billion to develop drugs that could slow down ageing and treat diseases like Alzheimer’s.

A Big Bet on AI and Biotech 

Altman initially invested $180 million to launch Retro Biosciences and is now adding more funds in this new round. The company also talks with investors such as venture capitalists family offices and a large U.S. data centre to support its AI-powered research.

Using artificial intelligence, Retro Biosciences has developed a special model that designs proteins capable of temporarily turning regular cells into stem cells, potentially reversing ageing at the cellular level.

Promising Treatments in the Pipeline

The company is focusing on three key treatments:

• A drug that could help treat Alzheimer’s by restoring a cell’s internal recycling process.

• A therapy to replace brain cells (microglia) to combat Alzheimer’s in a more advanced way.

• A treatment that replaces ageing blood stem cells with younger ones, effectively rejuvenating the body’s blood supply.

CEO Joe Betts-LaCroix, a close associate of Altman, emphasizes that ageing-related diseases affect everyone, regardless of wealth or status. He aims to make these treatments available as quickly as possible, rather than taking the usual 10-15 years required for drug development.

Speeding Up Drug Discovery with OpenAI

Retro Biosciences is collaborating with OpenAI to use advanced AI models to speed up drug discovery and testing. Their AI technology can analyze biological data and suggest ways to improve the cell reprogramming process, potentially making ageing treatments more effective.

The Race to Extend Healthspan 

Retro Biosciences isn’t alone in this field. Tech giants like Google and Amazon’s Jeff Bezos have invested heavily in similar longevity projects. Google’s Isomorphic Labs is set to begin trials for an AI-designed drug later this year, while Bezos-backed Altos Labs previously raised a record $3 billion in funding.

Unlike its competitors, Retro Biosciences is taking a more aggressive approach. It aims to release its first drug within this decade. Betts-LaCroix believes that AI-powered biotech could be a game-changer in extending human life and pushing the boundaries of artificial intelligence itself.

What’s Next?

Retro Biosciences is set to launch its first drug trial in Australia this year. If successful, their treatments could revolutionize healthcare and bring us closer to the possibility of slowing down ageing itself.

Stay tuned for updates on this groundbreaking research!

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