Elon Musk’s X companions with Visa to supply digital pockets

Elon Musk’s social media platform X on Tuesday announced the launch of a digital wallet and peer-to-peer payments services provided by Visa.

X struck a deal with Visa, the largest U.S. credit card network, to be the first partner for what it is calling the X Money Account, CEO Linda Yaccarino announced in a post on the platform.

Visa will enable X users to move funds between traditional bank accounts and their digital wallet and make instant peer-to-peer payments, like with Zelle or Venmo.

It’s the first concrete move from X to create a financial ecosystem for the social media site, which was called Twitter before Musk purchased it in 2022. At the time, Musk said the $44 billion acquisition was a way to create an “everything app.” He later said the platform would enable users to conduct their “entire financial world” on it.

In 2021 while Jack Dorsey was still at the helm of X (then Twitter), the company launched a bitcoin tipping feature that allowed users to add their crypto wallet addresses and receive payments in the world’s largest digital token.

But attaining status as a money service business in the U.S. required navigating a far more complex regulatory landscape.

For over a year, Musk has been applying for these licenses for X. According to its website, X Payments LLC is licensed in 41 states and registered with the Financial Crimes Enforcement Network (FinCEN).

The X Money service is expected to launch in the first quarter, and deals with more financial partners are likely, according to a person with knowledge of the situation.

One of the first use cases for X Money is to allow creators on the site to accept payments and store funds without external institutions, said this person, who spoke on the condition of anonymity to discuss internal matters.

In November 2022, Musk suggested to the platform’s advertisers in a meeting publicly broadcast on Spaces that this type of payments product might ultimately offer certain banking features, such as a high-yield money market account.

Representatives from Visa declined to comment on the matter.

DOJ fires Jack Smith prosecution officers

James McHenry testifies before the Senate Judiciary Committee in the Hart Senate Office Building on Capitol Hill July 31, 2018 in Washington, DC.

Chip Somodevilla | Getty Images

The Department of Justice on Monday fired officials involved in the now-terminated federal criminal prosecutions of President Donald Trump by former special counsel Jack Smith.

The firings come a week after Trump was sworn in for a second, non-consecutive term in the White House.

“Today, Acting Attorney General James McHenry terminated the employment of a number of DOJ officials who played a significant role in prosecuting President Trump,” a DOJ official told NBC News.

“In light of their actions, the Acting Attorney General does not trust these officials to assist in faithfully implementing the President’s agenda,” that official said. “This action is consistent with the mission of ending the weaponization of government.”

The number and names of the fired officials were not disclosed by the department.

But NBC reported that an official familiar with the matter said career prosecutors Molly Gaston, J.P. Cooney, Anne McNamara and Mary Dohrmann were among those terminated.

“Firing prosecutors because of cases they were assigned to work on is just unacceptable,” former U.S. Attorney Joyce Vance told NBC News.

“It’s anti-rule of law, it’s anti-democracy,” said Vance, who is an NBC News legal contributor.

Fox News reported earlier Monday that McHenry had fired more than a dozen officials who worked on Smith’s prosecutions of Trump.

Smith, who resigned from the DOJ on Jan. 10, had filed criminal charges against Trump in two separate cases: one in federal district court in Washington, D.C., the second federal district court in South Florida.

In the D.C. case, Trump was accused of crimes related to his attempt to reverse his loss to former President Joe Biden in the 2020 election.

The election interference case was dismissed by the DOJ after Trump was elected president in November due to a department policy that bars federal prosecutions of sitting presidents.

Trump was charged in the Florida case with crimes connected to his retention of classified government documents after he left the White House in January 2021, and his efforts to prevent government officials from recovering those records from his Mar-a-Lago club in Palm Beach.

The classified documents case was dismissed in July by U.S. District Judge Aileen Cannon after she ruled that Smith’s appointment as special counsel violated the U.S. Constitution.

The DOJ had appealed Cannon’s dismissal but dropped that effort after Trump won the 2020 election because of its policy related to prosecuting presidents.

Treasury could superb small companies $10,000 if they do not file this report

Treasury Secretary Janet Yellen following a tour of the Financial Crimes Enforcement Network (FinCEN) in Vienna, Virginia, on Jan. 8, 2024.

Valerie Plesch/Bloomberg via Getty Images

Small businesses and their owners could face penalties of $10,000 or more if they don’t comply with a new U.S. Treasury Department reporting requirement by year’s end — and evidence suggests many haven’t yet complied.

The Corporate Transparency Act, passed in 2021, created the requirement. The law aims to curb illicit finance by asking many businesses operating in the U.S. to report beneficial ownership information to the Treasury’s Financial Crimes Enforcement Network, also known as FinCEN.

Many businesses have a Jan. 1, 2025, deadline to submit an initial Beneficial Ownership Information Report.

This applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates.

The Treasury Department did not respond to CNBC’s request for comment on the number of BOI reports that have been filed to date.

The data helps identify the people who directly or indirectly own or control a company, making it “harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures,” according to FinCEN.

“Corporate anonymity enables money laundering, drug trafficking, terrorism and corruption,” Treasury Secretary Janet Yellen said in a January announcement of the BOI portal launch.

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Here’s the kicker: Businesses and owners who don’t file may face civil penalties of up to $591 a day for each day their violation continues, according to FinCEN. That sum is adjusted for inflation. Additionally, they can face up to $10,000 in criminal fines and up to two years in prison.

“To a small business, suddenly you’re staring at a fine that could sink your business,” said Charlie Fitzgerald III, a certified financial planner based in Orlando, Florida, and a founding member of Moisand Fitzgerald Tamayo.

The federal government had received about 9.5 million filings as of Dec. 1, according to statistics FinCEN provided to the office of Rep. French Hill, R-Ark., who has called for the repeal of the Corporate Transparency Act. Hill’s office provided the data to CNBC.

That figure is about 30% of the estimated total.

FinCEN was receiving a volume of about 1 million new reports per week as of early December, Hill’s office said.

Many businesses may not be aware

Nitat Termmee | Moment | Getty Images

A “beneficial owner” is a person who owns at least 25% of a company’s ownership interests or has “substantial control” of the entity, according to FinCEN.

Businesses must report information about their beneficial owners, including name, birth date, address and information from an ID such as a driver’s license or passport, in addition to other data.

Companies that existed prior to 2024 must report by Jan. 1, 2025. Those created in 2024 have 90 calendar days from their effective date of formation or registration to file; those created in 2025 or later have 30 days.

Corporate anonymity enables money laundering, drug trafficking, terrorism, and corruption.

Janet Yellen

U.S. Treasury secretary

There are multiple exceptions to the requirement: For example, those with more than $5 million in gross sales and more than 20 full-time employees may not need to file a report.

Many exempt businesses — such as large companies, banks, credit unions, tax-exempt entities and public utilities — already furnish similar data.

Brian Nelson, the Treasury Department’s under secretary for terrorism and financial intelligence, said in an interview at the Hudson Institute in February that the agency was “on a full court press” to spread awareness about the BOI registry, which opened Jan. 1.

But it seems many business owners either aren’t complying with or aren’t aware of the requirement, despite outreach efforts.

The scope of national compliance is “bleak,” the S-Corporation Association of America, a business trade group, said in early October.

The “vast majority” of businesses hadn’t yet filed a report, “meaning millions of small business owners and their employees will become de facto felons come that start of 2025,” it said.

Enforcement is up in the air

Bevan Goldswain | E+ | Getty Images

However, the situation isn’t quite that grim, others said.

For one, a federal court in Texas on Dec. 3 temporarily blocked the Treasury Department from enforcing the BOI reporting rules, meaning the agency can’t impose penalties while the court conducts a more thorough review of the rule’s constitutionality.

“Businesses should still be filing their information,” said Erica Hanichak, government affairs director at the Financial Accountability and Corporate Transparency Coalition. “The deadline itself hasn’t changed. It just changes enforcement of the law.”

The rising tide of real estate cyber crime

The government is expected to appeal, and enforcement “could resume” if the injunction is reversed, wrote attorneys at the law firm Fredrikson.

Additionally, Treasury said it would only impose penalties on a person or business who “willfully violates” BOI reporting requirements.

The agency isn’t out for “gotcha enforcement,” Hanichak said.

“FinCEN understands this is a new requirement,” FinCEN said in an FAQ. “If you correct a mistake or omission within 90 days of the deadline for the original report, you may avoid being penalized. However, you could face civil and criminal penalties if you disregard your beneficial ownership information reporting obligations.”

UnitedHealthcare names Tim Noel new CEO after Brian Thompson killing

UnitedHealthcare signage is displayed on an office building in Phoenix, Arizona, on July 19, 2023.

Patrick T. Fallon | Afp | Getty Images

UnitedHealthcare on Thursday tapped company veteran Tim Noel as its new CEO following the targeted killing of its former top executive, Brian Thompson, in Manhattan in December. 

Noel was the head of Medicare and retirement at UnitedHealthcare, the largest private health insurer in the U.S. It is the insurance arm of UnitedHealth Group, the nation’s biggest health-care conglomerate based on revenue and its more than $480 billion market cap. 

Noel, who first joined the company in 2007, “brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners,” UnitedHealth Group said in a statement.

The company is still reeling from the murder of Thompson, which unleashed a torrent of pent-up anger and resentment toward the insurance industry, renewed calls for reform and reignited a debate over health care in the U.S.

Amid concerns about physical safety, companies across the industry have beefed up security for their executives and removed their photos and much of their personal information from their websites. That includes UnitedHealth Group, which appears to no longer have an executive leadership page.

Luigi Mangione, who was charged in the deadly shooting of Thompson, is currently being held without bond in Brooklyn, New York. Mangione, 26, faces charges including murder and terrorism, to which he has pleaded not guilty.

Noel oversaw a part of UnitedHealthcare’s business that includes Medicare Advantage plans, which have been the source of skyrocketing costs for insurers. 

Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a key source of growth and profits for the insurance industry. But medical costs from Medicare Advantage patients have jumped over the past year as more seniors return to hospitals to undergo procedures they had delayed during the Covid-19 pandemic. 

UnitedHealthcare’s Medicare and retirement unit serves one-fifth of Medicare beneficiaries, or nearly 13.7 million patients, according to a fact sheet from the company. 

UnitedHealth Group CEO Andrew Witty said on an earnings call last week that the profit-driven U.S. health-care system “needs to function better” and be “less confusing, less complex and less costly.”

Witty said members of the system benefit from high prices, noting that lower prices and improved services can be good for customers and patients but can “threaten revenue streams for organizations that depend on charging more for care.” However, Witty did not address to what extent UnitedHealth Group benefits from that model. 

In its first quarterly results since the killing, UnitedHealth Group reported fourth-quarter revenue that missed Wall Street’s expectations due to weakness in its insurance business.

The company’s 2024 revenue rose 8% to $400.3 billion, and it expects revenue to climb again this year to a range of $450 billion to $455 billion.

— CNBC’s Bertha Coombs contributed to this report.

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Lawrence O’Donnell Blasts Trump For Despicable Pardon

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What did the American people think they were voting for when those who did so cast their ballots for Trump? Some thought they were voting for a man who could make the economic damage from COVID go away. Some thought they were voting for someone who would improve their financial situation. Others were just mad and wanted a change.

None of these people thought that they were voting for a president who would pardon a child pornographer, but that’s what they got.

On his MSNBC show The Last Word, Lawrence O’Donnell said:

Trump did not end the Ukraine war on day one. Trump did not do a mass roundup of people in this country for deportation on day one. But on day one, Donald Trump did pardon a child pornographer. No president’s ever done that. Donald Trump pardoned the biggest worldwide drug dealer in history. Two pardons that no other president in history would ever consider.

And tonight, and tonight. And tonight Donald Trump said moments ago on Fox that parents that a child leaves home as a boy and comes back two days later as a girl, a parent doesn’t want to see that. And there are states where that can happen. Now, if Joe Biden or any other president Had ever said something as insanely false as that, as impossible as that.

…

You can imagine the screaming outrage that you would get from the White House press corps. And you can right now imagine that there won’t be any from this White House press corps about that. Statement that a child leaves home as a boy and comes back two days later as a girl. And there are states where that can happen.

That is like saying a child leaves home as a boy and comes back two years later, two days later as a horse. It can not happen. There is a demented, pathological liar in the White House talking like that. And the White House Press Corps will accept that. And not scream about that, as they screamed so constantly during the last presidency.

And there will probably be no questions of Donald Trump, there haven’t been any so far, about him pardoning someone who used child pornography. The child pornography user is also a Donald Trump fan, who was at the Capitol on January 6th attacking police officers. Federal prosecutors said Andrew Kyle Grigsby was the tip of the spear on the West Front of the Capitol when he wasn’t busy committing crimes for Donald Trump.

Microsoft’s enterprise improvement chief Chris Younger resigns

Christopher Young, executive vice president of business development at Microsoft Corp., speaks during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021. The GeekWire Summit brings together business, tech and community leaders for discussions about the future.

David Ryder | Bloomberg | Getty Images

Microsoft‘s head of business development Chris Young, who helped orchestrate the software giant’s acquisition of Activision Blizzard, is resigning from his post after about four years on the job, the company said in a regulatory filing on Wednesday. No successor was named.

Young joined Microsoft in 2020 after almost three years as CEO of McAfee, where he ran the effort to separate the company from Intel. Previously, he held executive positions at Cisco and RSA.

At Microsoft, Young sat on the company’s senior leadership team alongside CEO Satya Nadella and finance chief Amy Hood. He reported to Nadella. As one of the highest paid Microsoft employees, Young received $12 million in total compensation in the 2024 fiscal year, according to a filing.

Young’s organization included the M12 corporate venture capital unit, which has invested in startups like Innovaccer, Outreach, PsiQuantum, Skedulo and Typeface. In 2023, M12 said that going forward, it would work more closely with Microsoft to better assist portfolio companies.

Microsoft’s $68.7 billion acquisition of video game publisher Activision, its largest deal ever, closed in 2023. Young also played a role in Microsoft’s expansion of its partnership with artificial intelligence startup OpenAI and its ad deal with Netflix.

“As I spend the next several weeks supporting a smooth transition, I’m grateful for this chapter and am inspired by the possibilities the AI era presents for transformation and growth,” Young wrote in a LinkedIn post. “My entrepreneurial roots are calling me, and I’m excited about what’s ahead.” He did not provide details.

Young, one of the most prominent Black executives at Microsoft, “provided thought leadership on the importance of diversity and inclusion in the technology industry,” the company said in a 2023 filing.

While Microsoft hasn’t made any recent comments about its diversity, equity and inclusion programs, there has been a broader industry rollback since President Donald Trump’s reelection in November. Amazon said it’s halting some of its DEI programs, and Meta’s are being canceled.

In December, Microsoft’s chief diversity officer said the company’s work in the area was “more important than ever.”

WATCH: Microsoft CEO Satya Nadella on $500B Stargate project: Our partnership with OpenAI continues

Taste Flav Fundraises For Black Households Harmed In L.A. Wildfires

Flavor Flav is stepping up for victims of the Los Angeles wildfires, and he’s pouring his efforts into Black families. On January 20, the New York native asked his supporters to get L.A. strong! He announced a partnership with GoFundMe and the Black Music Action Coalition to get folks help ASAP!

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Everything Flavor Flav Said About His Wildfires Fundraiser

In the caption of his video, Flav also challenged “EVERYONE to come together” to help, not just Black artists, musicians, and creators. He added the link to the fundraiser to his bio.  According to PEOPLE, the artist’s efforts will cover Black families that the Eaton Fire displaced in Altadena and Pasadena neighborhoods.

“Come on y’all, let’s make L.A. strong…And let’s help those in need. Come join your boy Flavor on this campaign,” he added.

GoFundMe commented on Flavor Flav’s post, writing, “Always using your platform to help others.” Other comments from fans included prayer hands, flames, and red hearts. At the time of publishing, he had raised $55,161 out of a $100,000 goal with amplification from Community Aid Dena, AFROPUNK, and WalkGood LA. Part of the fundraiser is a consolidated directory of families that need help.

RELATED: Flavor Flav Gifts Jordan Chiles Bronze Clock Chain At The VMAs After Stripped Olympic Title (VIDEO)

What Do You Think Roomies?

Household workplaces assistants earn as a lot as $190,000 a 12 months

Martin-dm | E+ | Getty Images

Good help is hard to find. Family offices, the private investment firms of the ultra-wealthy, are increasingly willing to pay extra for it.

The talent war between family offices and Wall Street has driven up salaries not only for top investment roles but also for administrative staff. While compensation depends on the size and scope of the family office, executive assistants now often command base salaries exceeding $140,000, according to three recruiters who spoke to CNBC. This is well above the industry average of $81,500 for a senior executive assistant post, according to staffing firm Robert Half.

There are about 8,000 single-family offices worldwide, with nearly 3,200 in North America, according to a survey by Deloitte Private. Family office administration roles can come with sweeping responsibilities well beyond typical duties, such as compiling expense reports and managing correspondence. Mandates to organize travel for the entire family or coordinate household staff at multiple personal residences, for example, are frequently fair game. 

“You will have to do anything for this person, and you don’t know what that will be,” said Jonathan Hova, recruiter and senior vice president at Career Group. “If a pipe bursts in Southampton in January, that’s where you’re going.”

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The median base salary for executive assistants at family offices is $100,048, according to a survey of 436 family offices and family investment firms by Botoff Consulting.

The larger the family office the more executive assistants can expect to be paid. At family offices with at least $2.5 billion in assets under management, that median pay is about 35% higher, the survey found.

That’s before annual bonuses, which typically range from 10% to 20% of the base salary, according to Botoff.

The top 10% of administrative assistants at family offices regardless of size make $188,800 with a 20% bonus, according to the survey. Among the largest family offices, which are more likely to use long-term incentive plans, the top 10% of assistants can see all-in compensation of up to $240,000.

“Certainly for some families there is going to be some sticker shock,” said Trish Botoff, founder and managing principal of Botoff Consulting. “But I think they also find that when they can control services that are being provided, how it’s being done, who it’s being done by, they’re much happier with the results they get.”

Executive assistants to family offices are often required to travel with the executives they support, both on personal and professional trips. 

Recruiter Dawn Faktor Pincus is looking to hire an executive assistant who will travel with the family office principal at least once a month, including on holidays. She estimated the total compensation for the role would top $200,000 between a $170,000 base salary, travel pay and sign-on and yearly bonuses.

The travel and time commitment are just part of why the role pays so much, said Faktor Pincus, a senior recruiter at Howard-Sloan Search. These ultra-rich employers are often picky, desiring candidates with top-tier or Ivy League degrees or previous experience working with high-net-worth individuals, which comes at a premium, she said. For one family office seeking an executive assistant with a creative background, she placed a graduate of a prestigious university who was an aspiring novelist.

“It’s a small pool,” Faktor Pincus said. 

Most of these family offices seek at least five years of related experience, with some requiring at least eight to 10 years due to the complexity of the role, according to recruiter Fira Yagyaev of Larson Maddox.

“They are really in the weeds of what the family experiences day to day so it is probably one of the most crucial hires,” said Yagyaev, head of wealth management, trust and family office services at the recruiting agency.

At the same time, these accomplished assistants are expected to take on any task, big or small, without complaint. Hova said executive assistants can expect at least 10% of their work to verge on personal assistant duties.

“It is always a service role,” he said.

Plus, the work comes with thorny personalities, said Faktor Pincus. 

“A lot of times the ultra-high-net-worth individuals could be difficult,” she said. “People don’t become as successful as they are by being so nice and sweet.”

GLP-1s, Brian Thomson killing loom giant at JPM Well being

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., at the Institute of International Finance (IIF) during the annual meetings of the IMF and World Bank in Washington, DC, US, on Thursday, Oct. 24, 2024. 

Kent Nishimura | Bloomberg | Getty Images

San Francisco, famed for its abundance of hoodie-clad tech workers, was overrun by thousands of executives in suits this week for JPMorgan‘s annual health-care conference.

Leaders from major health systems, venture capital firms and companies around the globe clustered in hotel lobbies to talk business and strategy for 2025. The sunny skies were a welcome reprieve from the downpours of years past, but other absences were harder to ignore.

This year’s conference, colloquially known as JPM, took place a month after UnitedHealthcare CEO Brian Thompson was fatally shot in New York City. The news was welcomed by Americans with numerous social media posts expressing resentment toward the health-care industry, with many sharing stories about their negative experiences with insurers. 

Brian Thompson, CEO of UnitedHealthcare.

Courtesy: UnitedHealth Group

More than 10 companies, including Cigna and Walgreens, subsequently pulled their appearances at JPM, according to CNBC’s analysis of the conference agenda. There was a noticeably large police presence at the conference’s main venue, the Westin St. Francis Hotel, and many companies beefed up security at their private events and parties. 

“The subterranean topic that I think people are talking about around the water and the cocktails is obviously what happened to the UnitedHealthcare CEO,” said Wei-Li Shao, president of metabolic health startup Omada. “What does that mean for health-care? What transformation should occur? And how do things get more responsible?” 

Thompson’s murder was a “stunning, sad event” that has served as a wake up call for the health-care industry, said Erik Wexler, CEO of the nonprofit health system Providence, which is made up of 51 hospitals and 1,000 clinics across seven states.

“Why are we on a separate pathway here? Why are we fighting?” Wexler said. “Our job is to do good for people who desperately need us at the most important time of their lives, whether you’re the payer or you’re the hospital.”

While Thompson’s death loomed large over the conference, there was also palpable excitement and buzz about 2025. There was no shortage of discussions about the potential benefits of artificial intelligence and the blockbuster weight loss drugs called GLP-1s, and investors seem cautiously optimistic that the digital health market could turn a corner.  

Containers of Ozempic and Wegovy seen at Children’s Hospital in Aurora, CO, Nov. 18, 2024. 

Kevin Mohatt | The Washington Post | Getty Images

“There are so many amazing things on the horizon for health-care,” said Dexcom CEO Kevin Sayer.

“Drug companies and companies like ours, we try real hard to improve people’s lives, and we make a huge difference,” said Sayer, who knew Thompson well. “Be a little optimistic and give us a bit of a break, we’re all trying to do good stuff.”

Here are CNBC’s big takeaways from JPM 2025:

Generative AI stole the show

Generative AI was undoubtedly health-care’s “it girl” of 2024, and that seems unlikely to change in 2025. 

Health systems in the U.S. are struggling to contend with burnout, staffing shortages and razor thin margins, so companies are racing to develop AI tools that can streamline some of the industry’s more tedious administrative tasks. The subject was practically impossible to avoid at JPM. 

For instance, health-care payments company Waystar announced a new generative AI feature that aims to help doctors quickly fight insurance denials by automatically drafting appeal letters. Amazon Web Services and the venture firm General Catalyst announced a new partnership that aims to speed up the development and deployment of health-care AI tools. Health-care startup Abridge announced Mayo Clinic will roll out its AI-powered clinical documentation technology to around 2,000 clinicians across the entire enterprise.

“At the highest level, I don’t think it can be understated how much impact AI is already creating in health-care,” said Dr. Shiv Rao, founder and CEO of Abridge. “At least in our segment, the feedback that we get on a daily basis is just incredible, and the adoption rate demonstrates that this is a real thing.”

Nvidia, which makes the hardware that powers AI applications, was a particularly popular attendee at JPM this year. The company announced partnerships with several health-care organizations including the clinical research provider IQVIA, neurotech startup Synchron, genomics company Illumina and academic medical center Mayo Clinic. 

The NVIDIA logo is being displayed on a smartphone in this photo illustration in Brussels, Belgium, on June 10, 2024. (Photo Illustration by Jonathan Raa/NurPhoto via Getty Images)

Nurphoto | Nurphoto | Getty Images

“We’re well over a billion dollar business between direct revenue and revenue with our partners,” said Kimberly Powell, Nvidia’s vice president of health-care. She added that Nvidia sees more room for growth for AI health-care applications.

Executives are bullish on GLP-1s 

At presentations and cocktail parties this week, CNBC spoke with executives who marveled about the benefits of the booming class of weight loss drugs known as GLP-1s. 

Novo Nordisk’s and Eli Lilly’s diabetes and obesity treatments have been wildly successful at helping patients lose weight in recent years. A May study found that patients taking Novo’s obesity drug Wegovy maintained an average of 10% weight loss for up to four years, for instance. 

Research shows that GLP-1s could also help treat cardiometabolic disease, kidney disease and addiction, among other conditions. The U.S. Food and Drug Administration approved Lilly’s weight loss drug Zepbound as a treatment for sleep apnea in December. 

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

Reuters

Some analysts estimate that anti-obesity medications could grow into a $100 billion industry by the end of the decade.

“These drugs are remarkable, and they’re not going away,” Dexcom’s Sayer said. 

Supply shortages are one of the big hurdles for companies in the market, as soaring demand has made it difficult for many patients to access the treatments. The drugs typically cost $1,000 per month without insurance, and coverage still varies for many Americans.

Even so, many health-care executives are optimistic that GLP-1s will meaningfully improve public health in the U.S.

“I have been joking, it’s been the two G’s, right? It’s like, GLP, GPT,” Omada CEO Sean Duffy said.

Uncertainty around the Trump administration

U.S. President-elect Donald Trump speaks after a meeting with Republicans in Congress at the U.S. Capitol building in Washington on Jan. 8, 2025.

Jeenah Moon | Reuters

Ahead of President-elect Donald Trump’s Monday inauguration, executives at JPM had many unanswered questions about what his administration has in store for the health-care sector. 

Health-care was not a big focus for Trump on the campaign trail, which means his policy aims for the industry are murky. Additionally, he’s made some controversial cabinet picks since the election. 

Trump nominated vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services, celebrity TV host Dr. Mehmet Oz to lead the Centers for Medicare & Medicaid Services and pancreatic surgeon Dr. Marty Makary to lead the Food and Drug Administration. All three nominees still need Senate confirmation. 

“Until we have a little bit more visibility into this administration that’s coming in in the U.S., the market is going to be volatile and somewhat more depressed,” Rebecca Stevenson, HSBC’s head of health-care investment banking for the Americas, told reporters during a roundtable. 

Owen Tripp, the CEO of the virtual care platform Included Health, said the Trump administration appears to be business friendly and has suggested it will push for increased access to care. 

“It’s not even so much who’s in the White House, but actually the fact that you’ve got a Republican Congress and Senate that have on principle aligned with expanding access and transparency,” Tripp said. “I think you’re going to see more transparency on drug pricing and health care pricing too, which is also hugely positive.”

Watch: UnitedHealthcare tragedy is a wakeup call for corporate America, says Wharton’s Americus Reed

DOJ sues Walgreens alleging prescriptions stuffed with out medical functions

In an aerial view, a customer enters a Walgreens store on Jan.4, 2024 in San Pablo, California.

Justin Sullivan | Getty Images

The Department of Justice said Friday that it sued pharmacy giant Walgreens for allegedly dispensing millions of unlawful prescriptions.

The DOJ said that Walgreens from August 2012 until the present “knowingly” filled those prescriptions, which “lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice.” 

“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the DOJ’s Civil Division.

Boynton said Walgreens pharmacists filled millions of prescriptions with “clear red flags that indicated the prescriptions were highly likely to be unlawful.”

The company “systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity,” Boynton said. “These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”

Some Walgreens patients died of overdose deaths shortly after getting invalid prescriptions filled at Walgreens, the DOJ alleges.

The 300-page lawsuit was filed Thursday in U.S. District Court in Chicago.

Walgreens in a statement said, “We are asking the court to clarify the responsibilities of pharmacies and pharmacists and to protect against the government’s attempt to enforce arbitrary ‘rules’ that do not appear in any law or regulation and never went through any official rulemaking process.”

“We will not stand by and allow the government to put our pharmacists in a no-win situation, trying to comply with ‘rules’ that simply do not exist,” Walgreens said.

“Walgreens stands behind our pharmacists, dedicated healthcare professionals who live in the communities they serve, filling legitimate prescriptions for FDA-approved medications written by DEA-licensed prescribers in accordance with all applicable laws and regulations.”

The suit alleges that although Walgreens issued written policies that reflected its understanding of legal obligations, the company took other actions which it knew prevented its pharmacists from complying with them.

“Walgreens prioritized profits over safety and compliance by implementing policies and practices that required pharmacists to fill prescriptions quickly and left pharmacists without enough time or resources to exercise their corresponding responsibility,” the suit said.

“One such metric was ‘Verify By Promise Time’ (VBPT), which expected a pharmacist to fill a prescription within 15 minutes for a ‘waiter’ (a customer waiting in the pharmacy store for the prescription),” the suit alleges.

“Walgreens also tracked pharmacists that dispensed a low rate of controlled substances through its ‘Non-dispensing Pharmacist Report,'” the suit said.

“Walgreens created this metric in part because it believed pharmacists who refused to fill controlled-substance prescriptions compromised Walgreens’s customer service.”