Brew Markets — Episode Summary

Episode: GLP-1 War Heats Up as Prices Slim Down & Powering the AI Age
Date: February 24, 2026
Host: Ann Berry
Podcast: Brew Markets (Morning Brew)

Overview

This episode of Brew Markets dives into two key themes shaping markets:

• The intensifying competition in the GLP-1 drug sector as companies cut prices to gain market share
• The surging demand for energy, especially nuclear, as AI-fueled data centers drive industry deals and headlines

Ann Berry and co-host John break down the most impactful developments, earnings results, and M&A drama across health, energy, tech, and media stocks, providing rich market context and analysis throughout.

GLP-1 Drug Wars: Headline Domination and Price Slashing

(00:01–04:25)

Key Points

• The market for GLP-1 weight-loss and diabetes drugs is seeing a vicious price and product innovation war, drawing comparisons to the competition among major AI labs.
• Novo Nordisk (maker of Wegovy and Ozempic) and Eli Lilly (with Zepbound) are the central combatants, with Pfizer watching closely.
• Novo Nordisk’s stock plunged 15% due to underwhelming phase 3 trial results for its new obesity drug, CagriSema, which showed 20% weight loss versus Eli Lilly’s Zepbound at 23.6%.
• Novo Nordisk announced they will cut US list prices for their obesity and diabetes drugs by up to 50% starting January 2027.
  • New obestity drug monthly prices to drop to $675 (from $1,027–$1,350).
  • Targeted at insured patients with high-deductible plans, this move is synchronized with the Medicare price cuts taking effect under the Inflation Reduction Act.
• The price war is a last-resort tactic after other competitive angles (efficacy, marketing, distribution) became exhausted.
• Both Novo and Eli Lilly stocks declined further as markets brace for continued pricing instability.
• Pfizer’s next move is still awaited, signaling that the battle is just beginning.

Notable Insight

“If as a company you’ve exhausted the ways to compete outside of price ... and if you find yourself in the spot where dropping prices is now all you’ve got left to fight with, then you better be sure you’re going to win. Because once those price cuts are there, they tend not to be reversed and often the whole sector loses if demand doesn’t suddenly expand.”
— Ann Berry (03:23)

Energy Market Spotlight: Constellation & the AI Power Surge

(04:38–15:30)

Constellation Energy Earnings and Strategy

(04:38–09:02)

• Constellation Energy (NASDAQ: CEG), largest US nuclear operator, reported strong Q4 and full-year results ($6B Q4 revenue, $25.5B FY, $2.30 EPS – beating consensus).
• Shares spiked nearly 6% on the day, but the company surprised by skipping the traditional earnings call, instead deferring guidance and business outlook discussion to March 31.
  • Possible reasons: Awaiting new executive orders (State of the Union), integrating major acquisition (Calpine), and regulatory clarity.
• Energy policy volatility highlighted by mention of Trump-era price cap debates in PJM markets and the effect on Constellation’s share price.
• Long-term: Market bullishness as demand for “AI energy” (data centers, manufacturing) spikes, increasing expectation for clean and reliable supply.

Notable Moment

“The company released its numbers ... but ... decided not to have an earnings call to discuss them today. ... They’re not providing guidance today ... which is pretty important.”
— Ann Berry (05:55)

“It feels to me as though they’re waiting to see if the White House might come out with more executive orders. ... So, we need to see what the integration looks like. ... It’s a bit of a head-scratch, this one.”
— Ann Berry (07:28)

Calpine Acquisition & Deal Dynamics

(09:02–13:07)

• In January, Constellation closed its $26.6B acquisition of Calpine, expanding its coast-to-coast footprint and diversifying into natural gas and geothermal.
• The timing of the deal is fortuitous: Deal was struck at an attractive acquisition multiple; with Constellation’s stock increasing since announcement, the accretion is even more compelling.
• Regulatory processes are crucial in the energy sector, and delays can change deal dynamics (either improving or worsening deal economics depending on stock performance).

Notable "Nerd Moment"

“Here’s the nerding out piece ... this is an occasion where oftentimes time kills deals ... But in this instance, time is very much Constellation’s friend.”
— Ann Berry (10:48–12:59)

The Politics & Policy of Energy

(13:07–15:30)

• Rising energy prices and infrastructure upgrades for AI/data centers are putting pressure on policy.
• Eye-watering New York residential prices ($0.26/kWh, up 7.6% YoY) fuel debate over big tech’s burden on grids and “NIMBY” backlash.
• Venture-backed nuclear startups (e.g., Oklo, backed by Sam Altman) are vying for regulatory approval.
• Ann will be closely watching the State of the Union for executive order signals on nuclear and clean energy policy.

Quote

“You’ve seen some of those [nuclear startup] share prices go absolutely through the roof ... Not only is there going to be increased demand for nuclear power potentially, but there increasingly seems to be a sense that they’re going to be pushes for a broader array of folks to actually go pony up and pay for those bills.”
— Ann Berry (13:50)

Market Movers & News Sprint

(16:14–19:22)

Henry Schein (HSIC)

• World's largest distributor to dental, medical, and vet practitioners.
• Reported highest sales growth in 15 quarters (over $10B mkt cap); stock hit new 52-wk high, up 4% after earnings beat.

FactSet (FDS)

• Data analytics provider (market cap $7.6B) down 20% YTD but shares popped 6% after a new partnership with Anthropic (AI).

Anthropic AI Announcements & Ripple Effects

• Anthropic rolled out new integrations with Slack (Salesforce), Intuit, DocuSign, LegalZoom, FactSet, Gmail, and Thomson Reuters.
• Companies involved saw share gains (Salesforce, DocuSign, LegalZoom all up 4%).

Meta, AMD & The AI Infrastructure Arms Race

• Meta signed a multiyear deal to deploy up to 6 gigawatts of AMD GPUs in data centers, echoing OpenAI's similar deal from October.
• Includes a performance-based warrant for Meta to acquire 10% of AMD.
• AMD stock rallied 7%; Meta dipped slightly on rising CapEx jitters.

Notable Observation

“...AMD is now looking at potentially having a ton of strategics as its owners if it hits these performance milestones. While AMD Stock was up 7% on the news ... Meta though came down a little bit, which just shows the market getting cautious these days when it sees these CapEx numbers rising.”
— Ann Berry (18:02)

Media Mergers: Warner Bros. Discovery Bidding War

(18:42–19:22)

• Warner Bros. Discovery is fielding competing offers from Paramount-Skydance and Netflix, with Paramount now submitting a revised, higher bid.
• Netflix’s agreement still stands, but if Paramount’s bid is deemed superior, Netflix will have four days to respond.
• Both Warner Bros. and Paramount stocks reacted negatively, suggesting shareholders wish the whole deal would fizzle.

Ann Berry’s Color Commentary

“I’m looking forward to seeing these bid details leak. They always do ... So I’ve got the popcorn ready for that moment.”
— Ann Berry (19:22)

Notable Nuggets & Coming Up

(19:22–20:17)

• Ann Berry teases an upcoming discussion on Bill Gurley’s new book, Running Down a Dream, focused on what makes successful CEOs tick (Friday episode preview).

Timestamps Quick Reference

• GLP-1 Drug Wars: (00:01–04:25)
• Constellation Energy & Energy Sector: (04:38–15:30)
• Headline News Sprint (Henry Schein, FactSet, AI, Media): (16:14–19:22)
• Close, Next Episode Teaser: (19:22–20:17)

Memorable Quotes

• “If ... dropping prices is now all you’ve got left to fight with, then you better be sure you’re going to win.” — Ann Berry (03:23)
• “The company released its numbers ... but ... decided not to have an earnings call today. ... It’s a bit of a head-scratch, this one.” — Ann Berry (05:55, 07:28)
• “Time is very much Constellation’s friend ... in this instance.” — Ann Berry (10:48–12:59)
• “You’ve seen some of those [nuclear] share prices go absolutely through the roof ...” — Ann Berry (13:50)
• “...AMD is now looking at potentially having a ton of strategics as its owners...” — Ann Berry (18:02)
• “I’ve got the popcorn ready for that moment [details of the Warner/Netflix/Paramount bids leaking].” — Ann Berry (19:22)

Tone and Style

Direct, analytical, and conversational. Ann Berry brings investor savvy with easy-to-follow explanations and energetic color commentary, making financial headlines both accessible and engaging.