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tv   Mad Money  CNBC  January 9, 2024 6:00pm-7:00pm EST

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buyer of xlv on pull-backs. >> bonawyn likes his bigi, but he calls it digs. >> so. in other news, an s.e.c. hack and run on digital gold doesn't make you want the real thing, i don't know what will. gld. >> all right, thank you for watching "fast." "mad money" with my mission is simple. to make you money. i am here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. mad money starts now. hey, i'm cramer. welcome to a very special san francisco edition of mad money. i am just trying to make you some money. my job is not just to entertain but to educate. give me a call at 1-800-743- cnbc. this market is caught between a titanic battle between chet tpt
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and glp. with the dow declining and the nasdaq advancing. there is a lot more to the market than just tech and healthcare. right now you can learn a lot from chat gpt the way many people first learned about generate fai. you can tell from my interviews that it is driving a ton of r&d from so many different drug companies that know that they have to make these drugs because this could be the biggest category of drugs in history. we came out here this week for the healthcare cumbers -- conference discovering that everybody has a glp-one business or they are trying to help ensure a different weight loss drug play defense against this whole class of glp-1 revolutionary products. meanwhile, tech companies are
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simultaneously telling people the thing that you might know about chat gpt is trying to help businesses reach the right people to sell to. this brings me to the great conundrum. these people are using generative artificial intelligence as part of the mission to develop new lifesaving drugs or filling out form after form for prescription. the people that are using a i and every other industry, amazon is all about reaching people to sell the more stuff. not exactly curing cancer or stopping heart attacks. so today it is clear that more effective advertising is what wall street wants. today this ad was published. i hope it is closely watched. it's a great tool for identifying top trends in advertising and it made clear
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the internet is the only reliable way these days to reach the right people. the chief conclusion is this. google search offers high return on investment and youtube should see slight share gain in 23 to 25 as they lead the adoption of tools. in other words, google has the stuff. the stock soared on this. how about amazon? the same says that amazon is expected to gain budget share and is emerging as a meaningful platform outside of google for ad buyers. 70% expect to advertise on prime video. amazon stock had a huge move on this news which brings me to something that can make investing tricky. people always wonder how can there be so many lifesaving innovations in generate fai. nobody seems to care when it
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comes to the valuations of what used to be among the most highly valued companies in the world, drug stocks. i think what really drives stocks is commerce. it is alphabet and meta and amazon can drive more, -- is that unfair? can targeting the right consumer be more important than saving the consumer's life? of course not. investing is rarely about what is important in the human scents. it is about making money. analyzing data is worth more than analyzing the data to figure out how to get people to live longer or healthier lives. i think that there is a way we can have a tech and healthcare intersection. that could lead to a best of both worlds situation.
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i want to hand this idea over and put out a piece about recommending none other than nvidia. it's a big reason why the stock rallied to another new all-time high. the healthcare vertical is already a $1 billion plus business driven by the increasing computational demand for ai drug discovery, genomics, patient devices and robotics. they believe healthcare is now a top three vertical. the company's work will be at the heart of what they call a massive expansion in computer aided drug discovery. i get the sense that amgen seems to have the best grass of what nvidia can do for them. they came up with the idea of marrying the supercomputer and the genetics headquarters. i like what they have to say. teresa graham had artificial
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intelligence helping them to identify new targets faster, test them more quickly and figure out how to increase the reject ability and lower the cost. normally it takes a very long time but they can work faster. the drug distributor we will hear from tomorrow uses it to keep track of inventory. it is a tough job when you have $20 billion of products going through the doors every day. medtronic uses it to watch colonoscopies in real-time to ensure nothing dangerous gets messed. with think about those devices and electronics that are involved in noninvasive surgery. it is terrific to see how much healthcare has been revolutionized. the fact is electronics is no match for computer science. if you are trying to reach the right customers, a i can figure out how to get to that person what
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that person might want and how to please that person with the right ad that makes him want to take action. in some ways it is incredibly pedestrian but some companies waste millions upon millions of dollars showing ads to people that are not interested in the product. why not just spend a few extra bucks and reach people that might pull the trigger. and abbott labs pacemaker is an incredible lifesaving device, but the computer science is worth a heck of a lot more when it comes to the stock market. here at mad money we want both healthy hearts and fat wallets. let's go to brian in oregon. >> mr. cramer, thank you for taking my call. >> what's happening? >> everybody is losing their money about the door blowing on the aircraft for boeing. what is your reaction?
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>> yes, the answer is. because boeing handles things very ham handily they will probably have another down day. you would have to get airbus. i remain -- let's go to sheila in tennessee. >> hi, jim. how are you? >> i am good. how are you? >> i am fabulous. can i start by adding my voice to the course of small investors that are so grateful for you and so thankful for all of your perspective and tremendous insights. >> you are very kind. i come to work every day and think i hope i am helping people in the new come and i say thank you very much. how can i help you? >> i got northrop grumman stock last year. i have been very pleased with that as an investment.
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i got it because not only did i think the stock would go up but i was hoping it would add to my dividend strategy. now it is starting to take a bit of a dip and i'm interested on your perspective over whether i should get some more? >> i think you should. it's an incredibly well-run company but when we think about where we are in this country and what has to be done to keep us safe and our allies safe, northrop grumman is a top three. it's down a lot from its high of 518 i think you are right to pull the trigger and i cannot thank you enough for the kind comments. >> let's go to russell and georgia. >> hey, jim. long time no talk. i was on your radio show 20 years ago. >> holy cow. that was a hard children do every day. >> you helped me a ton so thank you so much. i took a small position in hasbro in 2021.
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it was much higher, obviously. i have been getting it for my nephew who was only six years old. will it grow or is it a has- been? >> i think hasbro is troubled. i wish i could be more encouraging, but the toy business is incredibly hard. my father was in it celli board gives at one point. i think it is a hard stock to own. thank you for the call. the technology behind lifesaving equipment is incredible but the stock market cares more about the technology behind artificial intelligence figuring out who to sell ads to because that is where the money is being made. pfizer is so much more than just a covid-19 vaccine company. i'm getting the latest update from the company that is getting so many important treatments.
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cvs had an announcement yesterday. i will get into the nitty-gritty with the ceo. you do not want to miss my segment with jenna ron and abbott labs. send jim an email or give us a call at 1-800-743-cnbc. if you miss something go to madmoney.cnbc.com.
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with this great offer. plus, ask how to get up to $1000 prepaid card with qualifying internet. the j.p. morgan healthcare conference isn't just for presenting new data. it also gives drug companies a chance to change the narrative. take pfizer who was the fifth
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worse performing stock. has it gotten too cheap to ignore with a very large dividend? we had a chance to sit down with the chairman and ceo of pfizer to hear about the new story. take a look. last time i saw you had not closed the deal. i have pfizer on my hands that is very different. >> i think first of all the question is what will it do for the patients. i think right now the acquisition and the meds between pfizer technology and resources represent the biggest hope for patients with cancer to have meaningful treatments and advancements in their bottle. >> one of the things that you said that was quite brilliant. he said it's not about golden eggs. it's the goose that lays the golden egg. >> of course. it's not about the product or the third team pipeline projects. it the platform and technology
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that it is composed from from people that know the staff. those are the people that will produce the next products that will fight cancer. for me from day one the biggest concern would be how to bring it without killing the innovation. a smaller company becomes bigger and it will overwhelm them. i am very proud to say that from the nine people that are the leadership people we doubled our cancer resources right now. 50% are coming from pfizer. i am very proud. >> i don't think that anybody understands that when this goes, the scale changes dramatically. >> of course they have these capabilities in the u.s..
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they were operating under the resources of a smaller biotech and now they are operating with big pharma that is willing to invest meaningful treatments. >> i have known the company for a long time. they have never been afraid to take on cancers. one in three people get cancer. everybody else just says, it can't be solved. how can they do it? >> they invest early in the technology that has proven to be the hottest technology right now. when they announced deal of the season, both became the hottest thing everybody is announcing a deal. it was such a profound data and papers that it triples the survival rates or they did significant improvements in these survival rates that make
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me feel very comfortable. >> are we going one day to get away from the nuclear which is chemotherapy which wipes out everything to a much more targeted way of attacking cancer? >> that is exactly the bet right now. it is how to take chemotherapy and put it to the cancer cells. it's like a gps guided missile that precision hits only the cancer cells. >> since the time that you announced the deal, things work fast. new things? >> yes. >> new milestones? what are they doing right now? >> right now the most important thing is they presented at the biggest congress and the world. they presented data from cancer
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treatment for blood. it's a very difficult cancer. the standard of care before was providing a 12 month survival rate unfortunately. they presented the data. he very rarely have this level of improvement. that is why the fda gave approval already in december. we were expecting it in april and it was the first thing that we announced. >> obviously you are the biggest, vaccine franchise. there's so much going on when you go to a cvs or walgreen when you talk about vaccines they will talk about it to you.
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perhaps people should bring it up because the covid booster, it is rampant again but if you have the booster you are likely to stay out of the hospital. >> i think -- you are right. i think one of the problems is a smaller number of americans are doing the new vaccine. the people that had done a lot of them are not present -- protected against this new variant. as i said a smaller number. only 70% of americans receive the booster. >> i think he made a good difference but i think we have a way to go. >> a lot of people have been defining the company by the vaccine. they are disappointed by the sales, but wasn't it difficult to figure out how many people would take the vaccines with the fatigue. >> you are right.
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i think that we are in the peak of the covid fatigue and the peak of the rhetoric and people want to forget. that is the reason for that. my prediction is because now less people are getting the vaccine the disease is coming with more severe symptoms. they are not really protected. that is driving the sales of the paxlovid . it is picking up. >> we have to keep awareness going on that. the real awareness for people i think is this because it is the biggest change in pfizer history. for us we will remember it forever. we want to do it once more. our best chances to save the world is with cancer and this is
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our best bet. >> it is always great to see you. i really appreciate it. >> coming up, we hear from the giants of healthcare. can a community focus drive global returns? fill your prescription for profits with cramer, next.
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it is tough to be a drugstore right now. cvs health has spent years pivoting to be more of an integrated healthcare provider. they have caremark for pharmacy benefits management and will even treat you directly. yesterday the company made the case for its new business model.
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earlier today we sat own with the president and ceo to hear it from her directly. take a look. karen, the changes have come so fast that you have completely reinvented cvs. i want to talk to you about what it looks like now versus 10 years ago. >> we are building a world of health around the consumer. as you know, there's many touch points and healthcare. cvs health has the ability to offer every single one of them. from the delivery of care through our oak street house, the minute clinics through insurance coverage through aetna and caremark and the ability to get your prescriptions through our retail health locations. we have really repositioned the company to be at brought integrated healthcare solutions company to meet the needs of consumers where and when they want healthcare. >> talk to me about when you have a caremark or mnicare. how does this make it so the
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consumer does better than if they went to another place? >> one of the things we look at is when a consumer has multiple touch points with cbs, we see improved customer satisfaction. we see improvement in overall health outcomes and we see more engagement in a consumer in their overall health. all of those things put together are better for the consumer. that is what we are focused on at cvs health is making sure the customer is getting what they need when they need it. >> we have to talk about oak street and signify. these are gigantic changes. i want it even if i have to be at home on medicare. >> that's right. i am so excited about this opportunity. when we looked at oak street and signify we expanded the market approach of $1 trillion.
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we really wanted to expand to health services. oak street offers primary care for seniors. think about the primary care as the quarterback to your healthcare. we have the ability to return people to care so that when we are in the home we get to open the refrigerator to see if you are eating well. we can see if there are rugs you might trip on. so we have the ability to have them go to oak street or to the pharmacy for their medication. >> we have had many companies talk about how in a few years we will have a gop one. you are the frontline of these different drugs. >> cvs in general is really the front door to healthcare and all consumer touch points.
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vaccines is one part of our business. as a matter fact, we delivered over 8 million vaccines in the third quarter alone. with glp-1, the cross stuff -- the cost of glp-1 is expensive for the consumer. one of the things we do through the caremark this mess is to drive competition and lower cost. glp-1's are important but they are expensive. if every single person in america that has obesity were prescribed a glp-1 that would cost $1.2 trillion to the american healthcare system. >> that would break the system. >> we are focused on making sure there is competition and lowering the cost so people have affordability and access to care when they need it. >> when you go and get a vaccine, at my cvs they asked,
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they are doing what we want. they do tell. i you saying, don't forget to help the patient. give them something else. >> our pharmacists are an important part of the healthcare delivery system. their whole goal is to make sure people have access and marketing the healthcare they need and they are providing them with counsel and guidance so they can get the medications. they are also noting when to refer someone to oak street health if they do not have primary care. pharmacists are the most trusted part of the healthcare system and have the ability to have that interaction and engage customers. >> at the same time, you have to deal with the fact that you had too many stores. you have
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been closing stores at an amazing pace. >> we committed to closing 900 stores. we really looked at density. we said sometimes there was a storm one corner and a storm other corner so we decided to close 900 stores. we continue to evaluate store closures, but we still have total access to care. 85% of americans are within a 10 mile radius of a cvs and we are committed to making sure there's not a pharmacy desert. >>'s so 10 years ago your predecessor came on the show and said i am dropping cigarettes. will you one day say i cannot have glp-1 at the end of the store and have you go through cheese balls and snacks . can you commit to getting rid of junk food in order to make it so that you are true healthcare?
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>> we are already changing the formats in our stores. what we have done over the last two years is brought more health products into our stores. it is a convenient access point. we done a lot of that work already and we will continue to be sure we are putting healthy products in the stores. >> another thing that i have to ask about. we are starting to discover that self checkout is a major problem. could you reverse that? >> we are piloting in a number of our stores pulling that back out. >> i will not guarantee but we are piloting it. it is something we are looking at. >> i think you are revolutionary and doing a lot of things people always felt should be done. i am so glad that you came on >> so nice to see you. >> coming up, it's been a most
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20 years since this company started telling its story. two decades later is the pipeline still powerful? cramer checks in with a long time favorite, next. the former fed vice chair, what does he expect from the fed this year. the impact of cooling inflation on the economy. money movers, tomorrow 11:00 eastern. and relentlessly work with you to make them real. there's no sure-fire way to prevent accidents at work. so talk to your agent about worker's comp insurance from pie. or visit pieinsurance.com and get a quote. safety first,
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way back in 2005 lynch like for the ceo of regeneron . yesterday they give us an update on this top drug that wall street did not seem to love. i think they are too negative about it.
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we caught up with the cofounder and ceo of regeneron. happy anniversary for regeneron. you are the longest-serving ceo in the industry and third longest-serving ceo in the s&p. >> it's been a long time. it's been incredibly exciting. i think the future is even more exciting. >> you are our first guest on mad money and the stock was at 5. >> it is now 800 and 900. when i came on the show nobody would talk about it and nobody was interested. you put us on the map and helped us get through the lien time. i really appreciate it. >> of course. it was you and your genius scientists. >> we have been doing it together since we started the company. it has been an
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incredible run but we just can't wait to keep going. >> now this turned out to be an amazing drug. some analysts were upset yesterday that you mr. numbers, but this is a gigantic franchise. >> absolutely. it's one of the most important franchises treat people with age-related macular degeneration or diabetic eye disease. it was about $123 million in the fourth quarter. it is a fabulous launch. >> we don't talk enough about a wonder drug that you have that can be used for so many things. it could be one of the largest of all time. >> it is an amazing drug. we develop it and commercialize it. it has just become the leader in just about every indication. it has five approved indications and hopefully will
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get another big one. >> talk about these. these are everyday problems. >> it is for minor to sapir -- severe atopic dermatitis. these babies almost look like they have been burned all over the body. you give it to them and it has been remarkable. it is approved in moderate to severe asthma and nasal polyps and eosinophilic esophagitis and it is approved, it has five approved indications and we are hoping to get it and eosinophilic copd this year. it is not random the way that it all works. george was able to predict from his genetic studies each of these indications and that the drug would work. it is not random. >> obesity is something that everybody is talking about.
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there has not been enough talk about the fact that if you attack people's body weight you are attacking fat but also muscle. this is something you said yesterday. muscle is really hard to get back. perhaps there is another way to do it? >> we are working on that. we have some drugs we've already tested for other reasons that we think at least in primates if you combine them with these weight loss drugs you now all of a sudden get no lean body mass loss. normally when you take these you are losing muscle mass which is not good. especially if you are elderly you could turn into a thin, weak elderly person. putting muscle on is not easy. with these drugs, at least in the laboratory and some human data we are excited about the possibility to get better quality weight loss when combined with the standard drugs. we will start testing that later this year. >> i want to start talking
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about that. two cancers that people think can be death sentences. ovarian and prostate. you are working on the said you have made breakthroughs. >> we have a drug which is really quite remarkable. once again, it activates the immune system. we have had patients with prostate cancer who have unfortunately been at the end of their lives the psa is 500 or 600 when it should be 102 or four. they have gone down to zero. that was an amazing result. in those patients we saw the immune mediated adverse events. we are focused on retaining the efficacy but eliminating the bad side effects. there is work to be done but it is really exciting. >> one last thing. when there is a disease, or problem nobody is addressing which is too hard. hearing loss.
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you have a possible wonder drug. >> let me back up by saying the big thing for everybody these days is ai. it's a good tool but for our business the really most important is genetics, it is understanding genes. we have the largest collection of human genes married anonymously to medical records. associating genes with diseases really going to drive this industry and it can drive where you can repair them and silence these genes. what you are talking about with the young patient that are very aware of disease it is proof in point we could eliminate the problem of profound hearing loss by providing a gene that this poor child was missing. it is astounding. >> thank you for everything you have done for me and everybody in the world. the president, cochaired and ceo of regeneron.
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it is good to see you. coming up. pop up in the umbrellas and tea up your toughest questions. cramer takes on all comers in the lightning round. next.
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it is time for the lightning round. when this sound, then the lightning round is over. let's start with chad in virginia.
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>>ming out of the rough here. what are your thoughts? >> i like top golf. i think it is interesting and so does my compadre. let's go to robert in oregon. >> professor cramer . >> what's up? >> i am a club member and a longtime investor. >> thank you. what stock do you have. >> the company is empty. the chinese company announced a restriction on mp. it is a buy or sell or hold? >> it is very low. what you said about china is true. how about we go to mandy and new york. mandy.
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>> hello jim. how are you? >> all right. how are you doing? >> good. happy new year to you. you are wonderful. thank you for taking my call and working so hard to help us become better investors. i really appreciate it. boeing is having some difficulties. i was thinking of moving and going toward getting some hwm. >> i like that call. we call it how i met my mother. it is the right call. thank you for making that all happened. let's go to trevor in wisconsin. >> booyah, what's up, jim? >> it is getting chilly in san francisco. what about you?
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>> i will keep it short and sweet today. from where i am sitting it's looking like it's on the verge of being really profitable see them. >> i don't know. this is a football business. i know that if they made money. that i'm on board but until then. lets go to joe and new york. >> booyah, jimmy. >> what's going on? >> the stock i'm talking about was up 300% in five years. it's a defense company that 90% of the products cannot be made by any other company. what is your opinion of ttg? >> everything you said i understand to be true i think it is a terrific company. by the way, just so you know
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it's one of those companies that they should split their stock 10 for one and then i would be able to recommend it. it is a little bit high for most people to buy. that was the conclusion of the lightning round.
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abbott labs has been on a roll. a few months ago i was worried
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about these diabetes drugs eating into the diabetes devices. the company is putting out that the blood sugar monitors can be used as companions. earlier today we spoke to the chairman and ceo about his company's presentation and his chart for abbott. it has been a while since we talked. i need to ask ou what is going on now at abbott? it was obscured by covid. >> we are very excited about 2024. during covid we had two objectives. let's help society with testing. i do not think a company did more than we did. let's take advantage and grow the company and make it stronger. we did about $20 billion of revenue during that covid time we took a portion of it and started new r&d and accelerated
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existing programs and made investments in the field and manufacturing. if you look at abbott without the covid which grew double digits. if you think about where we were before it was around 7 to 8%. we have raised every quarter last year and what ended up clouding that a little bit was $1 billion in covid revenue coming back to 1 1/2 billion dollars. i am very excited about that momentum. we will report in a couple of weeks and i see that momentum going into 2024. i think the key thing was, how did the owners of the company, our shareholders actually benefit and what we are doing? if you look at what we did we returned $17 billion to our shareholders in terms of dividends which is an important part of the identity and invest in the business.
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we saw the short term and the term we gave them and we will continue to see that with accelerated growth weight. i think in a couple of weeks we will realize what we have set up for 2024. >> it is all business lines are double-digit. this is not one product driving things. >> in q3 we saw all of our segments diagnostics, nutrition all growing double digits. >> you mentioned you were laid for a little while. >> we had a recall in 2022. that was a tough time for parents in this country. our focus was let's get the product back on shelf. i'm not going to debate what happened but you saw our market share back 95%. that is the trust that
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consumers have of the company and what we do. that is somewhat behind us. we are investing in more manufacturing capacity. we made commitments to build the infantry level so we never have that again. >> i know that we have a vending machine so there is still some income coming so it does not obscure it anymore. >> i think that it is more of the endemic state of covid. there was marquesas but i think it will be endemic. we will have earnings but it will be before that level. it will just be part of that business. >> you have a giant cardiovascular business that people don't talk about. >> the cardiovascular business we are leaders. we participate in large growth segments. cardiac and growth management, heart failure, peripheral oral vascular. we assembled back in the
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acquisition in 2017. we assemble a portfolio of market-leading technologies and we invest in them so we have a series of new products coming in the pipeline. we have a new device for the treatment of tricuspid regurgitation. surgery is risky to do there. there is no real pharmaceutical treatments for that so this is now in front of the fda that we reported data last year. it is great option but across all the areas we have strong pipelines. >> your diabetes franchises second to none around the world. the numbers, again, $1.4 billion recently and you are up. you were up 28% before and the numbers keep growing and growing. why is it so much stronger than everyone else in the industry? >> first of all we took a view of looking at it as mass-
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market. you have to get a product that is consumer friendly. we have to build the scale. you know the global scale. we are able to really go and then we took a different pricing strategy. we said we have to price this as mass-market. that is what has happened. it has moved the technology from this population to a much larger population. we are looking now at using the platform that we built to target people that we usually do not target. we are going to target people that are healthy and want to stay healthy. we launched this version looking at how do people that don't have diabetes but want to understand the glucose level and their overall health. we watch that and the feedback has been great. we will bring that to the u.s.
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>> that is fantastic. the gop -- the glp-1, your stock got crushed by this but in fact you coexist and the size of the actual market to treat, that's not going to damage anything. >> great drugs and great biology but what we showed we released two data sets and e will release some more but we actually showed a complementary relationship between the device and the drugs. we showed users using libre and just using glp and using both. they were being more adherent. this notion that it will slow growth it has actually been positive for us. >> that is why the stock took off. people finally understood and recognized that it is a win.
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robert, it has been a while thank you so much for coming back on. thank you. i've learned so much about the latest developments in the healthcare space from all the ceos that have come on my show. i want to thank them all for their time. there is always >> right now on last call. and exclusive. he is the man to build td ameritrade and the one telling you and investigate investors what you should not be doing. plus stunning comments as the stunning 737 crisis grows. and hitting trouble with snow. should that be a concern with investors? new layouts coming to amazon and it is about to be hit and we will tell you where

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