Musk’s $48 Billion Pay Deal Showed that the Entrepreneurs Is Not Obsolete

(p. B3) WILMINGTON, Del.—The scale of concern among Tesla Inc. board members about how to keep Elon Musk‘s attention trained on the electric-vehicle maker loomed large during a weeklong trial over the chief executive’s pay package.

A desire to motivate Mr. Musk to focus on Tesla triggered a monthslong pay negotiation that culminated in the shareholders’ approval of a 2018 CEO equity grant valued at roughly $48 billion at recent stock prices.

That deal—and the process under which it was put together—have been the subject of the trial in Delaware’s business-law court, where testimony has underscored that current and former Tesla board members have long viewed Mr. Musk as irreplaceable.

For the full story, see:

Rebecca Elliott and Meghan Bobrowsky. “Pay Trial Shines Light on Tesla’s View of Musk as Irreplaceable.” The Wall Street Journal (Monday, November 21, 2022): B3.

(Note: the online version of the story was updated November 19, 2022, and has the title “Tesla Board View That Elon Musk Is Irreplaceable Emerged in Pay Trial.”)

The “Woke-Mind” Is “Anti-Science, Anti-Merit and Anti-Human”

(p. 9) At various moments in “Elon Musk,” Walter Isaacson’s new biography of the world’s richest person, the author tries to make sense of the billionaire entrepreneur he has shadowed for two years — sitting in on meetings, getting a peek at emails and texts, engaging in “scores of interviews and late-night conversations.” Musk is a mercurial “man-child,” Isaacson writes, who was bullied relentlessly as a kid in South Africa until he grew big enough to beat up his bullies. Musk talks about having Asperger’s, which makes him “bad at picking up social cues.”

. . .

At one point, Isaacson asks why Musk is so offended by anything he deems politically correct, and Musk, as usual, has to dial it up to 11. “Unless the woke-mind virus, which is fundamentally anti-science, anti-merit and anti-human in general, is stopped,” he declares, “civilization will never become multiplanetary.”

. . .

The musician Grimes, the mother of three of Musk’s children (. . .), calls his roiling anger “demon mode” — a mind-set that “causes a lot of chaos.” She also insists that it allows him to get stuff done.

. . .

He is mostly preoccupied with his businesses, where he expects his staff to abide by “the algorithm,” his workplace creed, which commands them to “question every requirement” from a department, including “the legal department” and “the safety department”; and to “delete any part or process” they can. “Comradery is dangerous,” is one of the corollaries. So is this: “The only rules are the ones dictated by the laws of physics. Everything else is a recommendation.”

Still, Musk has accrued enough power to dictate his own rules. In one of the book’s biggest scoops, Isaacson describes Musk secretly instructing his engineers to “turn off” Starlink satellite internet coverage to prevent Ukraine from launching a surprise drone attack on Russian forces in Crimea. (Isaacson has since posted on X that contrary to what he writes in the book, Musk didn’t shut down coverage but denied a request to extend the network’s range.)

. . .

Isaacson believes that Musk wanted to buy Twitter because he had been so bullied as a kid and “now he could own the playground.”  . . .  Owning a playground won’t stop you from getting bullied.

For the full review, see:

Jennifer Szalai. “Self-Driving Czar.” The New York Times Book Review (Sunday, September 24, 2023): 9.

(Note: ellipses added.)

(Note: the online version of the review was updated Sept. 11, 2023, and has the title “Elon Musk Wants to Save Humanity. The Only Problem: People.”)

The book under review is:

Isaacson, Walter. Elon Musk. New York: Simon & Schuster, 2023.

Insulin Makers Said High Prices Mainly Went to Pay Higher Rebates to Pharmacy Benefit Manager (PBM) Firms

(p. A3) Novo Nordisk A/S is set to cut the U.S. list prices for several insulin drugs by up to 75%, the latest big drugmaker to make steep price reductions amid pressure to curb diabetes-treatment costs.

. . .

Novo’s price cuts follow Eli Lilly & Co.’s decision earlier this month to reduce list prices for its most commonly prescribed insulin products by 70%, effective in the fourth quarter of 2023.

. . .

Lilly, Novo and Sanofi SA are the leading sellers of insulins in the U.S. and worldwide. They had substantially raised the prices for their insulin products in the U.S. during the 2010s. The companies have said they didn’t make much from the higher list prices, because they had to pay larger rebates to the companies that manage drug benefits.

For the full story, see:

Peter Loftus. “Insulin Maker Plans Sharp Price Cut.” The Wall Street Journal (Wednesday, March 15, 2023): A3.

(Note: ellipses added.)

(Note: the online version of the story was updated March 14, 2023, and has the title “Novo Nordisk to Slash Insulin Prices by Up to 75%.”)

Chinese Communists Detain Entrepreneur Who Exhorted Staff to “Go Forward Boldly”

(p. B1) In mid-January [2023], star Chinese investment banker Fan Bao, architect of the deals that created some of China’s most dominant technology companies, appeared at his bank’s annual party in Beijing.  . . .  He exhorted the hundreds of staffers in attendance to “Go Forward Boldly.”

A few weeks later, he disappeared.

For the past month, the 52-year-old banker—who set out to build the JPMorgan of China and successfully straddled the divide between China and the West—has been held incommunicado in a detention system run by the Communist Party’s anticorruption agency.

. . .

(p. B6) Privately, close associates of Mr. Bao have been dismayed by his detention. China Renaissance Holdings Ltd., the boutique investment bank he founded and ran, is a relatively small firm, making it unusual that it would draw this manner of government scrutiny. Colleagues, business partners, friends and acquaintances of Mr. Bao are worried about his safety and are hoping he will soon resurface publicly. “I feel utterly disillusioned,” said a person close to Mr. Bao.

The jolt to business people’s confidence also comes as anxiety over China’s direction, its curtailing of people’s rights, and the way it managed the Covid-19 pandemic is leading more middle-class and wealthy Chinese citizens to relocate to other countries. Global investors have been rethinking their exposure to the world’s second-largest economy following a selloff over the past two years that was largely caused by Beijing’s regulatory crackdowns and policy decisions.

. . .

Some Chinese entrepreneurs who previously went missing have reappeared quickly. Guo Guangchang, the billionaire chairman of Shanghai-based conglomerate Fosun Group, emerged days after a mysterious detention by authorities in late 2015. He continues to run Fosun and was never charged with any wrongdoing.

Xiao Jianhua, a Chinese financier who ran a conglomerate called the Tomorrow Group, was taken from Hong Kong in 2017 and didn’t reappear for five years. He turned up in a Shanghai court last year to face corruption charges and was sentenced to 13 years in prison.

. . .

Mr. Bao believed China was on the cusp of a new-economy revolution and connected early on with young entrepreneurs who were trying to get their internet-technology startups off the ground.

. . .

Mr. Bao tried to adapt to the new environment, shifting his attention to pursuing deals in industries like semiconductors that remained in Beijing’s good graces.

. . .

Mr. Bao’s last post on Chinese social media WeChat was on Jan. 9 [2023], a few days before the China Renaissance party. He congratulated Fenbi Ltd., a vocational training provider and a portfolio company in his firm’s fund, on its Hong Kong listing. Under his personal status, Mr. Bao had written: “Dream as if u’ll live forever, live as if u’ll die today.”

For the full story, see:

Jing Yang and Rebecca Feng. “China’s M&A Star Vanishing Spurs Alarm.” The Wall Street Journal (Monday, March 20, 2023): B1 & B6.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date March 18, 2023, was listed with the title “China’s M&A Star Tells Staff to Be Bold—Then He Disappears,” and had the title “China’s M&A Star Told His Employees to Be Bold—Then He Disappeared” at the top of the story.)

Innovative Air Conditioner Is Quieter and Uses Less Energy

(p. B5) There is nothing cool about window air conditioners.

They’re clunky, ugly and tend to be way too loud. Most of them are more or less identical and have been for a long time: same temperature, same efficiency, same fear of falling out the window during installation.

“There was no meaningful performance difference from unit to unit,” said Liam McCabe, a seasoned window-AC product reviewer. “Everything was a rectangular heavy box.”

At least until a sleeker, quieter, U-shaped AC came along that looked and sounded unlike any that had ever been made. It also produced less noise and required less energy, which solved the biggest problems of window air conditioners. These machines work if you turn them on and never have to think about them again. This one worked so well that it had the opposite effect. It made people completely obsessed with their air conditioning.

. . .

They had reasons to be cynical when they heard about a company disrupting window ACs, which had become commoditized in the century since the first one was patented. But when they tried it out, they found themselves blown away. Wired and Wirecutter both picked the U-shaped AC as the best on the market, and it defied everything McCabe thought he knew about window air conditioners. His years of reviewing the same old boring products turned out to be useful preparation for recognizing one that was totally different and entirely new.

“It fried my brain a bit,” he told me. “I remember thinking: This is too good to be true.”

. . .

There wasn’t much innovation or investment in ACs, said Kurt Jovais, Midea America’s president. His company would come to believe that the window AC had been undervalued.

“We know there’s a better way,” he recalled thinking. “We’re going to make sure we find what that better way is.”

That was Adam Schultz’s job. Midea America’s project manager for residential air conditioning was responsible for turning concepts into a product that wasn’t an eyesore. The quest for a less noisy, more efficient unit inspired his team to design a prototype in the shape of a U. Instead of squeezing a noise dampener inside the box to muffle noise, they essentially split the box in two and stuck the annoying clanks and thunks outside.

That is, the secret to making a better window air conditioner was taking advantage of the window.

The clever engineering solution wasn’t just effective. It was intuitive. All you had to do was look at the U shape and you would see why this AC sounds like a library.

“The window is a sound barrier,” Schultz said.

That wasn’t the only benefit of the unorthodox design. The variable-speed inverter compressor uses less energy, which means you can keep it cranking without having to worry about utility bills. You can also open your window for unconditioned fresh air, rather than bolting it down to a giant box during installation.

For the full commentary, see:

Ben Cohen. “SCIENCE OF SUCCESS; The Ingenuity Behind This Air Conditioner Will Blow U Away.” The Wall Street Journal (Saturday, June 17, 2023): B5.

(Note: ellipses added.)

(Note: the online version of the commentary has the date June 15, 2023, and has the title “SCIENCE OF SUCCESS; How Did the World’s Coolest Air Conditioner Get So Hot?”)

Weight Loss Drugs Discovered Through “Tedious Trial and Error”

The first sentence quoted below implies that weight loss drugs are an exception in being discovered through trial and error rather than “through a logical process.” But I believe that drug discoveries in recent decades for cancer, heart disease, and Alzheimer’s also owe a lot to trial and error processes.

(p. A1) While other drugs discovered in recent decades for diseases like cancer, heart disease and Alzheimer’s were found through a logical process that led to clear targets for drug designers, the path that led to the obesity drugs was not like that. In fact, much about the drugs remains shrouded in mystery. Researchers discovered by accident that exposing the brain to a natural hormone at levels never seen in nature elicited weight loss. They really don’t know why, or if the drugs may have any long-term side effects.

“Everyone would like to say there must be some logical explanation or order in this that would allow predictions about what will work,” said Dr. David D’Alessio, chief of endocrinology at Duke, who consults for Eli Lilly among others. “So far there is not.”

. . .

(p. A16) . . . results from a clinical trial reported last week indicate that Wegovy can do more than help people lose weight — it also can protect against cardiac complications, like heart attacks and strokes.

But why that happens remains poorly understood.

“Companies don’t like the term trial and error,” said Dr. Daniel Drucker, who studies diabetes and obesity at the Lunenfeld-Tanenbaum Research Institute in Toronto and who consults for Novo Nordisk and other companies. “They like to say, ‘We were extremely clever in the way we designed the molecule,” Dr. Drucker said.

But, he said, “They did get lucky.”

. . .

After tedious trial and error, Novo Nordisk produced liraglutide, a GLP-1 drug that lasted long enough for daily injections. They named it Victoza, and the F.D.A. approved it as a treatment for diabetes in 2010.

It had an unexpected side effect: slight weight loss.

. . .

Finally, after liraglutide was approved in 2010 for diabetes, Dr. Knudsen’s proposal to study the drug for weight loss moved forward. After clinical trials, the F.D.A. approved it as Saxenda for obesity in 2014. The dose was about twice the diabetes dose. Patients lost about 5 percent of their weight, a modest amount.

. . .

Despite the progress on weight loss, Novo Nordisk continued to focus on diabetes, trying to find ways to make a longer-lasting GLP-1 so patients would not have to inject themselves every day.

The result was a different GLP-1 drug, semaglutide, that lasted long enough that patients had to inject themselves only once a week. It was approved in 2017 and is now marketed as Ozempic.

It also caused weight loss — 15 percent, which is three times the loss with Saxenda, the once-a-day drug, although there was no obvious reason for that. Suddenly, the company had what looked like a revolutionary treatment for obesity.

. . .

Researchers continue to marvel at these biochemical mysteries. But doctors and patients have their own takeaway: The drugs work. People lose weight.

For the full story, see:

Gina Kolata. “Medical Mystery Shrouds Drugs for Weight Loss.” The New York Times (Friday, August 18, 2023): A1 & A16.

(Note: ellipses added.)

(Note: the online version of the story has the date Aug. 17, 2023, and has the title “We Know Where New Weight Loss Drugs Came From, but Not Why They Work.”)

Michael Milken Applies “Entrepreneurial Zeal” to Quest to Live Forever

(p. B3) Michael Milken wants to live forever.

. . .

Milken in April [2023] published “Faster Cures,” a book that is part memoir, part a recounting of his efforts to bring the results of medical research to patients more quickly.

. . .

Shortly after his release from prison in 1993, he received a diagnosis of terminal prostate cancer and was told he had 12 to 18 months to live. He survived thanks to a relentless pursuit of the latest treatments and a dramatic change in diet. Longevity is one focus of the Milken Institute.

. . .

While at Berkeley, Milken read a book called “Corporate Bond Quality and Investor Experience” that examined, among other things, yield charts and default rates for bonds issued by railroads, utilities and industrial companies between 1900 and 1943.

The data revealed something surprising, he recounted in “Faster Cures:” While risk and return had always been presumed to be directly correlated, the reality was that the market had historically overestimated the risk of higher-yielding investments. Investors actually got lower returns on a portfolio of high-grade bonds than they did on a portfolio of low-grade ones over time because the higher yields more than made up for the higher level of defaults.

Milken continued his work on high-yield bonds while pursuing an M.B.A. from the University of Pennsylvania’s Wharton School. When he graduated in 1970, he joined the staff of Drexel, where he had previously worked as a consultant.

Bonds issued by Drexel were the primary source of financing for the likes of cable-industry titan Ted Turner, cellular pioneer Craig McCaw, fiber-optic entrepreneur William McGowan and casino magnate Steve Wynn.

“There was an entrepreneurial zeal in that firm that I haven’t seen since,” said Ted Virtue, a Drexel alumnus who now runs private-equity firm MidOcean Partners.

. . .

Milken’s work on prostate cancer has also made him an influential figure in medical research, where he has developed a reputation for being data-driven and impatient with bureaucracy. Every year he hosts a summit for scientists working on prostate cancer.

“Mike looked at the problem of cancer like a business problem to be solved,” said Dr. Karen Knudsen, CEO of the American Cancer Society. “He wasn’t focused on the flashy. He really focused on what is going to make a difference.”

When the Prostate Cancer Foundation lacked the resources to fund a major study Knudsen needed to conduct to advance her research, she said, Milken introduced her to executives from a pharmaceutical company who he thought would be interested in the science. The company ended up funding the study.

For the full story, see:

Miriam Gottfried. “Bond King, Felon, Billionaire Philanthropist.” The Wall Street Journal (Saturday, July 15, 2023): B3.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story was updated July 14, 2023, and has the title “Bond King, Felon, Billionaire Philanthropist: The Nine Lives of Michael Milken.”)

Milken’s book on how to cure more diseases faster is:

Milken, Michael. Faster Cures: Accelerating the Future of Health. New York: William Morrow, 2023.

Wind and Solar Power Prices Have Doubled Since Pandemic, Due Partly to Regulatory and Policy Challenges

(p. B1) After more than a decade of declining prices for wind and solar power, the cost of renewables has been ticking up, pushed by everything from macroeconomic forces to countries’ attempts to take control of their energy-supply chains.

The cost of large-scale solar and wind power rose as much as 20% last year versus the year before in most of the world, the International Energy Agency said in a June report. In the U.S., financial-services company Lazard’s widely watched report on the cost of power generation logged its first increase for renewables this year since it started (p. B4) tracking it nearly 15 years ago.

The whiplash has been particularly bad among renewables developers in the U.S., many of whom have rewritten contracts to stay afloat. The price they are charging long-term buyers for their electricity has doubled since the pandemic and risen nearly 30% in the past year alone, according to clean-energy marketplace LevelTen Energy.

. . .

The U.S. has . . . challenges, including policies that make it harder and more costly to import solar panels and other clean-energy components. Rising labor costs and delays in permitting or getting projects hooked up to the power grid have made building solar and wind projects more expensive.

For the full story, see:

Phred Dvorak. “Price of Green Power Is on the Rise.” The Wall Street Journal (Monday, Aug. 14, 2023): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date August 13, 2023, and has the title “Green Power Gets Pricier After Years of Declines.”)

“Unexpected” New Evidence of the Ubiquity and Resilience of Life on Earth

(p. D3) Off the western shores of Central and South America, there is a Lovecraftian, lava-licked realm thousands of feet beneath the ocean. There, on the seafloor, volcanically powered exhaust ports known as hydrothermal vents fire off jets of water that reach temperatures of up to 700 degrees Fahrenheit. While the surfaces and peripheries of these vents have long been known to host a diverse mosaic of life, scientists had never known animals to find a home beneath these hellish geysers.

But that changed in July [2023] when a diving robot overturned volcanic bedrock pockmarked with hydrothermal vents and revealed an explosion of animal life — including an abundance of tubeworms, bizarre creatures that resemble sentient spaghetti.

“This is the first time that animal life was found below the surface” of hydrothermal vents, said Monika Bright, an ecologist at the University of Vienna and lead scientist on the expedition.

. . .

Much about these unusual habitats is a mystery. But, like many revelations found at the bottom of the sea, this discovery once again pushes the boundaries of what scientists consider possible — perhaps even normal — for life on Earth.

Hydrothermal vents, first discovered off the Galápagos Islands, are Dalí-esque chimneys and chasms that often grow atop or close to midoceanic ridges — vast volcanic fissures in the seafloor made by the divergence of two tectonic plates. Deep below, the magmatic heat roasts percolating seawater, which jets back out into the water column as superheated, mineral-rich soups.

Despite their extreme natures, these vents are metropolises of strange critters. Common among them are tubeworms, which start life as free-swimming larvae before becoming immobile adults that grow to several feet in length and that are fed by sulfur-eating bacteria living in their guts.

Dr. Bright suspected that these wiggly weirdos could also be found beneath the vents. “It’s kind of a really crazy idea I had,” she said.

. . .

. . . for Dr. Bright, Earth is all that matters. “I’m not thinking of other planets and moons — I’m thinking that there’s so much mystery to be discovered in our Earth,” she said. “I feel like I know this place. I’ve studied this place for 30 years. And still, you can find something unexpected.”

For the full story, see:

Robin George Andrews. “Odd Creatures Found Under Oceanic Vents.” The New York Times (Tuesday, August 15, 2023): D3.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date Aug. 8, 2023, and has the title “Under a Hellish Ocean Habitat, Bizarre Animals Are Lurking.”)

Long Waits for Italian Cabs Due to Regulations Limiting More Cabs and Ride-Sharing

(p. A4) Returning to Rome from Naples one Monday afternoon in June [2023], a train trip that takes just over an hour, Daniele Renzoni said that he and his wife waited for more than an hour and a half at Termini station for a cab under a blazing sun.

“Just image a long line of grumbling, frustrated people, complaining, cursing. Hot day, angry tourists, there’s not much else to say,” said Mr. Renzoni, who is retired. “Taxi drivers will tell you there’s too much traffic, too many requests, too much everything, but the fact is, the customer pays.”

The situation is “a disgrace to Italy,” said Furio Truzzi, president of the consumer rights group Assoutenti, one of several associations that protested the shortage.

. . .

Thanks to the taxi lobby, ride-sharing services are almost nonexistent in Italy, where Uber is the only platform in use, with many restrictions.

The government lost an opportunity for real change, said Andrea Giuricin, a transportation economist at a research center at the University of Milan Bicocca. He said the best way to meet consumer needs would be to increase the number of licenses for Italy’s chauffeur services, known as N.C.C., which work with Uber.

“It’s very difficult in Italy” because “there isn’t a culture of liberalization in general,” creating little opportunity for competition, said Professor Giuricin. Taxis “are a small but powerful lobby” that easily influences politics, “which is very weak” in Italy, he said.

Angela Stefania Bergantino, a professor of transportation economics at the University of Bari, pointed out that previous governments had tried to open up the taxi market. But they failed.

“The problem is that taxis are regulated by municipal governments, which can find themselves captive in the sense that it is difficult for City Hall to implement policies that the cab lobby doesn’t like,” she said. “These are lobbies that have effective strike tools,” like wildcat strikes or traffic blockages that can paralyze entire cities, she said.

. . .

Above all, though licenses are issued by the city, they can then be sold by the drivers, for sums that can reach 250,000 euros, or about $276,000, depending on the city — a retirement nest egg for many. With an influx of new licenses, the value of an existing license would depreciate.

City administrators fear cabbies could revolt and strike if the status quo changes. “If I decide to issue new licenses,” said Eugenio Patanè, Rome’s city councilor in charge of transportation, “I’m going to find 1,000 taxis blocking traffic in Piazza Venezia,” the downtown Rome square that taxi drivers habitually clog while protesting.

For the full story, see:

Elisabetta Povoledo. “Getting a Cab in Italy Is Hard. But Remedying That Isn’t Easy.” The New York Times (Friday, August 11, 2023): A4.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story has the date Aug. 10, 2023, and has the title “Getting a Taxi in Italy Is Too Hard. Fixing That Is Not Easy.”)

“Persistent Plucky Outsiders” Innovate a Better Way to Stop Bleeding

(p. 20) Charles Barber’s “In the Blood” treats a consequential topic, and contains moments of real insight, drama and humor.

. . .

Though hemorrhage is a leading cause of death in both war and peacetime, we learn, the techniques for stopping it haven’t improved significantly for millenniums. Barber explores the mysteries of the “coagulation cascade” — during which diverse proteins activate in intricately choreographed sequence to facilitate clotting — as well as the “lethal triad” of hypothermia, acidosis and coagulopathy (impaired clotting) that can send the body into shock.

We watch a surgeon at a Navy hospital in Bethesda slit the femoral arteries of a herd of 700-pound pigs, then apply different hemostatic agents to the spurting wounds, to see which substance stops the bleeding best. Most products, backed by biotech and medical companies, fail: The poor beasts bleed out. But zeolite, a simple mineral with hitherto unknown hemostatic properties, saves their bacon every time.

Barber’s earlier books feature persistent, plucky outsiders who strive to change the world, and he finds two more likely subjects in the men who brought zeolite’s lifesaving properties to light. Frank Hursey is the brilliant, nerdy engineer who discovers that this cheap, highly porous mineral, used by industry to absorb radiation, chemicals and bad odors, also happens to accelerate clotting, by mopping up water in the blood and thereby concentrating its coagulation agents. (Later Hursey finds that another inexpensive mineral, kaolin, works even better.)

Barely anyone pays attention to Hursey’s discovery until he partners with Bart Gullong, a down-on-his-luck salesman who rebrands Hursey’s invention “QuikClot” and persuades a military scientist to try it out on people. Hursey and Gullong are soon befriended by iconoclasts within the armed forces medical establishment, more of Barber’s appealing, quirky, determined Davids, who together take on two of the biggest Goliaths around: the military-industrial complex and Big Pharma.

For the full review, see:

Tom Mueller. “The Home Front.” The New York Times (Sunday, Aug. 20, 2023): 20.

(Note: ellipsis added.)

(Note: the online version of the review has the date July 26, 2023, and has the title “A Fight to Save Soldiers, From the Lab to the Battlefield.”)

The book under review is:

Barber, Charles. In the Blood: How Two Outsiders Solved a Centuries-Old Medical Mystery and Took on the Us Army. New York: Grand Central Publishing, 2023.