Biotechnology

Airport security fast-tracker jumps the IPO line

18 Jun 2021

Clear, the U.S. firm that allows people to cut security lines for $179 a year, wants to go public. With vaccine checks on the horizon and the U.S. government as a new client, it has a promising path to fly as a public company, so long as its valuation stays in the $2 bln range.

Capital Calls: HSBC, MRNA scramble, Cable project

18 Jun 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

CureVac’s pain may not yet have peaked

17 Jun 2021

The German drugmaker’s value halved to $10 bln after it said its Covid-19 vaccine may be only 47% effective. Investors’ concern is that its critical mRNA technology may not work as well. Separate trials on its cancer vaccine will be key to CureVac’s future health.

Alzheimer’s drug feeds U.S. healthcare cost spiral

7 Jun 2021

The approval of a treatment will bring hope to millions and might bring maker Biogen over $20 bln of revenue a year. But there’s little evidence it works. By taking a flier, regulators may be intensifying the trade-off between patients’ hope and Americans’ financial health.

Test-tube baby-making market is ready to pop

3 Jun 2021

Declining sperm counts, delayed fertility decisions and lower birth rates are trends fueling an investment segment casually known as “femtech.” Societal and governmental reluctance can get in the way of financial returns. But for investors, where there's a will, there’s a way.

Ginkgo’s $17.5 bln SPAC deal presupposes success

11 May 2021

Producing bespoke cells for manufacturing has potential, ranging from greener plastics to lab-produced cannabis compounds. Moderna’s valuation shows the potential of investing in a singular platform. But there are plenty of duds, and Ginkgo’s deal bakes in no room for error.

Vaccine fiasco casts long shadow over Oxford IPO

12 Apr 2021

A university spinoff behind the AstraZeneca jab is listing for a mooted $700 mln. Vaccitech’s technology might combat diseases from cancer to hepatitis. Yet lingering doubts over efficacy and side-effects on Covid-19 patients are a risky legacy in a highly competitive sector.

Capital Calls: TV’s royal boost, Shared offices

9 Mar 2021

Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.

Son’s gene-sequencing goose may lay eggs elsewhere

10 Feb 2021

Pacific Biosciences has lagged goliath Illumina in selling DNA reading machines. A $900 mln investment from Masayoshi Son's SoftBank Group may give it a leg up. But competition will accelerate deflation in the price of gene sequencing, making users the biggest winners.

Corona Capital: Indian banks, LBOs, Stellantis

18 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Indian banking guru Aditya Puri gives reasons to be bullish about New Delhi’s lenders at a Breakingviews predictions event; the ECB cracks down on risky loans; carmaker Stellantis gets a boost from passive funds.

MRNA is a $120 bln bet on platform, not vaccines

21 Dec 2020

This emerging biotechnology has delivered two Covid-19 jabs with miraculous speed, pushing firms like Moderna and BioNTech to big valuations. The new year will see these companies doused with even more money, which will help efforts to treat cancer or rare diseases post-pandemic.

AstraZeneca’s $39 bln deal is bold as well as big

12 Dec 2020

The UK drugmaker will buy U.S. biotech Alexion, which makes treatment for a rare immune disease. It’s growing and throws off cash. Yet competitive challenges and a wayward M&A strategy have depressed its stock. That’s an opportunity and a threat for AstraZeneca CEO Pascal Soriot.

Corona Capital: U.S. state budget woes

20 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Some conservative U.S. states are hurting as much as liberal New York.

Illumina takes pricey round-trip to find its Grail

21 Sep 2020

The $40 bln firm found out by accident years ago that it could detect cancer using genetic sequencing. It spun out Grail in 2017, bringing in cash from new investors. Now it's spending $7 billion to buy it back. Grail is a hot property, but it competes with Illumina's customers.

Gilead goes all-in to inject excitement

14 Sep 2020

The $82 bln biotech attracted attention with a Covid-19 drug but has been unable to shake its low valuation multiple. Recent M&A hasn’t helped, either. A $21 bln deal to buy Immunomedics is a huge bet on a breast cancer treatment. Failure could even turn Gilead into a target.

Sanofi begins M&A spree with low-risk $3.7 bln bet

17 Aug 2020

The French drugmaker bought U.S. firm Principia Biopharma, its first deal after selling a $12 bln stake in Regeneron. Buying an established partner allows CEO Paul Hudson to grow in a familiar and fast-growing field, autoimmune diseases. The trade-off is a long wait for a return.

Vaccine IPO a blend of hope, hype and arbitrage

12 Aug 2020

CureVac’s potential coronavirus remedy is coveted by the U.S. president. The German firm’s also a key player in biotech’s hottest unproven technology. And it hopes to float at just $2.7 bln, around 10% of the market value of rival Moderna. That’s plenty to ensure a warm welcome.

How U.S. made Covid-19 tests a profitable disaster

23 Jul 2020

Week-long waits for results jar with soaring share prices of firms that test for the killer virus, like Quest Diagnostics and LabCorp. Detecting Covid-19 can be financially rewarding, yet supply remains woefully short. The debacle shows market forces need a firm guiding hand.

Corona Capital: Newspapers, 747s

17 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Congress may dangle newspapers a lifeline; British Airways brings its fleet of jumbo jets in for a final landing.

Corona Capital: Expense accounts, Zoom’s new box

15 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.