Healthcare

Vaccine makers exposed to political pathogen

7 Nov 2024

President-elect Donald Trump wants Robert Kennedy to ‘run wild’ on public health policy. Details, as usual, are sketchy, and it may be hard to put the anti-jab activist in an official administration role. Even with him as a senior adviser, though, Moderna and GSK lack immunity.

Lilly’s weight loss let-down is all about timing

30 Oct 2024

The obesity drug maker shed $50 bln of market value after sales disappointed the assumption that rising supply would meet endless demand. It may be a blip due to slow marketing. But a valuation triple industry norms leaves Eli Lilly no room to fumble its window to extract value.

Companies bear brunt of Britain’s fiscal trade-off

30 Oct 2024

New finance minister Rachel Reeves raised 40 bln pounds through higher levies, mostly on employers, to fund public services like health. She also changed debt rules to borrow more. It’s a bet that fiscal rectitude will help revive growth. But the ailing UK has few other options.

Philips’ China misery renews case for bold surgery

28 Oct 2024

The $25 bln Dutch medical group’s shares fell up to 17% after it said it would barely grow this year. Weak demand in its key Chinese market means any recovery is far off. The weak outlook makes it harder to justify keeping its sprawling consumer and healthcare divisions together.

CD&R $17 bln French deal may hinge on big retreat

15 Oct 2024

Paris is concerned about the future of critical medicines if the private equity firm buys a stake in Sanofi’s consumer unit. CD&R can promise bigger investment and still get a decent return. Giving up control by bringing in a Gallic co-investor might also soothe the government.

Sanofi sale is critical health check for mega LBOs

10 Oct 2024

The French pharma company is deciding whether to sell its consumer drugs unit to Clayton Dubilier & Rice or PAI for $17 bln, says Bloomberg. It helps that volatile equity markets make an alternative listing riskier. A successful deal could give large buyouts a shot in the arm.

Pfizer’s M&A disease brings activist cure

7 Oct 2024

The pharma giant generated over $30 bln of extra cash during the pandemic, then spent over twice as much on questionable deals. With shareholders sitting on a loss under CEO Albert Bourla, Starboard will push for a return to former CEO Ian Read’s parsimony.

CVS surgery would provide little if any relief

1 Oct 2024

As part of a strategic shakeup, the healthcare supermarket may try amputation. A $90 bln acquisition binge has left it indebted and worth less than $80 bln. The breakup math is flimsy, meaning the prescription for boss Karen Lynch is to stop buying and nurse the existing parts.

Copycat drugmakers will be low-key obesity winners

25 Sep 2024

Sandoz and other generic drugmakers are preparing to make cheap versions of Novo Nordisk’s weight-loss drugs. They could grab a large chunk of a potentially $150 bln market. Unlike the Danish group and peer Eli Lilly, their valuations do not yet reflect the potential opportunity.

Big Pharma lacks motive to prep for new pandemics

10 Sep 2024

The WHO warned the next outbreak may be 20 times more deadly than Covid-19. Moderna’s Corona surge should encourage drugmakers to build up vaccine units for the next virus. But with investors giving little credit for one-off jabs, there’s not much incentive to invest.

AIA loosens tight Chinese purse strings

22 Aug 2024

The $70 bln insurer reported a 25% increase in new business value in the first half, led by rapid growth in mainland China. Demand for the group's savings products is driving sales as the economy sputters. AIA's aggressive expansion onshore is paying off.

Mpox drugmaker’s shares may provide false comfort

16 Aug 2024

Bavarian Nordic, which makes a vaccine for the virus, gained $1 bln in value over the past week as the disease spread beyond Africa. The increase is equivalent to several million extra doses. That view, which implies a contained outbreak, may be too benign if mpox keeps mutating.

L’Oréal’s tardy skin care facelift may backfire

5 Aug 2024

After sitting out its IPO, the cosmetics giant is buying 10% of $19 bln dermatology specialist Galderma, which it sold in 2014. The Swiss firm’s fast-growing injectable business is attractive. Yet the move risks making a potential full takeover overly expensive.

Philips’ share-price revival is only half finished

29 Jul 2024

The Dutch medical group’s orders are finally growing again, boosting the stock by 10%. Yet Philips is still well below its 2021 peak, before a faulty sleep-aid crisis. Keeping margins high and sales rising may help, but selling the consumer unit may complete the rejuvenation.

Novo Nordisk obesity feast no longer a free lunch

18 Jul 2024

The $603 bln drug group’s shares have more than trebled since 2021 on the back of booming sales of weight-loss treatment Wegovy. To justify that, it will need to keep coming up with new, even better products, and fend off rivals like Pfizer. Neither looks certain.

Ozempic may gift US a $3 trln benefit

16 Jul 2024

Tech advances are the unpredictable joker of healthcare spending, sometimes adding to outlays. Recent estimates to the United States' medical bill suggest costs will rise, even with the new obesity drug. But previous technological advances in medicine have been underestimated.

Drugmaker’s US listing journey starts with failure

9 Jul 2024

Shares in $2 bln Indivior, which in June switched its primary venue from London to New York, fell 42% after flagging slower opioid-treatment sales. Investors may fear that CEO Mark Crossley took his eye off the ball. With little broker coverage, it risks becoming an orphan stock.

Smith & Nephew faces long and painful activist fix

4 Jul 2024

Cevian has taken a 5% stake in the $11 bln underperforming London-listed medical equipment maker. Curing its depressed share price will require deep operational surgery. While that may take time, a breakup could be a second treatment further down the line.

Moderna stock is lone omen of bird flu pandemic

17 Jun 2024

The $56 bln Covid vaccine maker’s stock is up 40% since March after an avian flu outbreak. A new jab might be worth trillions for society. The uncertainty about another pestilence, however, means its value to Moderna is probably less than what investors have already gained.

Investors prescribe harsh medicine for GSK’s boss

3 Jun 2024

Shareholders wiped $9 bln off the UK drugmaker’s market value after a US judge approved lawsuits over heartburn drug Zantac. It may be an overreaction given the company’s win in another state and previous settlements. But it adds pressure on CEO Emma Walmsley’s turnaround plan.