Pharmaceuticals

Gene hunter IPO is missing link in British biotech

17 Sep 2021

DNA sequencer Oxford Nanopore is eyeing a UK float, worth perhaps $5 bln. Shunning the bigger U.S. market looks bold, but the company’s niche position in a hot sector will help. While that’s hard to repeat, a success would boost London’s appeal for other life science groups.

Capital Calls: Fake crypto news summons regulation

13 Sep 2021

Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.

Juicy Nordic drug buyout needs safety label

2 Sep 2021

Advent and GIC are paying $8 bln for Swedish Orphan Biovitrum, which specialises in rare-disease treatments. The new owners will need to invest in fresh products and fend off rivals, all while keeping staff. The potential returns look appealing but come with a fair dose of risk.

Capital Calls: Pfizer M&A, Uber driver status

23 Aug 2021

The drugmaker has agreed to acquire Trillium Therapeutics for $2.3 billion, looking to its broader post-coronavirus strategy; a California judge has struck down a law exempting tech companies from treating drivers as full employees, complicating their push to keep costs down.

Booster jabs are easy money for Pfizer and Moderna

13 Aug 2021

The U.S. has authorized a third dose of Covid-19 vaccines for people most at risk. That’s under 3% of the population, but broader use is likely in rich countries. Both producers will benefit, even if Moderna’s $160 bln valuation counts on more than just boosters in the future.

Inhaler fight offers investors false moral choice

9 Aug 2021

Philip Morris International raised its 1 bln pound bid for UK pharma group Vectura, beating Carlyle’s sweetened offer. Shareholders that shun tobacco may prefer the buyout firm. But PMI has more strategic know-how and Carlyle could sell in a few years. Price should be decisive.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Novo Nordisk diet drug may finally be the big one

4 Aug 2021

Obesity costs America over $1 trln a year, but therapies have proved ineffective or worse. The $215 bln Danish group’s new injection works, and a fast start means annual sales may one day near $10 bln. If U.S. insurers play along, it could be one of the best-selling drugs ever.

Covid-19 test makers near risky M&A endgame

4 Aug 2021

Diagnostic groups like Roche and Abbott Laboratories were the big winners of the pandemic, with their market values swelling by nearly $230 bln. The advent of vaccines means demand for their services will wane. Dealmaking could be a fix but only if companies can avoid overpaying.

Capital Calls: GM, Hugo Boss, NYT, Frontier tech

4 Aug 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Sanofi M&A punt soothes France’s Covid-19 shame

3 Aug 2021

The $131 bln drugmaker bought U.S-listed Translate Bio for $3 bln. CEO Paul Hudson gets a leg up in hot mRNA technology, which trounced the French group’s traditional vaccines during the pandemic. Shareholder returns look distant, but the cost of standing still may be higher.

Capital Calls: U.S. GDP

29 Jul 2021

Concise views on global finance: Supply chain woes are tripping up solid U.S. economic growth. GDP grew 6.5% in the second quarter, a big miss from estimates of 8.5%.

Pfizer’s pandemic wealth produces ideal dealmaker

28 Jul 2021

The pharma giant raised its 2021 guidance, partly due to bumper Covid-19 vaccine sales. Free cash flow could hit $20 billion this year as a result. Even if share buybacks resume, CEO Albert Bourla has scope to take advantage of cheap biotech valuations by making acquisitions.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.

Capital Calls: Grill makers cook their IPOs rare

27 Jul 2021

Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.

GSK’s messy split opens door to cleaner M&A cure

26 Jul 2021

The British drugmaker could sell its consumer unit after pressure from activist Elliott. The maker of Advil painkillers might be worth $70 bln to a bidder like Procter & Gamble. A sale would mean a faster exit and raise more cash than CEO Emma Walmsley’s spinoff plan.

Investors too gloomy over Biogen Alzheimer’s drug

22 Jul 2021

The approval of what might be the top-selling drug of all time has tacked a remarkably meh $5 bln onto Biogen’s value. Sure, the drug seems marginally effective. And it’s costly. But investors are assuming successful payer pushback, which rarely happens in American healthcare.

J&J shareholders learn to live with questions

21 Jul 2021

The pharma firm joined the three big drug distributors in a tentative $26 bln settlement that could remove most opioid risks facing them. The stock hardly budged. With issues over talc and sunscreen looming, good and bad news will continue to be met with a ho-hum response.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Capital Calls: U.S. jobs, Didi probe, Pharma LBO

2 Jul 2021

Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.