Pharmaceuticals

Elliott’s GSK shot tests sickly CEO’s immunity

1 Jul 2021

The activist fund wants the $98 bln drugmaker to conduct a formal search for a new boss before spinning off its consumer unit. That’s a challenge to Emma Walmsley, who plans to remain in charge. A long wait until the next shareholder vote buys time to strengthen her defences.

Capital Calls: Genetic gold rush

28 Jun 2021

Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 Jun 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

GSK rejig may still leave investors feeling queasy

23 Jun 2021

The $100 bln pharma group set a 5% sales growth target for its new medicines business. Offloading 80% of the consumer unit and loading it up with debt creates an $11 bln war chest, too. But both GSK’s drug pipeline and its under-fire CEO need to deliver for the new plan to work.

Vaccine vial maker needs to take IPO shot quickly

22 Jun 2021

Italy’s Stevanato is surfing the pandemic wave to a U.S. listing. Valued alongside high-flying medical-kit supplier West Pharmaceutical, it could be worth over $7 bln. But as the virus recedes, sales may ebb while rivals muscle in on its turf, pricking holes in the price tag.

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.

America helps itself by vaccinating the world

10 Jun 2021

Joe Biden's plan to buy and donate 500 million doses of Pfizer’s vaccine to other countries is a cheap way to spread goodwill. It’s also in the nation's self-interest. Finishing the job would cost under $40 billion, or less than half of lost U.S. exports this year.

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.

Pharma CVRs are an unhealthy M&A habit

4 Jun 2021

A lawsuit claims Bristol Myers slow-walked a cancer drug approval to avoid a $6.4 bln top-up payment on its buyout of Celgene. Aggrieved investors may get something but should have known better. Contingent value rights are illiquid, dispute-prone and best given a wide berth.

Viewsroom: Vaccine carrots and sticks, plus donuts

3 Jun 2021

Governments and companies are dangling incentives for people to get jabbed against Covid-19. But it will take more than free weed, lottery tickets and beer to reach herd immunity, Jeff Goldfarb explains. And Dasha Afanasieva says take the pastries, leave the Krispy Kreme shares.

GSK’s radical surgery is only a partial fix

3 Jun 2021

GlaxoSmithKline CEO Emma Walmsley is breaking up the $96 bln drugmaker. Spinning off the consumer unit may unlock value and give what’s left firepower for deals and drugs. Yet the split carries risks and will still leave the embattled pharma group facing a lengthy turnaround.

Roivant double-SPAC deal wallows in own cleverness

20 May 2021

The biotech firm may raise money from a blank-check company, then buy out a drugmaker it previously merged with a SPAC. It sounds complex, but what Roivant is doing is at heart not so different from any IPO. The catch is that it has inside intel, and an incentive to exploit it.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.

Buyout shop’s UK healthcare punt needs steady hand

12 May 2021

Clayton, Dubilier & Rice is buying UDG Healthcare for $3.7 bln. It’s a way to profit from Big Pharma’s need to cut costs and outsource drug development. But a post-crisis share bounce means the price isn’t cheap, and high returns aren’t assured. Some savvy dealmaking may help.

Capital Calls: Uber, Roblox

11 May 2021

Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.

Biden’s vaccine shift has risky side effects

6 May 2021

The U.S. president backed waiving intellectual property rights for Covid-19 jabs to help crisis-torn countries. Yet a shortage of ingredients and manufacturing challenges mean the move may not boost supply much. And it may hurt investment in remedies during the next pandemic.

GSK CEO’s best defence is a graceful exit

5 May 2021

The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.

Drug giants offer pandemic recovery sleeper trade

4 May 2021

While vaccine makers flourished, companies like GSK, Novartis and Sanofi suffered during lockdown as fearful citizens postponed tests and avoided hospitals. The reopening should mean a surge in delayed treatments and give their depressed share prices a booster shot.

Capital Calls: Pfizer, ConocoPhillips

4 May 2021

Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.