Pharmaceuticals

Opioids expose unhealthy bankruptcy addictions

11 Aug 2023

Mallinckrodt may file for Chapter 11 again, wiping out most of a $1.7 bln settlement over the painkillers. The insolvency also shielded executives from lawsuits, just as the Sacklers want to do. Such legal protections and undercapitalized restructurings discredit the process.

Obesity drugs take brakes off Big Pharma’s growth

8 Aug 2023

Eli Lilly’s diabetes treatment helped lift quarterly revenue 28%, while increased production will spur the $500 bln drugmaker’s top line. Evidence that rival Novo Nordisk’s weight loss drug reduces the risk of heart attacks will persuade insurers and governments to foot the bill.

Capital Calls: Uber’s road trip to redemption

1 Aug 2023

Concise views on global finance: The $95 bln ride-sharing firm notched its first operating profit and more than doubled free cash flow, but its valuation is lagging.

Biogen’s $7 bln deal goes smaller and safer

28 Jul 2023

The biotech firm’s purchase of Reata will gift it a portfolio targeting rare diseases. With the US government’s Medicare insurance program recently freed to bargain down prices on best-selling drugs, such niche therapies have become more appealing versus potential blockbusters.

Drug scarcity and freak storms are nightmare combo

21 Jul 2023

A tornado that ripped through a Pfizer plant raises the specter of disruptions in an industry already stricken by shortages. Market forces aren’t much help at replacing lost supply in the drug trade. Avoiding future shocks means more slack in the system, and maybe higher prices.

Capital Calls: AMC’s meme investor backlash

18 Jul 2023

Concise views on global finance: A new lawsuit looking to force a shareholder meeting adds to growing antagonism between $2 bln movie theater chain AMC and the retail investors who buoyed its business during the pandemic. For boss Adam Aron, meme stock stardom comes at a cost.

Capital Calls: Luxury’s US test

17 Jul 2023

Concise views on global finance: Switzerland’s $93 billion Richemont drops sharply on U.S. luxury slowdown fears that could apply to its rivals too.

West is sleepwalking off healthcare cliff

17 Jul 2023

Europe is scrambling to end its reliance on Chinese raw materials for green energy and chips. But policymakers forget the region sources 80% of ingredients for top medicines in the East. Producing them at home may prevent a crisis but it risks exacerbating public debt piles.

Moderna finally gains tenuous toehold in China

6 Jul 2023

The $47 bln US biotech company will develop and sell mRNA treatments in the People's Republic. It’s a bet that the country’s ageing population will spur growth and comes after years of trying. But geopolitics and rising local competition loom over its expansion plans.

Why backing prevention can yield better health

27 Jun 2023

Treating illnesses like cancer consumes 11% of global GDP, according to the World Health Organization. In this Exchange podcast, Dr. Katie Tryon, director of healthcare strategy at Vitality, explains that overburdened care systems need to spend their way back into shape.

To relinquish Grail, Illumina should fight for it

12 Jun 2023

A departing CEO and an ousted chairman signal an end to the gene-sequencing company’s effort to retain the $7 bln cancer detection business it bought without regulatory approval. The best way to secure a good price may be to keep battling US and EU trustbusters in court.

Pampered pets unleash booming market

6 Jun 2023

The pet craze brought on by the pandemic has become a boon for companies that sell products to dog-loving owners. FidoCure founder Christina Lopes explains to The Exchange podcast how this might be able to help humans, too.

Capital Calls: Turkey, Indivior

5 Jun 2023

Concise views on global finance: President Tayyip Erdogan’s new treasury minister will struggle to steer the $900 bln economy towards orthodox monetary policies; shares in the London-listed drugmaker jumped after it settled a lawsuit, making it more appealing to potential buyers.

Capital Calls: $6 bln pet buyout

2 Jun 2023

Concise views on global finance: Shares in UK veterinary pharmaceuticals group Dechra are trading 6% below private equity firm EQT’s new, lower bid. That looks too pessimistic given the chunky valuation on offer.

Illumina shareholders vote for lose-lose outcome

25 May 2023

Carl Icahn scored a seat on the $30 bln biotech’s board, but fell short of the three he sought. Boss Francis deSouza won re-election but must now deal with the activist’s lieutenant. And newer investors hoping Illumina was in for a big shake-up will be disappointed. No one wins.

Drug M&A comes down with case of antitrust fever

17 May 2023

Amgen’s $28 bln purchase of rival Horizon could unfairly boost the target’s treatments, the merger watchdog says. The FTC’s focus on so-called bundling could be troublesome for the pharma industry, but is also hard to prove. Investors may be too pessimistic about the deal.

Pharma’s obesity gold rush will have limits

11 May 2023

Drugmakers Novo Nordisk and Eli Lilly are vying for a large slab of the weight loss medications market, which analysts reckon could be worth $100 bln by 2031. In this Viewsroom podcast, Breakingviews columnists discuss how investor optimism in a booming market is unwarranted.

Capital Calls: Walt Disney

10 May 2023

Concise views on global finance: Bob Iger’s first full quarter since returning as CEO opened a window onto multiplying challenges across the Magic Kingdom.

Novo Nordisk’s chunky valuation risks crash diet

4 May 2023

The $274 bln pharma group trades at a big premium to peers. Investors are buoyed by hopes Novo can take a large share of an obesity market that could be worth $100 bln by 2031. But competition and questions about its drug’s effectiveness could slim down its valuation.

Eli Lilly’s golden ticket is a regrettable winner

3 May 2023

A voucher system to encourage drug development for neglected diseases has mostly been a limp carrot. For some, though, fast lanes to U.S. FDA approval are worth a fortune, perhaps $30 bln for a new weight-loss treatment. But the pandemic showcased better ways to spur investment.