The obesity drug craze is entering its next phase 8 Feb 2024 Eli Lilly and Novo Nordisk can’t keep up with demand for their weight loss medications. In this Viewsroom podcast, Breakingviews columnists discuss the hype among celebrities, the different approaches to prescribing them in the US and Europe, and how they can reshape the world.
Orsted revival requires more than belt-tightening 7 Feb 2024 The $23 bln Danish group cut its 2030 power capacity target and cancelled dividends after facing $4 bln of US impairments. For investors, it’s better than an equity raise. But an Orsted share-price recovery hinges on regaining their trust – and expected rate cuts materialising.
Novo digs $11.5 bln moat around weight-loss jewel 5 Feb 2024 The pharma giant’s parent is buying US manufacturer Catalent. It helps Novo Nordisk keep up with soaring demand for obesity drugs, and makes it harder for rival Eli Lilly to catch up. With such limited capacity, Catalent’s rivals like $4 bln ROVI may soon be in play.
Shipping giants can withstand Red Sea crisis 30 Jan 2024 Houthi attacks near the Suez Canal are slowing global trade. In this Exchange podcast, Zvi Schreiber, CEO of shipping platform Freightos, discusses how the sector was caught by surprise, but excess container ships and more air cargo capacity are helping limit the immediate pain.
Obesity drug firms choose golden goose pricing 18 Jan 2024 Eli Lilly and Novo Nordisk can’t keep up with demand for weight loss drugs, yet they are offering big discounts to those whose insurance won’t help pay. That probably will harvest more eggs over time.
Prolonged Red Sea attacks can hurt global economy 11 Jan 2024 Freight costs are soaring as militants target ships on a crucial trade route. In this Viewsroom podcast, Breakingviews columnists debate how inflation could rise and which companies could suffer if the tensions aren’t resolved soon.
Red Sea windfall will only delay shippers’ pain 4 Jan 2024 Maersk and Hapag-Lloyd have gained some $18 bln in market value, as militant attacks shut the Suez Canal and caused freight rates to soar. Yet investor hopes for a lasting boost may be disappointed. And carriers will still face a reckoning from a weak economy and idle fleets.
Wintershall saga reaches logical $11 bln endgame 21 Dec 2023 After flirting with a listing and rival suitors, the BASF-owned German oil group is to merge with $3 bln Harbour Energy. The UK-listed buyer gets a relatively cheap way to bulk up in gas assets. The sellers get to stick around for the ride, courtesy of some funky financing.
Capital Calls: Disney’s Marvel flop, US inflation 14 Nov 2023 Concise views on global finance: Bob Iger’s prized acquisitions Marvel, Pixar and Lucasfilm are losing their mojo, just as his dealmaking mettle is being tested; inflation has eased even as growth looks strong, but warnings from consumers and companies signal potential weakness.
Wind woe opens door for alternative green ideas 9 Nov 2023 Shares of Orsted and Siemens Energy are being battered by their inability to boost profits. In this Viewsroom podcast, Breakingviews columnists explain how trouble in offshore wind may encourage investors to back other clean energy segments like battery storage, cables and solar.
Orsted’s losing US bets need rethink of UK plans 1 Nov 2023 The Danish wind giant lost a fifth of its value after a surprising $4 bln impairment in the States. That erases most of the capex spent there. Yet it still wants to invest in the world’s biggest economy to meet its lofty targets, a risky gamble that requires restraint in Britain.
Macquarie’s Norse saga sends telco breakup warning 17 Oct 2023 The Australian firm is mulling options for Danish operator TDC. A lengthy plan to separate its network from its consumer business left both units burdened by debt amid intense competition, which could deter buyers. Others looking to split, like Telecom Italia, may think twice.
Obesity revolution gorges on dialysis maker 11 Oct 2023 Shares of Fresenius Medical Care fell 20% after a trial showed a Novo Nordisk drug reduced the risk of kidney failure. It highlights how fast-growing weight-loss treatments will pummel other areas of medicine. The blow may push Fresenius and its parent into corporate surgery.
Anti-obesity drugs can shrink more than patients 20 Sep 2023 Wegovy and other weight-loss treatments could transform public health. That may hurt medical, food and fitness companies, while potentially affecting activities from drinking to gambling. This shrinking revenue demands a new investment concept: total unaddressable markets.
Novo Nordisk heft worsens Danish surplus disease 8 Sep 2023 Sales of the pharma group equal 8% of Danish GDP and its $440 bln market value is Europe’s highest. Hosting corporate behemoths can be a problem for small countries, as shown by Finland’s Nokia. But Copenhagen can use the drug bounty to spend more on the rest of the economy.
The obesity drug boom is just getting started 5 Sep 2023 Over 1 bln people are obese, the WHO reckons. Denmark’s Novo Nordisk is ahead of the pharma pack with its Wegovy weight-loss drug. In this Exchange podcast, recorded in August as a Reuters Newsmaker, CEO Lars Jorgensen says the market will be big enough for other players too.
Orsted’s issues fan way beyond the United States 30 Aug 2023 Denmark’s $27 bln wind giant saw shares plunge over 20% after it said it may need to write down $2 bln of US projects. Yet Orsted’s supply chain and subsidy problems may also upend progress in the UK. And by recently implying all was well, management has lost credibility.
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.
Deutsche Boerse data pivot comes at a price 27 Apr 2023 Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.
Orsted increasingly merits its investor blowback 20 Jan 2023 The $38 bln Danish wind farm group flagged lower-than-expected 2023 targets as its key offshore arm struggled. Shareholders always granted Orsted a premium valuation, due to growth expected from new projects. Construction delays and rising rates are putting that in question.