Biotechnology

Vaccine fiasco casts long shadow over Oxford IPO

12 April 2021

A university spinoff behind the AstraZeneca jab is listing for a mooted $700 mln. Vaccitech’s technology might combat diseases from cancer to hepatitis. Yet lingering doubts over efficacy and side-effects on Covid-19 patients are a risky legacy in a highly competitive sector.

Capital Calls: TV’s royal boost, Shared offices

9 March 2021

Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.

Son’s gene-sequencing goose may lay eggs elsewhere

10 February 2021

Pacific Biosciences has lagged goliath Illumina in selling DNA reading machines. A $900 mln investment from Masayoshi Son's SoftBank Group may give it a leg up. But competition will accelerate deflation in the price of gene sequencing, making users the biggest winners.

Corona Capital: Indian banks, LBOs, Stellantis

18 January 2021

Concise views on the pandemic’s corporate and financial fallout: Indian banking guru Aditya Puri gives reasons to be bullish about New Delhi’s lenders at a Breakingviews predictions event; the ECB cracks down on risky loans; carmaker Stellantis gets a boost from passive funds.

MRNA is a $120 bln bet on platform, not vaccines

21 December 2020

This emerging biotechnology has delivered two Covid-19 jabs with miraculous speed, pushing firms like Moderna and BioNTech to big valuations. The new year will see these companies doused with even more money, which will help efforts to treat cancer or rare diseases post-pandemic.

AstraZeneca’s $39 bln deal is bold as well as big

12 December 2020

The UK drugmaker will buy U.S. biotech Alexion, which makes treatment for a rare immune disease. It’s growing and throws off cash. Yet competitive challenges and a wayward M&A strategy have depressed its stock. That’s an opportunity and a threat for AstraZeneca CEO Pascal Soriot.

Corona Capital: U.S. state budget woes

20 October 2020

Concise views on the pandemic’s corporate and financial fallout: Some conservative U.S. states are hurting as much as liberal New York.

Illumina takes pricey round-trip to find its Grail

21 September 2020

The $40 bln firm found out by accident years ago that it could detect cancer using genetic sequencing. It spun out Grail in 2017, bringing in cash from new investors. Now it's spending $7 billion to buy it back. Grail is a hot property, but it competes with Illumina's customers.

Gilead goes all-in to inject excitement

14 September 2020

The $82 bln biotech attracted attention with a Covid-19 drug but has been unable to shake its low valuation multiple. Recent M&A hasn’t helped, either. A $21 bln deal to buy Immunomedics is a huge bet on a breast cancer treatment. Failure could even turn Gilead into a target.

Sanofi begins M&A spree with low-risk $3.7 bln bet

17 August 2020

The French drugmaker bought U.S. firm Principia Biopharma, its first deal after selling a $12 bln stake in Regeneron. Buying an established partner allows CEO Paul Hudson to grow in a familiar and fast-growing field, autoimmune diseases. The trade-off is a long wait for a return.

Vaccine IPO a blend of hope, hype and arbitrage

12 August 2020

CureVac’s potential coronavirus remedy is coveted by the U.S. president. The German firm’s also a key player in biotech’s hottest unproven technology. And it hopes to float at just $2.7 bln, around 10% of the market value of rival Moderna. That’s plenty to ensure a warm welcome.

How U.S. made Covid-19 tests a profitable disaster

23 July 2020

Week-long waits for results jar with soaring share prices of firms that test for the killer virus, like Quest Diagnostics and LabCorp. Detecting Covid-19 can be financially rewarding, yet supply remains woefully short. The debacle shows market forces need a firm guiding hand.

Corona Capital: Newspapers, 747s

17 July 2020

Concise views on the pandemic’s corporate and financial fallout: Congress may dangle newspapers a lifeline; British Airways brings its fleet of jumbo jets in for a final landing.

Corona Capital: Expense accounts, Zoom’s new box

15 July 2020

Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.

DiaSorin offers rare bright spot in Italian gloom

10 July 2020

The $11 bln company’s Covid-19 kits may not be as iconic as Prada bags or Ferrari cars. But they sell like hot cakes in a pandemic. If the virus wanes, so will its tests' appeal. Still, DiaSorin’s biotech focus is a step-up from traditional Made in Italy products.

Gilead gives glimpse into feverish drug market

29 June 2020

Its Covid-19 treatment will set governments back about $2,300 per course – more than it costs to make but far less than U.S. patients would incur with longer hospital stays. There are many ways to decide the value of a drug. Gilead is, perhaps wisely, being relatively restrained.

Royalty Pharma merits private equity drug discount

16 June 2020

Pablo Legorreta’s company, which buys up revenue streams on potential blockbuster drugs, went public at a nearly $17 bln valuation. It has been a buyers’ market with limited competition. But rising political risk warrants a big discount to more diversified peers like Blackstone.

Gilead solidifies pharma pandemic insurance premia

9 June 2020

The $100 bln company has an approved Covid-19 drug that the U.S. government is distributing. That helps replace maturing HIV and dwindling hep C meds, and made Gilead a takeover target. The ability to cure what ails the entire economy buffs the sector’s strong defensive nature.

Pandemic boosts Chinese biotech cred

8 June 2020

Little-known firms like $5 bln CanSino are among the front runners to develop a Covid-19 vaccine. Most are working with foreign governments and companies, underscoring China’s rising industry status. These upstarts will go global even with rising geopolitical tensions.

U.S. testing firms aren’t having a great pandemic

4 June 2020

With no vaccine, finding Covid-19 cases is key. But it’s not lucrative. Extra revenue is being offset by falls in other tests for Quest and rival lab companies and in unrelated businesses for test makers like Abbott. There's little time to cash in and plenty of competition.