Biotechnology

Biogen’s $11 bln Alzheimer’s gain has cushion

28 Sep 2022

The U.S. biotech firm has developed a drug that may slow dementia, sending Biogen shares surging 40%. The assumptions it takes to validate the gain don’t seem crazy. Decades of failure to find a cure explain why investors are gun-shy. That may mean opportunity for the bold.

China biotech has bitter U.S. pill to swallow

14 Sep 2022

Top contract drugmaker, WuXi Biologics, lost $7 bln in market value after U.S. President Biden vowed to cut dependence on foreign manufacturers. Building up domestic capacity will take years, so the selloff looks premature. Still, some form of decoupling is underway.

Little pharma gets big boost from drug regulators

8 Sep 2022

A drug that treats a fast-killing neurological disease received a green light from an FDA panel instead of waiting for further trial results. That lifted shares of the maker, Amylyx, 60%. The unusual decision can be justified in this case. But such fast-tracking should be rare.

Belgian biotech is pricey cure for Big Pharma ills

28 Jul 2022

Rare-disease specialist Argenx reported surging sales of its main treatment. That increases its allure to drugmakers like Pfizer, whose revenue is threatened by expiring patents. But the $21 bln firm’s soaring shares since a recent U.S. drug approval make it anything but cheap.

Biotech’s EBITDARD hype risks impairing its growth

14 Apr 2022

Prenetics, supplier of Covid-19 tests to cruise lines, airports and England’s Premier League, has won U.S. approval to float by merging with a blank-cheque firm. But the fast-growing outfit excludes R&D costs from a key financial metric. That’s a warning sign for investors.

Capital Calls: Biogen hits Medicare wall

12 Jan 2022

Concise views on global finance: An unusual decision by the U.S. government program to restrict payment for the firm’s Alzheimer’s drug is likely to be an exception rather than becoming the rule.

Biotech is set for a geopolitical stress test

12 Jan 2022

The sector has been immune to U.S.-China tensions that sickened cross-border tech investments; in fact giants like $27 bln cancer treatment specialist BeiGene are thriving thanks to global tie-ups. Decoupling looks unlikely, but political risks are rising fast.

Moderna’s boosted valuation has Tesla-like spin

5 Jan 2022

Its Covid-19 vaccine is one of the world’s biggest medical products, yet that doesn't justify even half of Moderna’s $94 bln market value. Like Elon Musk’s $1.2 trln carmaker, the company is now a bet on dominating markets yet to exist. That suggests a volatile future for investors.

Data hunters will be Big Pharma’s next prey

20 Dec 2021

Drugmakers such as AstraZeneca spend $160 bln annually trying to unearth new treatments for diseases like cancer. The winners will be those who can source and analyse data quickly. That makes artificial intelligence experts like Relay Therapeutics and Exscientia targets.

Shanghai’s tech board gets welcome IPO flop

16 Dec 2021

The biggest listing on the overheated STAR market this year bombed as shares of biotech giant BeiGene fell 16% on their debut. That finally adds risk to a once-safe bet on triple-digit first-day pops. Regulators fretting about the speculative stock mania can relax a bit.

Cancer biotech’s triple listing has singular risk

13 Dec 2021

Beigene is raising $3.3 bln on Shanghai’s STAR market, making it the first company to trade there and in New York and Hong Kong. That suits its ambition to be seen as a global business and gives it enviable funding options. But its listing largesse is at the mercy of geopolitics.

CSL’s Swiss drug punt looks like a bad trip

2 Dec 2021

The $99 bln Aussie jab maker is in talks to buy iron-deficiency specialist Vifor for around $7 bln. CEO Paul Perreault has a track record of strong growth and winning M&A. The prospect of subpar returns and a looming patent expiry suggest his golden touch is losing its lustre.

Covid testers’ messy union would lure lab crashers

3 Nov 2021

German diagnostic group Qiagen and French peer BioMerieux may merge, Bloomberg says. A $28 bln deal would allow both companies to offer more products and better cope with the end of the pandemic boom. But few synergies and integration risks open the door to other predators.

Chinese IPOs return to New York with a whimper

2 Nov 2021

LianBio, the first Chinese company to float in the city since Didi’s catastrophic listing, fell 14% on its debut. It touts a Cayman Islands domicile and U.S. backers but most of its business is in the People's Republic. Investors who once loved such hybrids distrust them now.

Capital Calls: Klarna, French vaccine, Philips

18 Oct 2021

Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.

Capital Calls: Real estate distress is tricky call

15 Oct 2021

Concise views on global finance: Barry Sternlicht’s Starwood Capital has raised a $10 bln fund to buy struggling buildings. With the pandemic's long-term effects unclear, the key will be avoiding those destined to remain empty.

Belgian biotech casualty defies Darwinian logic

15 Oct 2021

Galapagos has few drugs, a departing CEO and is worth just 3.1 bln euros, less than the cash on its books. It should be a takeover candidate, but the influence of key investor Gilead is a complication. It’s a cautionary tale of the challenges of drug discovery and creative M&A.

Capital Calls: Biodiversity, Email, Gene IPO

30 Sep 2021

Concise views on global finance: Taskforce on Climate-Related Financial Disclosures gets a nature-based counterpart; Sweden’s Sinch clinches its fourth communication-software deal in seven months; a 40% bounce on Oxford Nanopore's market debut puts some life into London.

Illumina thumbs its nose at slowcoach trustbusters

24 Sep 2021

The gene sequencing firm closed a $7 bln deal without EU approval. Illumina is confident in approval, or at worst, forced divestment at a premium. Illumina may be right that antitrust moves slower than technology, but its insouciance isn’t necessarily great for shareholders.

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.