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.
Test-tube baby-making market is ready to pop 3 Jun 2021 Declining sperm counts, delayed fertility decisions and lower birth rates are trends fueling an investment segment casually known as “femtech.” Societal and governmental reluctance can get in the way of financial returns. But for investors, where there's a will, there’s a way.
Ginkgo’s $17.5 bln SPAC deal presupposes success 11 May 2021 Producing bespoke cells for manufacturing has potential, ranging from greener plastics to lab-produced cannabis compounds. Moderna’s valuation shows the potential of investing in a singular platform. But there are plenty of duds, and Ginkgo’s deal bakes in no room for error.
Vaccine fiasco casts long shadow over Oxford IPO 12 Apr 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 Mar 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 Feb 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 Jan 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 Dec 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 Dec 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 Oct 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 Sep 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 Sep 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 Aug 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 Aug 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 Jul 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 Jul 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 Jul 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 Jul 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 Jun 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 Jun 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.