Healthcare

Corona Capital: Commercial real estate, IBM

5 January 2021

Concise views on the pandemic’s corporate and financial fallout: Commercial office real estate is Zoom’s mirror image; IBM taps former Goldman-exec Gary Cohn.

Cure for U.S. healthcare malady isn’t capitalism

4 January 2021

Amazon, Berkshire Hathaway and JPMorgan took on America’s medical dysfunction and failed, disbanding their joint venture Haven after three years. Big as the three are, they’re dwarfed by the vested interests that keep healthcare expensive. Now it’s the government’s turn.

Urge to purge 2020 from memory should be resisted

4 January 2021

Nearly everything that could go wrong did. The pandemic threw plans – and predictions – out the window. As the world emerges and maybe slingshots into a Roaring Twenties rebound, old appetites will return. But the divisions Covid-19 exposed in our societies can't be forgotten.

Corona Capital: Icahn, Productivity, Natixis

4 January 2021

Concise views on the pandemic’s corporate and financial fallout: Carl Icahn sells half his Herbalife Nutrition stake; an ECB survey suggests Covid-19 will make big firms more productive, but that may not be all good news; and Natixis fast-tracks its overhaul.

Vaccine jostling calls for U.S. rethink on pay

28 December 2020

Amazon, Uber and Cargill are among those lobbying for their workers to get priority access. They have a solid case for saying their staff are essential. But employing a workforce that’s critical to the national interest should come with responsibilities as well as privileges.

Big Pharma’s vaccine immunity will be fleeting

18 December 2020

Groups like Pfizer and AstraZeneca are emerging as pandemic heroes. Their ability to rapidly test, make and distribute vital doses will help quiet the industry’s critics. However, universities and governments also played a big part. Pressure to slash drug prices will soon return.

Philips’ cardiac deal carries heart-stopping price

18 December 2020

CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.

EU’s Google-Fitbit approval sets risky precedent

17 December 2020

Antitrust tsar Margrethe Vestager approved the $2.1 bln deal with conditions. The buyer’s pledges, like giving rival fitness trackers equal access to the Android operating system, are great in theory but hard to monitor. Vestager may only spot the loopholes once the harm is done.

Weed merger smells funky, but could offer high

16 December 2020

Canadian pot producer Aphria will combine with Tilray to form the world’s biggest cannabis company by sales. The deal looks to help Tilray shareholders more. Yet as companies position themselves for a post-legalization world, such tie-ups will be necessary for survival.

Corona Capital: Filming drama, Spanish bank

16 December 2020

Concise views on the pandemic’s corporate and financial fallout: Actor Tom Cruise’s outburst about social distancing may not have been scripted, but it’s on point; Spanish bank Sabadell lines up a new leader.

EQT’s $2.8 bln pharma bet relies on sales booster

14 December 2020

The Swedish buyout firm is buying manufacturer Recipharm, which handles outsourced production for drug giants like Moderna. Given the target’s already heavy borrowings, delivering a decent return for EQT’s investors will depend on ramping up revenue growth.

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: Vaccines

11 December 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. regulators prep to rubber-stamp the approval of Pfizer and BioNTech’s Covid-19 vaccine. Meanwhile, AstraZeneca will partner with Russia and its Sputnik V jab in a possible combination that could ease jitters.

Hong Kong joins the IPO pop parade

10 December 2020

First-day gains in the city’s debuts have bested New York’s this year for only the second time in a decade. Rallying stocks help, but JD Health’s 56% jump suggests a more dynamic market following a slew of tech listings. That bodes well amid growing competition with Shanghai.

Corona Capital: U.S. imports

8 December 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. consumers’ demand for products used at home help boost China’s shipments.

Sinovac deal is placebo to governance woes

7 December 2020

A unit of the Chinese company making the Covid-19 jabs rolled out by Beijing has won fresh funds pointing to a $3 bln-plus valuation for the scandal-hit parent. It’s cold comfort for owners of the U.S. stock halted since 2019, and reminder that the vaccine lead may not pay off.

Corona Capital: Movie releases, Ads, Running

4 December 2020

Concise views on the pandemic’s corporate and financial fallout: HBO Max uses its muscle on movie releases; advertising wins some and loses some; Brooks’ beast year.

Vaccine bottlenecks are main obstacle to recovery

3 December 2020

Rolling out Covid-19 jabs, as the UK will do next week, protects the vulnerable and lets authorities ease restrictions. But the logistical challenge means it could take a year to immunise two-thirds of the population. Other governments, too, will struggle with a sceptical public.

Healthcare IPO examines value of China’s big tech

2 December 2020

The unit of e-commerce giant JD priced its $3.5 bln offer at a reasonable 13 times sales. Virtual consultations and pharmacies are booming, supporting an official push for a healthy China. It’s a timely reminder that powerful internet platforms have valuable uses for Beijing.

AstraZeneca’s messaging warrants a review, too

27 November 2020

The $134 bln drug giant may do a new trial of its Covid-19 vaccine to clear up uncertainties over its effectiveness. Even if rivals’ look better, AstraZeneca has a good story to tell. Still, a share price dip this week reflects that overegging results is not where you want to be.