Pharmaceuticals

Merck has upper hand with Acceleron dissidents

18 October 2021

The biotech target's 7% shareholder, Avoro Capital, is among funds that reckon the roughly $11 billion price Merck is offering is not high enough. There are arguments on both sides. But knocking the deal off course will be tough, especially as other bidders didn't emerge.

Capital Calls: Klarna, French vaccine, Philips

18 October 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.

Belgian biotech casualty defies Darwinian logic

15 October 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.

Malaria vaccine can protect kids and economies

7 October 2021

The WHO approved its first jab for the deadly disease. Its primary target is the 274,000 mostly African children who die each year. But malaria also inflicts $12 bln of economic pain. That makes the shot’s roughly $1 bln annual cost one of the smartest sub-Saharan investments.

Merck-Acceleron deal would come with side effects

28 September 2021

The $186 bln drug giant may buy the $11 bln Acceleron. That would help Merck diversify by adding two possible blockbusters. But Acceleron already has a partner for both: Bristol Myers, which could yet lob in a bid. If Merck does prevail, the mix risks an adverse reaction.

Italy will be first to light up Europe’s weed biz

22 September 2021

A nationwide plebiscite will seek to legalise cannabis. Taxing recreational dope may add some 6 bln euros to strained state coffers, and production for medical and other uses will also rise. As the U.S. experience shows, if Rome crosses the sticky line, neighbours will follow.

Gene hunter IPO is missing link in British biotech

17 September 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.

Capital Calls: Fake crypto news summons regulation

13 September 2021

Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.

Juicy Nordic drug buyout needs safety label

2 September 2021

Advent and GIC are paying $8 bln for Swedish Orphan Biovitrum, which specialises in rare-disease treatments. The new owners will need to invest in fresh products and fend off rivals, all while keeping staff. The potential returns look appealing but come with a fair dose of risk.

Capital Calls: Pfizer M&A, Uber driver status

23 August 2021

The drugmaker has agreed to acquire Trillium Therapeutics for $2.3 billion, looking to its broader post-coronavirus strategy; a California judge has struck down a law exempting tech companies from treating drivers as full employees, complicating their push to keep costs down.

Booster jabs are easy money for Pfizer and Moderna

13 August 2021

The U.S. has authorized a third dose of Covid-19 vaccines for people most at risk. That’s under 3% of the population, but broader use is likely in rich countries. Both producers will benefit, even if Moderna’s $160 bln valuation counts on more than just boosters in the future.

Inhaler fight offers investors false moral choice

9 August 2021

Philip Morris International raised its 1 bln pound bid for UK pharma group Vectura, beating Carlyle’s sweetened offer. Shareholders that shun tobacco may prefer the buyout firm. But PMI has more strategic know-how and Carlyle could sell in a few years. Price should be decisive.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 August 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Novo Nordisk diet drug may finally be the big one

4 August 2021

Obesity costs America over $1 trln a year, but therapies have proved ineffective or worse. The $215 bln Danish group’s new injection works, and a fast start means annual sales may one day near $10 bln. If U.S. insurers play along, it could be one of the best-selling drugs ever.

Covid-19 test makers near risky M&A endgame

4 August 2021

Diagnostic groups like Roche and Abbott Laboratories were the big winners of the pandemic, with their market values swelling by nearly $230 bln. The advent of vaccines means demand for their services will wane. Dealmaking could be a fix but only if companies can avoid overpaying.

Capital Calls: GM, Hugo Boss, NYT, Frontier tech

4 August 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Sanofi M&A punt soothes France’s Covid-19 shame

3 August 2021

The $131 bln drugmaker bought U.S-listed Translate Bio for $3 bln. CEO Paul Hudson gets a leg up in hot mRNA technology, which trounced the French group’s traditional vaccines during the pandemic. Shareholder returns look distant, but the cost of standing still may be higher.

Capital Calls: U.S. GDP

29 July 2021

Concise views on global finance: Supply chain woes are tripping up solid U.S. economic growth. GDP grew 6.5% in the second quarter, a big miss from estimates of 8.5%.

Pfizer’s pandemic wealth produces ideal dealmaker

28 July 2021

The pharma giant raised its 2021 guidance, partly due to bumper Covid-19 vaccine sales. Free cash flow could hit $20 billion this year as a result. Even if share buybacks resume, CEO Albert Bourla has scope to take advantage of cheap biotech valuations by making acquisitions.

Capital Calls: Bank mergers, GlaxoSmithKline

28 July 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.