Pharmaceuticals

The Exchange: Vaccine optimist

26 May 2020

Lloyd Minor, the dean of Stanford’s school of medicine, tells Rob Cox that research into the coronavirus shows promising signs for the discovery of a vaccine. Just the same, the world needs to better prepare for pandemics, and medicine is at the cusp of extraordinary change.

Sanofi finds M&A cure to CEO foot-in-mouth disease

26 May 2020

The French drugmaker is selling a $13 bln stake in biotech Regeneron. CEO Paul Hudson, recently chastised for saying America would get first dibs on a Covid-19 vaccine, now has a pristine balance sheet to do deals and invest. It helps Sanofi’s growth problem, and public image.

J&J talc is a dry run for pandemic product risk

20 May 2020

The U.S. firm will stop selling talcum powder in the U.S. amid what it calls misinformation about its safety. That’s no big loss. But avoiding lawsuits can also deter companies from taking risks that aid the common good. Vaccines are an example, but the line isn’t always clear.

Moderna puts stock-sale opportunism to test

19 May 2020

The biotech pitching a Covid-19 vaccine joins a rapidly growing list of firms selling more shares to investors. It makes sense, given the market rebound, and some issuers’ need for cash. But the rush to sell by more speculative companies like Moderna should give buyers pause.

Corona Capital: Air travel, Starbucks

14 May 2020

Concise views on the pandemic’s corporate and financial fallout: Airlines’ experienced hands offer warning; Starbucks begins dance with landlords.

One odd U.S. healthcare habit to get a viral cure

13 May 2020

About half of Americans are insured through their employers. Many like it that way, which has hindered reform of an irrational system. With millions out of work, firms and workers will be more willing to consider alternatives. The window for improvement is about to crack open.

Corona Capital: Payments M&A brawl, Endeavor

7 May 2020

Concise views on the pandemic’s corporate and financial fallout: Payments firm Wex’s attempt to ditch a double deal for two UK rivals will face legal pushback and perhaps Elliott Management’s ire. Talent agency Endeavor’s 2018 Epic Games investment is starting to come in handy.

Corona Capital: Beyond Meat, Facebook, Natixis

6 May 2020

Concise views on the pandemic’s corporate and financial fallout: Beyond Meat’s stock burn, Facebook installs an oversight board, Natixis’s bad news-good news situation.

Biotech M&A deal looks too rich for its blood

5 May 2020

Alexion agreed to pay $1.4 bln for smaller rival Portola and its potentially promising drug to reverse anticoagulants. The target has been on a downward slide for years – but is still bagging a 132% premium. That’s baking in success, but it’s more likely Alexion is overpaying.

Corona Capital: U.S. GDP, Gilead’s drug, Spotify

29 April 2020

Concise views on the pandemic’s corporate and financial fallout: the U.S. economy takes a dive; Gilead’s antiviral drug may help a bit; and Spotify sings an upbeat tune.

Corona Capital: Extended Stay, Victoria’s Secret

22 April 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone checks back into one of its favorite old haunts, hotel chain Extended Stay; while another private-equity shop, Sycamore, tries to dump its proposed investment in lingerie seller Victoria’s Secret.

Market’s remedy rally more rational than it sounds

17 April 2020

Drugmaker Gilead’s anecdotal success treating Covid-19 sent its stock and the broader market up. It’s not total fantasy – even small changes in the odds of society reopening ought to boost asset prices. The gain in Gilead’s own stock is harder to explain.

J&J shows safety is relative

14 April 2020

The $368 bln healthcare giant upped its dividend as increased demand for painkillers and Listerine helped first-quarter revenue rise 3%. But consumer-goods sales are likely to shrink, medical-device revenue is in free fall and litigation risk remains. J&J’s success won’t last.

Blackstone has remedy for drug R&D cash burn

13 April 2020

The private-equity firm is sinking $2 bln into Alnylam, including buying rights to future revenue from a drug still under regulatory review. It's a way to match Blackstone's bulging wallet with the biotech’s hefty costs while limiting exposure to volatile equity markets.

Corona Capital: Banking bonuses, Local TV M&A

30 March 2020

Concise views on the pandemic’s corporate and financial fallout: BBVA’s ditched bonuses pressure peers; local TV deal has more than one struggle.

Virus clarifies case for universal U.S. healthcare

25 March 2020

The debate in America tends to get bogged down in how to change the system, losing sight of why. Other developed-country governments guarantee basic medical care for everyone. The Covid-19 pandemic shows why the benefits transcend wealth, politics and geography.

Virus stimulus strains bloated U.S. balance sheet

5 March 2020

Congress approved an $8 bln plan to mitigate a potential outbreak. It’s a rounding error next to the hundreds of billions that may be needed to stem economic damage. Tax cuts and a spending jump had already pushed the deficit to $1 trln, reducing fiscal room to deal with crises.

Gilead’s $4.9 bln deal shows regular death goes on

2 March 2020

The $88 bln biotech company has the best antiviral bet against coronavirus; it’s also now buying cancer startup Forty Seven. Investors are focused on the former today, but the purchase at a hefty premium is a reminder that the fight against the grim reaper is a long-term affair.

New Reckitt Benckiser boss embarks on deep clean

27 February 2020

Laxman Narasimhan is making up for past neglect at the Dettol maker with a major overhaul. The pain of a 5 bln pound write-down on baby-food group Mead Johnson is only partly soothed by ambitious medium-term growth goals. Splitting the health and hygiene units will have to wait.

AstraZeneca headache goes way beyond coronavirus

14 February 2020

China is the drugmaker’s second biggest market by sales, making the outbreak a bigger issue than for peers. But revenue there disappointed anyway, as did overall cancer drug sales. Pharma’s competitive pressures are making it harder for CEO Pascal Soriot to please investors.